Cover
Cover - shares | 9 Months Ended | |
Aug. 31, 2019 | Sep. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-5721 | |
Entity Registrant Name | JEFFERIES FINANCIAL GROUP INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-2615557 | |
Entity Address, Address Line One | 520 Madison Avenue | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 460-1900 | |
Title of 12(b) Security | Common Shares, par value $1 per share | |
Trading Symbol | JEF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 299,871,432 | |
Entity Central Index Key | 0000096223 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 6,011,350 | $ 5,258,809 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 658,335 | 707,960 | |
Financial instruments owned, at fair value (including securities pledged of $12,087,982 and $13,059,802): | |||
Trading assets, at fair value | 17,195,916 | 17,463,256 | |
Available for sale securities | 0 | 1,409,886 | |
Total financial instruments owned | 17,195,916 | 18,873,142 | |
Loans to and investments in associated companies | 2,346,297 | 2,417,332 | |
Securities borrowed | 7,895,149 | 6,538,212 | |
Securities purchased under agreements to resell | 4,499,995 | 2,785,758 | |
Receivables | 5,826,350 | 6,287,401 | |
Intangible assets, net and goodwill | 1,921,793 | 1,890,131 | |
Deferred tax asset, net | 509,772 | 512,789 | |
Other assets | 2,398,251 | 1,859,561 | |
Total assets | [1] | 49,263,208 | 47,131,095 |
LIABILITIES | |||
Short-term borrowings | 518,914 | 387,492 | |
Trading liabilities, at fair value | 10,296,315 | 9,478,946 | |
Securities loaned | 2,182,865 | 1,838,688 | |
Securities sold under agreements to repurchase | 8,236,981 | 8,643,069 | |
Other secured financings | 2,508,589 | 1,534,271 | |
Payables, expense accruals and other liabilities | 7,350,914 | 7,407,030 | |
Long-term debt | 7,968,785 | 7,617,563 | |
Total liabilities | [1] | 39,063,363 | 36,907,059 |
Commitments and contingencies | |||
MEZZANINE EQUITY | |||
Redeemable noncontrolling interests | 27,064 | 19,779 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 299,867,942 and 307,515,472 shares issued and outstanding, after deducting 17,178,934 and 109,460,774 shares held in treasury | 299,868 | 307,515 | |
Additional paid-in capital | 3,731,712 | 3,854,847 | |
Accumulated other comprehensive income (loss) | (266,452) | 288,286 | |
Retained earnings | 6,255,314 | 5,610,218 | |
Total Jefferies Financial Group Inc. shareholders’ equity | 10,020,442 | 10,060,866 | |
Noncontrolling interests | 27,339 | 18,391 | |
Total equity | 10,047,781 | 10,079,257 | |
Total | $ 49,263,208 | $ 47,131,095 | |
[1] | Total assets include assets related to variable interest entities of $726.8 million and $704.4 million at August 31, 2019 and November 30, 2018 , respectively, and Total liabilities include liabilities related to variable interest entities of $2,510.3 million and $1,535.8 million at August 31, 2019 and November 30, 2018 , respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 | |
ASSETS | |||
Securities pledged | $ 12,087,982 | $ 13,059,802 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common shares, par value (in dollars 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) | 299,867,942 | 307,515,472 | |
Treasury stock (in shares) | 17,178,934 | 109,460,774 | |
Assets | [1] | $ 49,263,208 | $ 47,131,095 |
Liabilities | [1] | 39,063,363 | 36,907,059 |
Variable interest entities | |||
Assets | 726,800 | 704,400 | |
Liabilities | $ 2,510,300 | $ 1,535,800 | |
[1] | Total assets include assets related to variable interest entities of $726.8 million and $704.4 million at August 31, 2019 and November 30, 2018 , respectively, and Total liabilities include liabilities related to variable interest entities of $2,510.3 million and $1,535.8 million at August 31, 2019 and November 30, 2018 , respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Revenues | $ 1,223,156 | $ 1,458,977 | $ 3,928,539 | $ 3,863,914 |
Interest expense | 23,663 | 28,837 | 69,819 | 74,614 |
Net revenues | 856,778 | 1,150,846 | 2,786,878 | 2,957,440 |
Expenses: | ||||
Compensation and benefits | 446,882 | 461,265 | 1,367,034 | 1,429,439 |
Cost of sales | 85,773 | 84,876 | 233,109 | 257,501 |
Floor brokerage and clearing fees | 50,858 | 44,570 | 163,113 | 131,792 |
Depreciation and amortization | 39,880 | 32,295 | 110,600 | 92,360 |
Selling, general and other expenses | 268,742 | 245,178 | 718,910 | 708,084 |
Total expenses | 915,798 | 897,021 | 2,662,585 | 2,693,790 |
Income (loss) from continuing operations before income taxes and income related to associated companies | (59,020) | 253,825 | 124,293 | 263,650 |
Income related to associated companies | 72,283 | 18,867 | 121,766 | 84,320 |
Income from continuing operations before income taxes | 13,263 | 272,692 | 246,059 | 347,970 |
Income tax provision (benefit) | (36,131) | 90,391 | (522,626) | 51,560 |
Income from continuing operations | 49,394 | 182,301 | 768,685 | 296,410 |
Income from discontinued operations, net of income tax provision of $0, $0, $0 and $47,045 | 0 | 0 | 0 | 130,063 |
Gain on disposal of discontinued operations, net of income tax provision of $0, $0, $0 and $229,553 | 0 | 0 | 0 | 643,921 |
Net income | 49,394 | 182,301 | 768,685 | 1,070,394 |
Net (income) loss attributable to the noncontrolling interests | 116 | 12,000 | (759) | 13,208 |
Net (income) loss attributable to the redeemable noncontrolling interests | 242 | (390) | (47) | (37,294) |
Preferred stock dividends | (1,275) | (1,276) | (3,827) | (3,619) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 48,477 | $ 192,635 | $ 764,052 | $ 1,042,689 |
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations (in dollars per share) | $ 0.16 | $ 0.56 | $ 2.44 | $ 0.86 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.26 |
Gain on disposal of discontinued operations (in dollars per share) | 0 | 0 | 0 | 1.82 |
Net income (in dollars per share) | 0.16 | 0.56 | 2.44 | 2.94 |
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations (in dollars per share) | 0.15 | 0.55 | 2.41 | 0.85 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.26 |
Gain on disposal of discontinued operations (in dollars per share) | 0 | 0 | 0 | 1.80 |
Net income (in dollars per share) | $ 0.15 | $ 0.55 | $ 2.41 | $ 2.91 |
Amounts attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations, net of taxes | $ 48,477 | $ 192,635 | $ 764,052 | $ 305,846 |
Income from discontinued operations, net of taxes | 0 | 0 | 0 | 92,922 |
Gain on disposal of discontinued operations, net of taxes | 0 | 0 | 0 | 643,921 |
Net income attributable to Jefferies Financial Group Inc. common shareholders | 48,477 | 192,635 | 764,052 | 1,042,689 |
Commissions and other fees | ||||
Revenues: | ||||
Revenues | 171,000 | 162,578 | 493,560 | 481,672 |
Principal transactions | ||||
Revenues: | ||||
Revenues | (20,920) | 116,204 | 465,451 | 315,622 |
Investment banking | ||||
Revenues: | ||||
Revenues | 410,796 | 460,043 | 1,126,479 | 1,400,331 |
Interest income | ||||
Revenues: | ||||
Revenues | 410,467 | 336,736 | 1,243,278 | 939,272 |
Manufacturing revenues | ||||
Revenues: | ||||
Revenues | 82,565 | 94,029 | 248,227 | 307,129 |
Other | ||||
Revenues: | ||||
Revenues | 169,248 | 289,387 | 351,544 | 419,888 |
Jefferies Group | ||||
Revenues: | ||||
Interest expense | $ 366,378 | $ 308,131 | $ 1,141,661 | $ 906,474 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Income tax provision | $ 0 | $ 0 | $ 0 | $ 47,045 |
Gain on disposal of discontinued operations, income tax provision | $ 0 | $ 0 | $ 0 | $ 229,553 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 49,394 | $ 182,301 | $ 768,685 | $ 1,070,394 |
Other comprehensive income (loss): | ||||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $58, $(424), $196 and $(567) | 198 | (1,198) | 577 | (1,606) |
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $0, $0, $(545,054) and $37 | 0 | (2) | (543,178) | (105) |
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $58, $(424), $545,250 and $(604) | 198 | (1,200) | (542,601) | (1,711) |
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(9,597), $(3,367), $(12,314) and $(4,160) | (30,070) | (27,660) | (39,263) | (59,067) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $0, $0, $0 and $(16) | 0 | 0 | 0 | (20,459) |
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(9,597), $(3,367), $(12,314) and $(4,144) | (30,070) | (27,660) | (39,263) | (79,526) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $1,984, $355, $8,791 and $4,596 | 5,889 | 1,169 | 26,040 | 15,887 |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $0, $48, $(166) and $126 | 0 | (101) | 493 | (371) |
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $1,984, $307, $8,957 and $4,470 | 5,889 | 1,068 | 26,533 | 15,516 |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $0, $0, $0 and $513 | 0 | 85 | 0 | 1,584 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0, $161 and $0 | 0 | 0 | (470) | 0 |
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $0, $0, $(161) and $513 | 0 | 85 | (470) | 1,584 |
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $0, $0, $0 and $0 | 0 | 0 | 0 | 0 |
Reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(120), $(169), $(361) and $(508) | 355 | 479 | 1,063 | 6,742 |
Net change in pension liability, net of income tax provision (benefit) of $120, $169, $361 and $508 | 355 | 479 | 1,063 | 6,742 |
Other comprehensive loss, net of income taxes | (23,628) | (27,228) | (554,738) | (57,395) |
Comprehensive income | 25,766 | 155,073 | 213,947 | 1,012,999 |
Comprehensive (income) loss attributable to the noncontrolling interests | 116 | 12,000 | (759) | 13,208 |
Comprehensive (income) loss attributable to the redeemable noncontrolling interests | 242 | (390) | (47) | (37,294) |
Preferred stock dividends | (1,275) | (1,276) | (3,827) | (3,619) |
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 24,849 | $ 165,407 | $ 209,314 | $ 985,294 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ 58 | $ (424) | $ 196 | $ (567) |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | (545,054) | 37 |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | 58 | (424) | 545,250 | (604) |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | (9,597) | (3,367) | (12,314) | (4,160) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | 0 | (16) |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | (9,597) | (3,367) | (12,314) | (4,144) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, tax provision (benefit) | 1,984 | 355 | 8,791 | 4,596 |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), tax provision (benefit) | 0 | 48 | (166) | 126 |
Net change in unrealized instrument specific credit risk gains (losses), tax provision (benefit) | 1,984 | 307 | 8,957 | 4,470 |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $(86) and $1,234 | 0 | 0 | 0 | 513 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | 161 | 0 |
Net change in unrealized cash flow hedges gains (losses), tax provision (benefit) | 0 | 0 | (161) | 513 |
Net pension gains (losses) arising during the period, tax provision (benefit) | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for pension (gains) losses included in net income (loss), tax provision (benefit) | (120) | (169) | (361) | (508) |
Net change in pension liability, tax provision (benefit) | $ 120 | $ 169 | $ 361 | $ 508 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2019 | Sep. 30, 2018 | |
Net cash flows from operating activities: | ||
Net income | $ 768,685 | $ 1,070,394 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Pre-tax income from discontinued operations, including gain on disposal | 0 | (1,050,582) |
Deferred income tax provision | 8,148 | 275,307 |
Recognition of accumulated other comprehensive income lodged taxes | (544,583) | 0 |
Depreciation and amortization of real estate, property, equipment and leasehold improvements | 100,679 | 80,647 |
Other amortization | (13,252) | (26,796) |
Share-based compensation | 37,036 | 37,975 |
Provision for doubtful accounts | 21,375 | 26,529 |
Income related to associated companies | (193,380) | (115,007) |
Distributions from associated companies | 249,895 | 98,426 |
Net (gains) losses related to property and equipment, and other assets | (56,706) | 10,833 |
Gain on sale of subsidiaries and associated companies | 0 | (221,712) |
Net change in: | ||
Securities deposited with clearing and depository organizations | (153) | 64,890 |
Trading assets | 123,734 | (1,670,376) |
Securities borrowed | (1,410,295) | 309,722 |
Securities purchased under agreements to resell | (1,772,192) | (53,020) |
Receivables from brokers, dealers and clearing organizations | 268,321 | (261,534) |
Receivables from customers of securities operations | 329,504 | (398,154) |
Other receivables | (47,657) | (70,514) |
Other assets | (100,165) | (23,910) |
Trading liabilities | 921,280 | 1,122,273 |
Securities loaned | 387,016 | (275,629) |
Securities sold under agreements to repurchase | (346,031) | 1,250,575 |
Payables to brokers, dealers and clearing organizations | (169,021) | (287,288) |
Payables to customers of securities operations | 422,840 | 523,611 |
Trade payables, expense accruals and other liabilities | (328,902) | (291,973) |
Other | 92,502 | (89,429) |
Net cash provided by (used for) operating activities - continuing operations | (1,251,322) | 35,258 |
Net cash provided by operating activities - discontinued operations | 0 | 164,650 |
Net cash provided by (used for) operating activities | (1,251,322) | 199,908 |
Net cash flows from investing activities: | ||
Acquisitions of property, equipment and leasehold improvements, and other assets | (164,165) | (282,397) |
Proceeds from disposals of property and equipment, and other assets | 20,134 | 11,994 |
Proceeds from sale of subsidiaries, net of expenses and cash of operations sold | 0 | 100,000 |
Proceeds from sale of associated companies | 0 | 379,130 |
Acquisitions, net of cash acquired | 100,743 | 0 |
Advances on notes, loans and other receivables | (333,198) | (10,000) |
Collections on notes, loans and other receivables | 202,516 | 17,404 |
Loans to and investments in associated companies | (172,493) | (1,936,496) |
Capital distributions and loan repayments from associated companies | 31,269 | 1,970,648 |
Purchases of investments (other than short-term) | (2,995) | (3,242,732) |
Proceeds from maturities of investments | 531,104 | 1,000,146 |
Proceeds from sales of investments | 890,259 | 1,012,423 |
Other | 0 | 130 |
Net cash provided by (used for) investing activities - continuing operations | 1,103,174 | (979,750) |
Net cash provided by investing activities - discontinued operations | 0 | 861,209 |
Net cash provided by (used for) investing activities | 1,103,174 | (118,541) |
Net cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 2,493,735 | 2,198,326 |
Repayment of debt | (2,141,271) | (2,024,680) |
Net change in other secured financings | 972,296 | 409,780 |
Net change in bank overdrafts | (9,028) | 2,369 |
Distributions to noncontrolling interests | (2,481) | 0 |
Contributions from noncontrolling interests | 6,771 | 113 |
Purchase of common shares for treasury | (372,849) | (635,835) |
Dividends paid | (112,455) | (111,776) |
Other | 792 | 3,942 |
Net cash provided by (used for) financing activities - continuing operations | 835,510 | (157,761) |
Net cash provided by financing activities - discontinued operations | 0 | 120,322 |
Net cash provided by (used for) financing activities | 835,510 | (37,439) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (18,243) | (16,469) |
Net increase in cash, cash equivalents and restricted cash | 669,119 | 27,459 |
Cash, cash equivalents and restricted cash at beginning of period | 6,012,662 | 5,774,505 |
Cash, cash equivalents and restricted cash at end of period | $ 6,681,781 | $ 5,801,964 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2019 | Sep. 30, 2018 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 6,011,350 | $ 4,895,788 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 623,363 | 878,616 |
Other assets | 47,068 | 27,560 |
Total cash, cash equivalents and restricted cash | $ 6,681,781 | $ 5,801,964 |
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 | Noncontrolling Interests |
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, adjusted | 10,156,791 | $ 356,227 | $ 4,676,038 | 345,140 | 4,746,364 | 10,123,769 | $ 33,022 |
Beginning 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] | |||||||
Net income | 1,029,481 | 1,042,689 | 1,042,689 | (13,208) | |||
Other comprehensive loss, net of taxes | (57,395) | (57,395) | (57,395) | ||||
Contributions from noncontrolling interests | 113 | 113 | |||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | 237,669 | 237,669 | 237,669 | ||||
Change in interest in consolidated subsidiary | 0 | 2,677 | 2,677 | (2,677) | |||
Share-based compensation expense | 37,975 | 37,975 | 37,975 | ||||
Change in fair value of redeemable noncontrolling interests | (28,136) | (28,136) | (28,136) | ||||
Consolidation of asset management entity | 8,316 | 8,316 | |||||
Exercise of options to purchase common shares | 2,485 | 109 | 2,376 | 2,485 | |||
Purchase of common shares for treasury | (635,835) | (26,316) | (609,519) | (635,835) | |||
Dividends | (116,690) | (116,690) | (116,690) | ||||
Other | 11,977 | 1,396 | 10,581 | 11,977 | 0 | ||
Ending Balance at Sep. 30, 2018 | 10,646,751 | 331,416 | 4,329,661 | 287,745 | 5,672,363 | 10,621,185 | 25,566 |
Beginning Balance at Jun. 30, 2018 | 10,567,441 | 333,311 | 4,366,631 | 314,973 | 5,523,277 | 10,538,192 | 29,249 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 180,635 | 192,635 | 192,635 | (12,000) | |||
Other comprehensive loss, net of taxes | (27,228) | (27,228) | (27,228) | ||||
Share-based compensation expense | 12,777 | 12,777 | 12,777 | ||||
Change in fair value of redeemable noncontrolling interests | (6,732) | (6,732) | (6,732) | ||||
Consolidation of asset management entity | 8,316 | 0 | 8,316 | ||||
Exercise of options to purchase common shares | 2,485 | 109 | 2,376 | 2,485 | |||
Purchase of common shares for treasury | (49,484) | (2,067) | (47,417) | (49,484) | |||
Dividends | (43,549) | (43,549) | (43,549) | ||||
Other | 2,090 | 63 | 2,026 | 2,089 | 1 | ||
Ending Balance at Sep. 30, 2018 | 10,646,751 | 331,416 | 4,329,661 | 287,745 | 5,672,363 | 10,621,185 | 25,566 |
Beginning Balance at Nov. 30, 2018 | 10,079,257 | 307,515 | 3,854,847 | 288,286 | 5,610,218 | 10,060,866 | 18,391 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 764,811 | 764,052 | 764,052 | 759 | |||
Other comprehensive loss, net of taxes | (554,738) | (554,738) | (554,738) | ||||
Contributions from noncontrolling interests | 6,771 | 0 | 6,771 | ||||
Distributions to noncontrolling interests | (2,481) | 0 | (2,481) | ||||
Issuance of shares for HomeFed acquisition | 181,780 | 9,295 | 168,585 | 177,880 | 3,900 | ||
Share-based compensation expense | 37,036 | 37,036 | 37,036 | ||||
Change in fair value of redeemable noncontrolling interests | (1,437) | (1,437) | (1,437) | ||||
Purchase of common shares for treasury | (355,280) | (17,891) | (337,389) | (355,280) | |||
Dividends | (118,956) | (118,956) | (118,956) | ||||
Other | 11,018 | 949 | 10,070 | 11,019 | (1) | ||
Ending Balance at Aug. 31, 2019 | 10,047,781 | 299,868 | 3,731,712 | (266,452) | 6,255,314 | 10,020,442 | 27,339 |
Beginning Balance at May. 31, 2019 | 9,877,361 | 290,687 | 3,559,156 | (242,824) | 6,246,852 | 9,853,871 | 23,490 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 48,361 | 48,477 | 48,477 | (116) | |||
Other comprehensive loss, net of taxes | (23,628) | (23,628) | (23,628) | ||||
Contributions from noncontrolling interests | 66 | 0 | 66 | ||||
Issuance of shares for HomeFed acquisition | 181,780 | 9,295 | 168,585 | 177,880 | 3,900 | ||
Share-based compensation expense | 12,150 | 12,150 | 12,150 | ||||
Change in fair value of redeemable noncontrolling interests | (2,558) | (2,558) | (2,558) | ||||
Purchase of common shares for treasury | (8,141) | (401) | (7,740) | (8,141) | |||
Dividends | (40,015) | (40,015) | (40,015) | ||||
Other | 2,405 | 287 | 2,119 | 2,406 | (1) | ||
Ending Balance at Aug. 31, 2019 | $ 10,047,781 | $ 299,868 | $ 3,731,712 | $ (266,452) | $ 6,255,314 | $ 10,020,442 | $ 27,339 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.10 | $ 0.375 | $ 0.325 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Aug. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Jefferies Financial Group Inc. ("Jefferies" or the "Company") 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. 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. 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. Merchant Banking is where we invest in unique long-term opportunities. Our current Merchant Banking businesses and investments include National Beef Packing Company, LLC ("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), The We Company, formerly known as WeWork, (global network of workspaces), HomeFed LLC ("HomeFed") (real estate), Idaho Timber (manufacturing) and FXCM Group, LLC ("FXCM") (provider of online foreign exchange trading services). Our Merchant Banking businesses and investments also included Leucadia Asset Management ("LAM") (asset management) and Berkadia Commercial Mortgage Holding LLC ("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") reducing our ownership in National Beef from 79% 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 31% interest in National Beef under the equity method of accounting. We classified the results of National Beef prior to June 5, 2018 as discontinued operations in the Consolidated Statements of Operations. See Note 23 for more information. At August 31, 2019 , we owned approximately 15% 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. In September 2019, the Jefferies Board of Directors approved a distribution to stockholders of Jefferies of these Spectrum Brands shares. Jefferies will distribute the 7,514,477 Spectrum Brands shares through a special pro rata dividend effective on October 11, 2019 to Jefferies stockholders of record as of the close of business on September 30, 2019. 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 August 31, 2019 . 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. 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 The We Company, which creates collaborative office communities, and have received $31.0 million in cash to date. We continue to own approximately 0.8% of the company. Our interest in The We Company is reflected in Trading assets in our financial statements at fair value. Through June 30, 2019, we owned an approximate 70% equity interest of HomeFed, which owns and develops residential and mixed-use real estate properties and accounted for our interest under the equity method. On July 1, 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. In connection with the merger, HomeFed stockholders received two shares of our common stock for each share of HomeFed common stock. A total of 9.3 million shares were issued, which were valued at $178.8 million at closing based on the market price of our common shares. As an offset to these issued shares, our Board of Directors authorized the repurchase of 9.25 million shares in the open market. The HomeFed acquisition was accounted for as a business combination. The fair value of the shares issued to acquire the remaining common shares of HomeFed implied an aggregate fair value of $596.4 million for 100% of HomeFed's equity balance. In accordance with purchase accounting, we preliminarily allocated the $596.4 million fair value for 100% of HomeFed to its assets, liabilities and noncontrolling interests. We recorded $101.7 million of cash, $413.2 million of real estate, $198.3 million of investments in associated companies, $37.4 million of deferred tax assets, $15.3 million of goodwill and intangibles, $6.6 million of other assets, $125.5 million of long-term debt, $46.7 million of payables, expense accruals and other liabilities and $3.9 million of noncontrolling interests. In addition, associated with the acquisition, we also recorded $32.4 million of goodwill generated by the establishment of $32.4 million of deferred tax liabilities related to allocated value exceeding the tax basis of some of the HomeFed net assets. The estimated weighted average useful lives for the amortizable intangibles were 4 years at time of acquisition. Our preliminary allocation of the acquisition price is based on our preliminary estimate of fair value for each of the acquired assets and liabilities, which were developed primarily utilizing discounted cash flow models. Such amounts are subject to revision as additional information about fair values of assets and liabilities becomes available. In connection with the acquisition of the remaining interest of HomeFed, we recognized a preliminary $72.1 million non-cash pre-tax gain in Other revenues on the remeasurement of our 70% interest in HomeFed to fair value. The fair value of our 70% interest in HomeFed was based on the implied $596.4 million equity value for 100% |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Our unaudited interim consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes which are normally included in our Form 10-K. These financial statements reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes are necessary to fairly state results for the interim periods presented. Results of operations for interim periods are not necessarily indicative of annual results of operations. For a detailed discussion about the Company’s significant accounting policies, see Note 2, Significant Accounting Policies, included in our Transition Report on Form 10-K for the year ended November 30, 2018 ("2018 10-K"). 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. 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. Jefferies Group has a November 30 year-end, which it retains for standalone reporting purposes. 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. During the third quarter of 2019, Jefferies Group has reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to clients. These fees were previously presented as Other revenues in our Consolidated Statements of Operations and are now presented within Commissions and other fees. Previously reported results are presented on a comparable basis. This change had the impact of increasing Commissions and other fees and reducing Other revenues by $7.2 million and $20.6 million for the three and nine months ended September 30, 2018 , respectively. There is no impact on Total revenues as a result of this change in presentation. Receivables At August 31, 2019 and November 30, 2018 , Receivables include receivables from brokers, dealers and clearing organizations of $2,931.0 million and $3,223.7 million , respectively, and receivables from customers of securities operations of $1,686.2 million and $2,017.1 million , respectively. Our subsidiary, Foursight Capital, had auto loan receivables of $720.8 million and $648.7 million at August 31, 2019 and November 30, 2018 , respectively. Based primarily on Beacon credit scores, Foursight Capital classifies its auto loan receivables as prime, near-prime and sub-prime based on the perceived credit risk at origination and generally considers prime receivables as those with a Beacon score of 680 and above, near-prime with scores between 620 and 679 and sub-prime with scores below 620. The credit quality classification at August 31, 2019 and November 30, 2018 was approximately 15% and 13% prime, 54% and 57% near-prime and 31% and 30% sub-prime, respectively. Payables, expense accruals and other liabilities At August 31, 2019 and November 30, 2018 , Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $2,253.0 million and $2,465.6 million , respectively, and payables to customers of securities operations of $3,599.6 million and $3,176.7 million , respectively. Supplemental Cash Flow Information For the Nine Months Ended August 31, September 30, 2018 (In thousands) Cash paid during the year for: Interest $ 1,257,311 $ 1,059,139 Income tax payments (refunds), net $ 25,825 $ 28,204 During the nine months ended August 31, 2019 , we had $178.8 million in non-cash investing activities related to the issuance of common stock for the acquisition of the remaining common stock of HomeFed. In June 2019, we entered into a Membership Interest Purchase Agreement ("MIPA") which provided for each of the owners of National Beef to purchase, in the aggregate, 100% of the ownership interests in Iowa Premium, LLC ("Iowa Premium"). The funds used to acquire Iowa Premium were provided by way of a permitted distribution from National Beef to its owners, of which our proportionate share was approximately $49.0 million . The distribution from National Beef and the acquisition of Iowa Premium are included in our Consolidated Statement of Cash Flows for the nine months ended August 31, 2019 . Immediately following the acquisition, we contributed our ownership interest in Iowa Premium to National Beef, which was a non-cash investing activity. Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the Financial Accounting Standards Board ("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. The population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition has been identified; however, the initial measurement of the contracts 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 | 9 Months Ended |
Aug. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial instruments, securities purchased under agreements to resell, trading liabilities and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") (within trading assets) of $573.5 million and $394.4 million at August 31, 2019 and November 30, 2018 , respectively, by level within the fair value hierarchy (in thousands): August 31, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,938,829 $ 162,382 $ 50,870 $ — $ 3,152,081 Corporate debt securities — 2,892,733 9,288 — 2,902,021 Collateralized debt obligations and collateralized loan obligations — 114,045 30,258 — 144,303 U.S. government and federal agency securities 2,115,452 204,076 — — 2,319,528 Municipal securities — 723,542 — — 723,542 Sovereign obligations 1,521,540 1,088,927 — — 2,610,467 Residential mortgage-backed securities — 1,405,246 17,929 — 1,423,175 Commercial mortgage-backed securities — 373,319 5,462 — 378,781 Other asset-backed securities — 490,055 34,598 — 524,653 Loans and other receivables — 1,460,982 75,563 — 1,536,545 Derivatives 10,587 2,982,776 16,024 (2,494,645 ) 514,742 Investments at fair value — 41,548 292,483 — 334,031 FXCM term loan — — 58,590 — 58,590 Total trading assets, excluding investments at fair value based on NAV $ 6,586,408 $ 11,939,631 $ 591,065 $ (2,494,645 ) $ 16,622,459 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Liabilities: Trading liabilities: Corporate equity securities $ 2,750,131 $ 7,097 $ 211 $ — $ 2,757,439 Corporate debt securities — 1,803,666 1,202 — 1,804,868 U.S. government and federal agency securities 1,922,145 — — — 1,922,145 Sovereign obligations 1,281,332 853,882 — — 2,135,214 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,097,178 16,630 — 1,113,808 Derivatives 7,327 3,088,068 66,787 (2,599,376 ) 562,806 Total trading liabilities $ 5,960,935 $ 6,849,891 $ 84,865 $ (2,599,376 ) $ 10,296,315 Long-term debt $ — $ 666,446 $ 348,063 $ — $ 1,014,509 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 $ — $ 485,425 $ 200,745 $ — $ 686,170 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. 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, 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 • Investment Grade Corporate Bonds: Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Investment grade corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. 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. Investment grade corporate bonds measured using alternative valuation techniques are categorized within Level 2 or Level 3 of the fair value hierarchy and are a limited portion of our investment grade corporate bonds. • 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 obtained from external pricing services 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 within 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 or Level 3 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • 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 Claim Receivables: Escrow and claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. 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 observable market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy. 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. 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 August 31, 2019 Equity Long/Short Hedge Funds (2) $ 292,205 $ — Equity Funds (3) 33,891 19,154 Commodity Funds (4) 15,212 — Multi-asset Funds (5) 231,991 — Other Funds (6) 158 — Total $ 573,457 $ 19,154 November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — Equity Funds (3) 40,070 20,996 Commodity Funds (4) 10,129 — Multi-asset Funds (5) 256,972 — Other Funds (6) 400 — Total $ 394,359 $ 20,996 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2019 and November 30, 2018 , approximately 94% and 0% , respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At August 31, 2019 and November 30, 2018 , 6% and 17% , respectively, of these investments are redeemable quarterly with 60 days prior written notice. Approximately 82% of the November 30, 2018 balance was redeemed during the nine months ended August 31, 2019 . (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies 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 be liquidated in approximately one to nine years . (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2019 and November 30, 2018 , investments representing approximately 4% and 15% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by Jefferies Group and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. Investments at fair value also include our investment in The We Company. We invested $9.0 million in The We Company in 2013 and currently own approximately 0.8% of the company. Our interest in The We Company is reflected in Trading assets, at fair value of $123.2 million and $254.4 million at August 31, 2019 and November 30, 2018 , respectively. Investment in FXCM Our investment in FXCM and associated companies consists of a senior secured term loan due February 15, 2021 ( $71.6 million principal outstanding at August 31, 2019 ), a 50% voting interest in FXCM and a majority of all distributions in respect of the equity of FXCM. Our investment in the FXCM term loan is reported within Trading assets, at fair value in our Consolidated Statements of Financial Condition. We classify our equity investment in FXCM in our August 31, 2019 and November 30, 2018 Consolidated Statements of Financial Condition as Loans to and investments in associated companies, as we have the ability to significantly influence FXCM through our seats on the board of directors. 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. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell may include embedded call features. The valuation of these instruments is based on review of expected future cash flows, interest rates, funding spreads and the fair value of the underlying collateral. Securities purchased under agreements to resell are categorized within Level 3 of the fair value hierarchy due to limited observability of the embedded derivative and unobservable credit spreads. Long-term Debt Long-term debt includes variable rate, fixed-to-floating rate, constant maturity swap, digital and Bermudan structured notes. These are valued using various valuation models that incorporate Jefferies Group's own credit spread, market price quotations from external pricing sources referencing the appropriate interest rate curves, volatilities and other inputs as well as prices for transactions in a given note during the period. Long-term debt notes are generally categorized within Level 2 of the fair value hierarchy where market trades have been observed during the quarter, otherwise they are categorized within Level 3. Level 3 Rollforwards 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 three months ended August 31, 2019 (in thousands): Three Months Ended August 31, 2019 Balance, May 31, 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, August 31, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at August 31, 2019 (1) Assets: Trading assets: Corporate equity securities $ 59,572 $ 12,547 $ 16,508 $ (17,502 ) $ — $ — $ (20,255 ) $ 50,870 $ 12,067 Corporate debt securities 8,346 (3,072 ) 1,175 (1,942 ) (85 ) — 4,866 9,288 (3,047 ) CDOs and CLOs 25,912 (1,499 ) — — (609 ) — 6,454 30,258 (2,097 ) Residential mortgage-backed securities 17,266 (1,917 ) — (65 ) (22 ) — 2,667 17,929 (1,435 ) Commercial mortgage-backed securities 12,530 (2,003 ) — (1,703 ) (3,362 ) — — 5,462 (3,143 ) Other asset-backed securities 43,185 (1,689 ) 13,497 (6,975 ) (5,500 ) — (7,920 ) 34,598 (1,068 ) Loans and other receivables 98,484 (2,847 ) 26,921 (33,409 ) (1,287 ) — (12,299 ) 75,563 (2,392 ) Investments at fair value 408,739 (152,162 ) 1,067 (296 ) — — 35,135 292,483 (152,162 ) FXCM term loan 56,600 2,293 — — (303 ) — — 58,590 2,293 Securities purchased under agreements to resell 25,000 — — — — — — 25,000 — Liabilities: Trading liabilities: Corporate equity securities $ 221 $ 401 $ (221 ) $ — $ (190 ) $ — $ — $ 211 $ (35 ) Corporate debt securities 669 (650 ) (34 ) — (369 ) — 1,586 1,202 649 Commercial mortgage-backed securities — — — 35 — — — 35 — Loans 9,428 (520 ) (10,281 ) 5,384 — — 12,619 16,630 531 Net derivatives (2) 47,449 (19,519 ) — 6,766 (14 ) — 16,081 50,763 18,507 Long-term debt (1) 236,562 7,455 — — — 114,641 (10,595 ) 348,063 (8,162 ) (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 August 31, 2019 were gains of $0.7 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. Analysis of Level 3 Assets and Liabilities for the three months ended August 31, 2019 During the three months ended August 31, 2019 , transfers of assets of $79.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Investments at fair value of $35.1 million and loans and other receivables of $23.7 million due to reduced pricing transparency. During the three months ended August 31, 2019 , transfers of assets of $70.3 million from Level 3 to Level 2 are primarily attributed to: • Loans and other receivables of $36.0 million and corporate equity securities of $22.1 million due to greater pricing transparency supporting classification into Level 2. During the three months ended August 31, 2019 , transfers of liabilities of $43.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Net derivatives of $17.6 million , loans of $13.3 million and structured notes of $11.0 million due to reduced market and pricing transparency. During the three months ended August 31, 2019 , transfers of liabilities of $23.8 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes of $21.6 million due to greater market transparency. Net losses on Level 3 assets were $150.3 million and net gains on Level 3 liabilities were $12.8 million for the three months ended August 31, 2019 . Net losses on Level 3 assets were primarily due to decreased market values across investments at fair value, corporate debt securities, loans and other receivables and commercial mortgage-backed securities, partially offset by increased market values in the FXCM term loan and across corporate equity securities. Net gains on Level 3 liabilities were primarily due to decreased market values across certain 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 nine months ended August 31, 2019 (in thousands): Nine Months Ended August 31, 2019 Balance, November 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, August 31, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at August 31, 2019 (1) Assets: Trading assets: Corporate equity securities $ 52,192 $ 15,499 $ 23,172 $ (25,431 ) $ (669 ) $ — $ (13,893 ) $ 50,870 $ 14,071 Corporate debt securities 9,484 (4,904 ) 6, |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Aug. 31, 2019 | |
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 3 and 19 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 International Swaps and Derivatives Association, Inc. ("ISDA") master netting agreements or similar agreements with counterparties. The following tables present the fair value and related number of derivative contracts at August 31, 2019 and November 30, 2018 categorized by type of derivative contract and the platform on which these derivatives are transacted. 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 (2) Fair Value Number of Contracts (2) August 31, 2019 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 38,588 1 $ — — Total derivatives designated as accounting hedges 38,588 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,766 39,912 873 45,448 Cleared OTC 863,437 3,335 903,989 3,947 Bilateral OTC 539,158 1,865 241,817 474 Foreign exchange contracts: Exchange-traded — 191 — 87 Bilateral OTC 552,066 8,566 548,854 8,319 Equity contracts: Exchange-traded 741,307 1,998,268 1,091,142 1,611,110 Bilateral OTC 228,415 4,073 357,356 4,428 Commodity contracts: Exchange-traded 1,418 9,523 — 6,239 Bilateral OTC 27,839 2,794 170 1,779 Credit contracts: Cleared OTC 5,210 12 7,988 16 Bilateral OTC 10,183 34 9,993 21 Total derivatives not designated as accounting hedges 2,970,799 3,162,182 Total gross derivative assets/ liabilities: Exchange-traded 744,491 1,092,015 Cleared OTC 907,235 911,977 Bilateral OTC 1,357,661 1,158,190 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (723,158 ) (723,158 ) Cleared OTC (871,162 ) (881,963 ) Bilateral OTC (900,325 ) (994,255 ) Net amounts per Consolidated Statement of Financial Condition (4) $ 514,742 $ 562,806 (continued) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) November 30, 2018 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 29,647 1 Total derivatives designated as accounting hedges — 29,647 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 924 32,159 513 66,095 Cleared OTC 422,670 2,095 411,833 2,394 Bilateral OTC 372,899 1,398 491,697 816 Foreign exchange contracts: Exchange-traded 42 538 2 690 Cleared OTC — — 36 3 Bilateral OTC 311,228 9,548 314,951 9,909 Equity contracts: Exchange-traded 1,202,927 2,104,684 2,061,137 1,779,836 Bilateral OTC 207,221 5,126 315,996 2,764 Commodity contracts: Exchange-traded 27,632 7,272 272 4,185 Bilateral OTC 10,191 1,274 1,445 1,498 Credit contracts: Cleared OTC 11,204 7 1,556 14 Bilateral OTC 13,768 123 11,618 79 Total derivatives not designated as accounting hedges 2,580,706 3,611,056 Total gross derivative assets/ liabilities: Exchange-traded 1,231,525 2,061,924 Cleared OTC 433,874 443,072 Bilateral OTC 915,307 1,135,707 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (1,190,951 ) (1,190,951 ) Cleared OTC (407,351 ) (418,779 ) Bilateral OTC (815,629 ) (903,320 ) Net amounts per Consolidated Statement of Financial Condition (4) $ 166,775 $ 1,127,653 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. 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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Interest rate swaps $ 28,052 $ (1,161 ) $ 69,843 $ (22,363 ) Long-term debt (28,519 ) 1,221 (72,288 ) 24,055 Total $ (467 ) $ 60 $ (2,445 ) $ 1,692 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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Interest rate contracts $ (89,864 ) $ 13,951 $ (193,715 ) $ 36,053 Foreign exchange contracts (1,839 ) (4,781 ) 269 6,737 Equity contracts 2,236 1,019 (118,354 ) (249,546 ) Commodity contracts 2,285 (6,845 ) 4,057 (23,150 ) Credit contracts 2,687 20 11,600 760 Total $ (84,495 ) $ 3,364 $ (296,143 ) $ (229,146 ) 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 August 31, 2019 (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 $ 18,781 $ 9,058 $ — $ (170 ) $ 27,669 Equity swaps and options 57,345 1 3,579 (3,572 ) 57,353 Credit default swaps 887 826 — (81 ) 1,632 Total return swaps 25,166 70,022 — (334 ) 94,854 Foreign currency forwards, swaps and options 112,654 4,740 7 (3,538 ) 113,863 Fixed income forwards 556 — — — 556 Interest rate swaps, options and forwards 76,320 225,447 183,737 (56,767 ) 428,737 Total $ 291,709 $ 310,094 $ 187,323 $ (64,462 ) 724,664 Cross product counterparty netting (26,934 ) Total OTC derivative assets included in Trading assets $ 697,730 (1) At August 31, 2019 , we held net exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $30.3 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 August 31, 2019 , cash collateral received was $213.2 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 $ 170 $ — $ — $ (170 ) $ — Equity swaps and options 8,679 123,854 49,873 (3,572 ) 178,834 Credit default swaps 35 6,291 — (81 ) 6,245 Total return swaps 77,259 25,160 — (334 ) 102,085 Foreign currency forwards, swaps and options 108,267 2,758 2,984 (3,538 ) 110,471 Fixed income forwards 868 — — — 868 Interest rate swaps, options and forwards 42,416 43,161 109,564 (56,767 ) 138,374 Total $ 237,694 $ 201,224 $ 162,421 $ (64,462 ) 536,877 Cross product counterparty netting (26,934 ) Total OTC derivative liabilities included in Trading liabilities $ 509,943 (1) At August 31, 2019 , we held net exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $370.8 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 August 31, 2019 , cash collateral pledged was $318.0 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. At August 31, 2019 , 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 $ 169,620 BBB- to BBB+ 47,945 BB+ or lower 275,252 Unrated 204,913 Total $ 697,730 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's 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 Jefferies Group's written credit related derivative contracts are as follows (in millions): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional August 31, 2019 Credit protection sold: Index credit default swaps $ — $ 96.8 $ — $ 96.8 Single name credit default swaps $ 7.6 $ 31.6 $ 32.9 $ 72.1 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 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): August 31, November 30, 2018 Derivative instrument liabilities with credit-risk-related contingent features $ 113.7 $ 93.5 Collateral posted $ (80.0 ) $ (61.5 ) Collateral received $ 57.0 $ 91.5 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 90.6 $ 123.3 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. 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 | 9 Months Ended |
Aug. 31, 2019 | |
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 returns 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, at fair value 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 August 31, 2019 Corporate equity securities $ 1,952,304 $ 147,845 $ 2,100,149 Corporate debt securities 174,936 1,946,659 2,121,595 Mortgage- and asset-backed securities — 2,041,563 2,041,563 U.S. government and federal agency securities 55,625 13,423,223 13,478,848 Municipal securities — 429,925 429,925 Sovereign obligations — 2,433,727 2,433,727 Loans and other receivables — 900,140 900,140 Total $ 2,182,865 $ 21,323,082 $ 23,505,947 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 obligations — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total August 31, 2019 Securities lending arrangements $ 1,305,512 $ 70,319 $ 635,864 $ 171,170 $ 2,182,865 Repurchase agreements 9,207,762 2,376,018 3,897,096 5,842,206 21,323,082 Total $ 10,513,274 $ 2,446,337 $ 4,532,960 $ 6,013,376 $ 23,505,947 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 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 August 31, 2019 and November 30, 2018 , the approximate fair value of securities received as collateral by Jefferies Group that may be sold or repledged was $31.1 billion and $23.1 billion , respectively. At August 31, 2019 and November 30, 2018 , a substantial portion of the securities received by Jefferies Group have been sold or repledged. Offsetting of Securities Financing Agreements To manage its exposure to credit risk associated with securities financing transactions, 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, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions). The following table provides information regarding 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. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at August 31, 2019 Securities borrowing arrangements $ 7,895,149 $ — $ 7,895,149 $ (707,436 ) $ (1,653,688 ) $ 5,534,025 Reverse repurchase agreements 17,586,096 (13,086,101 ) 4,499,995 (454,507 ) (3,817,544 ) 227,944 Liabilities at August 31, 2019 Securities lending arrangements $ 2,182,865 $ — $ 2,182,865 $ (707,436 ) $ (1,452,911 ) $ 22,518 Repurchase agreements 21,323,082 (13,086,101 ) 8,236,981 (454,507 ) (6,269,894 ) 1,512,580 Assets at November 30, 2018 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 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 (1) Under master netting agreements with its counterparties, Jefferies Group has 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 Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (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 August 31, 2019 , amounts include $5,473.0 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,322.7 million , and $382.9 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $392.4 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations Cash and securities deposited with clearing and depository organizations and segregated in accordance with regulatory regulations totaled $658.3 million and $708.0 million at August 31, 2019 and November 30, 2018 , respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies LLC as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers. |
Securitization Activities
Securitization Activities | 9 Months Ended |
Aug. 31, 2019 | |
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 these 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 variable interest entities ("VIEs"); however, the SPEs are generally not consolidated as Jefferies Group is not considered the primary beneficiary for these SPEs. Jefferies Group accounts for its 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). These securities are included in Trading assets in our Consolidated Statements of Financial Condition and are generally initially categorized as Level 2 within the fair value hierarchy. 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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Transferred assets $ 789.3 $ 1,865.5 $ 2,894.4 $ 5,665.9 Proceeds on new securitizations $ 789.3 $ 1,866.2 $ 2,966.3 $ 5,668.6 Cash flows received on retained interests $ 16.8 $ 17.2 $ 47.2 $ 35.7 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 August 31, 2019 and November 30, 2018 . 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): August 31, 2019 November 30, 2018 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 11,351.8 $ 123.8 $ 13,633.5 $ 365.3 U.S. government agency commercial mortgage-backed securities $ 1,374.9 $ 48.4 $ 2,027.6 $ 185.6 CLOs $ 3,430.0 $ 29.8 $ 3,512.0 $ 20.9 Consumer and other loans $ 975.0 $ 56.8 $ 604.1 $ 48.9 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 8. 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 8 for further information on securitization activities and VIEs. |
Available for Sale Securities a
Available for Sale Securities and Other Investments | 9 Months Ended |
Aug. 31, 2019 | |
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 Gross Gross Estimated 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 Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 Proceeds from the maturities and sales of available for sale securities during the nine months ended August 31, 2019 , were primarily invested in prime and government money market funds, which are classified as Cash and cash equivalents in the Consolidated Statement of Financial Condition at August 31, 2019 . At August 31, 2019 and 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 $195.3 million and $230.0 million , respectively. Impairments of $2.3 million and $0.0 million were recognized on these investments during the nine months ended August 31, 2019 and September 30, 2018 , respectively. There were no unrealized gains or losses recognized on these investments during the nine months ended August 31, 2019 and September 30, 2018 . |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Aug. 31, 2019 | |
Variable Interest Entities [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. August 31, November 30, 2018 Securities purchased under agreement to resell (1) $ 1,822.1 $ 883.1 Receivables 676.4 626.0 Other 49.0 78.4 Total assets $ 2,547.5 $ 1,587.5 Other secured financings (2) $ 2,508.0 $ 1,535.3 Other (3) 29.6 45.9 Total liabilities $ 2,537.6 $ 1,581.2 (1) Securities purchased under agreements to resell represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $1.0 million of the secured financings represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at November 30, 2018 . (3) Includes $27.3 million and $44.1 million at August 31, 2019 and November 30, 2018 , 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, and 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. At August 31, 2019 and November 30, 2018 , 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 nine months ended August 31, 2019 , automobile loan receivables aggregating $227.4 million were securitized by Foursight Capital in connection with a secured borrowing offering. The majority of the proceeds from issuance of the secured borrowing 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 August 31, 2019 CLOs $ 127.1 $ 0.9 $ 804.6 $ 8,062.8 Consumer loan and other asset-backed vehicles 525.1 — 668.8 3,020.6 Related party private equity vehicles 28.7 — 46.2 83.7 Other investment vehicles 504.9 — 522.8 8,559.9 Total $ 1,185.8 $ 0.9 $ 2,042.4 $ 19,727.0 November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan and other asset-backed 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 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 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, forward purchase agreements and reverse repurchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans, and trust claims. 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 in private equity funds (the "JCP Funds", including Jefferies Group's interests in Jefferies Capital Partners V L.P. and the Jefferies SBI USA Fund L.P. (together, "JCP Fund V")) managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, Jefferies Group committed to invest 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 August 31, 2019 and November 30, 2018 , Jefferies Group's total equity commitment in the JCP Entities was $139.3 million and $139.3 million , respectively, of which $121.7 million and $121.3 million , respectively, had been funded. The carrying value of Jefferies Group's equity investments in the JCP Entities was $28.7 million and $35.5 million at August 31, 2019 and November 30, 2018 , 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. Other Investment Vehicles. The carrying amount of our equity investment was $504.9 million and $203.6 million at August 31, 2019 and November 30, 2018 , respectively. Our unfunded equity commitment related to these investments totaled $18.0 million and $11.1 million at August 31, 2019 and November 30, 2018 , 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, trade and insurance claims 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 August 31, 2019 and November 30, 2018 , Jefferies Group held $1,712.9 million and $2,913.0 million of agency mortgage-backed securities, respectively, and $191.2 million and $170.5 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 structuring 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. FXCM is considered a 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 ( $58.6 million ) and the investment in associated company ( $72.8 million ), which totaled $131.4 million at August 31, 2019 . |
Loans to and Investments In Ass
Loans to and Investments In Associated Companies | 9 Months Ended |
Aug. 31, 2019 | |
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 accounted for under the equity method of accounting during the nine months ended August 31, 2019 and September 30, 2018 is as follows (in thousands): Loans to and investments in associated companies as of beginning of period Income (losses) related to associated companies Income (losses) related to Jefferies Group's associated companies (1) Contributions to (distributions from) associated companies, net Other Loans to and investments in associated companies as of end of period 2019 Jefferies Finance $ 728,560 $ — $ 1,035 $ (58,682 ) $ — $ 670,913 Berkadia (2) 245,228 — 72,231 (47,682 ) 722 270,499 National Beef 653,630 137,918 — (72,767 ) (10 ) 718,771 FXCM (3) 75,031 (5,589 ) — 3,500 (134 ) 72,808 Linkem (4) 165,157 (20,696 ) — 82,178 (8,226 ) 218,413 HomeFed (5) 337,542 7,902 — — (345,444 ) — HomeFed's associated companies — — — (3,054 ) 198,273 195,219 Other (4) 212,184 2,231 (1,652 ) (13,958 ) 869 199,674 Total $ 2,417,332 $ 121,766 $ 71,614 $ (110,465 ) $ (153,950 ) $ 2,346,297 2018 Jefferies Finance $ 655,467 $ — $ 36,497 $ 43,470 $ — $ 735,434 Berkadia (2) 210,594 80,092 — (42,064 ) (1,054 ) 247,568 National Beef — 83,287 — (48,656 ) 592,239 626,870 FXCM (3) 158,856 (19,322 ) — — (513 ) 139,021 Garcadia companies (6) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (3,601 ) 168,543 HomeFed 341,874 (3,338 ) — — — 338,536 Other 328,759 (57,511 ) (5,810 ) (60,630 ) (9,879 ) 194,929 Total $ 2,066,829 $ 84,320 $ 30,687 $ (134,300 ) $ 403,365 $ 2,450,901 (1) Primarily classified in Other revenues. (2) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (3) As further described in Note 3, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included in Loans to and investments in associated companies and our term loan is included in Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) Loans to and investments in associated companies at August 31, 2019 include loans and debt securities aggregating $83.7 million related to Linkem and Other. (5) As further described in Note 1, during the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. (6) 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. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 National Beef $ 75,867 $ 58,886 $ 137,918 $ 83,287 Berkadia — 28,350 — 80,092 FXCM (573 ) (4,282 ) (5,589 ) (19,322 ) Garcadia companies — 691 — 21,646 Linkem (12,115 ) (7,770 ) (20,696 ) (20,534 ) HomeFed 8,419 (7,783 ) 7,902 (3,338 ) Other (1) 685 (49,225 ) 2,231 (57,511 ) Total $ 72,283 $ 18,867 $ 121,766 $ 84,320 (1) Includes an impairment charge of $47.9 million related to Golden Queen Mining Company, LLC ("Golden Queen") during the three and nine months ended September 30, 2018 . 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 and was 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 result of our analysis indicated that the estimated fair value of our equity interest in Golden Queen was $62.3 million , which was $47.9 million lower than our prior carrying value at the end of the second quarter. 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 three and nine months ended September 30, 2018 . Income (losses) related to Jefferies Group's associated companies (primarily classified in Other revenues) includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Jefferies Finance $ (6,901 ) $ 5,931 $ 1,035 $ 36,497 Berkadia 24,286 — 72,231 — Other (92 ) (78 ) (1,652 ) (5,810 ) Total $ 17,293 $ 5,853 $ 71,614 $ 30,687 Jefferies Finance Through Jefferies Group, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), a 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 advisor for various loan funds. At August 31, 2019 , Jefferies Group and MassMutual each had equity commitments to Jefferies Finance of $750.0 million . At August 31, 2019 , $643.7 million of Jefferies Group's commitment was funded. The investment commitment is scheduled to expire on March 1, 2020 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 August 31, 2019 and November 30, 2018 . Advances are shared equally between Jefferies Group and MassMutual. The facility is scheduled to mature on March 1, 2020 with automatic one year extensions absent a 60 -day termination notice by either party. At August 31, 2019 and November 30, 2018 , 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 $0.3 million and $0.3 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $0.9 million and $2.0 million during the nine months ended August 31, 2019 and September 30, 2018 , 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 $44.6 million and $71.1 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $135.8 million and $282.1 million during the nine months ended August 31, 2019 and September 30, 2018 , 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 $8.2 million and $12.1 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $21.8 million and $45.5 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations. Jefferies Group acts as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees of $1.0 million and $0.4 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $2.3 million and $3.1 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations. At August 31, 2019 and November 30, 2018 , 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 CLOs. Gains (losses) related to the derivative contracts were not material. Jefferies Group acted as underwriter in connection with terms loans issued by Jefferies Finance. Underwriting fees charged to Jefferies Finance were $2.9 million and $0.0 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $3.9 million and $0.3 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively. Under a service agreement, Jefferies Group charged Jefferies Finance $12.3 million and $13.3 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $50.6 million and $48.3 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, for services provided. At August 31, 2019 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $12.9 million and a payable to Jefferies Finance, related to cash deposited with Jefferies Group, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition, of $13.7 million . At November 30, 2018 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $35.2 million and a payable to Jefferies Finance, related to cash deposited with Jefferies Group, 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 $2.1 million recorded in Trading liabilities in our Consolidated Statement of Financial Condition at August 31, 2019 and $0.2 million recorded in Payables, expense accruals and other liabilities and $0.4 million included in Trading liabilities in our Consolidated Statement of Financial Condition at November 30, 2018 . On March 28, 2019, Jefferies Group entered into a promissory note with Jefferies Finance with a principal amount of $1.0 billion , the proceeds of which were used in connection with Jefferies Group's investment banking loan syndication activities. Jefferies Group repaid Jefferies Finance the entire outstanding principal amount of this note on May 15, 2019. Interest paid on the note of $3.8 million is included in Interest expense of Jefferies Group within the Consolidated Statements of Operations. 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 advisor 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. At August 31, 2019 , the aggregate amount of commercial paper outstanding was $1.47 billion . 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 Note 23, 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. We are amortizing our basis 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 over their respective useful lives (weighted average life of 15 years ). FXCM We have a 50% voting interest in FXCM, a provider of online foreign exchange trading services. 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 and tradename over their respective useful lives (weighted average life of 11 years ). Garcadia Garcadia was a joint venture between us and Garff Enterprises, Inc. ("Garff") that owned and operated automobile dealerships comprised of domestic and foreign automobile makers. 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. 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 August 31, 2019 . We have approximately 48% of the total voting securities of Linkem. Additionally, we have made shareholder loans to Linkem with principal outstanding of $58.4 million at August 31, 2019 . These shareholder loans bear interest at 5% per annum and are due June 30, 2024. We account for our equity interest in Linkem on a two month lag. HomeFed Through June 30, 2019, we owned an approximate 70% equity interest of HomeFed’s outstanding common shares; however, we had contractually agreed to limit our voting rights such that we would 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 were voted. HomeFed develops and owns residential and mixed-use real estate properties. HomeFed was a public company traded on the Over-the-Counter Bulletin Board (Symbol: HOFD). As a result of a 1998 distribution to all of our shareholders, approximately 5% of HomeFed was beneficially owned by our Chairman at June 30, 2019. Three of our executives served on the board of directors of HomeFed, including our Chairman who served as HomeFed’s Chairman, and our President. Since we did not control HomeFed, our investment in HomeFed was accounted for under the equity method as an investment in an associated company. We accounted for our equity interest in HomeFed on a two month lag. On July 1, 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. In connection with the merger, HomeFed stockholders received two shares of our common stock for each share of HomeFed common stock. A total of 9.3 million shares were issued. HomeFed's Associated Companies HomeFed's equity method investments primarily consist of its interests in Brooklyn Renaissance Plaza and Hotel and RedSky JZ Fulton Investors. HomeFed accounts for its equity interests on a two month lag. Brooklyn Renaissance Plaza is comprised of a hotel operated by Marriott, an office building complex and a parking garage located in Brooklyn, New York. HomeFed owns a 25.8% equity interest in the hotel and a 61.25% equity interest in the office building and garage. Although HomeFed has a majority interest in the office building and garage, it does not have control, but only has the ability to exercise significant influence on this investment. As such, HomeFed accounts for the office building and garage under the equity method of accounting. HomeFed formed a joint venture partnership with RedSky JZ Fulton Holdings, LLC, for the acquisition and possible redevelopment of a development site located on the Fulton Mall corridor in Downtown Brooklyn, New York. The property consists of 15 separate tax lots, divided into two premier development sites which may be redeveloped with buildings consisting of up to 540,000 square feet of floor area development rights. HomeFed has a 49% membership in the joint venture. Other The following table provides required summarized data for certain equity method investments. The table includes Jefferies Finance and Berkadia for the nine months ended August 31, 2019 and September 30, 2018 , and National Beef for the nine months ended August 31, 2019 and for the period subsequent to the closing of the transaction with Marfrig on June 5, 2018 through September 30, 2018 (in thousands): For the Nine Months Ended August 31, September 30, Revenues $ 7,067,180 $ 3,341,369 Income from continuing operations before extraordinary items $ 654,014 $ 591,191 Net income $ 654,014 $ 591,191 |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 9 Months Ended |
Aug. 31, 2019 | |
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): August 31, November 30, 2018 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,225 $ 8,524 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $108,565 and $102,579 61,400 67,894 Trademarks and tradenames, net of accumulated amortization of $23,697 and $21,086 103,903 107,262 Other, net of accumulated amortization of $4,566 and $4,339 (1) 13,310 4,611 Total intangible assets, net 186,838 188,291 Goodwill: Jefferies Group 1,694,785 1,698,381 HomeFed (1) 36,711 — Other operations 3,459 3,459 Total goodwill 1,734,955 1,701,840 Total intangible assets, net and goodwill $ 1,921,793 $ 1,890,131 (1) In connection with the acquisition of the remaining interest in HomeFed, $11.0 million was preliminarily allocated to intangible assets, primarily relating to lease contracts, and $4.3 million was preliminarily allocated to goodwill. In addition, associated with the acquisition, we also preliminarily recorded $32.4 million of goodwill generated by the establishment of $32.4 million of deferred tax liabilities related to allocated value exceeding the tax basis of some of the HomeFed net assets. Amortization expense on intangible assets included in Income from continuing operations was $4.0 million and $3.3 million for the three months ended August 31, 2019 and September 30, 2018 , respectively, and $10.6 million and $9.9 million for the nine months ended August 31, 2019 and September 30, 2018 , respectively. The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 4,038 2020 $ 15,221 2021 $ 14,748 2022 $ 11,460 2023 $ 10,077 Goodwill and Intangible Impairment Testing We performed our annual impairment testing of Jefferies Group goodwill as of August 1, 2019. 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 value of Jefferies Group is 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 and/or projected cash flows. 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, 2019. The results of our annual goodwill impairment test for Jefferies Group did not indicate any goodwill impairment. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Aug. 31, 2019 | |
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): August 31, November 30, 2018 Bank loans $ 518,914 $ 330,942 Floating rate puttable notes — 56,550 Total short-term borrowings $ 518,914 $ 387,492 At August 31, 2019 and November 30, 2018 , the weighted average interest rate on short-term borrowings outstanding was 3.42% and 3.08% per annum, respectively. Jefferies Group's floating rate puttable notes with a principal amount of €50.0 million matured on July 29, 2019. On March 28, 2019, Jefferies Group entered into a promissory note with Jefferies Finance, which was repaid on May 15, 2019. See Note 9 for further information. On December 27, 2018, one of Jefferies Group's subsidiaries entered into a credit facility agreement ("Jefferies Group Credit Facility") with JPMorgan Chase Bank, N.A. for a committed amount of $135.0 million , which is included in bank loans. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate ("LIBOR"), as defined in the Jefferies Group Credit Facility. The Jefferies Group Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also require the borrower to maintain specified leverage amounts and impose certain restrictions on the borrower’s future indebtedness. During the nine months ended August 31, 2019 , Jefferies Group was in compliance with all debt covenants under the Jefferies Group Credit Facility. The Bank of New York Mellon has agreed to make revolving intraday credit advances ("Intraday Credit Facility") to Jefferies Group 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 August 31, 2019 , Jefferies Group was in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Aug. 31, 2019 | |
Aggregate Indebtedness [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): August 31, November 30, 2018 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 744,297 $ 743,397 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,758 246,719 Total long-term debt – Parent Company 991,055 990,116 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 8.50% Senior Notes, due July 15, 2019, $0 and $680,800 principal — 699,659 2.375% Euro Medium Term Notes, due May 20, 2020, $548,950 and $565,500 principal 548,566 564,702 6.875% Senior Notes, due April 15, 2021, $750,000 principal 779,078 791,814 2.25% Euro Medium Term Notes, due July 13, 2022, $4,392 and $4,524 principal 4,171 4,243 5.125% Senior Notes, due January 20, 2023, $600,000 principal 610,762 612,928 1.00% Euro Medium Term Notes, due July 19, 2024, $548,950 and $0 principal 546,855 — 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 782,156 709,484 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 371,998 373,669 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 988,440 987,788 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,363 511,662 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,338 420,625 Structured Notes (2) 1,014,509 686,170 Jefferies Group Revolving Credit Facility 188,927 183,539 HomeFed EB-5 Program debt 131,395 — Other 79,172 81,164 Total long-term debt – subsidiaries 6,977,730 6,627,447 Long-term debt $ 7,968,785 $ 7,617,563 (1) Amount includes a loss of $72.3 million and a gain of $24.1 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income (loss) and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. Subsidiary Debt : Structured notes with a total principal amount of approximately $283.2 million , net of retirements, were issued by Jefferies Group during the nine months ended August 31, 2019 . In addition, on July 19, 2019, under its $2.5 billion Euro Medium Term Note Program, Jefferies Group issued 1.000% senior unsecured notes with a principal amount of $553.6 million , due 2024. Proceeds amounted to $551.4 million . Additionally, during the nine months ended August 31, 2019 , Jefferies Group repaid $680.8 million of its 8.50% Senior Notes. Jefferies Group has a senior secured revolving credit facility ("Jefferies Group Revolving Credit Facility") with a group of commercial banks for an aggregate principal amount of $190.0 million . The Jefferies Group Revolving Credit Facility contains certain covenants that, among other things, requires Jefferies Group LLC to maintain specified level of tangible net worth and liquidity amounts, and imposes certain restrictions on future indebtedness of and requires specified levels of regulated capital for certain of Jefferies Groups subsidiaries. Interest is based on an annual alternative base rate or an adjusted LIBOR, as defined in the Jefferies Group Revolving Credit Facility agreement. The obligations of certain of Jefferies Group's subsidiaries under the Jefferies Group Revolving Credit Facility are secured by substantially all its assets. At August 31, 2019 , Jefferies Group was in compliance with the debt covenants under the Jefferies Group Revolving Credit Facility. At August 31, 2019 , Foursight Capital's credit facilities consisted of two warehouse credit commitments aggregating $175.0 million , which mature in May 2021. One of the credit facilities bears interest based on the three month LIBOR plus a credit spread fixed through its maturity and the other credit facility bears interest based on the one month LIBOR plus a credit spread fixed through its maturity. As a condition of the credit facilities, Foursight Capital is obligated to maintain cash reserves to comply with the hedging requirements of the credit commitment. At August 31, 2019 and November 30, 2018 , no amounts were outstanding under Foursight Capital's credit facilities. HomeFed funds certain of its real estate projects in part by raising funds under the Immigrant Investor Program administered by the U.S. Citizenship and Immigration Services pursuant to the Immigration and Nationality Act ("EB-5 Program"). This program was created to stimulate the U.S. economy through the creation of jobs and capital investments in U.S. companies by foreign investors. This debt is secured by certain real estate of HomeFed. At August 31, 2019 , HomeFed was in compliance with all debt covenants which include, among other requirements, limitations on incurrence of debt, collateral requirements and restricted use of proceeds. $124.5 million of the debt matures in 2024 (including extension options) and the remainder matures in 2026 (including extension options). |
Mezzanine Equity
Mezzanine Equity | 9 Months Ended |
Aug. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests The following table shows the activity of National Beef’s redeemable noncontrolling interests (prior to its deconsolidation in June 2018) during the nine months ended September 30, 2018 (in thousands): Balance, January 1, 2018 $ 412,128 Income allocated to redeemable noncontrolling interests 37,141 Distributions to redeemable noncontrolling interests (70,681 ) Increase in fair value of redeemable noncontrolling interests 21,404 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) Deconsolidation of National Beef (162,323 ) Balance, September 30, 2018 $ — At August 31, 2019 and November 30, 2018 , redeemable noncontrolling interests include other redeemable noncontrolling interests of $27.1 million and $19.8 million , respectively, primarily related to our oil and gas exploration and development businesses. 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 2018, we increased our quarterly dividend from $0.10 to $0.125 per common share. These increased the preferred stock dividend from $3.6 million for the nine months ended September 30, 2018 to $3.8 million for the nine months ended August 31, 2019 . Based on our current quarterly dividend of $0.125 per common share, the effective rate on these Preferred Shares is approximately 4.1% . 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 | 9 Months Ended |
Aug. 31, 2019 | |
Share-based Compensation [Abstract] | |
Compensation Plans | Compensation Plans Restricted Stock and Restricted Stock Units. Restricted stock and restricted stock units ("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. Stock-Based Compensation Expense. Compensation and benefits expense included $12.2 million and $12.8 million for the three months ended August 31, 2019 and September 30, 2018 , respectively, and $37.0 million and $38.0 million for the nine months ended August 31, 2019 and September 30, 2018 , 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 $3.0 million and $4.0 million for the three months ended August 31, 2019 and September 30, 2018 , respectively, and $9.3 million and $10.0 million for the nine months ended August 31, 2019 and September 30, 2018 , respectively. At August 31, 2019 , total unrecognized compensation cost related to nonvested share-based compensation plans was $92.5 million ; this cost is expected to be recognized over a weighted average period of three years . At August 31, 2019 , there were 2,074,000 shares of restricted stock outstanding with future service required, 6,049,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 14,592,000 RSUs outstanding with no future service required and 919,000 shares issuable under other plans. The maximum potential increase to common shares outstanding resulting from these outstanding awards is 21,560,000 . Restricted Cash Awards. Jefferies Group provides compensation to certain 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 August 31, 2019 , the remaining unamortized amount of the restricted cash awards was $498.1 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 three years . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Aug. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Activity in accumulated other comprehensive income (loss) 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 (loss), net of taxes is as follows (in thousands): August 31, November 30, 2018 Net unrealized gains on available for sale securities $ 231 $ 542,832 Net unrealized foreign exchange losses (232,665 ) (193,402 ) Net unrealized gains (losses) on instrument specific credit risk 20,805 (5,728 ) Net unrealized gains on cash flow hedges — 470 Net minimum pension liability (54,823 ) (55,886 ) $ (266,452 ) $ 288,286 Amounts reclassified out of accumulated other comprehensive income (loss) to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations For the Nine Months Ended August 31, September 30, Net unrealized gains (losses) on available for sale securities, net of income tax provision (benefit) of $(545,054) and $37 $ 543,178 $ 105 Other revenues and Income tax provision (benefit) Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $0 and $(16) — 20,459 Other revenues and Selling, general and other expenses Net unrealized (gains) losses on instrument specific credit risk, net of income tax provision (benefit) of $(166) and $126 (493 ) 371 Principal transactions revenues Net unrealized gains on cash flow hedges, net of income tax provision (benefit) of $161 and $0 470 — Other revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(361) and $(508) (1,063 ) (1,398 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $0 — (5,344 ) Compensation and benefits expense Total reclassifications for the period, net of tax $ 542,092 $ 14,193 During the second quarter of 2019, we completed the sale of our available for sale portfolio. In connection therewith, we recognized a tax benefit of $544.6 million during the nine months ended August 31, 2019 . Unrealized gains and losses on available for sale securities, and their associated tax impacts, are recorded directly to equity as part of the Accumulated other comprehensive income (loss) balance. Following the portfolio approach, when unrealized gains and losses and their associated tax impacts are recorded at a then current tax rate, and then realized later at a different tax rate, the difference between the tax impact initially recorded in Accumulated other comprehensive income (loss) and the tax impact removed from Accumulated other comprehensive income (loss) upon realization remains in Accumulated other comprehensive income (loss) until the disposal of the portfolio and is referred to as a "lodged tax effect." Large changes in the fair value of our available for sale securities, primarily during 2008 through 2010, combined with fluctuations in our tax rate during those periods, generated a lodged tax benefit of $544.6 million . As a result of recent steps to improve our Corporate investment management efforts, we sold the remaining portion of our available for sale portfolio in the second quarter of 2019, which resulted in the realization of the $544.6 million tax benefit. While this realization did not impact total equity, it resulted in a tax benefit reflected in the Consolidated Statement of Operations of $544.6 million and, as a result, Retained earnings increased and Accumulated other comprehensive income (loss) decreased by corresponding amounts. The remaining net unrealized gains on available for sale securities at August 31, 2019 represents Jefferies Group's share of Berkadia's net unrealized gains on available for sale securities recorded under the equity method of accounting. 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 Statement of Operations from Accumulated other comprehensive income (loss) during the nine months ended September 30, 2018 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Aug. 31, 2019 | |
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 (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Revenues from contracts with customers: Commissions and other fees (1) $ 171,000 $ 162,578 $ 493,560 $ 481,672 Investment banking 410,796 460,043 1,126,479 1,400,331 Manufacturing revenues 82,565 94,029 248,227 307,129 Other 70,066 63,429 186,175 153,916 Total revenues from contracts with customers 734,427 780,079 2,054,441 2,343,048 Other sources of revenue: Principal transactions (20,920 ) 116,204 465,451 315,622 Interest income 410,467 336,736 1,243,278 939,272 Other 99,182 225,958 165,369 265,972 Total revenues from other sources 488,729 678,898 1,874,098 1,520,866 Total revenues $ 1,223,156 $ 1,458,977 $ 3,928,539 $ 3,863,914 (1) During the third quarter of 2019, Jefferies Group has reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to its clients. These fees were previously presented as Other revenues in our Consolidated Statements of Operations and are now presented within Commissions and other fees. There is no impact on Total revenues as a result of this change in presentation. Previously reported results are presented on a comparable basis. Revenues from contracts with customers are 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 revenues 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. Commission 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 earns 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 (in thousands): Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Three months ended August 31, 2019 Jefferies Group: Equities (1) $ 167,528 $ — $ — $ (3 ) $ 167,525 Fixed Income (1) 3,475 — — — 3,475 Investment Banking - Capital markets 199,183 — — (1,737 ) 197,446 Investment Banking - Advisory 213,350 — — — 213,350 Asset Management 3,340 — — — 3,340 Manufacturing revenues — 82,565 — — 82,565 Oil and gas revenues — 45,012 — — 45,012 Other revenues — 21,714 — — 21,714 Total revenues from contracts with customers $ 586,876 $ 149,291 $ — $ (1,740 ) $ 734,427 Primary Geographic Region: Americas $ 478,920 $ 148,808 $ — $ (47 ) $ 627,681 Europe, Middle East and Africa 90,293 226 — (1,693 ) 88,826 Asia 17,663 257 — — 17,920 Total revenues from contracts with customers $ 586,876 $ 149,291 $ — $ (1,740 ) $ 734,427 Three months ended September 30, 2018 Jefferies Group: Equities (1) $ 159,693 $ — $ — $ (122 ) $ 159,571 Fixed Income (1) 3,007 — — — 3,007 Investment Banking - Capital markets 277,735 — — — 277,735 Investment Banking - Advisory 187,591 — — (5,283 ) 182,308 Asset Management 5,184 — — — 5,184 Manufacturing revenues — 94,029 — — 94,029 Oil and gas revenues — 46,506 — — 46,506 Other revenues — 11,739 — — 11,739 Total revenues from contracts with customers $ 633,210 $ 152,274 $ — $ (5,405 ) $ 780,079 Primary Geographic Region: Americas $ 551,403 $ 151,687 $ — $ (5,405 ) $ 697,685 Europe, Middle East and Africa 62,914 514 — — 63,428 Asia 18,893 73 — — 18,966 Total revenues from contracts with customers $ 633,210 $ 152,274 $ — $ (5,405 ) $ 780,079 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Nine months ended August 31, 2019 Jefferies Group: Equities (1) $ 483,771 $ — $ — $ (283 ) $ 483,488 Fixed Income (1) 10,072 — — — 10,072 Investment Banking - Capital markets 555,830 — — (1,737 ) 554,093 Investment Banking - Advisory 572,386 — — — 572,386 Asset Management 14,559 — — — 14,559 Manufacturing revenues — 248,227 — — 248,227 Oil and gas revenues — 129,029 — — 129,029 Other revenues — 42,587 — — 42,587 Total revenues from contracts with customers $ 1,636,618 $ 419,843 $ — $ (2,020 ) $ 2,054,441 Primary Geographic Region: Americas $ 1,296,864 $ 418,840 $ — $ (327 ) $ 1,715,377 Europe, Middle East and Africa 286,346 683 — (1,693 ) 285,336 Asia 53,408 320 — — 53,728 Total revenues from contracts with customers $ 1,636,618 $ 419,843 $ — $ (2,020 ) $ 2,054,441 Nine months ended September 30, 2018 Jefferies Group: Equities (1) $ 471,683 $ — $ — $ (522 ) $ 471,161 Fixed Income (1) 10,511 — — — 10,511 Investment Banking - Capital markets 809,884 — — — 809,884 Investment Banking - Advisory 595,730 — — (5,283 ) 590,447 Asset Management 16,130 — — — 16,130 Manufacturing revenues — 307,129 — — 307,129 Oil and gas revenues — 106,741 — — 106,741 Other revenues — 31,045 — — 31,045 Total revenues from contracts with customers $ 1,903,938 $ 444,915 $ — $ (5,805 ) $ 2,343,048 Primary Geographic Region: Americas $ 1,644,633 $ 443,718 $ — $ (5,805 ) $ 2,082,546 Europe, Middle East and Africa 203,103 976 — — 204,079 Asia 56,202 221 — — 56,423 Total revenues from contracts with customers $ 1,903,938 $ 444,915 $ — $ (5,805 ) $ 2,343,048 (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 August 31, 2019 . 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 August 31, 2019 . Jefferies Group recognized $9.6 million and $4.4 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $27.2 million and $18.3 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, of revenues 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 $6.0 million and $4.6 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $15.8 million and $13.5 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, of revenues primarily associated with distribution services, 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. We had receivables related to revenues from contracts with customers of $276.7 million and $250.6 million at August 31, 2019 and November 30, 2018 , respectively. We had no significant impairments related to these receivables during the three and nine months ended August 31, 2019 and September 30, 2018 . Jefferies Group's deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Our deferred revenue, which primarily relates to Jefferies Group, was $12.9 million and $14.2 million at August 31, 2019 and November 30, 2018 , respectively, which are recorded as Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. During the three months ended August 31, 2019 , we recognized $9.6 million of deferred revenue from the balance at May 31, 2019. During the three months ended September 30, 2018 , we recognized $6.3 million of deferred revenue from the balance at June 30, 2018. During the nine months ended August 31, 2019 , we recognized $9.8 million of deferred revenue from the balance at November 30, 2018 . During the nine months ended September 30, 2018 , we recognized $12.9 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 August 31, 2019 and November 30, 2018 , Jefferies Group's capitalized costs to fulfill a contract were $4.4 million and $4.7 million , respectively, which are recorded in Receivables in the Consolidated Statements of Financial Condition. Jefferies Group recognized expenses of $1.6 million and $1.5 million during the three months ended August 31, 2019 and September 30, 2018 , respectively, and $3.8 million and $1.5 million , during the nine months ended August 31, 2019 and September 30, 2018 , respectively, 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 three and nine months ended August 31, 2019 and September 30, 2018 . At August 31, 2019 and November 30, 2018 |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions was $253.3 million (including $60.5 million for interest) at August 31, 2019, of which $180.1 million related to Jefferies Group, and was $251.4 million (including $54.1 million for interest) at November 30, 2018, of which $174.9 million related to Jefferies Group. If recognized, such amounts would lower our effective tax rate. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense. No material penalties were accrued for the nine months ended August 31, 2019 and September 30, 2018 . The statute of limitations with respect to our federal income tax returns has expired for all years through 2015. We are currently under examination in a number of 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 in a number of 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. The new tax on global intangible low-taxed income ("GILTI") became applicable in fiscal 2019. As a result, we made an accounting policy election in the first quarter of 2019 to treat GILTI as a period cost if and when incurred. Our benefit for income taxes for continuing operations for the nine months ended August 31, 2019 was $522.6 million . Our provisions for income taxes three and nine months ended August 31, 2019 were reduced by $36.0 million resulting from the reversal of deferred tax liabilities that existed at the HomeFed acquisition. Prior to its consolidation on July 1, 2019, HomeFed was accounted for under the equity method as an investment in an associated company. Since we have the intent and ability under the tax law to recover the investment tax-free, the deferred tax liability associated with the equity method investment was derecognized. As discussed above, during the second quarter of 2019, we completed the sale of our available for sale portfolio. In connection therewith, we recognized a tax benefit of $544.6 million during the nine months ended August 31, 2019 . Unrealized gains and losses on available for sale securities, and their associated tax impacts, are recorded directly to equity as part of the Accumulated other comprehensive income (loss) balance. Following the portfolio approach, when unrealized gains and losses and their associated tax impacts are recorded at a then current tax rate, and then realized later at a different tax rate, the difference between the tax impact initially recorded in Accumulated other comprehensive income (loss) and the tax impact removed from Accumulated other comprehensive income (loss) upon realization remains in Accumulated other comprehensive income (loss) until the disposal of the portfolio and is referred to as a "lodged tax effect." Large changes in the fair value of our available for sale securities, primarily during 2008 through 2010, combined with fluctuations in our tax rate during those periods, generated a lodged tax benefit of $544.6 million . As a result of recent steps to improve our Corporate investment management efforts, we sold the remaining portion of our available for sale portfolio in the second quarter of 2019, which resulted in the realization of the $544.6 million tax benefit. While this realization did not impact total equity, it resulted in a tax benefit reflected in the Consolidated Statement of Operations of $544.6 million and, as a result, Retained earnings increased and Accumulated other comprehensive income (loss) decreased by corresponding amounts. Our provision for income taxes for continuing operations for the nine months ended September 30, 2018 was reduced by a $43.9 million |
Common Share and Earnings Per C
Common Share and Earnings Per Common Share | 9 Months Ended |
Aug. 31, 2019 | |
Earnings Per Share [Abstract] | |
Common Share and Earnings Per Common Share | Common Share 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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 48,477 $ 192,635 $ 764,052 $ 1,042,689 Allocation of earnings to participating securities (1) (316 ) (1,054 ) (4,667 ) (5,049 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 48,161 191,581 759,385 1,037,640 Adjustment to allocation of earnings to participating securities related to diluted shares (1) (7 ) 3 29 34 Mandatorily redeemable convertible preferred share dividends — 1,276 3,827 — Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 48,154 $ 192,860 $ 763,241 $ 1,037,674 Denominator for earnings per share: Weighted average common shares outstanding 296,834 332,191 298,322 343,829 Weighted average shares of restricted stock outstanding with future service required (2,008 ) (1,879 ) (1,903 ) (1,681 ) Weighted average RSUs outstanding with no future service required 15,462 11,122 14,419 11,152 Denominator for basic earnings per share – weighted average shares 310,288 341,434 310,838 353,300 Stock options — 5 — 13 Senior executive compensation plan awards 1,609 4,706 2,181 3,856 Mandatorily redeemable convertible preferred shares — 4,162 4,162 — Denominator for diluted earnings per share 311,897 350,307 317,181 357,169 (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 2,018,000 and 1,888,700 for the three months ended August 31, 2019 and September 30, 2018 , respectively, and 1,910,700 and 1,700,700 for the nine months ended August 31, 2019 and September 30, 2018 , respectively. Dividends declared on participating securities were not material during the three and nine months ended August 31, 2019 and September 30, 2018 . 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 three months ended August 31, 2019 and the nine months ended September 30, 2018 , 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 January 2019, the Board of Directors approved an additional $500.0 million share repurchase authorization. During the nine months ended August 31, 2019 , we purchased a total of 17,725,361 of our common shares for an aggregate purchase price of $352.1 million under these authorizations. At August 31, 2019 , $147.9 million remained available for repurchase. Additionally, in connection with the HomeFed merger on July 1, 2019, our Board of Directors authorized the repurchase of an additional 9.25 million shares in the open market. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies And Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes commitments associated with certain business activities at August 31, 2019 (in millions): Expected Maturity Date 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 15.5 $ 146.3 $ 9.8 $ — $ 17.6 $ 189.2 Loan commitments (1) — 250.0 54.1 12.0 — 316.1 Underwriting commitments 31.5 — — — — 31.5 Forward starting reverse repos (2) 2,994.6 — — — — 2,994.6 Forward starting repos (2) 4,082.9 — — — — 4,082.9 Other unfunded commitments (1) 80.0 — 143.7 — 4.9 228.6 $ 7,204.5 $ 396.3 $ 207.6 $ 12.0 $ 22.5 $ 7,842.9 (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 August 31, 2019 , $2,991.6 million within forward starting securities purchased under agreements to resell and all of the forward starting 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, the manager of the private equity funds, which consists of a team led by our President and a Director. At August 31, 2019 , Jefferies Group's outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $17.7 million . See Note 9 for additional information regarding Jefferies Group's investment in Jefferies Finance. Additionally, as of August 31, 2019 , we have other outstanding equity commitments to invest up to $65.2 million in various other investments. 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 August 31, 2019 , Jefferies Group had $66.1 million of outstanding loan commitments to clients. Loan commitments outstanding at August 31, 2019 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 August 31, 2019 , none of Jefferies Group's $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, warehouse financings and debt securities to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Spectrum Brands Dividend. In September 2019, the Jefferies Board of Directors approved a distribution to stockholders of Jefferies of its Spectrum Brands shares. Jefferies will distribute the 7,514,477 Spectrum Brands shares through a special pro rata dividend effective on October 11, 2019 to Jefferies stockholders of record as of the close of business on September 30, 2019. 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 Jefferies Group's derivative contracts meeting the definition of a guarantee under GAAP at August 31, 2019 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 7,075.0 $ 4,115.5 $ 4,627.6 $ 3,612.0 $ 320.6 $ 19,750.7 Written derivative contracts – credit related — 32.9 — 39.2 — 72.1 Total derivative contracts $ 7,075.0 $ 4,148.4 $ 4,627.6 $ 3,651.2 $ 320.6 $ 19,822.8 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 $239.0 million at August 31, 2019 . 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 August 31, 2019 , the aggregate amount of commercial paper outstanding was $1.47 billion . HomeFed. For real estate development projects, HomeFed is generally required to obtain infrastructure improvement bonds at the beginning of construction work and warranty bonds upon completion of such improvements. These bonds are issued by surety companies to guarantee satisfactory completion of a project and provide funds primarily to a municipality in the event HomeFed is unable or unwilling to complete certain infrastructure improvements. As HomeFed develops the planned area and the municipality accepts the improvements, the bonds are released. Should the respective municipality or others draw on the bonds for any reason, certain of HomeFed's subsidiaries would be obligated to pay. At August 31, 2019 , the aggregate amount of infrastructure improvement bonds outstanding was $70.4 million . 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 August 31, 2019 , Jefferies Group provided guarantees to certain counterparties in the form of standby letters of credit totaling $36.9 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 August 31, 2019 . Primarily all letters of credit expire within one year |
Net Capital Requirements
Net Capital Requirements | 9 Months Ended |
Aug. 31, 2019 | |
Net Capital Requirements [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 SEC 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 Commodity Futures Trading Commission ("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 at August 31, 2019 were $1,474.2 million and $1,356.5 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 | 9 Months Ended |
Aug. 31, 2019 | |
Other Fair Value Information [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): August 31, 2019 November 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 754,844 $ 763,270 $ 680,015 $ 676,152 Financial Liabilities: Short-term borrowings (2) $ 518,914 $ 518,914 $ 387,492 $ 387,492 Long-term debt (3) $ 6,954,276 $ 7,351,550 $ 6,931,393 $ 6,826,503 (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 | 9 Months Ended |
Aug. 31, 2019 | |
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 (including JCP Fund V), 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 August 31, 2019 and November 30, 2018 are Jefferies Group's equity investments in Private Equity Related Funds of $28.7 million and $35.5 million , respectively. Net gains (losses) from Jefferies Group's investment in JCP Fund V aggregating $(2.5) million and $0.3 million for the three months ended August 31, 2019 and September 30, 2018 , respectively, and $(1.9) million and $10.1 million for the nine months ended August 31, 2019 and September 30, 2018 , respectively, were recorded in Other revenues. Gains (losses) for other funds were not material. For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Notes 8 and 19 . Berkadia Commercial Mortgage, LLC. At August 31, 2019 and November 30, 2018 , Jefferies Group has commitments to purchase $464.4 million and $723.8 million , respectively, in agency commercial mortgage-backed securities from Berkadia. FXCM . Jefferies Group entered into a foreign exchange prime brokerage agreement with FXCM in 2017. In connection with the foreign exchange contracts entered into under this agreement, Jefferies Group had $22.7 million and $9.9 million at August 31, 2019 and November 30, 2018 , respectively, included in Payables, expense accruals and other liabilities and $0.2 million at August 31, 2019 in Trading liabilities, at fair value, in our Consolidated Statements of Financial Condition. HRG . Jefferies Group recognized investment banking revenues of $3.0 million for the three and nine months ended September 30, 2018 in connection with the merger of HRG into Spectrum Brands, which is partially owned by Jefferies. Officers, Directors and Employees. We have $44.9 million and $49.3 million of loans outstanding to certain officers and employees (none of whom are an executive officer or director of the Company) at August 31, 2019 and November 30, 2018 , 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 9 for information on transactions with Jefferies Finance. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Aug. 31, 2019 | |
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 owns 51% of National Beef. Jefferies will continue 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 GAAP 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 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 for the nine months ended September 30, 2018 through the June 5, 2018 transaction with Marfrig is as follows (in thousands): Revenues: Beef processing services $ 3,137,611 Interest income 131 Other 4,329 Total revenues 3,142,071 Expenses: Compensation and benefits 17,414 Cost of sales 2,884,983 Interest expense 4,316 Depreciation and amortization 43,959 Selling, general and other expenses 14,291 Total expenses 2,964,963 Income from discontinued operations before income taxes 177,108 Income tax provision 47,045 Income from discontinued operations, net of income tax provision $ 130,063 Net income attributable to the redeemable noncontrolling interests in the Consolidated Statements of Operations includes $37.1 million related to National Beef's noncontrolling interests for the nine months ended September 30, 2018 . Pre-tax income from discontinued operations attributable to Jefferies Financial Group Inc. common shareholders was $140.0 million for the nine months ended September 30, 2018 . As discussed above, we account for our retained 31% ownership of National Beef subsequent to the sale to Marfrig under the equity method. During the three and nine months ended August 31, 2019 , we recorded $75.9 million and $137.9 million , respectively, in Income related to associated companies from our 31% ownership in National Beef and we received distributions from National Beef of $121.8 million during the nine months ended August 31, 2019 . The pre-tax income of 100% of National Beef during the three and nine months ended August 31, 2019 was $250.6 million and $464.3 million , respectively. During the three months ended September 30, 2018 and the period from June 5, 2018 through September 30, 2018 , we recorded $58.9 million and $83.3 million , respectively, in Income related to associated companies from our 31% ownership in National Beef and we received distributions from National Beef of $48.7 million during the period from June 5, 2018 through September 30, 2018 . The pre-tax income of 100% National Beef during the three months ended September 30, 2018 and the period from June 5, 2018 through September 30, 2018 was $196.1 million and $276.5 million , respectively. During the nine months ended September 30, 2018 , we have 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 is approximately $352.4 million related to the remeasurement of our retained 31% interest in National Beef to fair value. |
Segment Information
Segment Information | 9 Months Ended |
Aug. 31, 2019 | |
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. 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. 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, primarily including National Beef, Spectrum Brands, Linkem, Vitesse Energy Finance and JETX Energy, The We Company, HomeFed, Idaho Timber and FXCM. Our Merchant Banking businesses and investments also include Berkadia and our LAM seed investments, 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 cash and cash equivalents, financial instruments owned and the deferred tax asset (exclusive of Jefferies Group's deferred tax asset). Corporate revenues primarily include interest income. We do not allocate Corporate revenues or overhead expenses to the operating units. As discussed further in Note 23 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 three and nine months ended September 30, 2018 . For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 777,159 $ 777,615 $ 2,364,728 $ 2,421,418 Merchant Banking (1) 75,497 369,309 399,159 529,627 Corporate 8,967 8,714 22,134 14,775 Total net revenues related to reportable segments 861,623 1,155,638 2,786,021 2,965,820 Consolidation adjustments (4,845 ) (4,792 ) 857 (8,380 ) Total consolidated net revenues $ 856,778 $ 1,150,846 $ 2,786,878 $ 2,957,440 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 83,075 $ 87,101 $ 300,798 $ 331,704 Merchant Banking (1) (42,945 ) 218,532 28,384 119,217 Corporate (11,779 ) (15,367 ) (47,007 ) (58,107 ) Income from continuing operations before income taxes related to reportable segments 28,351 290,266 282,175 392,814 Parent Company interest (14,770 ) (14,755 ) (44,298 ) (44,251 ) Consolidation adjustments (318 ) (2,819 ) 8,182 (593 ) Total consolidated income from continuing operations before income taxes $ 13,263 $ 272,692 $ 246,059 $ 347,970 Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 21,170 $ 17,175 $ 57,800 $ 50,829 Merchant Banking (1) 17,880 14,268 50,248 38,932 Corporate 830 852 2,552 2,599 Total consolidated depreciation and amortization expenses $ 39,880 $ 32,295 $ 110,600 $ 92,360 (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. For the three and nine months ended September 30, 2018 , net revenues related to the net assets transferred were $25.4 million and $4.6 million , respectively, and income from continuing operations before income taxes related to the net assets transferred was $39.7 million and $48.8 million , respectively. Interest expense classified as a component of Net revenues relates to Jefferies Group. For the three months ended August 31, 2019 and September 30, 2018 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $14.8 million and $14.8 million , respectively) and Merchant Banking ( $8.9 million and $14.1 million , respectively). For the nine months ended August 31, 2019 and September 30, 2018 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $44.3 million and $44.3 million , respectively) and Merchant Banking ( $25.5 million and $30.4 million |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policy) | 9 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Developments - Accounting Standards to be Adopted in Future Periods | Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the Financial Accounting Standards Board ("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. The population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition has been identified; however, the initial measurement of the contracts 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. |
Revenue Recognition Policies | Revenues from contracts with customers are 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 revenues 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. Commission 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 earns 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. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Accounting Policies [Abstract] | |
Supplemental cash flow information | Supplemental Cash Flow Information For the Nine Months Ended August 31, September 30, 2018 (In thousands) Cash paid during the year for: Interest $ 1,257,311 $ 1,059,139 Income tax payments (refunds), net $ 25,825 $ 28,204 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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, securities purchased under agreements to resell, trading liabilities and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") (within trading assets) of $573.5 million and $394.4 million at August 31, 2019 and November 30, 2018 , respectively, by level within the fair value hierarchy (in thousands): August 31, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,938,829 $ 162,382 $ 50,870 $ — $ 3,152,081 Corporate debt securities — 2,892,733 9,288 — 2,902,021 Collateralized debt obligations and collateralized loan obligations — 114,045 30,258 — 144,303 U.S. government and federal agency securities 2,115,452 204,076 — — 2,319,528 Municipal securities — 723,542 — — 723,542 Sovereign obligations 1,521,540 1,088,927 — — 2,610,467 Residential mortgage-backed securities — 1,405,246 17,929 — 1,423,175 Commercial mortgage-backed securities — 373,319 5,462 — 378,781 Other asset-backed securities — 490,055 34,598 — 524,653 Loans and other receivables — 1,460,982 75,563 — 1,536,545 Derivatives 10,587 2,982,776 16,024 (2,494,645 ) 514,742 Investments at fair value — 41,548 292,483 — 334,031 FXCM term loan — — 58,590 — 58,590 Total trading assets, excluding investments at fair value based on NAV $ 6,586,408 $ 11,939,631 $ 591,065 $ (2,494,645 ) $ 16,622,459 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Liabilities: Trading liabilities: Corporate equity securities $ 2,750,131 $ 7,097 $ 211 $ — $ 2,757,439 Corporate debt securities — 1,803,666 1,202 — 1,804,868 U.S. government and federal agency securities 1,922,145 — — — 1,922,145 Sovereign obligations 1,281,332 853,882 — — 2,135,214 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,097,178 16,630 — 1,113,808 Derivatives 7,327 3,088,068 66,787 (2,599,376 ) 562,806 Total trading liabilities $ 5,960,935 $ 6,849,891 $ 84,865 $ (2,599,376 ) $ 10,296,315 Long-term debt $ — $ 666,446 $ 348,063 $ — $ 1,014,509 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 $ — $ 485,425 $ 200,745 $ — $ 686,170 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. |
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 August 31, 2019 Equity Long/Short Hedge Funds (2) $ 292,205 $ — Equity Funds (3) 33,891 19,154 Commodity Funds (4) 15,212 — Multi-asset Funds (5) 231,991 — Other Funds (6) 158 — Total $ 573,457 $ 19,154 November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — Equity Funds (3) 40,070 20,996 Commodity Funds (4) 10,129 — Multi-asset Funds (5) 256,972 — Other Funds (6) 400 — Total $ 394,359 $ 20,996 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2019 and November 30, 2018 , approximately 94% and 0% , respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At August 31, 2019 and November 30, 2018 , 6% and 17% , respectively, of these investments are redeemable quarterly with 60 days prior written notice. Approximately 82% of the November 30, 2018 balance was redeemed during the nine months ended August 31, 2019 . (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies 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 be liquidated in approximately one to nine years . (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2019 and November 30, 2018 , investments representing approximately 4% and 15% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by Jefferies Group and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. |
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 three months ended August 31, 2019 (in thousands): Three Months Ended August 31, 2019 Balance, May 31, 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, August 31, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at August 31, 2019 (1) Assets: Trading assets: Corporate equity securities $ 59,572 $ 12,547 $ 16,508 $ (17,502 ) $ — $ — $ (20,255 ) $ 50,870 $ 12,067 Corporate debt securities 8,346 (3,072 ) 1,175 (1,942 ) (85 ) — 4,866 9,288 (3,047 ) CDOs and CLOs 25,912 (1,499 ) — — (609 ) — 6,454 30,258 (2,097 ) Residential mortgage-backed securities 17,266 (1,917 ) — (65 ) (22 ) — 2,667 17,929 (1,435 ) Commercial mortgage-backed securities 12,530 (2,003 ) — (1,703 ) (3,362 ) — — 5,462 (3,143 ) Other asset-backed securities 43,185 (1,689 ) 13,497 (6,975 ) (5,500 ) — (7,920 ) 34,598 (1,068 ) Loans and other receivables 98,484 (2,847 ) 26,921 (33,409 ) (1,287 ) — (12,299 ) 75,563 (2,392 ) Investments at fair value 408,739 (152,162 ) 1,067 (296 ) — — 35,135 292,483 (152,162 ) FXCM term loan 56,600 2,293 — — (303 ) — — 58,590 2,293 Securities purchased under agreements to resell 25,000 — — — — — — 25,000 — Liabilities: Trading liabilities: Corporate equity securities $ 221 $ 401 $ (221 ) $ — $ (190 ) $ — $ — $ 211 $ (35 ) Corporate debt securities 669 (650 ) (34 ) — (369 ) — 1,586 1,202 649 Commercial mortgage-backed securities — — — 35 — — — 35 — Loans 9,428 (520 ) (10,281 ) 5,384 — — 12,619 16,630 531 Net derivatives (2) 47,449 (19,519 ) — 6,766 (14 ) — 16,081 50,763 18,507 Long-term debt (1) 236,562 7,455 — — — 114,641 (10,595 ) 348,063 (8,162 ) (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 August 31, 2019 were gains of $0.7 million . (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 three months ended September 30, 2018 (in thousands): Three Months Ended September 30, 2018 Balance, June 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, September 30, 2018 Changes in unrealized gains/ losses relating to instruments still held at September 30, 2018 (1) Assets: Trading assets: Corporate equity securities $ 44,871 $ 11,796 $ 17,652 $ (23,010 ) $ (302 ) $ — $ (1,324 ) $ 49,683 $ 9,136 Corporate debt securities 28,066 1,057 507 (21,403 ) (59 ) — 1,483 9,651 (165 ) CDOs and CLOs 42,517 (967 ) 238,281 (240,002 ) (2,127 ) — (3,721 ) 33,981 (3,872 ) Residential mortgage-backed securities 3,655 (66 ) 72 (1,597 ) (1 ) — 2,891 4,954 90 Commercial mortgage-backed securities 27,239 (222 ) 8 — (1,156 ) — (1,953 ) 23,916 (288 ) Other asset-backed securities 55,535 (2,269 ) 307,358 (290,838 ) (4,356 ) — 3,875 69,305 (1,124 ) Loans and other receivables 64,036 (1,353 ) 14,932 (23,700 ) (3,453 ) — (1,477 ) 48,985 1,007 Investments at fair value 318,543 2,383 6,051 — — — — 326,977 2,383 FXCM term loan 76,100 1,347 — — (3,647 ) — — 73,800 (2,300 ) Liabilities: Trading liabilities: Corporate equity securities $ 87 $ 326 $ — $ — $ — $ — $ — $ 413 $ (326 ) Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) Commercial mortgage-backed securities — 70 — — — — — 70 (70 ) Loans 12,881 (148 ) (4,871 ) 1,787 — — (988 ) 8,661 149 Net derivatives (2) 5,874 1,107 — — 1,990 — 26 8,997 (2,090 ) Long-term debt (1) 160,626 3,004 — — — — — 163,630 (2,953 ) (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 September 30, 2018 were losses of $0.1 million . (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 nine months ended September 30, 2018 (in thousands): Nine Months Ended September 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, September 30, 2018 Changes in unrealized gains/ losses relating to instruments still held at September 30, 2018 (1) Assets: Trading assets: Corporate equity securities $ 22,270 $ 31,475 $ 35,993 $ (39,008 ) $ (2,082 ) $ — $ 1,035 $ 49,683 $ 26,852 Corporate debt securities 26,036 1,090 22,204 (38,553 ) (2,066 ) — 940 9,651 (1,738 ) CDOs and CLOs 42,184 (4,123 ) 242,864 (249,691 ) (5,859 ) — 8,606 33,981 (7,333 ) Residential mortgage-backed securities 26,077 (7,334 ) 2,018 (12,621 ) (6 ) — (3,180 ) 4,954 316 Commercial mortgage-backed securities 12,419 (1,236 ) 1,720 (548 ) (5,415 ) — 16,976 23,916 (2,272 ) Other asset-backed securities 61,129 (7,528 ) 523,045 (495,055 ) (12,281 ) — (5 ) 69,305 (3,307 ) Loans and other receivables 47,304 (2,812 ) 104,009 (98,733 ) (14,610 ) — 13,827 48,985 (3,769 ) Investments at fair value 329,944 3,865 9,791 (17,569 ) — — 946 326,977 3,271 FXCM term loan 72,800 16,432 — — (15,432 ) — — 73,800 5,539 Liabilities: Trading liabilities: Corporate equity securities $ 48 $ 365 $ — $ — $ — $ — $ — $ 413 $ (365 ) Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) Commercial mortgage-backed securities 105 (35 ) — — — — — 70 (70 ) Loans 3,486 (1,059 ) (15,702 ) 19,409 — — 2,527 8,661 1,059 Net derivatives (2) 6,746 (1,034 ) (6 ) — 2,984 296 11 8,997 (2,660 ) Long-term debt (1) — (25,078 ) — — — 81,284 107,424 163,630 13,235 (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 September 30, 2018 were gains of $11.8 million . (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 nine months ended August 31, 2019 (in thousands): Nine Months Ended August 31, 2019 Balance, November 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, August 31, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at August 31, 2019 (1) Assets: Trading assets: Corporate equity securities $ 52,192 $ 15,499 $ 23,172 $ (25,431 ) $ (669 ) $ — $ (13,893 ) $ 50,870 $ 14,071 Corporate debt securities 9,484 (4,904 ) 6,080 (10,544 ) (553 ) — 9,725 9,288 (5,325 ) CDOs and CLOs 36,105 (4,320 ) 48,112 (43,230 ) (3,014 ) — (3,395 ) 30,258 (6,781 ) Residential mortgage-backed securities 19,603 (2,573 ) 2,166 (2,022 ) (171 ) — 926 17,929 (2,166 ) Commercial mortgage-backed securities 10,886 (2,196 ) 11 (2,023 ) (6,638 ) — 5,422 5,462 (4,326 ) Other asset-backed securities 53,175 (929 ) 14,698 (2,494 ) (30,623 ) — 771 34,598 (961 ) Loans and other receivables 46,985 3,933 178,069 (166,496 ) (8,379 ) — 21,451 75,563 682 Investments at fair value 396,254 (119,110 ) 42,579 (18,598 ) — — (8,642 ) 292,483 (119,110 ) FXCM term loan 73,150 (8,669 ) 1,500 — (7,391 ) — — 58,590 (8,669 ) Securities purchased under agreements to resell — — — — — 25,000 — 25,000 — Liabilities: Trading liabilities: Corporate equity securities $ — $ 401 $ — $ — $ (190 ) $ — $ — $ 211 $ (35 ) Corporate debt securities 522 (867 ) — — (524 ) — 2,071 1,202 867 Commercial mortgage-backed securities — — — 35 — — — 35 — Loans 6,376 (1,342 ) (8,553 ) 9,929 — — 10,220 16,630 1,583 Net derivatives (2) 21,614 (48,746 ) (2,829 ) 16,313 1,609 — 62,802 50,763 40,052 Long-term debt (1) 200,745 (5,286 ) — — (11,250 ) 204,710 (40,856 ) 348,063 (4,517 ) (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 August 31, 2019 were gains of $9.8 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. August 31, 2019 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 45,344 Non-exchange-traded securities Market approach Price $3 to $177 $143 Underlying stock price $3 to $5 $4 Corporate debt securities $ 9,288 Scenario analysis Estimated recovery percentage 38% to 49% 42 % Volatility 44% — Credit spread 750 — Underlying stock price £0.4 — CDOs and CLOs $ 30,258 Discounted cash flows Constant prepayment rate 15% to 20% 19 % Constant default rate 1% to 2% 2 % Loss severity 25% to 30% 27 % Discount rate/yield 13% to 16% 14 % Scenario analysis Estimated recovery percentage 4% to 37% 26 % Residential mortgage-backed securities $ 17,929 Discounted cash flows Cumulative loss rate 2% — Duration (years) 7 years — Discount rate/yield 3% — Commercial mortgage-backed securities $ 5,462 Discounted cash flows Cumulative loss rate 80% — Duration (years) 1 year — Discount rate/yield 5% — Scenario analysis Estimated recovery percentage 44% — Other asset-backed securities $ 34,598 Discounted cash flows Cumulative loss rate 7% to 31% 18 % Duration (years) 1 year to 3 years 2 years Discount rate/yield 7% to 12% 11 % Loans and other receivables $ 74,057 Market approach Price $41 to $100 $81 Scenario analysis Estimated recovery percentage 1% to 117% 68 % Derivatives $ 13,538 Interest rate swaps Market approach Basis points upfront 0 to 7 3 Investments at fair value $ 229,586 Private equity securities Market approach Price $8 to $250 $125 Scenario analysis Discount rate/yield 20% — Revenue growth 0% — Market approach Price $38 — Investment in FXCM $ 58,590 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 1.5 years 1.5 years Securities purchased under agreements to resell $ 25,000 Market approach Spread to 6 month LIBOR 500 — Duration (years) 2 years — Trading Liabilities Loans $ 16,630 Market approach Price $50 to $98 $78 Scenario analysis Estimated recovery percentage 1% to 75% 27 % Derivatives $ 65,927 Equity options Volatility benchmarking Volatility 29% to 59% 42 % Interest rate swaps Market approach Basis points upfront 0 to 10 4 Cross currency swaps Basis points upfront 2 — Unfunded commitments Price $90 — Long-term debt $ 348,063 Structured notes Market approach Price $89 to $102 $97 Price €70 to €103 €89 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 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 Scenario analysis Estimated recovery percentage 13% to 117% 105 % Derivatives $ 4,602 Total return swaps Market approach Price $97 — Investments at fair value $ 368,231 Private equity securities Market approach Price $3 to $250 $108 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 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 Price €68 to €110 €96 |
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 measured at fair value under the fair value option (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Trading Assets: Loans and other receivables $ 2,040 $ 14,002 $ (5,458 ) $ 7,495 Trading Liabilities: Loans $ — $ (2,708 ) $ — $ (2,467 ) Loan commitments $ (443 ) $ (1,695 ) $ (1,200 ) $ (1,964 ) Long-term Debt: Changes in instrument specific credit risk (1) $ 6,922 $ 1,401 $ 34,414 $ 19,986 Other changes in fair value (2) $ (46,003 ) $ (6,842 ) $ (93,311 ) $ 33,626 (1) Changes in instrument specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. (2) |
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 and long-term debt measured at fair value under the fair value option (in thousands): August 31, November 30, 2018 Trading Assets: Loans and other receivables (1) $ 1,356,508 $ 961,554 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) $ 139,795 $ 158,392 Long-term Debt $ 59,370 $ 114,669 (1) Interest income is recognized separately from other changes in fair value and is included in Interest income in the Consolidated Statements of Operations. (2) Amounts include all loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $20.9 million and $20.5 million at August 31, 2019 and November 30, 2018 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure | The following tables present the fair value and related number of derivative contracts at August 31, 2019 and November 30, 2018 categorized by type of derivative contract and the platform on which these derivatives are transacted. 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 (2) Fair Value Number of Contracts (2) August 31, 2019 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 38,588 1 $ — — Total derivatives designated as accounting hedges 38,588 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,766 39,912 873 45,448 Cleared OTC 863,437 3,335 903,989 3,947 Bilateral OTC 539,158 1,865 241,817 474 Foreign exchange contracts: Exchange-traded — 191 — 87 Bilateral OTC 552,066 8,566 548,854 8,319 Equity contracts: Exchange-traded 741,307 1,998,268 1,091,142 1,611,110 Bilateral OTC 228,415 4,073 357,356 4,428 Commodity contracts: Exchange-traded 1,418 9,523 — 6,239 Bilateral OTC 27,839 2,794 170 1,779 Credit contracts: Cleared OTC 5,210 12 7,988 16 Bilateral OTC 10,183 34 9,993 21 Total derivatives not designated as accounting hedges 2,970,799 3,162,182 Total gross derivative assets/ liabilities: Exchange-traded 744,491 1,092,015 Cleared OTC 907,235 911,977 Bilateral OTC 1,357,661 1,158,190 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (723,158 ) (723,158 ) Cleared OTC (871,162 ) (881,963 ) Bilateral OTC (900,325 ) (994,255 ) Net amounts per Consolidated Statement of Financial Condition (4) $ 514,742 $ 562,806 (continued) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) November 30, 2018 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 29,647 1 Total derivatives designated as accounting hedges — 29,647 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 924 32,159 513 66,095 Cleared OTC 422,670 2,095 411,833 2,394 Bilateral OTC 372,899 1,398 491,697 816 Foreign exchange contracts: Exchange-traded 42 538 2 690 Cleared OTC — — 36 3 Bilateral OTC 311,228 9,548 314,951 9,909 Equity contracts: Exchange-traded 1,202,927 2,104,684 2,061,137 1,779,836 Bilateral OTC 207,221 5,126 315,996 2,764 Commodity contracts: Exchange-traded 27,632 7,272 272 4,185 Bilateral OTC 10,191 1,274 1,445 1,498 Credit contracts: Cleared OTC 11,204 7 1,556 14 Bilateral OTC 13,768 123 11,618 79 Total derivatives not designated as accounting hedges 2,580,706 3,611,056 Total gross derivative assets/ liabilities: Exchange-traded 1,231,525 2,061,924 Cleared OTC 433,874 443,072 Bilateral OTC 915,307 1,135,707 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (1,190,951 ) (1,190,951 ) Cleared OTC (407,351 ) (418,779 ) Bilateral OTC (815,629 ) (903,320 ) Net amounts per Consolidated Statement of Financial Condition (4) $ 166,775 $ 1,127,653 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. |
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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Interest rate swaps $ 28,052 $ (1,161 ) $ 69,843 $ (22,363 ) Long-term debt (28,519 ) 1,221 (72,288 ) 24,055 Total $ (467 ) $ 60 $ (2,445 ) $ 1,692 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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Interest rate contracts $ (89,864 ) $ 13,951 $ (193,715 ) $ 36,053 Foreign exchange contracts (1,839 ) (4,781 ) 269 6,737 Equity contracts 2,236 1,019 (118,354 ) (249,546 ) Commodity contracts 2,285 (6,845 ) 4,057 (23,150 ) Credit contracts 2,687 20 11,600 760 Total $ (84,495 ) $ 3,364 $ (296,143 ) $ (229,146 ) |
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 August 31, 2019 (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 $ 18,781 $ 9,058 $ — $ (170 ) $ 27,669 Equity swaps and options 57,345 1 3,579 (3,572 ) 57,353 Credit default swaps 887 826 — (81 ) 1,632 Total return swaps 25,166 70,022 — (334 ) 94,854 Foreign currency forwards, swaps and options 112,654 4,740 7 (3,538 ) 113,863 Fixed income forwards 556 — — — 556 Interest rate swaps, options and forwards 76,320 225,447 183,737 (56,767 ) 428,737 Total $ 291,709 $ 310,094 $ 187,323 $ (64,462 ) 724,664 Cross product counterparty netting (26,934 ) Total OTC derivative assets included in Trading assets $ 697,730 (1) At August 31, 2019 , we held net exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $30.3 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 August 31, 2019 , cash collateral received was $213.2 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 $ 170 $ — $ — $ (170 ) $ — Equity swaps and options 8,679 123,854 49,873 (3,572 ) 178,834 Credit default swaps 35 6,291 — (81 ) 6,245 Total return swaps 77,259 25,160 — (334 ) 102,085 Foreign currency forwards, swaps and options 108,267 2,758 2,984 (3,538 ) 110,471 Fixed income forwards 868 — — — 868 Interest rate swaps, options and forwards 42,416 43,161 109,564 (56,767 ) 138,374 Total $ 237,694 $ 201,224 $ 162,421 $ (64,462 ) 536,877 Cross product counterparty netting (26,934 ) Total OTC derivative liabilities included in Trading liabilities $ 509,943 (1) At August 31, 2019 , we held net exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $370.8 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 August 31, 2019 , cash collateral pledged was $318.0 million . (3) Derivative fair values include counterparty netting within product category. (4) |
Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets | At August 31, 2019 , 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 $ 169,620 BBB- to BBB+ 47,945 BB+ or lower 275,252 Unrated 204,913 Total $ 697,730 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's 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 Jefferies Group's written credit related derivative contracts are as follows (in millions): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional August 31, 2019 Credit protection sold: Index credit default swaps $ — $ 96.8 $ — $ 96.8 Single name credit default swaps $ 7.6 $ 31.6 $ 32.9 $ 72.1 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 |
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): August 31, November 30, 2018 Derivative instrument liabilities with credit-risk-related contingent features $ 113.7 $ 93.5 Collateral posted $ (80.0 ) $ (61.5 ) Collateral received $ 57.0 $ 91.5 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 90.6 $ 123.3 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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 August 31, 2019 Corporate equity securities $ 1,952,304 $ 147,845 $ 2,100,149 Corporate debt securities 174,936 1,946,659 2,121,595 Mortgage- and asset-backed securities — 2,041,563 2,041,563 U.S. government and federal agency securities 55,625 13,423,223 13,478,848 Municipal securities — 429,925 429,925 Sovereign obligations — 2,433,727 2,433,727 Loans and other receivables — 900,140 900,140 Total $ 2,182,865 $ 21,323,082 $ 23,505,947 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 obligations — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total August 31, 2019 Securities lending arrangements $ 1,305,512 $ 70,319 $ 635,864 $ 171,170 $ 2,182,865 Repurchase agreements 9,207,762 2,376,018 3,897,096 5,842,206 21,323,082 Total $ 10,513,274 $ 2,446,337 $ 4,532,960 $ 6,013,376 $ 23,505,947 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 |
Summary of Offsetting Assets | The following table provides information regarding 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. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at August 31, 2019 Securities borrowing arrangements $ 7,895,149 $ — $ 7,895,149 $ (707,436 ) $ (1,653,688 ) $ 5,534,025 Reverse repurchase agreements 17,586,096 (13,086,101 ) 4,499,995 (454,507 ) (3,817,544 ) 227,944 Liabilities at August 31, 2019 Securities lending arrangements $ 2,182,865 $ — $ 2,182,865 $ (707,436 ) $ (1,452,911 ) $ 22,518 Repurchase agreements 21,323,082 (13,086,101 ) 8,236,981 (454,507 ) (6,269,894 ) 1,512,580 Assets at November 30, 2018 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 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 (1) Under master netting agreements with its counterparties, Jefferies Group has 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 Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (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 August 31, 2019 , amounts include $5,473.0 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,322.7 million , and $382.9 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $392.4 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. |
Summary of Offsetting Liabilities | The following table provides information regarding 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. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at August 31, 2019 Securities borrowing arrangements $ 7,895,149 $ — $ 7,895,149 $ (707,436 ) $ (1,653,688 ) $ 5,534,025 Reverse repurchase agreements 17,586,096 (13,086,101 ) 4,499,995 (454,507 ) (3,817,544 ) 227,944 Liabilities at August 31, 2019 Securities lending arrangements $ 2,182,865 $ — $ 2,182,865 $ (707,436 ) $ (1,452,911 ) $ 22,518 Repurchase agreements 21,323,082 (13,086,101 ) 8,236,981 (454,507 ) (6,269,894 ) 1,512,580 Assets at November 30, 2018 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 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 (1) Under master netting agreements with its counterparties, Jefferies Group has 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 Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (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 August 31, 2019 , amounts include $5,473.0 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,322.7 million , and $382.9 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $392.4 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Transferred assets $ 789.3 $ 1,865.5 $ 2,894.4 $ 5,665.9 Proceeds on new securitizations $ 789.3 $ 1,866.2 $ 2,966.3 $ 5,668.6 Cash flows received on retained interests $ 16.8 $ 17.2 $ 47.2 $ 35.7 |
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): August 31, 2019 November 30, 2018 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 11,351.8 $ 123.8 $ 13,633.5 $ 365.3 U.S. government agency commercial mortgage-backed securities $ 1,374.9 $ 48.4 $ 2,027.6 $ 185.6 CLOs $ 3,430.0 $ 29.8 $ 3,512.0 $ 20.9 Consumer and other loans $ 975.0 $ 56.8 $ 604.1 $ 48.9 |
Available for Sale Securities_2
Available for Sale Securities and Other Investments (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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 Gross Gross Estimated 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 Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Variable Interest Entities [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. August 31, November 30, 2018 Securities purchased under agreement to resell (1) $ 1,822.1 $ 883.1 Receivables 676.4 626.0 Other 49.0 78.4 Total assets $ 2,547.5 $ 1,587.5 Other secured financings (2) $ 2,508.0 $ 1,535.3 Other (3) 29.6 45.9 Total liabilities $ 2,537.6 $ 1,581.2 (1) Securities purchased under agreements to resell represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $1.0 million of the secured financings represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at November 30, 2018 . (3) Includes $27.3 million and $44.1 million at August 31, 2019 and November 30, 2018 , 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 August 31, 2019 CLOs $ 127.1 $ 0.9 $ 804.6 $ 8,062.8 Consumer loan and other asset-backed vehicles 525.1 — 668.8 3,020.6 Related party private equity vehicles 28.7 — 46.2 83.7 Other investment vehicles 504.9 — 522.8 8,559.9 Total $ 1,185.8 $ 0.9 $ 2,042.4 $ 19,727.0 November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan and other asset-backed 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 |
Loans to and Investments In A_2
Loans to and Investments In Associated Companies (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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 accounted for under the equity method of accounting during the nine months ended August 31, 2019 and September 30, 2018 is as follows (in thousands): Loans to and investments in associated companies as of beginning of period Income (losses) related to associated companies Income (losses) related to Jefferies Group's associated companies (1) Contributions to (distributions from) associated companies, net Other Loans to and investments in associated companies as of end of period 2019 Jefferies Finance $ 728,560 $ — $ 1,035 $ (58,682 ) $ — $ 670,913 Berkadia (2) 245,228 — 72,231 (47,682 ) 722 270,499 National Beef 653,630 137,918 — (72,767 ) (10 ) 718,771 FXCM (3) 75,031 (5,589 ) — 3,500 (134 ) 72,808 Linkem (4) 165,157 (20,696 ) — 82,178 (8,226 ) 218,413 HomeFed (5) 337,542 7,902 — — (345,444 ) — HomeFed's associated companies — — — (3,054 ) 198,273 195,219 Other (4) 212,184 2,231 (1,652 ) (13,958 ) 869 199,674 Total $ 2,417,332 $ 121,766 $ 71,614 $ (110,465 ) $ (153,950 ) $ 2,346,297 2018 Jefferies Finance $ 655,467 $ — $ 36,497 $ 43,470 $ — $ 735,434 Berkadia (2) 210,594 80,092 — (42,064 ) (1,054 ) 247,568 National Beef — 83,287 — (48,656 ) 592,239 626,870 FXCM (3) 158,856 (19,322 ) — — (513 ) 139,021 Garcadia companies (6) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (3,601 ) 168,543 HomeFed 341,874 (3,338 ) — — — 338,536 Other 328,759 (57,511 ) (5,810 ) (60,630 ) (9,879 ) 194,929 Total $ 2,066,829 $ 84,320 $ 30,687 $ (134,300 ) $ 403,365 $ 2,450,901 (1) Primarily classified in Other revenues. (2) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (3) As further described in Note 3, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included in Loans to and investments in associated companies and our term loan is included in Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) Loans to and investments in associated companies at August 31, 2019 include loans and debt securities aggregating $83.7 million related to Linkem and Other. (5) As further described in Note 1, during the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. (6) 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. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 National Beef $ 75,867 $ 58,886 $ 137,918 $ 83,287 Berkadia — 28,350 — 80,092 FXCM (573 ) (4,282 ) (5,589 ) (19,322 ) Garcadia companies — 691 — 21,646 Linkem (12,115 ) (7,770 ) (20,696 ) (20,534 ) HomeFed 8,419 (7,783 ) 7,902 (3,338 ) Other (1) 685 (49,225 ) 2,231 (57,511 ) Total $ 72,283 $ 18,867 $ 121,766 $ 84,320 (1) Includes an impairment charge of $47.9 million related to Golden Queen Mining Company, LLC ("Golden Queen") during the three and nine months ended September 30, 2018 . 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 and was 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 result of our analysis indicated that the estimated fair value of our equity interest in Golden Queen was $62.3 million , which was $47.9 million lower than our prior carrying value at the end of the second quarter. 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 three and nine months ended September 30, 2018 . Income (losses) related to Jefferies Group's associated companies (primarily classified in Other revenues) includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Jefferies Finance $ (6,901 ) $ 5,931 $ 1,035 $ 36,497 Berkadia 24,286 — 72,231 — Other (92 ) (78 ) (1,652 ) (5,810 ) Total $ 17,293 $ 5,853 $ 71,614 $ 30,687 |
Schedule of Equity Method Investments | The following table provides required summarized data for certain equity method investments. The table includes Jefferies Finance and Berkadia for the nine months ended August 31, 2019 and September 30, 2018 , and National Beef for the nine months ended August 31, 2019 and for the period subsequent to the closing of the transaction with Marfrig on June 5, 2018 through September 30, 2018 (in thousands): For the Nine Months Ended August 31, September 30, Revenues $ 7,067,180 $ 3,341,369 Income from continuing operations before extraordinary items $ 654,014 $ 591,191 Net income $ 654,014 $ 591,191 |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets, Net And Goodwill | A summary of Intangible assets, net and goodwill is as follows (in thousands): August 31, November 30, 2018 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,225 $ 8,524 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $108,565 and $102,579 61,400 67,894 Trademarks and tradenames, net of accumulated amortization of $23,697 and $21,086 103,903 107,262 Other, net of accumulated amortization of $4,566 and $4,339 (1) 13,310 4,611 Total intangible assets, net 186,838 188,291 Goodwill: Jefferies Group 1,694,785 1,698,381 HomeFed (1) 36,711 — Other operations 3,459 3,459 Total goodwill 1,734,955 1,701,840 Total intangible assets, net and goodwill $ 1,921,793 $ 1,890,131 (1) In connection with the acquisition of the remaining interest in HomeFed, $11.0 million was preliminarily allocated to intangible assets, primarily relating to lease contracts, and $4.3 million |
Schedule of Estimated Aggregate Future Amortization Expense | The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 4,038 2020 $ 15,221 2021 $ 14,748 2022 $ 11,460 2023 $ 10,077 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Jefferies Group's short-term borrowings, which mature in one year or less, are as follows (in thousands): August 31, November 30, 2018 Bank loans $ 518,914 $ 330,942 Floating rate puttable notes — 56,550 Total short-term borrowings $ 518,914 $ 387,492 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Aggregate Indebtedness [Abstract] | |
Schedule Of Indebtedness | 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): August 31, November 30, 2018 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 744,297 $ 743,397 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,758 246,719 Total long-term debt – Parent Company 991,055 990,116 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 8.50% Senior Notes, due July 15, 2019, $0 and $680,800 principal — 699,659 2.375% Euro Medium Term Notes, due May 20, 2020, $548,950 and $565,500 principal 548,566 564,702 6.875% Senior Notes, due April 15, 2021, $750,000 principal 779,078 791,814 2.25% Euro Medium Term Notes, due July 13, 2022, $4,392 and $4,524 principal 4,171 4,243 5.125% Senior Notes, due January 20, 2023, $600,000 principal 610,762 612,928 1.00% Euro Medium Term Notes, due July 19, 2024, $548,950 and $0 principal 546,855 — 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 782,156 709,484 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 371,998 373,669 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 988,440 987,788 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,363 511,662 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,338 420,625 Structured Notes (2) 1,014,509 686,170 Jefferies Group Revolving Credit Facility 188,927 183,539 HomeFed EB-5 Program debt 131,395 — Other 79,172 81,164 Total long-term debt – subsidiaries 6,977,730 6,627,447 Long-term debt $ 7,968,785 $ 7,617,563 (1) Amount includes a loss of $72.3 million and a gain of $24.1 million during the nine months ended August 31, 2019 and September 30, 2018 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income (loss) and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Schedule Of Redeemable Noncontrolling Interests | The following table shows the activity of National Beef’s redeemable noncontrolling interests (prior to its deconsolidation in June 2018) during the nine months ended September 30, 2018 (in thousands): Balance, January 1, 2018 $ 412,128 Income allocated to redeemable noncontrolling interests 37,141 Distributions to redeemable noncontrolling interests (70,681 ) Increase in fair value of redeemable noncontrolling interests 21,404 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) Deconsolidation of National Beef (162,323 ) Balance, September 30, 2018 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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 (loss), net of taxes is as follows (in thousands): August 31, November 30, 2018 Net unrealized gains on available for sale securities $ 231 $ 542,832 Net unrealized foreign exchange losses (232,665 ) (193,402 ) Net unrealized gains (losses) on instrument specific credit risk 20,805 (5,728 ) Net unrealized gains on cash flow hedges — 470 Net minimum pension liability (54,823 ) (55,886 ) $ (266,452 ) $ 288,286 |
Schedule Of Accumulated Other Comprehensive Income Reclassifications | Amounts reclassified out of accumulated other comprehensive income (loss) to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations For the Nine Months Ended August 31, September 30, Net unrealized gains (losses) on available for sale securities, net of income tax provision (benefit) of $(545,054) and $37 $ 543,178 $ 105 Other revenues and Income tax provision (benefit) Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $0 and $(16) — 20,459 Other revenues and Selling, general and other expenses Net unrealized (gains) losses on instrument specific credit risk, net of income tax provision (benefit) of $(166) and $126 (493 ) 371 Principal transactions revenues Net unrealized gains on cash flow hedges, net of income tax provision (benefit) of $161 and $0 470 — Other revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(361) and $(508) (1,063 ) (1,398 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $0 — (5,344 ) Compensation and benefits expense Total reclassifications for the period, net of tax $ 542,092 $ 14,193 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Revenues from contracts with customers: Commissions and other fees (1) $ 171,000 $ 162,578 $ 493,560 $ 481,672 Investment banking 410,796 460,043 1,126,479 1,400,331 Manufacturing revenues 82,565 94,029 248,227 307,129 Other 70,066 63,429 186,175 153,916 Total revenues from contracts with customers 734,427 780,079 2,054,441 2,343,048 Other sources of revenue: Principal transactions (20,920 ) 116,204 465,451 315,622 Interest income 410,467 336,736 1,243,278 939,272 Other 99,182 225,958 165,369 265,972 Total revenues from other sources 488,729 678,898 1,874,098 1,520,866 Total revenues $ 1,223,156 $ 1,458,977 $ 3,928,539 $ 3,863,914 (1) During the third quarter of 2019, Jefferies Group has reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to its clients. These fees were previously presented as Other revenues in our Consolidated Statements of Operations and are now presented within Commissions and other fees. There is no impact on Total revenues as a result of this change in presentation. Previously reported results are presented on a comparable basis. The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Three months ended August 31, 2019 Jefferies Group: Equities (1) $ 167,528 $ — $ — $ (3 ) $ 167,525 Fixed Income (1) 3,475 — — — 3,475 Investment Banking - Capital markets 199,183 — — (1,737 ) 197,446 Investment Banking - Advisory 213,350 — — — 213,350 Asset Management 3,340 — — — 3,340 Manufacturing revenues — 82,565 — — 82,565 Oil and gas revenues — 45,012 — — 45,012 Other revenues — 21,714 — — 21,714 Total revenues from contracts with customers $ 586,876 $ 149,291 $ — $ (1,740 ) $ 734,427 Primary Geographic Region: Americas $ 478,920 $ 148,808 $ — $ (47 ) $ 627,681 Europe, Middle East and Africa 90,293 226 — (1,693 ) 88,826 Asia 17,663 257 — — 17,920 Total revenues from contracts with customers $ 586,876 $ 149,291 $ — $ (1,740 ) $ 734,427 Three months ended September 30, 2018 Jefferies Group: Equities (1) $ 159,693 $ — $ — $ (122 ) $ 159,571 Fixed Income (1) 3,007 — — — 3,007 Investment Banking - Capital markets 277,735 — — — 277,735 Investment Banking - Advisory 187,591 — — (5,283 ) 182,308 Asset Management 5,184 — — — 5,184 Manufacturing revenues — 94,029 — — 94,029 Oil and gas revenues — 46,506 — — 46,506 Other revenues — 11,739 — — 11,739 Total revenues from contracts with customers $ 633,210 $ 152,274 $ — $ (5,405 ) $ 780,079 Primary Geographic Region: Americas $ 551,403 $ 151,687 $ — $ (5,405 ) $ 697,685 Europe, Middle East and Africa 62,914 514 — — 63,428 Asia 18,893 73 — — 18,966 Total revenues from contracts with customers $ 633,210 $ 152,274 $ — $ (5,405 ) $ 780,079 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Nine months ended August 31, 2019 Jefferies Group: Equities (1) $ 483,771 $ — $ — $ (283 ) $ 483,488 Fixed Income (1) 10,072 — — — 10,072 Investment Banking - Capital markets 555,830 — — (1,737 ) 554,093 Investment Banking - Advisory 572,386 — — — 572,386 Asset Management 14,559 — — — 14,559 Manufacturing revenues — 248,227 — — 248,227 Oil and gas revenues — 129,029 — — 129,029 Other revenues — 42,587 — — 42,587 Total revenues from contracts with customers $ 1,636,618 $ 419,843 $ — $ (2,020 ) $ 2,054,441 Primary Geographic Region: Americas $ 1,296,864 $ 418,840 $ — $ (327 ) $ 1,715,377 Europe, Middle East and Africa 286,346 683 — (1,693 ) 285,336 Asia 53,408 320 — — 53,728 Total revenues from contracts with customers $ 1,636,618 $ 419,843 $ — $ (2,020 ) $ 2,054,441 Nine months ended September 30, 2018 Jefferies Group: Equities (1) $ 471,683 $ — $ — $ (522 ) $ 471,161 Fixed Income (1) 10,511 — — — 10,511 Investment Banking - Capital markets 809,884 — — — 809,884 Investment Banking - Advisory 595,730 — — (5,283 ) 590,447 Asset Management 16,130 — — — 16,130 Manufacturing revenues — 307,129 — — 307,129 Oil and gas revenues — 106,741 — — 106,741 Other revenues — 31,045 — — 31,045 Total revenues from contracts with customers $ 1,903,938 $ 444,915 $ — $ (5,805 ) $ 2,343,048 Primary Geographic Region: Americas $ 1,644,633 $ 443,718 $ — $ (5,805 ) $ 2,082,546 Europe, Middle East and Africa 203,103 976 — — 204,079 Asia 56,202 221 — — 56,423 Total revenues from contracts with customers $ 1,903,938 $ 444,915 $ — $ (5,805 ) $ 2,343,048 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Common Share and Earnings Per_2
Common Share and Earnings Per Common Share (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
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): For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 48,477 $ 192,635 $ 764,052 $ 1,042,689 Allocation of earnings to participating securities (1) (316 ) (1,054 ) (4,667 ) (5,049 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 48,161 191,581 759,385 1,037,640 Adjustment to allocation of earnings to participating securities related to diluted shares (1) (7 ) 3 29 34 Mandatorily redeemable convertible preferred share dividends — 1,276 3,827 — Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 48,154 $ 192,860 $ 763,241 $ 1,037,674 Denominator for earnings per share: Weighted average common shares outstanding 296,834 332,191 298,322 343,829 Weighted average shares of restricted stock outstanding with future service required (2,008 ) (1,879 ) (1,903 ) (1,681 ) Weighted average RSUs outstanding with no future service required 15,462 11,122 14,419 11,152 Denominator for basic earnings per share – weighted average shares 310,288 341,434 310,838 353,300 Stock options — 5 — 13 Senior executive compensation plan awards 1,609 4,706 2,181 3,856 Mandatorily redeemable convertible preferred shares — 4,162 4,162 — Denominator for diluted earnings per share 311,897 350,307 317,181 357,169 (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 2,018,000 and 1,888,700 for the three months ended August 31, 2019 and September 30, 2018 , respectively, and 1,910,700 and 1,700,700 for the nine months ended August 31, 2019 and September 30, 2018 , respectively. Dividends declared on participating securities were not material during the three and nine months ended August 31, 2019 and September 30, 2018 . 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) | 9 Months Ended |
Aug. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following table summarizes commitments associated with certain business activities at August 31, 2019 (in millions): Expected Maturity Date 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 15.5 $ 146.3 $ 9.8 $ — $ 17.6 $ 189.2 Loan commitments (1) — 250.0 54.1 12.0 — 316.1 Underwriting commitments 31.5 — — — — 31.5 Forward starting reverse repos (2) 2,994.6 — — — — 2,994.6 Forward starting repos (2) 4,082.9 — — — — 4,082.9 Other unfunded commitments (1) 80.0 — 143.7 — 4.9 228.6 $ 7,204.5 $ 396.3 $ 207.6 $ 12.0 $ 22.5 $ 7,842.9 (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 August 31, 2019 , $2,991.6 million within forward starting securities purchased under agreements to resell and all of the forward starting securities sold under agreements to repurchase settled within three business days. |
Guarantees | The following table summarizes the notional amounts associated with Jefferies Group's derivative contracts meeting the definition of a guarantee under GAAP at August 31, 2019 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 7,075.0 $ 4,115.5 $ 4,627.6 $ 3,612.0 $ 320.6 $ 19,750.7 Written derivative contracts – credit related — 32.9 — 39.2 — 72.1 Total derivative contracts $ 7,075.0 $ 4,148.4 $ 4,627.6 $ 3,651.2 $ 320.6 $ 19,822.8 |
Other Fair Value Information (T
Other Fair Value Information (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Other Fair Value Information [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): August 31, 2019 November 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 754,844 $ 763,270 $ 680,015 $ 676,152 Financial Liabilities: Short-term borrowings (2) $ 518,914 $ 518,914 $ 387,492 $ 387,492 Long-term debt (3) $ 6,954,276 $ 7,351,550 $ 6,931,393 $ 6,826,503 (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) | 9 Months Ended |
Aug. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of results of discontinued operations | A summary of the results of discontinued operations for National Beef for the nine months ended September 30, 2018 through the June 5, 2018 transaction with Marfrig is as follows (in thousands): Revenues: Beef processing services $ 3,137,611 Interest income 131 Other 4,329 Total revenues 3,142,071 Expenses: Compensation and benefits 17,414 Cost of sales 2,884,983 Interest expense 4,316 Depreciation and amortization 43,959 Selling, general and other expenses 14,291 Total expenses 2,964,963 Income from discontinued operations before income taxes 177,108 Income tax provision 47,045 Income from discontinued operations, net of income tax provision $ 130,063 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | 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 three and nine months ended September 30, 2018 . For the Three Months Ended For the Nine Months Ended August 31, 2019 September 30, 2018 August 31, 2019 September 30, 2018 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 777,159 $ 777,615 $ 2,364,728 $ 2,421,418 Merchant Banking (1) 75,497 369,309 399,159 529,627 Corporate 8,967 8,714 22,134 14,775 Total net revenues related to reportable segments 861,623 1,155,638 2,786,021 2,965,820 Consolidation adjustments (4,845 ) (4,792 ) 857 (8,380 ) Total consolidated net revenues $ 856,778 $ 1,150,846 $ 2,786,878 $ 2,957,440 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 83,075 $ 87,101 $ 300,798 $ 331,704 Merchant Banking (1) (42,945 ) 218,532 28,384 119,217 Corporate (11,779 ) (15,367 ) (47,007 ) (58,107 ) Income from continuing operations before income taxes related to reportable segments 28,351 290,266 282,175 392,814 Parent Company interest (14,770 ) (14,755 ) (44,298 ) (44,251 ) Consolidation adjustments (318 ) (2,819 ) 8,182 (593 ) Total consolidated income from continuing operations before income taxes $ 13,263 $ 272,692 $ 246,059 $ 347,970 Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 21,170 $ 17,175 $ 57,800 $ 50,829 Merchant Banking (1) 17,880 14,268 50,248 38,932 Corporate 830 852 2,552 2,599 Total consolidated depreciation and amortization expenses $ 39,880 $ 32,295 $ 110,600 $ 92,360 (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. For the three and nine months ended September 30, 2018 , net revenues related to the net assets transferred were $25.4 million and $4.6 million , respectively, and income from continuing operations before income taxes related to the net assets transferred was $39.7 million and $48.8 million , respectively. |
Nature of Operations (Details)
Nature of Operations (Details) $ in Thousands | Jul. 01, 2019USD ($)shares | Sep. 30, 2019shares | Aug. 31, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2013USD ($) | Aug. 31, 2019USD ($) | Jun. 30, 2019 | Jul. 13, 2018 | Jun. 05, 2018 | Jun. 04, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of business segments | Segment | 3 | |||||||||
Payments to acquire investments | $ 2,995 | $ 3,242,732 | ||||||||
Number of shares authorized to be repurchased | shares | 9,250,000 | |||||||||
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 | 15.00% | 15.00% | 14.00% | |||||||
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% | ||||||||
HomeFed | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investment, ownership percentage | 70.00% | |||||||||
Ownership percentage | 100.00% | |||||||||
Number of shares issued per common stock of acquiree | 2 | |||||||||
The We Company | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage | 0.80% | 0.80% | ||||||||
Payments to acquire investments | $ 9,000 | |||||||||
Cash received from investment | $ 31,000 | |||||||||
Jefferies Group | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of business segments | Segment | 2 | |||||||||
National Beef | Discontinued operations, disposed of by sale | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage | 48.00% | |||||||||
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% | ||||||||
HomeFed | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Stock issued related to acquisition (in shares) | shares | 9,300,000 | |||||||||
Stock issued related to acquisition | $ 178,800 | |||||||||
Total fair value allocated in acquisition | 596,400 | |||||||||
Cash recorded in acquisition | 101,700 | |||||||||
Real estate recorded in acquisition | 413,200 | |||||||||
Investments in associated companies in acquisition | 198,300 | |||||||||
Deferred tax assets recorded in acquisition | 37,400 | |||||||||
Goodwill and intangibles recorded in acquisition | 15,300 | |||||||||
Other assets recorded in acquisition | 6,600 | |||||||||
Long-term debt recorded in acquisition | 125,500 | |||||||||
Payables, expense accruals and other liabilities recorded in acquisition | 46,700 | |||||||||
Noncontrolling interests recorded in acquisition | 3,900 | |||||||||
Additional goodwill generated by the establishment of deferred tax liabilities | 32,400 | |||||||||
Deferred tax liabilities established in acquisition | $ 32,400 | |||||||||
Estimated useful lives for intangibles acquired | 4 years | |||||||||
Pre-tax gain recognized on acquisition | $ 72,100 | |||||||||
Subsequent event | Spectrum Brands | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Dividend distribution (in shares) | shares | 7,514,477 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 | Jun. 30, 2019 | Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Revenues | $ 1,223,156 | $ 1,458,977 | $ 3,928,539 | $ 3,863,914 | |||
Receivables from brokers, dealers and clearing organizations | $ 2,931,000 | $ 3,223,700 | 2,931,000 | 2,931,000 | |||
Receivables from customers of securities operations | 1,686,200 | 2,017,100 | 1,686,200 | 1,686,200 | |||
Payables to brokers, dealers and clearing organizations | 2,253,000 | 2,465,600 | 2,253,000 | 2,253,000 | |||
Payables to customers of securities operations | 3,599,600 | 3,176,700 | 3,599,600 | 3,599,600 | |||
Cash paid during the year for: | |||||||
Interest | 1,257,311 | 1,059,139 | |||||
Income tax payments (refunds), net | 25,825 | 28,204 | |||||
Commissions and other fees | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Revenues | 171,000 | 162,578 | 493,560 | 481,672 | |||
Other | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Revenues | 169,248 | 289,387 | 351,544 | 419,888 | |||
Iowa Premium | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Membership Interest Purchase Agreement, Aggregate Ownership Interests To Purchase | 100.00% | ||||||
Cash paid during the year for: | |||||||
Membership Interest Purchase Agreement, Proportionate Share | $ 49,000 | ||||||
HomeFed | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Non-cash investing activities related to the issuance of common stock for acquisition | 178,800 | ||||||
Foursight Capital | Automobile Loan | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Loans and Leases Receivable, Gross | $ 720,800 | $ 648,700 | $ 720,800 | $ 720,800 | |||
Credit Concentration Risk | Loans Receivable | Prime | Foursight Capital | Automobile Loan | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Concentration risk, percentage | 15.00% | 13.00% | |||||
Credit Concentration Risk | Loans Receivable | Near-Prime | Foursight Capital | Automobile Loan | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Concentration risk, percentage | 54.00% | 57.00% | |||||
Credit Concentration Risk | Loans Receivable | Subprime | Foursight Capital | Automobile Loan | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Concentration risk, percentage | 31.00% | 30.00% | |||||
Reclassified presentation of certain other fees | Jefferies Group | Commissions and other fees | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Revenues | 7,200 | 20,600 | |||||
Reclassified presentation of certain other fees | Jefferies Group | Other | |||||||
Loans and Leases Receivable Disclosure [Line Items] | |||||||
Revenues | $ (7,200) | $ (20,600) |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Assets: | ||
Trading assets, at fair value | $ 16,622,459 | $ 17,068,897 |
Derivatives | 514,742 | 166,775 |
Counterparty and Cash Collateral Netting, assets | (2,494,645) | (2,413,931) |
Securities purchased under agreements to resell | 25,000 | |
Available for sale securities | 0 | 1,409,886 |
Liabilities: | ||
Trading liabilities, at fair value | 10,296,315 | 9,478,946 |
Derivative liability | 562,806 | 1,127,653 |
Counterparty and Cash Collateral Netting, liabilities | (2,599,376) | (2,513,050) |
Long-term debt | 1,014,509 | 686,170 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 658,335 | 707,960 |
Level 1 | ||
Assets: | ||
Trading assets, at fair value | 6,586,408 | 6,091,056 |
Derivatives | 10,587 | 34,841 |
Securities purchased under agreements to resell | 0 | |
Available for sale securities | 1,072,856 | |
Liabilities: | ||
Trading liabilities, at fair value | 5,960,935 | 4,831,081 |
Derivative liability | 7,327 | 26,473 |
Long-term debt | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading assets, at fair value | 11,939,631 | 12,688,016 |
Derivatives | 2,982,776 | 2,539,943 |
Securities purchased under agreements to resell | 0 | |
Available for sale securities | 337,030 | |
Liabilities: | ||
Trading liabilities, at fair value | 6,849,891 | 7,126,481 |
Derivative liability | 3,088,068 | 3,586,694 |
Long-term debt | 666,446 | 485,425 |
Level 3 | ||
Assets: | ||
Trading assets, at fair value | 591,065 | 703,756 |
Derivatives | 16,024 | 5,922 |
Securities purchased under agreements to resell | 25,000 | |
Available for sale securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 84,865 | 34,434 |
Derivative liability | 66,787 | 27,536 |
Long-term debt | 348,063 | 200,745 |
Fair Value Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investments | 573,457 | 394,359 |
Corporate equity securities | ||
Assets: | ||
Trading assets, at fair value | 3,152,081 | 2,667,918 |
Liabilities: | ||
Trading liabilities, at fair value | 2,757,439 | 1,686,515 |
Corporate equity securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 2,938,829 | 2,497,045 |
Liabilities: | ||
Trading liabilities, at fair value | 2,750,131 | 1,685,071 |
Corporate equity securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 162,382 | 118,681 |
Liabilities: | ||
Trading liabilities, at fair value | 7,097 | 1,444 |
Corporate equity securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 50,870 | 52,192 |
Liabilities: | ||
Trading liabilities, at fair value | 211 | 0 |
Corporate debt securities | ||
Assets: | ||
Trading assets, at fair value | 2,902,021 | 2,692,664 |
Liabilities: | ||
Trading liabilities, at fair value | 1,804,868 | 1,506,140 |
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 | 2,892,733 | 2,683,180 |
Liabilities: | ||
Trading liabilities, at fair value | 1,803,666 | 1,505,618 |
Corporate debt securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 9,288 | 9,484 |
Liabilities: | ||
Trading liabilities, at fair value | 1,202 | 522 |
Collateralized debt obligations and collateralized loan obligations | ||
Assets: | ||
Trading assets, at fair value | 144,303 | 109,054 |
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 | 114,045 | 72,949 |
Collateralized debt obligations and collateralized loan obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 30,258 | 36,105 |
U.S. government and federal agency securities | ||
Assets: | ||
Trading assets, at fair value | 2,319,528 | 1,846,206 |
Available for sale securities | 1,072,856 | |
Liabilities: | ||
Trading liabilities, at fair value | 1,922,145 | 1,384,295 |
U.S. government and federal agency securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 2,115,452 | 1,789,614 |
Liabilities: | ||
Trading liabilities, at fair value | 1,922,145 | 1,384,295 |
U.S. government and federal agency securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 204,076 | 56,592 |
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 | 723,542 | 894,253 |
Municipal securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Municipal securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 723,542 | 894,253 |
Municipal securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Sovereign obligations | ||
Assets: | ||
Trading assets, at fair value | 2,610,467 | 2,812,965 |
Liabilities: | ||
Trading liabilities, at fair value | 2,135,214 | 2,396,337 |
Sovereign obligations | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,521,540 | 1,769,556 |
Liabilities: | ||
Trading liabilities, at fair value | 1,281,332 | 1,735,242 |
Sovereign obligations | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,088,927 | 1,043,409 |
Liabilities: | ||
Trading liabilities, at fair value | 853,882 | 661,095 |
Sovereign obligations | 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 | 1,423,175 | 2,183,232 |
Available for sale securities | 210,518 | |
Residential mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | |
Residential mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,405,246 | 2,163,629 |
Available for sale securities | 210,518 | |
Residential mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 17,929 | 19,603 |
Available for sale securities | 0 | |
Commercial mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 378,781 | 830,292 |
Available for sale securities | 15,642 | |
Liabilities: | ||
Trading liabilities, at fair value | 35 | |
Commercial mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 373,319 | 819,406 |
Available for sale securities | 15,642 | |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 5,462 | 10,886 |
Available for sale securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 35 | |
Other asset-backed securities | ||
Assets: | ||
Trading assets, at fair value | 524,653 | 292,556 |
Available for sale securities | 110,870 | |
Other asset-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | |
Other asset-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 490,055 | 239,381 |
Available for sale securities | 110,870 | |
Other asset-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 34,598 | 53,175 |
Available for sale securities | 0 | |
Loans and other receivables | ||
Assets: | ||
Trading assets, at fair value | 1,536,545 | 2,103,578 |
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 | 1,460,982 | 2,056,593 |
Loans and other receivables | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 75,563 | 46,985 |
Investments at fair value | ||
Assets: | ||
Trading assets, at fair value | 334,031 | 396,254 |
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 | 41,548 | 0 |
Investments at fair value | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 292,483 | 396,254 |
FXCM term loan | ||
Assets: | ||
Trading assets, at fair value | 58,590 | 73,150 |
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 | 58,590 | 73,150 |
Loans | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,113,808 | 1,378,006 |
Loans | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Loans | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,097,178 | 1,371,630 |
Loans | Level 3 | ||
Liabilities: | ||
Trading liabilities, at fair value | 16,630 | 6,376 |
U.S. government securities | ||
Assets: | ||
Available for sale securities | 1,072,856 | |
U.S. government securities | Level 1 | ||
Assets: | ||
Available for sale securities | 1,072,856 | |
Liabilities: | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 35,000 | 34,800 |
U.S. government securities | Level 2 | ||
Assets: | ||
Available for sale securities | 0 | |
U.S. government securities | Level 3 | ||
Assets: | ||
Available for sale securities | $ 0 |
Fair Value Disclosures (Investm
Fair Value Disclosures (Investments at Fair Value) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | Dec. 31, 2013 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 19,154 | $ 20,996 | $ 19,154 | $ 20,996 | ||
Payments to acquire investments | 2,995 | $ 3,242,732 | ||||
Trading assets, at fair value | 17,195,916 | 17,463,256 | 17,195,916 | 17,463,256 | ||
Equity Long/Short Hedge Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Percentage of investment at fair value, redemption restriction | 94.00% | 0.00% | 94.00% | 0.00% | ||
Investment redemption restriction period | 36 months | |||||
Percentage of investments redeemed during period | 82.00% | |||||
Equity Long/Short Hedge Funds | 60 days prior written notice | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Percentage of investments redeemable | 6.00% | 17.00% | 6.00% | 17.00% | ||
Notice period redemption of investments prior written notice period | 60 days | 60 days | ||||
Equity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 19,154 | $ 20,996 | $ 19,154 | $ 20,996 | ||
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 | 9 years | 9 years | ||||
Commodity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Notice period redemption of investments prior written notice period | 60 days | 60 days | ||||
Multi-asset Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Multi-asset Funds | 30 days prior written notice | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Percentage of investments redeemable | 4.00% | 15.00% | 4.00% | 15.00% | ||
Notice period redemption of investments prior written notice period | 30 days | 30 days | ||||
Other Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Fair Value Measured at NAV | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 573,457 | 394,359 | 573,457 | 394,359 | ||
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 | 292,205 | 86,788 | 292,205 | 86,788 | ||
Fair Value Measured at NAV | Equity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 33,891 | 40,070 | 33,891 | 40,070 | ||
Fair Value Measured at NAV | Commodity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 15,212 | 10,129 | 15,212 | 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 | 231,991 | 256,972 | 231,991 | 256,972 | ||
Fair Value Measured at NAV | Other Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | $ 158 | 400 | $ 158 | 400 | ||
The We Company | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Payments to acquire investments | $ 9,000 | |||||
Ownership percentage | 0.80% | 0.80% | ||||
Trading assets, at fair value | $ 123,200 | $ 254,400 | $ 123,200 | $ 254,400 |
Fair Value Disclosures (Inves_2
Fair Value Disclosures (Investment in FXCM Narrative) (Details) - Investment in FXCM $ in Millions | Aug. 31, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Senior secured term loan receivable, principal outstanding | $ 71.6 |
Equity method investment, ownership percentage | 50.00% |
Fair Value Disclosures (Level 3
Fair Value Disclosures (Level 3 Rollforwards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Assets: | ||||
Total gains (losses) (realized and unrealized) | $ (150,300) | $ 11,700 | $ (123,300) | $ 29,800 |
Liabilities: | ||||
Total gains/ losses (realized and unrealized) | 26,800 | |||
Total gains (losses) (realized and unrealized), included in earnings and OCI | 12,800 | (4,400) | 55,800 | |
Fair value, Liabilities, change in unrealized gains/(losses) included in other comprehensive income relating to instruments still held | 700 | (100) | 9,800 | 11,800 |
Corporate equity securities | ||||
Assets: | ||||
Beginning Balance | 59,572 | 44,871 | 52,192 | 22,270 |
Total gains (losses) (realized and unrealized) | 12,547 | 11,796 | 15,499 | 31,475 |
Purchases | 16,508 | 17,652 | 23,172 | 35,993 |
Sales | (17,502) | (23,010) | (25,431) | (39,008) |
Settlements | 0 | (302) | (669) | (2,082) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (20,255) | (1,324) | (13,893) | 1,035 |
Ending Balance | 50,870 | 49,683 | 50,870 | 49,683 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 12,067 | 9,136 | 14,071 | 26,852 |
Liabilities: | ||||
Beginning Balance | 221 | 87 | 0 | 48 |
Total gains/ losses (realized and unrealized) | 401 | 326 | 401 | 365 |
Purchases | (221) | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (190) | 0 | (190) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 211 | 413 | 211 | 413 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (35) | (326) | (35) | (365) |
Corporate debt securities | ||||
Assets: | ||||
Beginning Balance | 8,346 | 28,066 | 9,484 | 26,036 |
Total gains (losses) (realized and unrealized) | (3,072) | 1,057 | (4,904) | 1,090 |
Purchases | 1,175 | 507 | 6,080 | 22,204 |
Sales | (1,942) | (21,403) | (10,544) | (38,553) |
Settlements | (85) | (59) | (553) | (2,066) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 4,866 | 1,483 | 9,725 | 940 |
Ending Balance | 9,288 | 9,651 | 9,288 | 9,651 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (3,047) | (165) | (5,325) | (1,738) |
Liabilities: | ||||
Beginning Balance | 669 | 522 | 522 | 522 |
Total gains/ losses (realized and unrealized) | (650) | 39 | (867) | 39 |
Purchases | (34) | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (369) | 996 | (524) | 996 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 1,586 | 0 | 2,071 | 0 |
Ending Balance | 1,202 | 1,557 | 1,202 | 1,557 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 649 | (39) | 867 | (39) |
Sovereign Obligations [Domain] | ||||
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Total gains/ losses (realized and unrealized) | 3 | 3 | ||
Purchases | (598) | (598) | ||
Sales | 629 | 629 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 21 | 21 | ||
Ending Balance | 55 | 55 | ||
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (124) | (124) | ||
CDOs and CLOs | ||||
Assets: | ||||
Beginning Balance | 25,912 | 42,517 | 36,105 | 42,184 |
Total gains (losses) (realized and unrealized) | (1,499) | (967) | (4,320) | (4,123) |
Purchases | 0 | 238,281 | 48,112 | 242,864 |
Sales | 0 | (240,002) | (43,230) | (249,691) |
Settlements | (609) | (2,127) | (3,014) | (5,859) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 6,454 | (3,721) | (3,395) | 8,606 |
Ending Balance | 30,258 | 33,981 | 30,258 | 33,981 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (2,097) | (3,872) | (6,781) | (7,333) |
Residential mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 17,266 | 3,655 | 19,603 | 26,077 |
Total gains (losses) (realized and unrealized) | (1,917) | (66) | (2,573) | (7,334) |
Purchases | 0 | 72 | 2,166 | 2,018 |
Sales | (65) | (1,597) | (2,022) | (12,621) |
Settlements | (22) | (1) | (171) | (6) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 2,667 | 2,891 | 926 | (3,180) |
Ending Balance | 17,929 | 4,954 | 17,929 | 4,954 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (1,435) | 90 | (2,166) | 316 |
Commercial mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 12,530 | 27,239 | 10,886 | 12,419 |
Total gains (losses) (realized and unrealized) | (2,003) | (222) | (2,196) | (1,236) |
Purchases | 0 | 8 | 11 | 1,720 |
Sales | (1,703) | 0 | (2,023) | (548) |
Settlements | (3,362) | (1,156) | (6,638) | (5,415) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | (1,953) | 5,422 | 16,976 |
Ending Balance | 5,462 | 23,916 | 5,462 | 23,916 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (3,143) | (288) | (4,326) | (2,272) |
Liabilities: | ||||
Beginning Balance | 0 | 0 | 0 | 105 |
Total gains/ losses (realized and unrealized) | 0 | 70 | 0 | (35) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 35 | 0 | 35 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 35 | 70 | 35 | 70 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 0 | (70) | 0 | (70) |
Other asset-backed securities | ||||
Assets: | ||||
Beginning Balance | 43,185 | 55,535 | 53,175 | 61,129 |
Total gains (losses) (realized and unrealized) | (1,689) | (2,269) | (929) | (7,528) |
Purchases | 13,497 | 307,358 | 14,698 | 523,045 |
Sales | (6,975) | (290,838) | (2,494) | (495,055) |
Settlements | (5,500) | (4,356) | (30,623) | (12,281) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (7,920) | 3,875 | 771 | (5) |
Ending Balance | 34,598 | 69,305 | 34,598 | 69,305 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (1,068) | (1,124) | (961) | (3,307) |
Loans and other receivables | ||||
Assets: | ||||
Beginning Balance | 98,484 | 64,036 | 46,985 | 47,304 |
Total gains (losses) (realized and unrealized) | (2,847) | (1,353) | 3,933 | (2,812) |
Purchases | 26,921 | 14,932 | 178,069 | 104,009 |
Sales | (33,409) | (23,700) | (166,496) | (98,733) |
Settlements | (1,287) | (3,453) | (8,379) | (14,610) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (12,299) | (1,477) | 21,451 | 13,827 |
Ending Balance | 75,563 | 48,985 | 75,563 | 48,985 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (2,392) | 1,007 | 682 | (3,769) |
Investments at fair value | ||||
Assets: | ||||
Beginning Balance | 408,739 | 318,543 | 396,254 | 329,944 |
Total gains (losses) (realized and unrealized) | (152,162) | 2,383 | (119,110) | 3,865 |
Purchases | 1,067 | 6,051 | 42,579 | 9,791 |
Sales | (296) | 0 | (18,598) | (17,569) |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 35,135 | 0 | (8,642) | 946 |
Ending Balance | 292,483 | 326,977 | 292,483 | 326,977 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (152,162) | 2,383 | (119,110) | 3,271 |
FXCM term loan | ||||
Assets: | ||||
Beginning Balance | 56,600 | 76,100 | 73,150 | 72,800 |
Total gains (losses) (realized and unrealized) | 2,293 | 1,347 | (8,669) | 16,432 |
Purchases | 0 | 0 | 1,500 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (303) | (3,647) | (7,391) | (15,432) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 58,590 | 73,800 | 58,590 | 73,800 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 2,293 | (2,300) | (8,669) | 5,539 |
Securities purchased under agreements to resell | ||||
Assets: | ||||
Beginning Balance | 25,000 | 0 | ||
Total gains (losses) (realized and unrealized) | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 25,000 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Ending Balance | 25,000 | 25,000 | ||
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 0 | 0 | ||
Loans | ||||
Liabilities: | ||||
Beginning Balance | 9,428 | 12,881 | 6,376 | 3,486 |
Total gains/ losses (realized and unrealized) | (520) | (148) | (1,342) | (1,059) |
Purchases | (10,281) | (4,871) | (8,553) | (15,702) |
Sales | 5,384 | 1,787 | 9,929 | 19,409 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 12,619 | (988) | 10,220 | 2,527 |
Ending Balance | 16,630 | 8,661 | 16,630 | 8,661 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 531 | 149 | 1,583 | 1,059 |
Derivatives | ||||
Liabilities: | ||||
Beginning Balance | 47,449 | 5,874 | 21,614 | 6,746 |
Total gains/ losses (realized and unrealized) | (19,519) | 1,107 | (48,746) | (1,034) |
Purchases | 0 | 0 | (2,829) | (6) |
Sales | 6,766 | 0 | 16,313 | 0 |
Settlements | (14) | 1,990 | 1,609 | 2,984 |
Issuances | 0 | 0 | 0 | 296 |
Net transfers into (out of) Level 3 | 16,081 | 26 | 62,802 | 11 |
Ending Balance | 50,763 | 8,997 | 50,763 | 8,997 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 18,507 | (2,090) | 40,052 | (2,660) |
Long-term debt | ||||
Liabilities: | ||||
Beginning Balance | 236,562 | 160,626 | 200,745 | 0 |
Total gains (losses) (realized and unrealized), included in earnings and OCI | 7,455 | 3,004 | (5,286) | (25,078) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (11,250) | 0 |
Issuances | 114,641 | 0 | 204,710 | 81,284 |
Net transfers into (out of) Level 3 | (10,595) | 0 | (40,856) | 107,424 |
Ending Balance | 348,063 | 163,630 | 348,063 | 163,630 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | $ (8,162) | $ (2,953) | $ (4,517) | $ 13,235 |
Fair Value Disclosures (Analysi
Fair Value Disclosures (Analysis of Level 3 Assets and Liabilities Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | $ 79,000 | $ 13,600 | $ 60,200 | $ 49,100 | |
Transfers of assets from Level 3 to Level 2 | 70,300 | 13,800 | 47,800 | 10,000 | |
Transfers of liabilities from Level 2 to Level 3 | 43,500 | 98,300 | |||
Transfers of liabilities from Level 3 to Level 2 | 23,800 | 64,100 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | (150,300) | 11,700 | (123,300) | 29,800 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 26,800 | ||||
Net gains (losses) on Level 3 liabilities (realized and unrealized), included in earnings and OCI | 12,800 | (4,400) | 55,800 | ||
Excluded assets from unobservable quantitative information | 72,400 | 72,400 | $ 40,300 | ||
Excluded liabilities from unobservable quantitative information | 2,300 | 2,300 | $ 500 | ||
Loans and other receivables | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 23,700 | 30,600 | 15,300 | ||
Transfers of assets from Level 3 to Level 2 | 36,000 | 9,200 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | (2,847) | (1,353) | 3,933 | (2,812) | |
CDOs and CLOs | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 8,700 | ||||
Transfers of assets from Level 3 to Level 2 | 3,700 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,499) | (967) | (4,320) | (4,123) | |
Commercial mortgage-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,600 | 17,000 | |||
Transfers of assets from Level 3 to Level 2 | 4,600 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (2,003) | (222) | (2,196) | (1,236) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 0 | 70 | 0 | (35) | |
Residential mortgage-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,900 | ||||
Transfers of assets from Level 3 to Level 2 | 4,600 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,917) | (66) | (2,573) | (7,334) | |
Corporate equity securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 3 to Level 2 | 22,100 | 2,600 | 14,800 | 2,500 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | 12,547 | 11,796 | 15,499 | 31,475 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 401 | 326 | 401 | 365 | |
Other asset-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 3,900 | 10,800 | |||
Transfers of assets from Level 3 to Level 2 | 10,000 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,689) | (2,269) | (929) | (7,528) | |
Corporate debt securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 10,500 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (3,072) | 1,057 | (4,904) | 1,090 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (650) | 39 | (867) | 39 | |
Investments at fair value | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 35,100 | ||||
Transfers of assets from Level 3 to Level 2 | 8,600 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (152,162) | 2,383 | (119,110) | 3,865 | |
Structured notes | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 11,000 | 20,800 | 107,400 | ||
Transfers of liabilities from Level 3 to Level 2 | 21,600 | 61,700 | |||
Derivatives | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 17,600 | 64,500 | |||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (19,519) | 1,107 | (48,746) | (1,034) | |
Loans | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 13,300 | ||||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ (520) | $ (148) | $ (1,342) | $ (1,059) |
Fair Value Disclosures (Quantit
Fair Value Disclosures (Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements) (Details) $ in Thousands | 9 Months Ended | 11 Months Ended | |||||||||
Aug. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Aug. 31, 2019 | Aug. 31, 2019$ / shares | Aug. 31, 2019€ / Bond | Aug. 31, 2019$ / Bond | Aug. 31, 2019gbpPerShare | 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] | |||||||||||
Securities purchased under agreements to resell | $ 4,499,995 | $ 2,785,758 | |||||||||
Derivatives | 514,742 | 166,775 | |||||||||
Derivative liability | 562,806 | 1,127,653 | |||||||||
Long-term debt, fair value | 1,014,509 | 686,170 | |||||||||
Level 3 | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivatives | 16,024 | 5,922 | |||||||||
Derivative liability | 66,787 | 27,536 | |||||||||
Long-term debt, fair value | 348,063 | 200,745 | |||||||||
Level 3 | Price | Market approach | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Long-term debt, measurement input | 70 | 89 | 68 | 78 | |||||||
Level 3 | Price | Market approach | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Long-term debt, measurement input | 103 | 102 | 110 | 94 | |||||||
Level 3 | Price | Market approach | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Long-term debt, measurement input | 89 | 97 | 96 | 86 | |||||||
Level 3 | Corporate equity securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | 45,344 | ||||||||||
Level 3 | Non-exchange-traded securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | 43,644 | ||||||||||
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 | 1 | |||||||||
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 | 177 | 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 | 143 | 12 | |||||||||
Level 3 | Non-exchange-traded securities | Transaction level | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | $ / shares | 47 | ||||||||||
Level 3 | Non-exchange-traded securities | Underlying stock 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 | Underlying stock price | Market approach | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | $ / shares | 5 | ||||||||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Market approach | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | $ / shares | 4 | ||||||||||
Level 3 | Corporate debt securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | 9,288 | 9,484 | |||||||||
Level 3 | Corporate debt securities | Transaction level | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 80 | ||||||||||
Level 3 | Corporate debt securities | Underlying stock price | Scenario analysis | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | gbpPerShare | 0.4 | ||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0.38 | ||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0.49 | ||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0.42 | ||||||||||
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 | 0.46 | ||||||||||
Level 3 | Corporate debt securities | Credit spread | Scenario analysis | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 750 | ||||||||||
Level 3 | Corporate debt securities | Volatility | Scenario analysis | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0.44 | ||||||||||
Level 3 | CDOs and CLOs | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | 30,258 | 36,105 | |||||||||
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 | 0.13 | 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 | 0.16 | 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 | 0.14 | 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 | 0.04 | 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 | 0.37 | 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 | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0.15 | 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 | 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 | 0.19 | 0.18 | |||||||||
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 | 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 | 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 | 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 | 0.27 | 0.26 | |||||||||
Level 3 | Residential mortgage-backed securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | $ 17,929 | $ 19,603 | |||||||||
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 | $ / Bond | 100 | ||||||||||
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 | 0.03 | |||||||||
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 | 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 | 0.02 | 0.04 | |||||||||
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 | 7 years | 13 years | |||||||||
Level 3 | Commercial mortgage-backed securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | $ 5,462 | $ 9,444 | |||||||||
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 | $ / Bond | 49 | ||||||||||
Level 3 | Commercial 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 | 0.05 | ||||||||||
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 | ||||||||||
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 | 0.15 | ||||||||||
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 | 0.06 | ||||||||||
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 | 0.44 | 0.26 | |||||||||
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 | Commercial 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 | 0.80 | ||||||||||
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 | ||||||||||
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 | 0.85 | ||||||||||
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 | 0.45 | ||||||||||
Level 3 | Commercial 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 | 1 year | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
Level 3 | Other asset-backed securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | $ 34,598 | $ 53,175 | |||||||||
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 | $ / Bond | 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 | 0.07 | 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 | 0.12 | 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 | 0.11 | 0.08 | |||||||||
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 | 0.07 | 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 | 0.31 | 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 | 0.18 | 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 | 3 years | 2 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 | 2 years | 1 year | |||||||||
Level 3 | Loans and other receivables | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | $ 74,057 | $ 46,078 | |||||||||
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 | $ / Bond | 41 | 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 | $ / Bond | 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 | 81 | 96 | |||||||||
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 | 0.01 | 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 | 1.17 | 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 | 0.68 | 1.05 | |||||||||
Level 3 | Derivatives | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivatives | 13,538 | 4,602 | |||||||||
Derivative liability | 65,927 | 27,536 | |||||||||
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 | $ / Bond | 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 | $ / Bond | 90 | ||||||||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivative asset, measurement input | $ / Bond | 97 | ||||||||||
Derivative liability, measurement input | $ / Bond | 97 | ||||||||||
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 | 0.29 | 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 | 0.59 | 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 | 0.42 | 0.50 | |||||||||
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 | ||||||||||
Level 3 | Derivatives | Basis points upfront | Interest rate swaps | Market approach | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivative asset, measurement input | 0 | ||||||||||
Derivative liability, measurement input | 0 | ||||||||||
Level 3 | Derivatives | Basis points upfront | Interest rate swaps | Market approach | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivative asset, measurement input | 7 | ||||||||||
Derivative liability, measurement input | 10 | ||||||||||
Level 3 | Derivatives | Basis points upfront | Interest rate swaps | Market approach | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivative asset, measurement input | 3 | ||||||||||
Derivative liability, measurement input | 4 | ||||||||||
Level 3 | Derivatives | Basis points upfront | Cross currency swaps | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Derivative liability, measurement input | 2 | ||||||||||
Level 3 | Private equity securities | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | 229,586 | $ 368,231 | |||||||||
Level 3 | Private equity securities | Price | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | $ / shares | 38 | ||||||||||
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 | 8 | 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 | 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 | 125 | 108 | |||||||||
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 | 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 | 0.20 | |||||||||
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 | Revenue growth | Scenario analysis | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input | 0 | 0 | |||||||||
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 | FXCM term loan | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, fair value | $ 58,590 | $ 73,150 | |||||||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Discounted cash flows | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input, term | 0 months | 0 months | |||||||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Discounted cash flows | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Trading assets, measurement input, term | 1 year 6 months | 4 months | |||||||||
Level 3 | FXCM term loan | Term based on the pay off (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 6 months | 9 days | |||||||||
Level 3 | Securities purchased under agreements to resell | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Securities purchased under agreements to resell | $ 25,000 | ||||||||||
Level 3 | Securities purchased under agreements to resell | Duration (years) | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Securities purchased under agreements to resell, measurement input, term | 2 years | ||||||||||
Level 3 | Securities purchased under agreements to resell | Spread to 6 month LIBOR | Market approach | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Securities purchased under agreements to resell, measurement input | 500 | ||||||||||
Level 3 | Loans | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, fair value | $ 16,630 | $ 6,376 | |||||||||
Level 3 | Loans | Price | Market approach | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | $ / Bond | 50 | 50 | |||||||||
Level 3 | Loans | Price | Market approach | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | $ / Bond | 98 | 101 | |||||||||
Level 3 | Loans | Price | Market approach | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | $ / Bond | 78 | 74 | |||||||||
Level 3 | Loans | Estimated recovery percentage | Scenario analysis | Minimum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | 0.01 | ||||||||||
Level 3 | Loans | Estimated recovery percentage | Scenario analysis | Maximum | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | 0.75 | ||||||||||
Level 3 | Loans | Estimated recovery percentage | Scenario analysis | Weighted Average | |||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||||
Debt instrument, measurement input | 0.27 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary of Gains (Losses) Due To Changes In Instrument Specific Credit Risk on Loans, Other Receivables and Debt Instruments Measured at Fair Value Under Fair Value Option) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Trading Assets | ||||
Financial Instruments [Line Items] | ||||
Loans and other receivables | $ 2,040 | $ 14,002 | $ (5,458) | $ 7,495 |
Trading Liabilities | ||||
Financial Instruments [Line Items] | ||||
Loans | 0 | (2,708) | 0 | (2,467) |
Loan commitments | (443) | (1,695) | (1,200) | (1,964) |
Long-term debt | ||||
Financial Instruments [Line Items] | ||||
Changes in instrument specific credit risk | 6,922 | 1,401 | 34,414 | 19,986 |
Other changes in fair value | $ (46,003) | $ (6,842) | $ (93,311) | $ 33,626 |
Fair Value Disclosures (Summa_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 | Aug. 31, 2019 | Nov. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Loans and other receivables | $ 1,356,508 | $ 961,554 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 139,795 | 158,392 |
Long-term Debt | 59,370 | 114,669 |
All loans and other receivables 90 days or greater past due | $ 20,900 | $ 20,500 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Option Election Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019shares | Aug. 31, 2019USD ($)directorshares | Sep. 30, 2018USD ($) | Aug. 31, 2019USD ($)directorshares | Sep. 30, 2018USD ($) | Sep. 16, 2019USD ($) | Nov. 30, 2018USD ($) | Jul. 13, 2018 | Dec. 31, 2017shares | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Financial instruments owned trading assets, at fair value | $ 17,195,916 | $ 17,195,916 | $ 17,463,256 | ||||||
Jefferies Group | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 113,400 | 113,400 | 105,300 | ||||||
Loans and other receivables 90 days or greater past due | 31,900 | 31,900 | 19,400 | ||||||
HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Cash consideration paid for shares | 475,600 | 475,600 | |||||||
Spectrum Brands | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Financial instruments owned trading assets, at fair value | $ 419,800 | $ 419,800 | $ 371,100 | ||||||
Number of directors appointed by Company | director | 1 | 1 | |||||||
HRG Group/Spectrum Brands Holdings, Inc. | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Changes in fair value of investments reflected as principal transactions | $ 24,000 | $ (48,500) | $ 48,800 | $ (228,400) | |||||
HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Shares owned, number | shares | 46,600,000 | ||||||||
Percentage of outstanding common stock owned | 23.00% | ||||||||
Ownership percentage | 23.00% | ||||||||
Spectrum Brands | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Shares owned, number | shares | 7,514,477 | 7,514,477 | |||||||
Ownership percentage | 15.00% | 15.00% | 14.00% | ||||||
Spectrum Brands | HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Ownership percentage | 62.00% | ||||||||
Subsequent event | Spectrum Brands | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Dividend distribution (in shares) | shares | 7,514,477 | ||||||||
Dividends payable | $ 451,100 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure) (Details) $ in Thousands | Aug. 31, 2019USD ($)Contract | Nov. 30, 2018USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net Amounts in Consolidated Statements of Financial Condition | $ 514,742 | $ 166,775 |
Net Amounts in Consolidated Statements of Financial Condition | 562,806 | 1,127,653 |
Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 38,588 | 0 |
Fair Value, Liabilities | 0 | 29,647 |
Not Designated as Accounting Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 2,970,799 | 2,580,706 |
Fair Value, Liabilities | 3,162,182 | 3,611,056 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 744,491 | 1,231,525 |
Fair Value, Liabilities | 1,092,015 | 2,061,924 |
Amounts offset in Consolidated Statement of Financial Condition, Assets | (723,158) | (1,190,951) |
Amounts offset in Consolidated Statement of Financial Condition, Liabilities | (723,158) | (1,190,951) |
Exchange-traded | Not Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,766 | $ 924 |
Number of Contracts, Assets | Contract | 39,912 | 32,159 |
Fair Value, Liabilities | $ 873 | $ 513 |
Number of Contracts, Liabilities | Contract | 45,448 | 66,095 |
Exchange-traded | Not Designated as Accounting Hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 42 |
Number of Contracts, Assets | Contract | 191 | 538 |
Fair Value, Liabilities | $ 0 | $ 2 |
Number of Contracts, Liabilities | Contract | 87 | 690 |
Exchange-traded | Not Designated as Accounting Hedges | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 741,307 | $ 1,202,927 |
Number of Contracts, Assets | Contract | 1,998,268 | 2,104,684 |
Fair Value, Liabilities | $ 1,091,142 | $ 2,061,137 |
Number of Contracts, Liabilities | Contract | 1,611,110 | 1,779,836 |
Exchange-traded | Not Designated as Accounting Hedges | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,418 | $ 27,632 |
Number of Contracts, Assets | Contract | 9,523 | 7,272 |
Fair Value, Liabilities | $ 0 | $ 272 |
Number of Contracts, Liabilities | Contract | 6,239 | 4,185 |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 907,235 | $ 433,874 |
Fair Value, Liabilities | 911,977 | 443,072 |
Amounts offset in Consolidated Statement of Financial Condition, Assets | (871,162) | (407,351) |
Amounts offset in Consolidated Statement of Financial Condition, Liabilities | (881,963) | (418,779) |
Cleared OTC | Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 38,588 | $ 0 |
Number of Contracts, Assets | Contract | 1 | 0 |
Fair Value, Liabilities | $ 0 | $ 29,647 |
Number of Contracts, Liabilities | Contract | 0 | 1 |
Cleared OTC | Not Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 863,437 | $ 422,670 |
Number of Contracts, Assets | Contract | 3,335 | 2,095 |
Fair Value, Liabilities | $ 903,989 | $ 411,833 |
Number of Contracts, Liabilities | Contract | 3,947 | 2,394 |
Cleared OTC | Not Designated as Accounting Hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | |
Number of Contracts, Assets | Contract | 0 | |
Fair Value, Liabilities | $ 36 | |
Number of Contracts, Liabilities | Contract | 3 | |
Cleared OTC | Not Designated as Accounting Hedges | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 5,210 | $ 11,204 |
Number of Contracts, Assets | Contract | 12 | 7 |
Fair Value, Liabilities | $ 7,988 | $ 1,556 |
Number of Contracts, Liabilities | Contract | 16 | 14 |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,357,661 | $ 915,307 |
Fair Value, Liabilities | 1,158,190 | 1,135,707 |
Amounts offset in Consolidated Statement of Financial Condition, Assets | (900,325) | (815,629) |
Amounts offset in Consolidated Statement of Financial Condition, Liabilities | (994,255) | (903,320) |
Bilateral OTC | Not Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 539,158 | $ 372,899 |
Number of Contracts, Assets | Contract | 1,865 | 1,398 |
Fair Value, Liabilities | $ 241,817 | $ 491,697 |
Number of Contracts, Liabilities | Contract | 474 | 816 |
Bilateral OTC | Not Designated as Accounting Hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 552,066 | $ 311,228 |
Number of Contracts, Assets | Contract | 8,566 | 9,548 |
Fair Value, Liabilities | $ 548,854 | $ 314,951 |
Number of Contracts, Liabilities | Contract | 8,319 | 9,909 |
Bilateral OTC | Not Designated as Accounting Hedges | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 228,415 | $ 207,221 |
Number of Contracts, Assets | Contract | 4,073 | 5,126 |
Fair Value, Liabilities | $ 357,356 | $ 315,996 |
Number of Contracts, Liabilities | Contract | 4,428 | 2,764 |
Bilateral OTC | Not Designated as Accounting Hedges | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 27,839 | $ 10,191 |
Number of Contracts, Assets | Contract | 2,794 | 1,274 |
Fair Value, Liabilities | $ 170 | $ 1,445 |
Number of Contracts, Liabilities | Contract | 1,779 | 1,498 |
Bilateral OTC | Not Designated as Accounting Hedges | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 10,183 | $ 13,768 |
Number of Contracts, Assets | Contract | 34 | 123 |
Fair Value, Liabilities | $ 9,993 | $ 11,618 |
Number of Contracts, Liabilities | Contract | 21 | 79 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Unrealized And Realized Gains (Losses) On Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | $ (467) | $ 60 | $ (2,445) | $ 1,692 |
Unrealized and realized gains (losses) | (84,495) | 3,364 | (296,143) | (229,146) |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (89,864) | 13,951 | (193,715) | 36,053 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (1,839) | (4,781) | 269 | 6,737 |
Equity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 2,236 | 1,019 | (118,354) | (249,546) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 2,285 | (6,845) | 4,057 | (23,150) |
Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 2,687 | 20 | 11,600 | 760 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | 28,052 | (1,161) | 69,843 | (22,363) |
Long-term Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | $ (28,519) | $ 1,221 | $ (72,288) | $ 24,055 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | $ 291,709 |
OTC derivative assets having maturity period of 1 to 5 years | 310,094 |
OTC derivative assets having maturity period of greater than 5 years | 187,323 |
OTC derivative assets cross-maturity netting | (64,462) |
Total OTC derivative assets, net of cross-maturity netting | 724,664 |
Cross product counterparty netting | (26,934) |
Total OTC derivative assets included in Trading assets | 697,730 |
OTC derivative liabilities having maturity period of 0 to 12 months | 237,694 |
OTC derivative liabilities having maturity period of 1 to 5 years | 201,224 |
OTC derivative liabilities having maturity period of greater than 5 years | 162,421 |
OTC derivative liabilities cross-maturity netting | (64,462) |
Total OTC derivative liabilities, net of cross-maturity netting | 536,877 |
Cross product counterparty netting | (26,934) |
Total OTC derivative liabilities included in Trading liabilities | 509,943 |
Exchange traded derivative assets and other credit agreements | 30,300 |
Cash collateral received | 213,200 |
Exchange traded derivative liabilities and other credit agreements | 370,800 |
Cash collateral pledged | 318,000 |
Commodity swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 18,781 |
OTC derivative assets having maturity period of 1 to 5 years | 9,058 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (170) |
Total OTC derivative assets, net of cross-maturity netting | 27,669 |
OTC derivative liabilities having maturity period of 0 to 12 months | 170 |
OTC derivative liabilities having maturity period of 1 to 5 years | 0 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (170) |
Total OTC derivative liabilities, net of cross-maturity netting | 0 |
Equity swaps and options | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 57,345 |
OTC derivative assets having maturity period of 1 to 5 years | 1 |
OTC derivative assets having maturity period of greater than 5 years | 3,579 |
OTC derivative assets cross-maturity netting | (3,572) |
Total OTC derivative assets, net of cross-maturity netting | 57,353 |
OTC derivative liabilities having maturity period of 0 to 12 months | 8,679 |
OTC derivative liabilities having maturity period of 1 to 5 years | 123,854 |
OTC derivative liabilities having maturity period of greater than 5 years | 49,873 |
OTC derivative liabilities cross-maturity netting | (3,572) |
Total OTC derivative liabilities, net of cross-maturity netting | 178,834 |
Credit default swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 887 |
OTC derivative assets having maturity period of 1 to 5 years | 826 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (81) |
Total OTC derivative assets, net of cross-maturity netting | 1,632 |
OTC derivative liabilities having maturity period of 0 to 12 months | 35 |
OTC derivative liabilities having maturity period of 1 to 5 years | 6,291 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (81) |
Total OTC derivative liabilities, net of cross-maturity netting | 6,245 |
Total return swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 25,166 |
OTC derivative assets having maturity period of 1 to 5 years | 70,022 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (334) |
Total OTC derivative assets, net of cross-maturity netting | 94,854 |
OTC derivative liabilities having maturity period of 0 to 12 months | 77,259 |
OTC derivative liabilities having maturity period of 1 to 5 years | 25,160 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (334) |
Total OTC derivative liabilities, net of cross-maturity netting | 102,085 |
Foreign currency forwards, swaps and options | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 112,654 |
OTC derivative assets having maturity period of 1 to 5 years | 4,740 |
OTC derivative assets having maturity period of greater than 5 years | 7 |
OTC derivative assets cross-maturity netting | (3,538) |
Total OTC derivative assets, net of cross-maturity netting | 113,863 |
OTC derivative liabilities having maturity period of 0 to 12 months | 108,267 |
OTC derivative liabilities having maturity period of 1 to 5 years | 2,758 |
OTC derivative liabilities having maturity period of greater than 5 years | 2,984 |
OTC derivative liabilities cross-maturity netting | (3,538) |
Total OTC derivative liabilities, net of cross-maturity netting | 110,471 |
Fixed income forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 556 |
OTC derivative assets having maturity period of 1 to 5 years | 0 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 556 |
OTC derivative liabilities having maturity period of 0 to 12 months | 868 |
OTC derivative liabilities having maturity period of 1 to 5 years | 0 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 868 |
Interest rate swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 76,320 |
OTC derivative assets having maturity period of 1 to 5 years | 225,447 |
OTC derivative assets having maturity period of greater than 5 years | 183,737 |
OTC derivative assets cross-maturity netting | (56,767) |
Total OTC derivative assets, net of cross-maturity netting | 428,737 |
OTC derivative liabilities having maturity period of 0 to 12 months | 42,416 |
OTC derivative liabilities having maturity period of 1 to 5 years | 43,161 |
OTC derivative liabilities having maturity period of greater than 5 years | 109,564 |
OTC derivative liabilities cross-maturity netting | (56,767) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 138,374 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 169,620 |
BBB- to BBB plus | 47,945 |
BB plus or lower | 275,252 |
Unrated | 204,913 |
Total OTC derivative assets included in Trading assets | $ 697,730 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Credit Related Derivative Contracts) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Nov. 30, 2018 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 96.8 | $ 193.1 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 72.1 | 145.2 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 25.7 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 7.6 | 57.7 |
Non-investment grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 96.8 | 167.4 |
Non-investment grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 31.6 | 84.5 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 32.9 | $ 3 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Contingent Features) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Nov. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 113.7 | $ 93.5 |
Collateral posted | (80) | (61.5) |
Collateral received | 57 | 91.5 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 90.6 | $ 123.3 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Pledged) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,182,865 | $ 1,838,688 |
Repurchase agreements | 21,323,082 | 17,193,486 |
Total | 23,505,947 | 19,032,174 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,952,304 | 1,505,218 |
Repurchase agreements | 147,845 | 487,124 |
Total | 2,100,149 | 1,992,342 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 174,936 | 333,221 |
Repurchase agreements | 1,946,659 | 1,853,309 |
Total | 2,121,595 | 2,186,530 |
Mortgage- and asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 249 |
Repurchase agreements | 2,041,563 | 2,820,543 |
Total | 2,041,563 | 2,820,792 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 55,625 | 0 |
Repurchase agreements | 13,423,223 | 8,181,947 |
Total | 13,478,848 | 8,181,947 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 429,925 | 604,274 |
Total | 429,925 | 604,274 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 2,433,727 | 2,945,521 |
Total | 2,433,727 | 2,945,521 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 900,140 | 300,768 |
Total | $ 900,140 | $ 300,768 |
Collateralized Transactions (_2
Collateralized Transactions (Contractual Maturity) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,182,865 | $ 1,838,688 |
Repurchase agreements | 21,323,082 | 17,193,486 |
Total | 23,505,947 | 19,032,174 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,305,512 | 807,347 |
Repurchase agreements | 9,207,762 | 7,849,052 |
Total | 10,513,274 | 8,656,399 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 70,319 | 0 |
Repurchase agreements | 2,376,018 | 1,915,325 |
Total | 2,446,337 | 1,915,325 |
30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 635,864 | 560,417 |
Repurchase agreements | 3,897,096 | 6,042,951 |
Total | 4,532,960 | 6,603,368 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 171,170 | 470,924 |
Repurchase agreements | 5,842,206 | 1,386,158 |
Total | $ 6,013,376 | $ 1,857,082 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Collateralized Transactions [Abstract] | ||
Fair value of securities received as collateral that may be sold or repledged | $ 31,100,000 | $ 23,100,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 658,335 | $ 707,960 |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Securities Financing Agreements) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Securities borrowing arrangements, Assets | ||
Gross Amounts | $ 7,895,149 | $ 6,538,212 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 7,895,149 | 6,538,212 |
Additional Amounts Available for Setoff | (707,436) | (468,778) |
Available Collateral | (1,653,688) | (1,193,986) |
Net Amount | 5,534,025 | 4,875,448 |
Reverse repurchase agreements, Assets | ||
Gross Amounts | 17,586,096 | 11,336,175 |
Netting in Consolidated Statements of Financial Condition | (13,086,101) | (8,550,417) |
Net Amounts in Consolidated Statements of Financial Condition | 4,499,995 | 2,785,758 |
Additional Amounts Available for Setoff | (454,507) | (609,225) |
Available Collateral | (3,817,544) | (2,126,730) |
Net Amount | 227,944 | 49,803 |
Securities lending arrangements, Liabilities | ||
Gross Amounts | 2,182,865 | 1,838,688 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 2,182,865 | 1,838,688 |
Additional Amounts Available for Setoff | (707,436) | (468,778) |
Available Collateral | (1,452,911) | (1,343,704) |
Net Amount | 22,518 | 26,206 |
Repurchase agreements, Liabilities | ||
Gross Amounts | 21,323,082 | 17,193,486 |
Netting in Consolidated Statements of Financial Condition | (13,086,101) | (8,550,417) |
Net Amounts in Consolidated Statements of Financial Condition | 8,236,981 | 8,643,069 |
Additional Amounts Available for Setoff | (454,507) | (609,225) |
Available Collateral | (6,269,894) | (7,070,967) |
Net Amount | 1,512,580 | 962,877 |
Securities borrowing agreement, subject to review | 5,473,000 | 4,825,700 |
Securities borrowing agreement, collateral received, subject to review | 5,322,700 | 4,711,700 |
Repurchase agreement, net amount, subject to review | 382,900 | 931,700 |
Repurchase agreements, collateral pledged, subject to review | $ 392,400 | $ 963,600 |
Securitization Activities (Acti
Securitization Activities (Activity Related To Securitizations Accounted For As Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Securitization Activities [Abstract] | ||||
Transferred assets | $ 789.3 | $ 1,865.5 | $ 2,894.4 | $ 5,665.9 |
Proceeds on new securitizations | 789.3 | 1,866.2 | 2,966.3 | 5,668.6 |
Cash flows received on retained interests | $ 16.8 | $ 17.2 | $ 47.2 | $ 35.7 |
Securitization Activities (Summ
Securitization Activities (Summary Of Retained Interests In SPEs) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Nov. 30, 2018 |
Residential mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency residential mortgage-backed securities | $ 11,351.8 | $ 13,633.5 |
Retained Interests | 123.8 | 365.3 |
Commercial mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency commercial mortgage-backed securities | 1,374.9 | 2,027.6 |
Retained Interests | 48.4 | 185.6 |
CLOs | ||
Securitization Activities [Line Items] | ||
CLOs | 3,430 | 3,512 |
Retained Interests | 29.8 | 20.9 |
Consumer and other loans | ||
Securitization Activities [Line Items] | ||
Consumer and other loans | 975 | 604.1 |
Retained Interests | $ 56.8 | $ 48.9 |
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 | Aug. 31, 2019 | Nov. 30, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 1,411,762 | |
Gross Unrealized Gains | 378 | |
Gross Unrealized Losses | 2,254 | |
Estimated Fair Value | $ 0 | 1,409,886 |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,073,038 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 183 | |
Estimated Fair Value | 1,072,856 | |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 211,209 | |
Gross Unrealized Gains | 376 | |
Gross Unrealized Losses | 1,067 | |
Estimated Fair Value | 210,518 | |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 16,068 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 426 | |
Estimated Fair Value | 15,642 | |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 111,447 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 578 | |
Estimated Fair Value | $ 110,870 |
Available for Sale Securities_4
Available for Sale Securities and Other Investments (Additional Information) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Other investment not readily marketable, fair value | $ 195.3 | $ 230 | |
Investments impairment | $ 2.3 | $ 0 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 | |
Variable Interest Entity [Line Items] | |||
Securities purchased under agreement to resell | $ 4,499,995 | $ 2,785,758 | |
Receivables | 5,826,350 | 6,287,401 | |
Other | 2,398,251 | 1,859,561 | |
Total assets | [1] | 49,263,208 | 47,131,095 |
Other secured financings | 2,508,589 | 1,534,271 | |
Total liabilities | [1] | 39,063,363 | 36,907,059 |
Jefferies Group | |||
Variable Interest Entity [Line Items] | |||
Secured financings eliminated in consolidation | 1,000 | ||
Consolidation adjustments | |||
Variable Interest Entity [Line Items] | |||
Intercompany payables | 27,300 | 44,100 | |
Securitization Vehicles | |||
Variable Interest Entity [Line Items] | |||
Securities purchased under agreement to resell | 1,822,100 | 883,100 | |
Receivables | 676,400 | 626,000 | |
Other | 49,000 | 78,400 | |
Total assets | 2,547,500 | 1,587,500 | |
Other secured financings | 2,508,000 | 1,535,300 | |
Other | 29,600 | 45,900 | |
Total liabilities | $ 2,537,600 | $ 1,581,200 | |
[1] | Total assets include assets related to variable interest entities of $726.8 million and $704.4 million at August 31, 2019 and November 30, 2018 , respectively, and Total liabilities include liabilities related to variable interest entities of $2,510.3 million and $1,535.8 million at August 31, 2019 and November 30, 2018 , respectively. See Note 8 for additional information related to variable interest entities. |
Variable Interest Entities (Non
Variable Interest Entities (Nonconsolidated VIEs) (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Nov. 30, 2018 |
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | $ 1,185.8 | $ 746.4 |
Financial Statement Carrying Amount, Liabilities | 0.9 | 0 |
Maximum Exposure to Loss | 2,042.4 | 1,646.7 |
VIE Assets | 19,727 | 12,382.4 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 127.1 | 45.2 |
Financial Statement Carrying Amount, Liabilities | 0.9 | 0 |
Maximum Exposure to Loss | 804.6 | 571.4 |
VIE Assets | 8,062.8 | 3,281.9 |
Consumer loan and other asset-backed vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 525.1 | 462.1 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 668.8 | 807.1 |
VIE Assets | 3,020.6 | 3,273.1 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 28.7 | 35.5 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 46.2 | 53.5 |
VIE Assets | 83.7 | 108.3 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 504.9 | 203.6 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 522.8 | 214.7 |
VIE Assets | $ 8,559.9 | $ 5,719.1 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Aug. 31, 2019 | Nov. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||||
Carrying Amount | $ 1,185,800 | $ 746,400 | ||
Investment in associated company | 2,346,297 | 2,417,332 | $ 2,450,901 | $ 2,066,829 |
Automobile Loan | ||||
Variable Interest Entity [Line Items] | ||||
Loans receivables securitized | 227,400 | |||
Other investment vehicles | ||||
Variable Interest Entity [Line Items] | ||||
Carrying Amount | 504,900 | 203,600 | ||
Unfunded equity commitment related to investments | 18,000 | 11,100 | ||
Agency Mortgage-Backed Securitizations | ||||
Variable Interest Entity [Line Items] | ||||
Carrying Amount | 1,712,900 | 2,913,000 | ||
Nonagency Mortgage- And Asset-Backed Securitizations | ||||
Variable Interest Entity [Line Items] | ||||
Carrying Amount | 191,200 | 170,500 | ||
JCP Entities | Private Equity Vehicles | ||||
Variable Interest Entity [Line Items] | ||||
Equity commitments | 139,300 | 139,300 | ||
Funded equity commitments | 121,700 | 121,300 | ||
Carrying amount of equity investment | 28,700 | $ 35,500 | ||
FXCM | ||||
Variable Interest Entity [Line Items] | ||||
Fair value of senior secured term loan receivable | 58,600 | |||
Investment in associated company | 72,800 | |||
Senior secured term loan receivable and investments in associated companies | $ 131,400 |
Loans to and Investments In A_3
Loans to and Investments In Associated Companies (Schedule Of Loans to and Investments In Associated Companies) (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||
Aug. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | $ 2,417,332 | $ 2,066,829 | ||||
Income (losses) related to associated companies | $ 72,283 | $ 18,867 | 121,766 | 84,320 | ||
Income (losses) related to Jefferies associated companies | 17,293 | 5,853 | 71,614 | 30,687 | ||
Contributions to (distributions from) associated companies, net | (110,465) | (134,300) | ||||
Other | (153,950) | 403,365 | ||||
Loans to and investments in associated companies, ending balance | 2,346,297 | $ 2,450,901 | $ 2,450,901 | 2,346,297 | 2,450,901 | |
Disposal group, disposed of by sale, not discontinued operations | Garcadia companies | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Percentage of equity method investment for sale | 100.00% | |||||
Jefferies Finance | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 728,560 | 655,467 | ||||
Income (losses) related to associated companies | 0 | 0 | ||||
Income (losses) related to Jefferies associated companies | (6,901) | $ 5,931 | 1,035 | 36,497 | ||
Contributions to (distributions from) associated companies, net | (58,682) | 43,470 | ||||
Other | 0 | 0 | ||||
Loans to and investments in associated companies, ending balance | 670,913 | 735,434 | 735,434 | 670,913 | 735,434 | |
Berkadia | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 245,228 | 210,594 | ||||
Income (losses) related to associated companies | 0 | 28,350 | 0 | 80,092 | ||
Income (losses) related to Jefferies associated companies | 24,286 | 0 | 72,231 | 0 | ||
Contributions to (distributions from) associated companies, net | (47,682) | (42,064) | ||||
Other | 722 | (1,054) | ||||
Loans to and investments in associated companies, ending balance | 270,499 | 247,568 | 247,568 | 270,499 | 247,568 | |
National Beef | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 653,630 | 0 | ||||
Income (losses) related to associated companies | 75,867 | 58,886 | 83,300 | 137,918 | 83,287 | |
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||
Contributions to (distributions from) associated companies, net | (72,767) | (48,656) | ||||
Other | (10) | 592,239 | ||||
Loans to and investments in associated companies, ending balance | 718,771 | 626,870 | 626,870 | 718,771 | 626,870 | |
FXCM | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 75,031 | 158,856 | ||||
Income (losses) related to associated companies | (573) | (4,282) | (5,589) | (19,322) | ||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||
Contributions to (distributions from) associated companies, net | 3,500 | 0 | ||||
Other | (134) | (513) | ||||
Loans to and investments in associated companies, ending balance | 72,808 | 139,021 | 139,021 | 72,808 | 139,021 | |
Garcadia companies | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 179,143 | |||||
Income (losses) related to associated companies | 0 | 691 | 0 | 21,646 | ||
Income (losses) related to Jefferies associated companies | 0 | |||||
Contributions to (distributions from) associated companies, net | (26,962) | |||||
Other | (173,827) | |||||
Loans to and investments in associated companies, ending balance | 0 | 0 | 0 | |||
Linkem | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 165,157 | 192,136 | ||||
Income (losses) related to associated companies | (12,115) | (7,770) | (20,696) | (20,534) | ||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||
Contributions to (distributions from) associated companies, net | 82,178 | 542 | ||||
Other | (8,226) | (3,601) | ||||
Loans to and investments in associated companies, ending balance | 218,413 | 168,543 | 168,543 | 218,413 | 168,543 | |
HomeFed | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 337,542 | 341,874 | ||||
Income (losses) related to associated companies | 8,419 | (7,783) | 7,902 | (3,338) | ||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||
Contributions to (distributions from) associated companies, net | 0 | 0 | ||||
Other | (345,444) | 0 | ||||
Loans to and investments in associated companies, ending balance | 0 | 338,536 | 338,536 | 0 | 338,536 | |
HomeFed's associated companies | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 0 | |||||
Income (losses) related to associated companies | 0 | |||||
Income (losses) related to Jefferies associated companies | 0 | |||||
Contributions to (distributions from) associated companies, net | (3,054) | |||||
Other | 198,273 | |||||
Loans to and investments in associated companies, ending balance | 195,219 | 195,219 | ||||
Other | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, beginning balance | 212,184 | 328,759 | ||||
Income (losses) related to associated companies | 685 | (49,225) | 2,231 | (57,511) | ||
Income (losses) related to Jefferies associated companies | (92) | (78) | (1,652) | (5,810) | ||
Contributions to (distributions from) associated companies, net | (13,958) | (60,630) | ||||
Other | 869 | (9,879) | ||||
Loans to and investments in associated companies, ending balance | 199,674 | 194,929 | $ 194,929 | 199,674 | 194,929 | |
Linkem and Other | Loans and debt securities | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Loans to and investments in associated companies, ending balance | $ 83,700 | $ 83,700 | ||||
Golden Queen | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Equity method investment, other than temporary impairment | $ 47,900 | $ 47,900 | ||||
Golden Queen | Level 3 | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Equity method investments, fair value | $ 62,300 | |||||
Golden Queen | Discount rate | Level 3 | ||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||
Equity method investment, fair value measurement input | 0.12 |
Loans to and Investments In A_4
Loans to and Investments In Associated Companies (Jefferies Finance) (Narrative) (Details) - USD ($) | May 15, 2019 | Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Mar. 28, 2019 | Nov. 30, 2018 |
Investments In Associated Companies [Line Items] | |||||||
Other | $ 2,398,251,000 | $ 2,398,251,000 | $ 1,859,561,000 | ||||
Payables, expense accruals and other liabilities | 7,350,914,000 | 7,350,914,000 | 7,407,030,000 | ||||
Trading liabilities, at fair value | 10,296,315,000 | 10,296,315,000 | 9,478,946,000 | ||||
Interest expense | 23,663,000 | $ 28,837,000 | 69,819,000 | $ 74,614,000 | |||
Jefferies Group | |||||||
Investments In Associated Companies [Line Items] | |||||||
Interest income and unfunded commitment fees related to facility commitment | 300,000 | 300,000 | 900,000 | 2,000,000 | |||
Investment banking | 44,600,000 | 71,100,000 | 135,800,000 | 282,100,000 | |||
Origination fees | 8,200,000 | 12,100,000 | 21,800,000 | 45,500,000 | |||
Placement agent fees | 1,000,000 | 400,000 | 2,300,000 | 3,100,000 | |||
Underwriting fees income | 2,900,000 | 0 | 3,900,000 | 300,000 | |||
Service fee income | 12,300,000 | 13,300,000 | 50,600,000 | 48,300,000 | |||
Interest expense | $ 366,378,000 | $ 308,131,000 | $ 1,141,661,000 | $ 906,474,000 | |||
Jefferies Finance | |||||||
Investments In Associated Companies [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||||
Equity commitment | $ 750,000,000 | $ 750,000,000 | |||||
Funded equity commitments | 643,700,000 | $ 643,700,000 | |||||
Investment commitment extension | 1 year | ||||||
Termination notice | 60 days | ||||||
Total line of credit facility commitment under joint venture | 500,000,000 | $ 500,000,000 | 500,000,000 | ||||
Extension period | 1 year | ||||||
Line of credit facility, commitment of Jefferies, funded | 0 | $ 0 | 0 | ||||
Line of credit facility commitment of Jefferies | 250,000,000 | 250,000,000 | 250,000,000 | ||||
Other | 12,900,000 | 12,900,000 | 35,200,000 | ||||
Payables, expense accruals and other liabilities | 13,700,000 | 13,700,000 | 14,100,000 | ||||
Foreign exchange contracts | Jefferies Finance | |||||||
Investments In Associated Companies [Line Items] | |||||||
Payables, expense accruals and other liabilities | 200,000 | ||||||
Trading liabilities, at fair value | $ 2,100,000 | $ 2,100,000 | $ 400,000 | ||||
Promissory Note | Jefferies Group | |||||||
Investments In Associated Companies [Line Items] | |||||||
Debt principal amount | $ 1,000,000,000 | ||||||
Interest expense | $ 3,800,000 |
Loans to and Investments In A_5
Loans to and Investments In Associated Companies (Berkadia) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2009 | Aug. 31, 2019 | Oct. 01, 2018 | |
Berkadia | |||
Investments In Associated Companies [Line Items] | |||
Surety policy issued | $ 1,500,000,000 | ||
Reimbursement of losses incurred, maximum percentage | 50.00% | ||
Commercial paper | $ 1,470,000,000 | ||
Berkadia | |||
Investments In Associated Companies [Line Items] | |||
Capital contributed | $ 217,200,000 | ||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Percentage of profits received from joint venture | 45.00% | ||
Reimbursement of losses incurred, maximum percentage | 50.00% |
Loans to and Investments in A_6
Loans to and Investments in Associated Companies (National Beef) (Narrative) (Details) | 9 Months Ended | ||
Aug. 31, 2019 | Jun. 05, 2018 | Jun. 04, 2018 | |
National Beef | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 79.00% | ||
Equity method investment, ownership percentage | 31.00% | 31.00% | |
Weighted average useful life | 15 years | ||
National Beef | Discontinued operations, disposed of by sale | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 48.00% |
Loans to and Investments In A_7
Loans to and Investments In Associated Companies (FXCM) (Narrative) (Details) - Investment in FXCM | 9 Months Ended |
Aug. 31, 2019 | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Weighted average useful life | 11 years |
Loans to and Investments In A_8
Loans to and Investments In Associated Companies (Garcadia) (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Garcadia | Disposal group, disposed of by sale, not discontinued operations | |
Investments In Associated Companies [Line Items] | |
Percentage of equity method investment for sale | 100.00% |
Loans to and Investments In A_9
Loans to and Investments In Associated Companies (Linkem) (Narrative) (Details) - Linkem $ in Millions | Aug. 31, 2019USD ($) |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 42.00% |
Percentage of ownership upon conversion of note | 54.00% |
Equity method investment, voting percentage | 48.00% |
Shareholder loans principal outstanding | $ 58.4 |
Equity Method Investee [Member] | |
Investments In Associated Companies [Line Items] | |
Shareholder loans interest rate | 5.00% |
Loans to and Investments In _10
Loans to and Investments In Associated Companies (HomeFed) (Narrative) (Details) shares in Millions | Jul. 01, 2019shares | Jun. 30, 2019director |
HomeFed | ||
Investments In Associated Companies [Line Items] | ||
Maximum voting rights as a percentage of total voting securities voting | 45.00% | |
Number of directors appointed by Company | director | 3 | |
Company Chairman | HomeFed | ||
Investments In Associated Companies [Line Items] | ||
Ownership percentage of company | 5.00% | |
HomeFed | ||
Investments In Associated Companies [Line Items] | ||
Equity method investment, ownership percentage | 70.00% | |
Number of shares issued per common stock of acquiree | 2 | |
HomeFed | ||
Investments In Associated Companies [Line Items] | ||
Stock issued related to acquisition (in shares) | shares | 9.3 |
Loans to and Investments In _11
Loans to and Investments In Associated Companies (HomeFed's Associated Companies) (Narrative) (Details) ft² in Thousands | Aug. 31, 2019ft²lotsite |
HomeFed's associated companies | |
Number of separate tax lots | lot | 15 |
Number of premier development sites | site | 2 |
Area of property (up to) | ft² | 540 |
HomeFed's associated companies | Hotel | |
Equity method investment, ownership percentage | 25.80% |
HomeFed's associated companies | Office Building | |
Equity method investment, ownership percentage | 61.25% |
HomeFed's associated companies | RedSky JZ Fulton Holdings, LLC | |
Equity method investment, ownership percentage | 49.00% |
Loans to and Investments in _12
Loans to and Investments in Associated Companies (Other) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2019 | Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Revenues | $ 7,067,180 | $ 3,341,369 |
Income from continuing operations before extraordinary items | 654,014 | 591,191 |
Net income | $ 654,014 | $ 591,191 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill (Schedule of Intangible Assets, Net And Goodwill) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Jul. 01, 2019 | Nov. 30, 2018 |
Intangible Assets [Line Items] | |||
Intangible assets, net (excluding goodwill) | $ 186,838 | $ 188,291 | |
Goodwill | 1,734,955 | 1,701,840 | |
Total intangible assets, net and goodwill | 1,921,793 | 1,890,131 | |
Jefferies Group | |||
Intangible Assets [Line Items] | |||
Goodwill | 1,694,785 | 1,698,381 | |
HomeFed | |||
Intangible Assets [Line Items] | |||
Goodwill | 36,711 | 0 | |
Other operations | |||
Intangible Assets [Line Items] | |||
Goodwill | 3,459 | 3,459 | |
Customer and other relationships | |||
Intangible Assets [Line Items] | |||
Intangible assets, net (excluding goodwill) | 61,400 | 67,894 | |
Intangibles, accumulated amortization | 108,565 | 102,579 | |
Trademarks and tradename | |||
Intangible Assets [Line Items] | |||
Intangible assets, net (excluding goodwill) | 103,903 | 107,262 | |
Intangibles, accumulated amortization | 23,697 | 21,086 | |
Other | |||
Intangible Assets [Line Items] | |||
Intangible assets, net (excluding goodwill) | 13,310 | 4,611 | |
Intangibles, accumulated amortization | 4,566 | 4,339 | |
Exchange and clearing organization membership interests and registrations | |||
Intangible Assets [Line Items] | |||
Indefinite lived intangibles | $ 8,225 | $ 8,524 | |
HomeFed | |||
Intangible Assets [Line Items] | |||
Goodwill | $ 4,300 | ||
Intangibles recorded in connection with acquisition | 11,000 | ||
Additional goodwill generated by the establishment of deferred tax liabilities | 32,400 | ||
Deferred tax liabilities established in acquisition | $ 32,400 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 4 | $ 3.3 | $ 10.6 | $ 9.9 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill (Schedule of Estimated Future Amortization Expense) (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of current year | $ 4,038 |
2020 | 15,221 |
2021 | 14,748 |
2022 | 11,460 |
2023 | $ 10,077 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) € in Millions | 9 Months Ended | |||
Aug. 31, 2019USD ($) | Jul. 29, 2019EUR (€) | Dec. 27, 2018USD ($) | Nov. 30, 2018USD ($) | |
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 518,914,000 | $ 387,492,000 | ||
Interest rates on short-term borrowings outstanding | 3.42% | 3.08% | ||
Floating rate puttable notes | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 0 | $ 56,550,000 | ||
Jefferies Group Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility maximum amount | $ 135,000,000 | |||
Bank loans | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | 518,914,000 | $ 330,942,000 | ||
Line of Credit | Intraday Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility maximum amount | $ 150,000,000 | |||
Line of Credit | Intraday Credit Facility | Federal funds effective rate | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, basic spread on variable rate | 0.50% | |||
Jefferies Group | Floating rate puttable notes | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings matured during period | € | € 50 |
Long-Term Debt (Schedule Of Ind
Long-Term Debt (Schedule Of Indebtedness) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Jul. 19, 2019 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 7,968,785 | $ 7,968,785 | $ 7,617,563 | |||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | $ (467) | $ 60 | $ (2,445) | $ 1,692 | ||
8.50% Senior Notes, due July 15, 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 8.50% | 8.50% | ||||
HomeFed EB-5 Program debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 131,395 | $ 131,395 | 0 | |||
Parent Company | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 991,055 | 991,055 | 990,116 | |||
Parent Company | 5.50% Senior Notes due October 18, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 744,297 | $ 744,297 | $ 743,397 | |||
Interest rate | 5.50% | 5.50% | 5.50% | |||
Principal Outstanding | $ 750,000 | $ 750,000 | $ 750,000 | |||
Parent Company | 6.625% Senior Notes due October 23, 2043 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 246,758 | $ 246,758 | $ 246,719 | |||
Interest rate | 6.625% | 6.625% | 6.625% | |||
Principal Outstanding | $ 250,000 | $ 250,000 | $ 250,000 | |||
Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 6,977,730 | 6,977,730 | 6,627,447 | |||
Subsidiaries | 8.50% Senior Notes, due July 15, 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | $ 0 | $ 699,659 | |||
Interest rate | 0.00% | 0.00% | 8.50% | |||
Principal Outstanding | $ 0 | $ 0 | $ 680,800 | |||
Subsidiaries | 2.375% Euro Medium Term Notes, due May 20, 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 548,566 | $ 548,566 | $ 564,702 | |||
Interest rate | 2.375% | 2.375% | 2.375% | |||
Principal Outstanding | $ 548,950 | $ 548,950 | $ 565,500 | |||
Subsidiaries | 6.875% Senior Notes, due April 15, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 779,078 | $ 779,078 | $ 791,814 | |||
Interest rate | 6.875% | 6.875% | 6.875% | |||
Principal Outstanding | $ 750,000 | $ 750,000 | $ 750,000 | |||
Subsidiaries | 2.25% Euro Medium Term Notes, due July 13, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 4,171 | $ 4,171 | $ 4,243 | |||
Interest rate | 2.25% | 2.25% | 2.25% | |||
Principal Outstanding | $ 4,392 | $ 4,392 | $ 4,524 | |||
Subsidiaries | 5.125% Senior Notes, due January 20, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 610,762 | $ 610,762 | $ 612,928 | |||
Interest rate | 5.125% | 5.125% | 5.125% | |||
Principal Outstanding | $ 600,000 | $ 600,000 | $ 600,000 | |||
Subsidiaries | 1.00% Euro Medium Term Notes, due July 19, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 546,855 | $ 546,855 | $ 0 | |||
Interest rate | 1.00% | 1.00% | 0.00% | |||
Principal Outstanding | $ 548,950 | $ 548,950 | $ 0 | |||
Subsidiaries | 4.85% Senior Notes, due January 15, 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 782,156 | $ 782,156 | $ 709,484 | |||
Interest rate | 4.85% | 4.85% | 4.85% | |||
Principal Outstanding | $ 750,000 | $ 750,000 | $ 750,000 | |||
Subsidiaries | 6.45% Senior Debentures, due June 8, 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 371,998 | $ 371,998 | $ 373,669 | |||
Interest rate | 6.45% | 6.45% | 6.45% | |||
Principal Outstanding | $ 350,000 | $ 350,000 | $ 350,000 | |||
Subsidiaries | 4.15% Senior Notes, due January 23, 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 988,440 | $ 988,440 | $ 987,788 | |||
Interest rate | 4.15% | 4.15% | 4.15% | |||
Principal Outstanding | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||
Subsidiaries | 6.25% Senior Debentures, due January 15, 2036 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 511,363 | $ 511,363 | $ 511,662 | |||
Interest rate | 6.25% | 6.25% | 6.25% | |||
Principal Outstanding | $ 500,000 | $ 500,000 | $ 500,000 | |||
Subsidiaries | 6.50% Senior Notes, due January 20, 2043 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 420,338 | $ 420,338 | $ 420,625 | |||
Interest rate | 6.50% | 6.50% | 6.50% | |||
Principal Outstanding | $ 400,000 | $ 400,000 | $ 400,000 | |||
Subsidiaries | Structured notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 1,014,509 | 1,014,509 | 686,170 | |||
Subsidiaries | Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 79,172 | $ 79,172 | 81,164 | |||
Jefferies Group | 1.00% Euro Medium Term Notes, due July 19, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.00% | 1.00% | ||||
Principal Outstanding | $ 553,600 | |||||
Jefferies Group | Subsidiaries | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 188,927 | $ 188,927 | $ 183,539 | |||
Interest rate swaps | Subsidiaries | 4.85% Senior Notes, due January 15, 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | $ (72,300) | $ 24,100 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Jul. 19, 2019USD ($) | Aug. 31, 2019USD ($)Contract | Nov. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||
Long-term debt | $ 7,968,785,000 | $ 7,617,563,000 | |
Structured notes | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued, net of retirements | $ 283,200,000 | ||
1.00% Euro Medium Term Notes, due July 19, 2024 | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Debt face amount | $ 2,500,000,000 | ||
Interest rate | 1.00% | ||
Principal amount | 553,600,000 | ||
Proceeds from issuance of debt | $ 551,400,000 | ||
8.50% Senior Notes, due July 15, 2019 | |||
Debt Instrument [Line Items] | |||
Interest rate | 8.50% | ||
8.50% Senior Notes, due July 15, 2019 | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 680,800,000 | ||
Revolving Credit Facility | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Debt face amount | 190,000,000 | ||
HomeFed EB-5 Program debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 131,395,000 | 0 | |
Long-term debt, matured in 2024 | $ 124,500,000 | ||
Secured Debt | Foursight Capital Credit Facilities | |||
Debt Instrument [Line Items] | |||
Number of warehouse credit commitment | Contract | 2 | ||
Credit facility maximum amount | $ 175,000,000 | ||
Long-term debt | $ 0 | $ 0 |
Mezzanine Equity (Schedule Of R
Mezzanine Equity (Schedule Of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ 19,779 | |||
Income allocated to redeemable noncontrolling interests | $ (242) | $ 390 | 47 | $ 37,294 |
Increase in fair value of redeemable noncontrolling interests | (2,558) | (6,732) | (1,437) | (28,136) |
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | |||
Ending balance | $ 27,064 | $ 27,064 | ||
National Beef | ||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 412,128 | |||
Income allocated to redeemable noncontrolling interests | 37,141 | |||
Distributions to redeemable noncontrolling interests | (70,681) | |||
Increase in fair value of redeemable noncontrolling interests | 21,404 | |||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | |||
Deconsolidation of National Beef | (162,323) | |||
Ending balance | $ 0 | $ 0 |
Mezzanine Equity (Narrative) (D
Mezzanine Equity (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2013 | Aug. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | |
Purchase Requirement [Line Items] | |||||||
Redeemable noncontrolling interests | $ 27,100,000 | $ 27,100,000 | $ 19,800,000 | ||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.10 | $ 0.375 | $ 0.325 | ||
Increase of preferred stock dividend | $ 1,275,000 | $ 1,276,000 | $ 3,827,000 | $ 3,619,000 | |||
3.25% Cumulative Convertible Preferred Shares | |||||||
Purchase Requirement [Line Items] | |||||||
Dividend rate on preferred stock | 3.25% | 3.25% | |||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | |||||
Mandatorily redeemable preferred stock, number of shares in conversion | 4,162,200 | 4,162,200 | |||||
Mandatorily redeemable preferred stock, effective conversion price per share (in dollars per share) | $ 30.03 | $ 30.03 | |||||
Minimum dividend considered for additional quarterly payments (in dollars per share) | 0.0625 | $ 0.0625 | |||||
Increase of preferred stock dividend | $ 3,800,000 | $ 3,600,000 | |||||
Preferred stock, effective dividend rate, percentage | 4.10% | ||||||
Mandatorily redeemable preferred shares callable price per share (in dollars per share) | $ 1,000 | $ 1,000 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 31, 2019 | Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 12,200 | $ 12,800 | $ 37,036 | $ 37,975 | |
Tax benefit for issuance of share-based awards | 3,000 | $ 4,000 | 9,300 | $ 10,000 | |
Total unrecognized compensation cost related to nonvested share-based awards | $ 92,500 | $ 92,500 | $ 92,500 | ||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition | 3 years | ||||
Potential maximum increase to common shares outstanding from restricted stock and other shares (in shares) | 21,560 | 21,560 | 21,560 | ||
Restricted cash awards, cost expected to be recognized | $ 498,100 | $ 498,100 | $ 498,100 | ||
Restricted cash awards, cost expected to be recognized, period | 3 years | ||||
Sign-on and Retention Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Amortization period | 4 years | ||||
Other Shares Issuable | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other shares issuable (in shares) | 919 | 919 | 919 | ||
Future Service Required | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, nonvested (in shares) | 2,074 | 2,074 | 2,074 | ||
Future Service Required | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, nonvested (in shares) | 6,049 | 6,049 | 6,049 | ||
No Future Service Required | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, vested (in shares) | 14,592 | 14,592 | 14,592 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Summary Of Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | $ 10,047,781 | $ 9,877,361 | $ 10,079,257 | $ 10,646,751 | $ 10,567,441 | $ 10,138,979 |
Net unrealized gains on available for sale securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | 231 | 542,832 | ||||
Net unrealized foreign exchange losses | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | (232,665) | (193,402) | ||||
Net unrealized gains (losses) on instrument specific credit risk | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | 20,805 | (5,728) | ||||
Net unrealized gains on cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | 0 | 470 | ||||
Net minimum pension liability | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | (54,823) | (55,886) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | $ (266,452) | $ 288,286 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 1,223,156 | $ 1,458,977 | $ 3,928,539 | $ 3,863,914 |
Reclassification for the period, net of tax | 542,092 | 14,193 | ||
Net unrealized losses on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | (545,054) | 37 | ||
Net unrealized foreign exchange losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 0 | (16) | ||
Net unrealized gains (losses) on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | (166) | 126 | ||
Net unrealized gains on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 161 | 0 | ||
Amortization of defined benefit pension plan actuarial gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, net of tax | (1,063) | (1,398) | ||
Reclassification for the period, tax | (361) | (508) | ||
Other pension | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, net of tax | 0 | (5,344) | ||
Reclassification for the period, tax | 0 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized foreign exchange losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other revenues and Selling, general and other expenses | 0 | 20,459 | ||
Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 169,248 | 289,387 | 351,544 | 419,888 |
Other | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues and income tax provision (benefit) | 543,178 | 105 | ||
Other | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 470 | 0 | ||
Principal transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ (20,920) | $ 116,204 | 465,451 | 315,622 |
Principal transactions | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ (493) | $ 371 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018EUR (€) | May 31, 2019USD ($) | Aug. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Feb. 28, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Recognition of accumulated other comprehensive income lodged taxes | $ 544,600 | $ 544,583 | $ 0 | ||
Lodged tax effect | $ 544,600 | ||||
German Plan | Pension Plan | Jefferies Bache Limited | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment to transfer defined benefit obligation and insurance contracts | € | € 6.5 | ||||
Reclassification adjustment from AOCI related to pension plan | $ 5,300 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Schedule of Components of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 734,427 | $ 780,079 | $ 2,054,441 | $ 2,343,048 |
Revenue from other sources | 488,729 | 678,898 | 1,874,098 | 1,520,866 |
Total revenues | 1,223,156 | 1,458,977 | 3,928,539 | 3,863,914 |
Commissions and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 171,000 | 162,578 | 493,560 | 481,672 |
Total revenues | 171,000 | 162,578 | 493,560 | 481,672 |
Investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 410,796 | 460,043 | 1,126,479 | 1,400,331 |
Total revenues | 410,796 | 460,043 | 1,126,479 | 1,400,331 |
Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 82,565 | 94,029 | 248,227 | 307,129 |
Total revenues | 82,565 | 94,029 | 248,227 | 307,129 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 70,066 | 63,429 | 186,175 | 153,916 |
Principal transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | (20,920) | 116,204 | 465,451 | 315,622 |
Total revenues | (20,920) | 116,204 | 465,451 | 315,622 |
Interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | 410,467 | 336,736 | 1,243,278 | 939,272 |
Total revenues | 410,467 | 336,736 | 1,243,278 | 939,272 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | $ 99,182 | $ 225,958 | $ 165,369 | $ 265,972 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 734,427 | $ 780,079 | $ 2,054,441 | $ 2,343,048 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 627,681 | 697,685 | 1,715,377 | 2,082,546 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 88,826 | 63,428 | 285,336 | 204,079 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 17,920 | 18,966 | 53,728 | 56,423 |
Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 586,876 | 633,210 | 1,636,618 | 1,903,938 |
Reportable Segments | Jefferies Group | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 478,920 | 551,403 | 1,296,864 | 1,644,633 |
Reportable Segments | Jefferies Group | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 90,293 | 62,914 | 286,346 | 203,103 |
Reportable Segments | Jefferies Group | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 17,663 | 18,893 | 53,408 | 56,202 |
Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 149,291 | 152,274 | 419,843 | 444,915 |
Reportable Segments | Merchant Banking | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 148,808 | 151,687 | 418,840 | 443,718 |
Reportable Segments | Merchant Banking | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 226 | 514 | 683 | 976 |
Reportable Segments | Merchant Banking | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 257 | 73 | 320 | 221 |
Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1,740) | (5,405) | (2,020) | (5,805) |
Consolidation adjustments | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (47) | (5,405) | (327) | (5,805) |
Consolidation adjustments | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1,693) | 0 | (1,693) | 0 |
Consolidation adjustments | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 167,525 | 159,571 | 483,488 | 471,161 |
Equities | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 167,528 | 159,693 | 483,771 | 471,683 |
Equities | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (3) | (122) | (283) | (522) |
Fixed Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,475 | 3,007 | 10,072 | 10,511 |
Fixed Income | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,475 | 3,007 | 10,072 | 10,511 |
Fixed Income | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Fixed Income | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Fixed Income | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 197,446 | 277,735 | 554,093 | 809,884 |
Investment Banking - Capital markets | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 199,183 | 277,735 | 555,830 | 809,884 |
Investment Banking - Capital markets | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Capital markets | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Capital markets | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1,737) | 0 | (1,737) | 0 |
Investment Banking - Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 213,350 | 182,308 | 572,386 | 590,447 |
Investment Banking - Advisory | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 213,350 | 187,591 | 572,386 | 595,730 |
Investment Banking - Advisory | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Advisory | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Advisory | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | (5,283) | 0 | (5,283) |
Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,340 | 5,184 | 14,559 | 16,130 |
Asset Management | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,340 | 5,184 | 14,559 | 16,130 |
Asset Management | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 82,565 | 94,029 | 248,227 | 307,129 |
Manufacturing revenues | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 82,565 | 94,029 | 248,227 | 307,129 |
Manufacturing revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45,012 | 46,506 | 129,029 | 106,741 |
Oil and gas revenues | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45,012 | 46,506 | 129,029 | 106,741 |
Oil and gas revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 21,714 | 11,739 | 42,587 | 31,045 |
Other revenues | Reportable Segments | Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 21,714 | 11,739 | 42,587 | 31,045 |
Other revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Receivables related to revenue from contracts with customers | $ 276.7 | $ 276.7 | $ 250.6 | ||
Deferred revenue | 12.9 | 12.9 | 14.2 | ||
Deferred revenue, revenue recognized | 9.6 | $ 6.3 | 9.8 | $ 12.9 | |
Capitalized contract cost | 4.4 | 4.4 | $ 4.7 | ||
Expenses related to capitalized costs to fulfill a contract | 1.6 | 1.5 | 3.8 | 1.5 | |
Jefferies Group | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue related to performance obligation satisfied | 9.6 | 4.4 | 27.2 | 18.3 | |
Revenue associated with distribution services, a portion of which related to prior period | $ 6 | $ 4.6 | $ 15.8 | $ 13.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2019 | May 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Feb. 28, 2019 | Nov. 30, 2018 | |
Income Taxes [Line Items] | |||||||
Unrecognized tax benefits | $ 253,300 | $ 253,300 | $ 251,400 | ||||
Interest included in unrecognized tax benefits | 60,500 | 60,500 | 54,100 | ||||
Income taxes benefit | 36,131 | $ (90,391) | 522,626 | $ (51,560) | |||
Decrease of deferred tax liabilities | 36,000 | 36,000 | |||||
Recognition of accumulated other comprehensive income lodged taxes | $ 544,600 | 544,583 | 0 | ||||
Lodged tax effect | $ 544,600 | ||||||
Decrease of income tax provision | $ 43,900 | ||||||
Jefferies Group | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized tax benefits | $ 180,100 | $ 180,100 | $ 174,900 |
Common Share and Earnings Per_3
Common Share and Earnings Per Common Share (Earnings Per Share Computation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Numerator for earnings per share: | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 48,477 | $ 192,635 | $ 764,052 | $ 1,042,689 |
Allocation of earnings to participating securities | (316) | (1,054) | (4,667) | (5,049) |
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 48,161 | 191,581 | 759,385 | 1,037,640 |
Adjustment to allocation of earnings to participating securities related to diluted shares | (7) | 3 | 29 | 34 |
Mandatorily redeemable convertible preferred share dividends | 0 | 1,276 | 3,827 | 0 |
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 48,154 | $ 192,860 | $ 763,241 | $ 1,037,674 |
Denominator for earnings per share: | ||||
Weighted average common shares outstanding | 296,834,000 | 332,191,000 | 298,322,000 | 343,829,000 |
Denominator for basic earnings per share – weighted average shares | 310,288,000 | 341,434,000 | 310,838,000 | 353,300,000 |
Mandatorily redeemable convertible preferred shares (in shares) | 0 | 4,162,000 | 4,162,000 | 0 |
Denominator for diluted earnings (loss) per share (in shares) | 311,897,000 | 350,307,000 | 317,181,000 | 357,169,000 |
Weighted average shares of participating securities (in shares) | 2,018,000 | 1,888,700 | 1,910,700 | 1,700,700 |
Restricted Stock with Future Service Required | ||||
Denominator for earnings per share: | ||||
Weighted average shares of restricted stock outstanding with future service required | (2,008,000) | (1,879,000) | (1,903,000) | (1,681,000) |
Restricted Stock Units with No Future Service Required | ||||
Denominator for earnings per share: | ||||
Weighted average RSUs outstanding with no future service required (in shares) | 15,462,000 | 11,122,000 | 14,419,000 | 11,152,000 |
Stock options | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 0 | 5,000 | 0 | 13,000 |
Restricted Stock Units | Senior Executive Compensation Plan | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 1,609,000 | 4,706,000 | 2,181,000 | 3,856,000 |
Common Share and Earnings Per_4
Common Share and Earnings Per Common Share (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Aug. 31, 2019 | Jul. 01, 2019 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Share repurchase program, authorized amount | $ 500,000,000 | ||
Stock repurchased during period (in shares) | 17,725,361 | ||
Stock repurchased during period | $ 352,100,000 | ||
Remaining authorized repurchase amount | $ 147,900,000 | ||
Number of shares authorized to be repurchased | 9,250,000 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Commitments and Contingencies) (Details) $ in Millions | 3 Months Ended |
Aug. 31, 2019USD ($) | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | $ 7,204.5 |
2020 | 396.3 |
2021 and 2022 | 207.6 |
2023 and 2024 | 12 |
2025 and Later | 22.5 |
Maximum Payout | $ 7,842.9 |
Guarantor obligation settled period | 3 days |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | $ 15.5 |
2020 | 146.3 |
2021 and 2022 | 9.8 |
2023 and 2024 | 0 |
2025 and Later | 17.6 |
Maximum Payout | 189.2 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 0 |
2020 | 250 |
2021 and 2022 | 54.1 |
2023 and 2024 | 12 |
2025 and Later | 0 |
Maximum Payout | 316.1 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 31.5 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 31.5 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 2,994.6 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 2,994.6 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 4,082.9 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 4,082.9 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 80 |
2020 | 0 |
2021 and 2022 | 143.7 |
2023 and 2024 | 0 |
2025 and Later | 4.9 |
Maximum Payout | 228.6 |
Forward starting securities purchased under agreements to resell settled | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | 2,991.6 |
Forward starting securities sold under agreements to repurchase settled | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | $ 4,082.9 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | |
Commitments Contingencies And Guarantees [Line Items] | |||
Loan commitments outstanding to clients | $ 66,100,000 | ||
Fair value of derivative contracts meeting the definition of a guarantee | $ 239,000,000 | ||
Standby Letters of Credit | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Expiration period maximum | 1 year | ||
Jefferies Finance | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Line of credit facility, commitment of Jefferies, funded | $ 0 | $ 0 | |
Line of credit facility commitment of Jefferies | 250,000,000 | $ 250,000,000 | |
Berkadia | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Surety policy issued | $ 1,500,000,000 | ||
Reimbursement of losses incurred, maximum percentage | 50.00% | ||
Aggregate amount of commercial paper outstanding | $ 1,470,000,000 | ||
HomeFed | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Aggregate amount of infrastructure improvement bonds outstanding | 70,400,000 | ||
Jefferies Group | Standby Letters of Credit | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Letters of credit | 36,900,000 | ||
Other subsidiaries | Standby Letters of Credit | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Letters of credit | 1,600,000 | ||
Jefferies Capital Partners LLC and Its Private Equity Funds | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Equity commitments | 17,700,000 | ||
Other Investments | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Equity commitments | $ 65,200,000 | ||
Subsequent event | Spectrum Brands | |||
Commitments Contingencies And Guarantees [Line Items] | |||
Dividend distribution (in shares) | 7,514,477 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees (Guarantees) (Details) - Derivative Notional Amount $ in Millions | Aug. 31, 2019USD ($) |
Derivative contracts – non-credit related | |
Guarantee Obligations [Line Items] | |
2019 | $ 7,075 |
2020 | 4,115.5 |
2021 and 2022 | 4,627.6 |
2023 and 2024 | 3,612 |
2025 and Later | 320.6 |
Notional/ Maximum Payout | 19,750.7 |
Written derivative contracts – credit related | |
Guarantee Obligations [Line Items] | |
2019 | 0 |
2020 | 32.9 |
2021 and 2022 | 0 |
2023 and 2024 | 39.2 |
2025 and Later | 0 |
Notional/ Maximum Payout | 72.1 |
Derivatives | |
Guarantee Obligations [Line Items] | |
2019 | 7,075 |
2020 | 4,148.4 |
2021 and 2022 | 4,627.6 |
2023 and 2024 | 3,651.2 |
2025 and Later | 320.6 |
Notional/ Maximum Payout | $ 19,822.8 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Millions | Aug. 31, 2019USD ($) |
Net Capital Requirements [Line Items] | |
Net capital | $ 1,474.2 |
Excess net capital | $ 1,356.5 |
Other Fair Value Information (D
Other Fair Value Information (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | Nov. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 518,914 | $ 387,492 |
Long-term debt | 7,968,785 | 7,617,563 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 754,844 | 680,015 |
Short-term borrowings | 518,914 | 387,492 |
Long-term debt | 6,954,276 | 6,931,393 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 763,270 | 676,152 |
Short-term borrowings | 518,914 | 387,492 |
Long-term debt | $ 7,351,550 | $ 6,826,503 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | Nov. 30, 2018 | |
Related Party Transaction [Line Items] | |||||
Payables, expense accruals and other liabilities | $ 7,350,914 | $ 7,350,914 | $ 7,407,030 | ||
Trading liabilities, at fair value | 10,296,315 | 10,296,315 | 9,478,946 | ||
Private Equity Related Funds | |||||
Related Party Transaction [Line Items] | |||||
Loans to and/or equity investments in related funds | 28,700 | 28,700 | 35,500 | ||
JCP Fund V | |||||
Related Party Transaction [Line Items] | |||||
Net gains (losses) from private equity related funds | (2,500) | $ 300 | (1,900) | $ 10,100 | |
Officers and Employees | |||||
Related Party Transaction [Line Items] | |||||
Loans outstanding to related party | 44,900 | 44,900 | 49,300 | ||
Berkadia | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Purchase commitment | 464,400 | 464,400 | 723,800 | ||
FXCM | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Payables, expense accruals and other liabilities | 22,700 | 22,700 | $ 9,900 | ||
Trading liabilities, at fair value | $ 200 | $ 200 | |||
HRG | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | $ 3,000 | $ 3,000 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | Jun. 05, 2018USD ($) | Aug. 31, 2019USD ($)director | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2019USD ($)director | Sep. 30, 2018USD ($) | Jun. 04, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Income allocated to redeemable noncontrolling interests | $ (242) | $ 390 | $ 47 | $ 37,294 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax, Attributable to Parent | 140,000 | ||||||
Income related to associated companies | 72,283 | 18,867 | 121,766 | 84,320 | |||
Consolidated income before income taxes | 13,263 | 272,692 | 246,059 | 347,970 | |||
Gain on disposal of discontinued operations, after-tax | $ 0 | 0 | $ 0 | 643,921 | |||
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% | ||||
Income related to associated companies | $ 75,867 | 58,886 | $ 83,300 | $ 137,918 | 83,287 | ||
Distributions received | 48,700 | $ 121,800 | |||||
National Beef | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership percentage | 100.00% | 100.00% | |||||
Number of directors appointed by Company | director | 2 | 2 | |||||
Lockup period related to divestiture of businesses | 5 years | ||||||
Income allocated to redeemable noncontrolling interests | 37,141 | ||||||
Consolidated income before income taxes | $ 250,600 | $ 196,100 | $ 276,500 | $ 464,300 | |||
Marfrig Global Foods S.A. | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership percentage | 51.00% | ||||||
Ownership percentage to be acquired further from other equity owners | 3.00% | ||||||
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 from sale of subsidiary | $ 907,700 | ||||||
Pre-tax gain on disposal of discontinued operations | 873,500 | ||||||
Gain on disposal of discontinued operations, after-tax | 643,900 | ||||||
Pre-tax gain on disposal of discontinued operations, portion related to remeasurement to fair value | $ 352,400 |
Discontinued Operations (Summar
Discontinued Operations (Summary of discontinued operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Expenses: | ||||
Income tax provision | $ 0 | $ 0 | $ 0 | $ 47,045 |
Income from discontinued operations, net of income tax provision | $ 0 | $ 0 | $ 0 | 130,063 |
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 | |||
Expenses: | ||||
Compensation and benefits | 17,414 | |||
Cost of sales | 2,884,983 | |||
Interest expense | 4,316 | |||
Depreciation and amortization | 43,959 | |||
Selling, general and other expenses | 14,291 | |||
Total expenses | 2,964,963 | |||
Income from discontinued operations before income taxes | 177,108 | |||
Income tax provision | 47,045 | |||
Income from discontinued operations, net of income tax provision | 130,063 | |||
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 | |||
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 | |||
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 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Oct. 01, 2018 | Jun. 05, 2018 | Jun. 04, 2018 | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | Segment | 3 | ||||||
Interest expense | $ 23,663 | $ 28,837 | $ 69,819 | $ 74,614 | |||
Parent Company interest | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest expense | $ 14,800 | $ 14,800 | $ 44,300 | 44,300 | |||
Discontinued operations, disposed of by sale | National Beef | |||||||
Segment Reporting Information [Line Items] | |||||||
Ownership percentage | 48.00% | ||||||
Disposal group, disposed of by sale, not discontinued operations | Garcadia | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of equity method investment for sale | 100.00% | ||||||
National Beef | |||||||
Segment Reporting Information [Line Items] | |||||||
Ownership percentage | 79.00% | ||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | ||||
Berkadia | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||||
Merchant Banking | Reportable Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest expense | $ 8,900 | $ 14,100 | $ 25,500 | $ 30,400 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 856,778 | $ 1,150,846 | $ 2,786,878 | $ 2,957,440 |
Consolidated income before income taxes | 13,263 | 272,692 | 246,059 | 347,970 |
Depreciation and amortization | 39,880 | 32,295 | 110,600 | 92,360 |
Parent Company interest | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated income before income taxes | (14,770) | (14,755) | (44,298) | (44,251) |
LAM and Berkadia Transferred | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 25,400 | 4,600 | ||
Consolidated income before income taxes | 39,700 | 48,800 | ||
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 861,623 | 1,155,638 | 2,786,021 | 2,965,820 |
Consolidated income before income taxes | 28,351 | 290,266 | 282,175 | 392,814 |
Reportable Segments | Jefferies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 777,159 | 777,615 | 2,364,728 | 2,421,418 |
Consolidated income before income taxes | 83,075 | 87,101 | 300,798 | 331,704 |
Depreciation and amortization | 21,170 | 17,175 | 57,800 | 50,829 |
Reportable Segments | Merchant Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 75,497 | 369,309 | 399,159 | 529,627 |
Consolidated income before income taxes | (42,945) | 218,532 | 28,384 | 119,217 |
Depreciation and amortization | 17,880 | 14,268 | 50,248 | 38,932 |
Reportable Segments | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 8,967 | 8,714 | 22,134 | 14,775 |
Consolidated income before income taxes | (11,779) | (15,367) | (47,007) | (58,107) |
Depreciation and amortization | 830 | 852 | 2,552 | 2,599 |
Consolidation adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | (4,845) | (4,792) | 857 | (8,380) |
Consolidated income before income taxes | $ (318) | $ (2,819) | $ 8,182 | $ (593) |