Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | May 31, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | JEFFERIES GROUP LLC | |
Entity Central Index Key | 1,084,580 | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
ASSETS | ||
Cash and cash equivalents ($7,514 and $16,805 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | $ 5,164,492 | $ 3,529,069 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 578,014 | 857,337 |
Financial instruments owned, at fair value, (including securities pledged of $10,842,051 and $9,706,881 at November 30, 2017 and 2016, respectively; and $38,044 and $87,153 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | 13,998,125 | 13,809,512 |
Investments in managed funds | 195,227 | 186,508 |
Loans to and investments in related parties | 682,790 | 653,872 |
Securities borrowed | 7,721,803 | 7,743,562 |
Securities purchased under agreements to resell | 3,689,559 | 3,862,488 |
Securities received as collateral | 103 | 0 |
Receivables: | ||
Brokers, dealers and clearing organizations | 2,514,838 | 2,009,163 |
Customers | 1,563,758 | 843,114 |
Fees, interest and other ($197 and $1,547 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | 381,231 | 310,894 |
Premises and equipment | 297,750 | 265,553 |
Goodwill | 1,647,089 | 1,640,653 |
Other assets ($2 and $0 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | 1,270,912 | 1,229,551 |
Total assets | 39,705,691 | 36,941,276 |
LIABILITIES AND EQUITY | ||
Short-term borrowings (includes $23,324 and $0 at fair value at November 30, 2017 and 2016, respectively) | 436,215 | 525,842 |
Financial instruments sold, not yet purchased, at fair value | 8,171,929 | 8,359,202 |
Collateralized financings: | ||
Securities loaned | 2,843,911 | 2,819,132 |
Securities sold under agreements to repurchase | 8,660,511 | 6,791,676 |
Other secured financings (includes $0 and $41,768 at fair value at November 30, 2017 and 2016, respectively; and $722,108 and $755,544 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | 722,108 | 755,576 |
Obligation to return securities received as collateral | 103 | 0 |
Payables: | ||
Brokers, dealers and clearing organizations | 2,226,768 | 3,290,404 |
Customers | 2,664,023 | 2,297,292 |
Accrued expenses and other liabilities ($1,391 and $735 at November 30, 2017 and 2016, respectively, related to consolidated VIEs) | 1,803,720 | 1,248,200 |
Long-term debt (includes $606,956 and $248,856 at fair value at November 30, 2017 and 2016, respectively) | 6,416,844 | 5,483,355 |
Total liabilities | 33,946,132 | 31,570,679 |
EQUITY | ||
Member’s paid-in capital | 5,895,601 | 5,538,103 |
Accumulated other comprehensive loss: | ||
Currency translation adjustments | (98,909) | (152,305) |
Changes in instrument specific credit risk | (27,888) | (6,494) |
Cash flow hedges | (936) | 0 |
Additional minimum pension liability | (9,046) | (9,358) |
Total accumulated other comprehensive loss | (136,779) | (168,157) |
Total Jefferies Group LLC member’s equity | 5,758,822 | 5,369,946 |
Noncontrolling interests | 737 | 651 |
Total equity | 5,759,559 | 5,370,597 |
Total liabilities and equity | $ 39,705,691 | $ 36,941,276 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Cash and cash equivalents, VIEs | $ 5,164,492 | $ 3,529,069 |
Securities pledged | 10,842,051 | 9,706,881 |
Securities pledged, related to consolidated VIEs | 13,998,125 | 13,809,512 |
Fees, interest and other related to consolidated VIEs | 381,231 | 310,894 |
Other assets | 1,270,912 | 1,229,551 |
Short-term borrowings | 23,324 | 0 |
Other secured financings, fair value | 0 | 41,768 |
Other secured financings | 722,108 | 755,576 |
Accrued expenses and other liabilities related to consolidated VIEs | 1,803,720 | 1,248,200 |
Long term debt, at fair value | 606,956 | 248,856 |
VIEs | ||
Cash and cash equivalents, VIEs | 7,514 | 16,805 |
Securities pledged, related to consolidated VIEs | 38,044 | 87,153 |
Fees, interest and other related to consolidated VIEs | 197 | 1,547 |
Other assets | 2 | 0 |
Other secured financings | 722,108 | 755,544 |
Accrued expenses and other liabilities related to consolidated VIEs | $ 1,391 | $ 735 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Revenues: | |||
Commissions and other fees | $ 593,257 | $ 611,574 | $ 659,002 |
Principal transactions | 800,660 | 519,652 | 172,608 |
Investment banking | 1,764,285 | 1,193,973 | 1,439,007 |
Asset management fees and investment income from managed funds | 16,463 | 31,062 | 8,015 |
Interest | 905,601 | 857,838 | 922,189 |
Other | 98,316 | 19,724 | 74,074 |
Total revenues | 4,178,582 | 3,233,823 | 3,274,895 |
Interest expense | 980,473 | 819,209 | 799,654 |
Net revenues | 3,198,109 | 2,414,614 | 2,475,241 |
Non-interest expenses: | |||
Compensation and benefits | 1,829,096 | 1,568,948 | 1,467,131 |
Non-compensation expenses: | |||
Floor brokerage and clearing fees | 179,478 | 167,205 | 199,780 |
Technology and communications | 279,242 | 262,396 | 313,044 |
Occupancy and equipment rental | 102,904 | 101,133 | 101,138 |
Business development | 99,884 | 93,105 | 105,963 |
Professional services | 114,711 | 112,562 | 103,972 |
Other | 87,870 | 79,293 | 69,986 |
Total non-compensation expenses | 864,089 | 815,694 | 893,883 |
Total non-interest expenses | 2,693,185 | 2,384,642 | 2,361,014 |
Earnings before income taxes | 504,924 | 29,972 | 114,227 |
Income tax expense | 147,340 | 14,566 | 18,898 |
Net earnings | 357,584 | 15,406 | 95,329 |
Net earnings (loss) attributable to noncontrolling interests | 86 | (28) | 1,795 |
Net earnings attributable to Jefferies Group LLC | $ 357,498 | $ 15,434 | $ 93,534 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | ||||
Statement of Comprehensive Income [Abstract] | ||||||
Net earnings | $ 357,584 | $ 15,406 | $ 95,329 | |||
Other comprehensive income (loss), net of tax: | ||||||
Currency translation and other adjustments | 53,396 | (115,494) | (27,157) | |||
Changes in instrument specific credit risk | (21,394) | [1] | (6,494) | [1] | 0 | |
Cash flow hedges | (936) | [2] | 0 | 0 | ||
Minimum pension liability adjustments | [3] | 312 | (1,223) | (3,116) | ||
Total other comprehensive income (loss), net of tax | [4] | 31,378 | (123,211) | (30,273) | ||
Comprehensive income (loss) | 388,962 | (107,805) | 65,056 | |||
Net earnings (loss) attributable to noncontrolling interests | 86 | (28) | 1,795 | |||
Comprehensive income (loss) attributable to Jefferies Group LLC | $ 388,876 | $ (107,777) | $ 63,261 | |||
[1] | Includes income tax benefit of approximately $13.2 million and $4.3 million for the years ended November 30, 2017 and 2016, respectively. | |||||
[2] | Includes income tax benefit of approximately $0.6 million for the year ended November 30, 2017. | |||||
[3] | Includes income tax benefit of approximately $0.1 million, $0.3 million and $4.2 million for the years ended November 30, 2017, 2016 and 2015, respectively. | |||||
[4] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income, changes in instrument specific credit risk, tax benefit | $ 13.2 | $ 4.3 | |
Other comprehensive income, cash flow hedges, tax benefit | 0.6 | ||
Minimum pension liability adjustments, tax | $ 0.1 | $ 0.3 | $ 4.2 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Member’s paid-in capital | Accumulated other comprehensive loss | [1],[2] | Parent | Noncontrolling interests | |
Balance, beginning of period at Nov. 30, 2014 | $ 5,439,256 | $ (14,673) | $ 38,848 | ||||
Stockholders' Equity | |||||||
Net earnings | $ 95,329 | 93,534 | 1,795 | ||||
Tax detriment for issuance of share-based awards | (5,935) | (5,935) | |||||
Currency adjustments | (27,157) | (27,157) | |||||
Changes in instrument specific credit risk | 0 | 0 | |||||
Cash flow hedges | 0 | 0 | |||||
Pension adjustments | (3,116) | [3] | (3,116) | ||||
Contributions | 0 | ||||||
Distributions | (4,982) | ||||||
Deconsolidation of asset management company | (8,193) | ||||||
Balance, end of period at Nov. 30, 2015 | 5,509,377 | 5,526,855 | (44,946) | $ 5,481,909 | 27,468 | ||
Stockholders' Equity | |||||||
Net earnings | 15,406 | 15,434 | (28) | ||||
Tax detriment for issuance of share-based awards | (4,186) | (4,186) | |||||
Currency adjustments | (115,494) | (115,494) | |||||
Changes in instrument specific credit risk | (6,494) | [4] | (6,494) | ||||
Cash flow hedges | 0 | 0 | |||||
Pension adjustments | (1,223) | [3] | (1,223) | ||||
Contributions | 9,390 | ||||||
Distributions | (563) | ||||||
Deconsolidation of asset management company | (35,616) | ||||||
Balance, end of period at Nov. 30, 2016 | 5,370,597 | 5,538,103 | (168,157) | 5,369,946 | 651 | ||
Stockholders' Equity | |||||||
Net earnings | 357,584 | 357,498 | 86 | ||||
Tax detriment for issuance of share-based awards | 0 | 0 | |||||
Currency adjustments | 53,396 | 53,396 | |||||
Changes in instrument specific credit risk | (21,394) | [4] | (21,394) | ||||
Cash flow hedges | (936) | [5] | (936) | ||||
Pension adjustments | 312 | [3] | 312 | ||||
Contributions | 0 | ||||||
Distributions | 0 | ||||||
Deconsolidation of asset management company | 0 | ||||||
Balance, end of period at Nov. 30, 2017 | $ 5,759,559 | $ 5,895,601 | $ (136,779) | $ 5,758,822 | $ 737 | ||
[1] | The components of other comprehensive income (loss) are attributable to Jefferies Group LLC. None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. | ||||||
[2] | There were no material reclassifications out of Accumulated other comprehensive income (loss) during the years ended November 30, 2017, 2016 and 2015. | ||||||
[3] | Includes income tax benefit of approximately $0.1 million, $0.3 million and $4.2 million for the years ended November 30, 2017, 2016 and 2015, respectively. | ||||||
[4] | Includes income tax benefit of approximately $13.2 million and $4.3 million for the years ended November 30, 2017 and 2016, respectively. | ||||||
[5] | Includes income tax benefit of approximately $0.6 million for the year ended November 30, 2017. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Cash flows from operating activities: | |||
Net earnings | $ 357,584 | $ 15,406 | $ 95,329 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,977 | (2,365) | 15,236 |
Deferred income taxes | (43,246) | (14,013) | 88,796 |
Income on loans to and investments in related parties | (109,395) | (17,184) | (75,717) |
Distributions received on investments in related parties | 21,038 | 38,180 | 76,681 |
Other adjustments | 44,043 | (32,711) | (97,804) |
Net change in assets and liabilities: | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 280,703 | (107,771) | 2,691,028 |
Receivables: | |||
Brokers, dealers and clearing organizations | (487,385) | (477,273) | 576,832 |
Customers | (720,710) | 348,055 | 57,837 |
Fees, interest and other | (68,177) | (54,366) | 541 |
Securities borrowed | 50,660 | (805,779) | (127,060) |
Financial instruments owned | (110,368) | 2,529,114 | 2,003,978 |
Investments in managed funds | (8,719) | (138,572) | 15,498 |
Securities purchased under agreements to resell | 234,740 | (112,777) | 53,817 |
Other assets | 8,435 | (173,127) | (62,361) |
Payables: | |||
Brokers, dealers and clearing organizations | (1,081,611) | 584,426 | 471,661 |
Customers | 366,721 | (483,188) | (3,455,080) |
Securities loaned | 381 | (122,946) | 385,929 |
Financial instruments sold, not yet purchased | (279,282) | 1,753,647 | (2,043,319) |
Securities sold under agreements to repurchase | 1,838,793 | (3,144,433) | (650,795) |
Accrued expenses and other liabilities | 524,304 | 296,067 | (259,665) |
Net cash provided by (used in) operating activities | 820,486 | (121,610) | (238,638) |
Cash flows from investing activities: | |||
Contributions to loans to and investments in related parties | (3,161,619) | (538,186) | (1,438,675) |
Distributions from loans to and investments in related parties | 3,068,961 | 689,226 | 1,384,944 |
Proceeds from sale of Jefferies LoanCore | 173,105 | 0 | 0 |
Net payments on premises and equipment | (72,653) | (75,772) | (68,813) |
Payment on purchase of aircraft | 0 | (27,500) | 0 |
Proceeds from sale of aircraft | 0 | 29,450 | 0 |
Deconsolidation of asset management entity | 0 | (77) | (16,512) |
Cash received from contingent consideration | 1,342 | 2,617 | 4,444 |
Net cash provided by (used in) investing activities | 9,136 | 79,758 | (134,612) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 34,499,230 | 15,313,383 | 17,263,217 |
Payments on short-term borrowings | (34,594,992) | (15,108,501) | (16,964,558) |
Proceeds from secured credit facility | 0 | 0 | 903,000 |
Payments on secured credit facility | 0 | 0 | (1,073,000) |
Net (payments on) proceeds from other secured financings | (33,468) | (7,333) | 157,085 |
Proceeds from issuance of long-term debt, net of issuance costs | 1,116,798 | 299,779 | 0 |
Repayment of long-term debt | (186,444) | (373,246) | (500,000) |
Net change in bank overdrafts | (5,650) | (46,536) | 29,295 |
Proceeds from contributions of noncontrolling interests | 0 | 9,390 | 0 |
Payments on distributions to noncontrolling interests | 0 | (563) | (4,982) |
Net cash provided by (used in) financing activities | 795,474 | 86,373 | (189,943) |
Effect of exchange rate changes on cash and cash equivalents | 10,327 | (25,615) | (6,612) |
Net increase (decrease) in cash and cash equivalents | 1,635,423 | 18,906 | (569,805) |
Cash and cash equivalents at beginning of period | 3,529,069 | 3,510,163 | 4,079,968 |
Cash and cash equivalents at end of period | 5,164,492 | 3,529,069 | 3,510,163 |
Cash paid (received) during the period for: | |||
Interest | 1,025,576 | 859,466 | 859,815 |
Income taxes, net | $ 8,910 | $ (6,410) | $ (683) |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Nov. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Jefferies Group LLC is the largest independent U.S.-headquartered global full service, integrated securities and investment banking firm. The accompanying Consolidated Financial Statements represent the accounts of Jefferies Group LLC and all our subsidiaries (together “we” or “us”). The subsidiaries of Jefferies Group LLC include Jefferies LLC (“Jefferies”), Jefferies International Limited, Jefferies Hong Kong Limited, Jefferies Financial Services, Inc., Jefferies Funding LLC, Jefferies Leveraged Credit Products, LLC and all other entities in which we have a controlling financial interest or are the primary beneficiary. On April 9, 2015, we entered into an agreement to transfer certain of the client activities of our Futures business to Société Générale S.A. and initiated a plan to substantially exit the remaining aspects of our Futures business. During the second quarter of 2016, we completed the exit of the Futures business. For further information on the exit of the Futures business, refer to Note 20, Exit Costs . In November 2017, Jefferies Execution Services, Inc. merged with and into Jefferies, with Jefferies as the surviving entity. Jefferies Group LLC is an indirect wholly owned subsidiary of publicly traded Leucadia National Corporation (“Leucadia”). Leucadia does not guarantee any of our outstanding debt securities. Our 3.875% Convertible Senior Debentures due 2029 (principal amount of $345.0 million ) (the “debentures”) were convertible into Leucadia common shares. $20.2 million of these debentures were called at November 1, 2017. At November 22, 2017, all of the remaining convertible debentures were called for optional redemption, with a redemption date of January 5, 2018, at a redemption price equal to 100% of the principal amount of the convertible debentures redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. All of these remaining convertible debentures were redeemed on January 5, 2018 (see Note 12, Long-Term Debt , for further details). Jefferies Group LLC is a Securities and Exchange Commission (“SEC”) reporting company, filing annual, quarterly and periodic financial reports. Richard Handler, our Chief Executive Officer and Chairman, is the Chief Executive Officer of Leucadia, as well as a Director of Leucadia. Brian P. Friedman, our Chairman of the Executive Committee, is Leucadia’s President and a Director of Leucadia. We operate in two reportable business segments, Capital Markets and Asset Management. For further information on our reportable business segments, refer to Note 18, Segment Reporting . Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize certain deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings to noncontrolling interests in our Consolidated Statements of Earnings. In situations in which we have significant influence, but not control, of an entity that does not qualify as a VIE, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP, with our portion of net earnings or gains and losses recorded in Other revenues or Principal transaction revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are not the primary obligor for these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transaction revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments ). Fees received on loans carried at fair value are also recorded in Principal transaction revenues. Investment Banking. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Business development and Professional services expenses in our Consolidated Statements of Earnings. Asset Management Fees and Investment Income from Managed Funds. Asset management fees and investment income from managed funds include revenues we earn from management, administrative and performance fees from funds and accounts managed by us, revenues from management and performance fees we earn from related-party managed funds and investment income from our investments in these funds. We earn fees in connection with management and investment advisory services performed for various funds and managed accounts. These fees are based on assets under management or an agreed upon notional amount and may include performance fees based upon the performance of the funds. Management and administrative fees are generally recognized over the period that the related service is provided. Generally, performance fees are earned when the return on assets under management exceeds certain benchmark returns, “high-water marks” or other performance targets. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transaction revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. In addition, we recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis. Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities. Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transaction revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments that fair values for which have been derived using model inputs that are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based upon consideration of available information, including types of financial instruments, current financial information, restrictions on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions, require that an adjustment be made to the value derived from the models. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. Valuation Process for Financial Instruments Our Independent Price Verification (“IPV”) Group, which is part of our Finance department, in partnership with Risk Management, is responsible for establishing our valuation policies and procedures. The IPV Group and Risk Management, which are independent of our business functions, play an important role and serve as a control function in determining that our financial instruments are appropriately reflected at fair value. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The IPV Group reports to the Global Controller and is subject to the oversight of the IPV Committee, which comprises our Chief Financial Officer, Global Controller, Chief Risk Officer and Principal Accounting Officer, among other personnel. Our independent price verification policies and procedures are reviewed on a periodic basis, and changes to the policies require the approval of the IPV Committee. Price Testing Process. The business units are responsible for determining the fair value of our financial instruments using approved valuation models and methodologies. In order to ensure that the business unit valuations represent a fair value exit price, the IPV Group tests and validates the fair value of our financial instruments inventory. In the testing process, the IPV Group obtains prices and valuation inputs from independent sources, consistently adheres to established procedures set forth in our valuation policies for sourcing prices and valuation inputs and utilizing valuation methodologies. Sources used to validate fair value prices and inputs include, but are not limited to, exchange data, recently executed transactions, pricing data obtained from third party vendors, pricing and valuation services, broker quotes and observed comparable transactions. To the extent discrepancies between the business unit valuations and the pricing or valuations resulting from the price testing process are identified, such discrepancies are investigated by the IPV Group and fair values are adjusted, as appropriate. The IPV Group maintains documentation of its testing, results, rationale and recommendations and prepares a monthly summary of its valuation results. This process also forms the basis for our classification of fair values within the fair value hierarchy ( i.e., Level 1, Level 2 or Level 3). The IPV Group utilizes the additional expertise of Risk Management personnel in valuing more complex financial instruments and financial instruments with less or limited pricing observability. The results of the valuation testing are reported to the IPV Committee on a monthly basis, which discusses the results and determines the financial instrument fair values in our consolidated financial statements. At each quarter end, the overall valuation results, as determined by the IPV Committee, are presented to the Audit Committee. Judgment exercised in determining Level 3 fair value measurements is supplemented by daily analysis of profit and loss performed by the Product Control functions. Gains and losses, which result from changes in fair value, are evaluated and corroborated daily based on an understanding of each trading desk’s overall risk positions and developments in a particular market on the given day. Valuation techniques generally rely on recent transactions of suitably comparable financial instruments and use the observable inputs from those comparable transactions as a validation basis for Level 3 inputs. Level 3 fair value measurements are further validated through subsequent sales testing and market comparable sales, if such information is available. Level 3 fair value measurements require documentation of the valuation rationale applied, which is reviewed for consistency in application from period to period. Third Party Pricing Information. Pricing information obtained from external data providers (including independent pricing services and brokers) may incorporate a range of market quotes from dealers, recent market transactions and benchmarking model derived prices to quoted market prices and trade data for comparable securities. External pricing data is subject to evaluation for reasonableness by the IPV Group using a variety of means including comparisons of prices to those of similar product types, quality and maturities, consideration of the narrowness or wideness of the range of prices obtained, knowledge of recent market transactions and an assessment of the similarity in prices to comparable dealer offerings in a recent time period. Our processes challenge the appropriateness of pricing information obtained from external data providers (including independent pricing services and brokers) to validate the data for consistency with the definition of a fair value exit price. Our process includes understanding and evaluating the external data providers’ valuation methodologies. For corporate, U.S. government and agency, and municipal debt securities, and loans, to the extent we use independent pricing services or broker quotes in our valuation process, the vendor service providers are collecting and aggregating observable market information as to recent trade activity and active bid-ask submissions. The composite pricing information received from the independent pricing service is thus not based on unobservable inputs or proprietary models. For mortgage- and other asset-backed securities, collateralized debt obligations (“CDOs”) and collateralized loan obligations (“CLOs”), our independent pricing services use a matrix evaluation approach, incorporating both observable yield curves and market yields on comparable securities as well as implied inputs from observed trades for comparable securities in order to determine prepayment speeds, cumulative default rates and loss severity. Further, we consider pricing data from multiple service providers as available as well as compare pricing data to prices we have observed for recent transactions, if any, in order to corroborate our valuation inputs. Model Review Process. If a pricing model is used to determine fair value, the pricing model is reviewed for theoretical soundness and appropriateness by Risk Management, independent from the trading desks, and then approved by Risk Management to be used in the valuation process. Review and approval of a model for use may include benchmarking the model against relevant third party valuations, testing sample trades in the model, backtesting the results of the model against actual trades and stress-testing the sensitivity of the pricing model using varying inputs and assumptions. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model. Models are independently reviewed and validated by Risk Management annually or more frequently if market conditions or use of the valuation model changes. Investments in Managed Funds Investments in managed funds include our investments in funds managed by us and our investments in related-party managed funds. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value (“NAV”) of the funds provided by the fund managers with gains or losses included in Asset management fees and investment income (loss) from managed funds in our Consolidated Statements of Earnings. Loans to and Investments in Related Parties Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in our Consolidated Statements of Earnings. See Note 9, Investments , and Note 19, Related Party Transactions , for additional information regarding certain of these investments. Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. We have an active securities borrowed and lending matched book business in which we borrow securities from one party and lend them to another party. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. Refer to Note 5, Derivative Financial Instruments and Note 6, Collateralized Transactions , for further information. Hedge Accounting Hedge accounting is applied using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. The interest rate swaps are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. We use regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% - 125% . The impact of valuation adjustments related to our own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another, and together with any resulting ineffectiveness, are recorded in Interest expense. Refer to Note 5, Derivative Financial Instruments , for further information. Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to ten years ). Leasehold improvements are amortized using the straight-line method over the term of the related leases or the estimated useful lives of the assets, whichever is shorter. Premises and equipment includes internally developed software. The carrying values of internally developed software ready for its intended use are depreciated over the remaining useful life. At November 30, 2017 and 2016 , furniture, fixtures and equipment, including amounts under capital leases, amounted to $431.7 million and $374.2 million , respectively, and leasehold improvements amounted to $214.0 million and $200.5 million , respectively. Accumulated depreciation and amortization was $348.0 million and $309.2 million at November 30, 2017 and 2016 , respectively. Depreciation and amortization expense amounted to $51.7 million , $47.9 million and $78.7 million for the years ended November 30, 2017 , 2016 and 2015 , respectively. Goodwill and Intangible Assets Goodwill . Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The Company’s annual indefinite-lived intangible asset impairment testing date is August 1. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Refer to Note 10, Goodwill and Intangible Assets , for further information. Income Taxes Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Leucadia. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical m |
Accounting Developments
Accounting Developments | 12 Months Ended |
Nov. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Developments | Accounting Developments Accounting Standards to be Adopted in Future Periods Derivatives and Hedging. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The objective of the guidance is 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 2019. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Stock Compensation. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation: Scope of Modification Accounting. The guidance provides clarity and reduces diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Retirement Benefits. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The guidance impacts the presentation of net periodic pension costs in the statement of income. The update also allows the service cost to be eligible for capitalization, when applicable. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We plan to adopt this guidance in the first quarter of fiscal 2018. We do not believe the new guidance will have a material impact on our Consolidated Statements of Earnings. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. We plan to adopt this guidance in the first quarter of fiscal 2018. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We plan to adopt this guidance in the first quarter of fiscal 2018. We do not believe these new ASUs will have a material impact on our Consolidated Statements of Cash Flows. Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides 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 and early adoption is permitted in the first quarter of fiscal 2020. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases onto the balance sheet. We plan on adopting the guidance as of our first quarter of fiscal 2019 and are currently evaluating the impact of the new guidance on our consolidated financial statements. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. We are currently evaluating the impact of the new guidance related to equity investments and the presentation and disclosure requirements of financial instruments on our consolidated financial statements. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material effect on our consolidated financial statements. Revenue Recognition . We adopted the new revenue standard on December 1, 2017 and recognized a reduction of $6.1 million after-tax to opening Member’s paid in capital as the cumulative effect of adoption of this accounting change. The impact of adoption is primarily related to 1) investment banking expenses that were deferred as of November 30, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and 2) investment banking revenues that were previously recognized in prior periods, which would have been deferred as of November 30, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach. Accordingly, the new revenue standard will be applied prospectively in our financial statements from December 1, 2017 forward and reported financial information for historical comparable periods will not be revised and will continue to be reported under the accounting standards in effect during those historical periods. The new revenue guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Earnings most closely associated with financial instruments, including Principal transaction revenues, Interest income and Interest expense. The new revenue standard primarily impacts the following of our revenue recognition and presentation accounting policies: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenue from these activities is recognized within Principal transaction revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category on the consolidated income statement and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, we receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., meeting a specified benchmark rate) and are recognized only to the extent it is not probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. The new revenue standard requires enhanced disclosures, which we will include in the footnotes to our consolidated financial statements beginning with the three months ended February 28, 2018. Adopted Accounting Standards Employee Share-Based Payments. In March 2016, the FASB issued ASU 2016-09, which simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include the recognition of all excess tax benefits and tax deficiencies as income tax expense or benefit in our Consolidated Statements of Earnings and changes to the timing of recognition of excess tax benefits, the accounting for forfeitures, classification of awards as either equity or liabilities and classification in the Consolidated Statements of Cash Flows. We early adopted this standard on December 1, 2016 and the adoption did not have a material effect on our consolidated financial statements. We elected to account for forfeitures as they occur, which results in dividends and dividend equivalents originally charged against retained earnings for forfeited shares to be reclassified to compensation cost in the period in which the forfeiture occurs. In addition, the current period’s excess tax benefit related to stock-based compensation is presented as an operating activity rather than a financing activity in our Consolidated Statements of Cash Flows on a retrospective basis. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Nov. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV of $20.2 million and $24.3 million at November 30, 2017 and 2016 , respectively, by level within the fair value hierarchy (in thousands): November 30, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,801,453 $ 57,091 $ 22,009 $ — $ 1,880,553 Corporate debt securities — 3,261,300 26,036 — 3,287,336 CDOs and CLOs — 139,166 30,004 — 169,170 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 160,168 3,248,586 9,295 (3,254,216 ) 163,833 Investments at fair value — 946 93,454 — 94,400 Total financial instruments owned, excluding Investments at fair value based on NAV $ 4,612,403 $ 12,292,053 $ 327,727 $ (3,254,216 ) $ 13,977,967 Securities received as collateral $ 103 $ — $ — $ — $ 103 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,456,675 $ 32,122 $ 48 $ — $ 1,488,845 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 247,919 3,399,239 16,041 (3,426,249 ) 236,950 Total financial instruments sold, not yet purchased $ 4,351,974 $ 7,226,002 $ 20,202 $ (3,426,249 ) $ 8,171,929 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt $ — $ 606,956 $ — $ — $ 606,956 Obligation to return securities received as collateral $ 103 $ — $ — $ — $ 103 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2016 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,742,463 $ 90,662 $ 21,739 $ — $ 1,854,864 Corporate debt securities — 2,675,020 25,005 — 2,700,025 CDOs and CLOs — 54,306 54,354 — 108,660 U.S. government and federal agency securities 2,389,397 56,726 — — 2,446,123 Municipal securities — 708,469 27,257 — 735,726 Sovereign obligations 1,432,556 990,492 — — 2,423,048 Residential mortgage-backed securities — 960,494 38,772 — 999,266 Commercial mortgage-backed securities — 296,405 20,580 — 316,985 Other asset-backed securities — 63,587 40,911 — 104,498 Loans and other receivables — 1,557,233 81,872 — 1,639,105 Derivatives 3,825 4,606,278 6,429 (4,255,998 ) 360,534 Investments at fair value — — 96,369 — 96,369 Total financial instruments owned, excluding Investments at fair value based on NAV $ 5,568,241 $ 12,059,672 $ 413,288 $ (4,255,998 ) $ 13,785,203 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,577,405 $ 16,806 $ 313 $ — $ 1,594,524 Corporate debt securities — 1,718,424 523 — 1,718,947 U.S. government and federal agency securities 976,497 — — — 976,497 Sovereign obligations 1,375,590 1,253,754 — — 2,629,344 Loans — 801,977 378 — 802,355 Derivatives 568 4,856,310 9,870 (4,229,213 ) 637,535 Total financial instruments sold, not yet purchased $ 3,930,060 $ 8,647,271 $ 11,084 $ (4,229,213 ) $ 8,359,202 Other secured financings $ — $ 41,350 $ 418 $ — $ 41,768 Long-term debt $ — $ 248,856 $ — $ — $ 248,856 (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 the company. 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 are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Corporate Debt Securities • Corporate Bonds: Corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds. • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 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. CDOs and CLOs CDOs and CLOs are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. To the extent external price quotations are not available or recent transactions have not been observed, valuation techniques incorporating interest rate yield curves and country spreads for bonds of similar issuers, seniority and maturity are used to determine fair value of sovereign bonds or obligations. Sovereign government obligations are classified in Level 1 or Level 2 of the fair value hierarchy, primarily based on the country of issuance. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities (“RMBS”): Agency RMBS include mortgage pass-through securities (fixed and adjustable rate), collateralized mortgage obligations and principal-only securities and are generally measured using market price quotations from external pricing services and categorized within Level 2 of the fair value hierarchy. • Agency Residential Interest-Only and Inverse Interest-Only Securities (“agency inverse IOs”): The fair value of agency inverse IOs is estimated using expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral. 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 weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer, and weighted average loan age. Agency Inverse IOs are categorized within Level 2 of the fair value hierarchy. We also use vendor data in developing our assumptions, as appropriate. • Non-Agency RMBS: The fair value of non-agency RMBS 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 (“CMBS”): 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 CMBS: Non-agency CMBS are measured using pricing data obtained from external pricing services and prices observed from recently executed market transactions and are categorized within Level 2 and Level 3 of the fair value hierarchy. Other Asset-Backed Securities Other asset-backed securities (“ABS”) 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 and Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services and broker quotes and prices observed from recently executed market transactions. Loans and Other Receivables • Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market price quotations where market price quotations from external pricing services 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 flow 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. 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 incorporating an evaluation for various factors, including prepayment speeds, default rates and cash flow structures, as well as the likelihood of pricing levels in the current market environment. The measurements are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions. • Consumer Loans and Funding Facilities: Consumer and small business whole loans and related funding facilities are valued based on observed market transactions and incorporating valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy. • Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent trade activity 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. 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. Inputs to valuation models are appropriately calibrated to 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 the 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 incorporates constant prepayment rate, constant default rate and loss severity assumptions. Credit default swaps include both index and single-name credit default swaps. External prices are available as inputs 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. Investments at Fair Value and Investments in Managed Funds Investments at fair value based on NAV and Investments in Managed Funds 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 and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Additionally, investments at fair value include investments in insurance contracts relating to our defined benefit plan in Germany. Fair value for the insurance contracts is determined using a third party and is categorized within Level 3 of the fair value hierarchy. The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): November 30, 2017 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 33,176 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 417 — — Fund of Funds (4) 189 — — Equity Funds (5) 26,798 19,084 — Multi-asset Funds (6) 154,805 — — Total $ 215,385 $ 19,084 November 30, 2016 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 34,446 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 772 — — Fund of Funds (4) 230 — — Equity Funds (5) 42,179 20,295 — Multi-asset Funds (6) 133,190 — — Total $ 210,817 $ 20,295 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At November 30, 2017 and 2016 , approximately 1% and 2% , respectively, of the fair value of investments in this category are classified as being in liquidation. (3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions. (4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received. (5) At November 30, 2017 and 2016 , the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to liquidate in one to six years. (6) 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 both November 30, 2017 and 2016 , investments representing approximately 12% of the fair value of investments in this category are redeemable with 30 days prior written notice. Other Secured Financings Other secured financings that are accounted for at fair value include notes issued by consolidated VIEs, which are classified as Level 2 or Level 3 within the fair value hierarchy. Fair value is based on recent transaction prices for similar assets. Short-term Borrowings / Long-term Debt Short-term borrowings that are accounted for at fair value include equity-linked notes, which are generally categorized as Level 2 within the fair value hierarchy, as the fair value is based on the price of the underlying equity security. Long-term debt includes variable rate, fixed-to-floating rate, CMS (constant maturity swap) and Bermudan structured notes. These are valued using various valuation models that incorporate our own credit spread, market price quotations from external pricing sources referencing the appropriate interest rate curves, volatilities and other inputs and are generally categorized within Level 2 of the fair value hierarchy. In addition, pricing transparency has been evidenced based on transaction data from recently issued notes. Long-term Debt-Embedded Conversion Option The embedded conversion option presented in Long-term debt represented the fair value of the conversion option on Leucadia shares within our 3.875% Convertible Senior Debentures, due November 1, 2029 and was categorized as Level 3 within the fair value hierarchy. The conversion option expired on November 1, 2017 . The conversion option was valued using a convertible bond model using as inputs the price of Leucadia’s common stock, the conversion strike price, 252 -day historical volatility, maturity date (the first put date), dividend yield and the risk-free interest rate curve. Transfers Between Levels 1 and 2 for Instruments Carried at Fair Value There were no material transfers between Level 1 and Level 2 for the years ended November 30, 2017 and 2016 . 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 year ended November 30, 2017 (in thousands): Year Ended November 30, 2017 Balance at November 30, 2016 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at November 30, 2017 Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2017 (1) Assets: Financial instruments owned: Corporate equity securities $ 21,739 $ 3,262 $ 896 $ (1,623 ) $ 52 $ — $ (2,317 ) $ 22,009 $ 2,515 Corporate debt securities 25,005 (3,723 ) 36,850 (34,077 ) (1,968 ) — 3,949 26,036 (3,768 ) CDOs and CLOs 54,354 (19,858 ) 112,239 (110,907 ) (367 ) — (5,457 ) 30,004 (2,262 ) Municipal securities 27,257 (1,547 ) — (25,710 ) — — — — — RMBS 38,772 (10,817 ) 6,805 (26,193 ) (115 ) — 17,625 26,077 (7,201 ) CMBS 20,580 (5,346 ) 3,275 (5,263 ) (1,018 ) — 191 12,419 (6,976 ) Other ABS 40,911 (17,705 ) 77,508 (8,613 ) (25,799 ) — (5,173 ) 61,129 (12,562 ) Loans and other receivables 81,872 24,794 63,768 (53,095 ) (34,622 ) — (35,413 ) 47,304 17,451 Investments at fair value 96,369 6,361 1,981 (10,157 ) (1,100 ) — — 93,454 8,385 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 313 $ 60 $ (373 ) $ 48 $ — $ — $ — $ 48 $ — Corporate debt securities 523 (1 ) — — — — — 522 1 CMBS — 105 — — — — — 105 (105 ) Net derivatives (2) 3,441 (1,638 ) — — 5,558 456 (1,071 ) 6,746 (17,740 ) Loans 378 196 (385 ) 2,485 — — 812 3,486 (2,639 ) Other secured financings 418 (418 ) — — — — — — — (1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. Analysis of Level 3 Assets and Liabilities for the Year Ended November 30, 2017 During the year ended November 30, 2017 , transfers of assets of $33.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • RMBS of $19.6 million and corporate debt securities of $8.3 million due to a lack of observable market transactions. During the year ended November 30, 2017 , transfers of assets of $60.4 million from Level 3 to Level 2 are primarily attributed to: • Loans and other receivables of $40.9 million due to greater pricing transparency supporting classification into Level 2. Net losses on Level 3 assets were $24.6 million and net gains on Level 3 liabilities were $1.7 million for the year ended November 30, 2017 . Net losses on Level 3 assets were primarily due to decreased valuations of CDOs and CLOs, other ABS and RMBS, partially offset by increased valuations of certain loans and other receivables. Net gains on Level 3 liabilities were primarily due to increased valuations of certain net 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 year ended November 30, 2016 (in thousands): Year Ended November 30, 2016 Balance at November 30, 2015 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2016 Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2016 (1) Assets: Financial instruments owned: Corporate equity securities $ 40,906 $ (8,463 ) $ 3,365 $ (49 ) $ (671 ) $ — $ (13,349 ) $ 21,739 $ 291 Corporate debt securities 25,876 (16,230 ) 27,242 (29,347 ) (7,223 ) — 24,687 25,005 (18,799 ) CDOs and CLOs 85,092 (14,918 ) 52,316 (69,394 ) (2,750 ) — 4,008 54,354 (7,628 ) Municipal securities — (1,462 ) — — — — 28,719 27,257 (1,462 ) Sovereign obligations 120 5 — (125 ) — — — — — RMBS 70,263 (9,612 ) 623 (12,249 ) (931 ) — (9,322 ) 38,772 (1,095 ) CMBS 14,326 (7,550 ) 3,132 (2,024 ) (2,229 ) — 14,925 20,580 (7,243 ) Other ABS 42,925 (14,381 ) 133,986 (102,952 ) (8,769 ) — (9,898 ) 40,911 (18,056 ) Loans and other receivables 189,289 (42,566 ) 75,264 (69,262 ) (46,851 ) — (24,002 ) 81,872 (52,003 ) Investments at fair value 53,120 (13,278 ) 26,228 (542 ) (1,107 ) — 31,948 96,369 (13,208 ) Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 38 $ — $ — $ 313 $ (38 ) $ — $ — $ 313 $ — Corporate debt securities — (27 ) — 550 — — — 523 — Net derivatives (2) (242 ) (1,760 ) — 11,101 31 2,067 (7,756 ) 3,441 (6,458 ) Loans 10,469 — — 378 — — (10,469 ) 378 — Other secured financings 544 (126 ) — — — — — 418 (126 ) (1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. Analysis of Level 3 Assets and Liabilities for the Year Ended November 30, 2016 During the year ended November 30, 2016 , transfers of assets of $179.6 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • CDOs and CLOs of $19.4 million , RMBS of $17.5 million , CMBS of $17.4 million and other ABS of $16.9 million , for which no recent trade activity was observed for purposes of determining observable inputs; • Loans and other receivables of $13.8 million due to a lower number of contributors for certain vendor quotes supporting classification within Level 2; and • Investments at fair value of $31.9 million , municipal securities of $28.7 million and corporate debt securities of $28.1 million due to a lack of observable market transactions. During the year ended November 30, 2016 , transfers of assets of $133.2 million from Level 3 to Level 2 are primarily attributed to: • RMBS of $26.8 million , other ABS of $26.8 million and CDOs and CLOs of $15.4 million , for which market trades were observed in the year for either identical or similar securities; • Loans and other receivables of $37.8 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2; and • Corporate equity securities of $19.2 million due to an increase in observable market transactions. There were $10.5 million transfers of loan liabilities from Level 3 to Level 2 due to an increase in observable inputs in the valuation. Net losses on Level 3 assets were $128.5 million and net gains on Level 3 net liabilities were $1.9 million for the year ended November 30, 2016 . Net losses on Level 3 assets were primarily due to decreased valuations of loans and other receivables, corporate debt securities, CDOs and CLOs, other ABS, certain investments at fair value, RMBS, corporate equity securities and CMBS. Net gains on Level 3 net liabilities were primarily due to increased valuations of certain net derivatives. The following is a summary of changes in fair value of our financ |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Nov. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Financial Instruments Our derivative activities are recorded at fair value in our Consolidated Statements of Financial Condition in Financial instruments owned and Financial instruments sold, not yet purchased, 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. We enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks resulting from our trading activities. In addition, we apply 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 Note 4, Fair Value Disclosures , and Note 16, Commitments, Contingencies and Guarantees , 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. We manage the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of our firm wide risk management policies. In connection with our derivative activities, we may enter into International Swaps and Derivatives Association, Inc. (“ISDA”) master netting agreements or similar agreements with counterparties. See Note 2, Summary of Significant Accounting Policies , for additional information regarding the offsetting of derivative contracts. The following tables present the fair value and related number of derivative contracts at November 30, 2017 and 2016 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 U.S. 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). November 30, 2017 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 2,420 1 Total derivatives designated as accounting hedges — 2,420 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,957 33,972 66 8,515 Cleared OTC 1,334,878 2,711 1,263,994 2,948 Bilateral OTC 380,223 1,804 444,716 1,346 Foreign exchange contracts: Exchange-traded 157 2,045 20 101 Bilateral OTC 303,091 4,338 286,582 4,361 Equity contracts: Exchange-traded 1,288,295 2,654,555 1,375,832 2,090,935 Bilateral OTC 78,812 1,847 247,750 1,722 Commodity contracts: Exchange-traded 209 3,723 18 3,819 Credit contracts: Cleared OTC 5,506 18 8,613 27 Bilateral OTC 24,921 110 33,188 164 Total derivatives not designated as hedges 3,418,049 3,660,779 Total gross derivative assets/ liabilities: Exchange-traded 1,290,618 1,375,936 Cleared OTC 1,340,384 1,275,027 Bilateral OTC 787,047 1,012,236 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (1,268,043 ) (1,268,043 ) Cleared OTC (1,319,895 ) (1,274,900 ) Bilateral OTC (666,278 ) (883,306 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 163,833 $ 236,950 (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 from/Payables to brokers, dealers and clearing organizations 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 our Consolidated Statements of Financial Condition. November 30, 2016 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded $ 2,275 24,300 $ 24 29,773 Cleared OTC (3) 2,835,812 3,596 2,636,469 3,445 Bilateral OTC 444,159 1,136 522,965 1,627 Foreign exchange contracts: Exchange-traded — 376 — 686 Bilateral OTC 529,609 7,448 516,869 7,633 Equity contracts: Exchange-traded 712,767 2,820,702 1,095,582 2,410,956 Bilateral OTC 72,041 1,077 67,033 1,191 Commodity contracts: Exchange-traded — 1,356 — 920 Credit contracts: Cleared OTC 645 6 2,304 8 Bilateral OTC 19,225 213 25,503 184 Total gross derivative assets/liabilities: Exchange-traded 715,042 1,095,606 Cleared OTC 2,836,457 2,638,773 Bilateral OTC 1,065,034 1,132,370 Amounts offset in our Consolidated Statements of Financial Condition (4): Exchange-traded (691,009 ) (691,009 ) Cleared OTC (3) (2,751,650 ) (2,638,774 ) Bilateral OTC (813,340 ) (899,431 ) Net amounts per Consolidated Statements of Financial Condition (5) $ 360,534 $ 637,535 (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 from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) Pursuant to a rule change by the Chicago Mercantile Exchange in the first quarter of 2017, variation margin exchanged each day with this clearing organization on certain interest rate and credit derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of November 30, 2016 of approximately $1.0 billion , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . (4) Amounts netted include both netting by counterparty and for cash collateral paid or received. (5) 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 our Consolidated Statements of Financial Condition. The following table provides information related to gains (losses) recognized in Interest expense in our Consolidated Statements of Earnings on a fair value hedge (in thousands): Year Ended November 30, Gains (Losses) 2017 2016 2015 Interest rate swaps $ (2,091 ) $ — $ — Long-term debt 8,124 — — Total $ 6,033 $ — $ — The following table presents unrealized and realized gains (losses) on derivative contracts recognized in Principal transactions revenue in our Consolidated Statements of Earnings, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Year Ended November 30, Gains (Losses) 2017 2016 2015 Interest rate contracts $ 2,959 $ (34,319 ) $ (37,601 ) Foreign exchange contracts 4,735 18,122 36,101 Equity contracts (303,953 ) (650,815 ) (137,636 ) Commodity contracts (4,911 ) 1,310 21,409 Credit contracts 8,508 13,039 (14,397 ) Total $ (292,662 ) $ (652,663 ) $ (132,124 ) The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at November 30, 2017 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 3,082 $ 6,084 $ — $ — $ 9,166 Credit default swaps 567 105 9,510 (5,625 ) 4,557 Total return swaps 34,228 1,581 — (193 ) 35,616 Foreign currency forwards, swaps and options 76,213 231 — (30 ) 76,414 Interest rate swaps, options and forwards 28,111 166,403 74,048 (83,534 ) 185,028 Total $ 142,201 $ 174,404 $ 83,558 $ (89,382 ) 310,781 Cross product counterparty netting (23,732 ) Total OTC derivative assets included in Financial instruments owned $ 287,049 (1) At November 30, 2017 , we held exchange-traded derivative assets and other credit agreements with a fair value of $22.7 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 our Consolidated Statements of Financial Condition. At November 30, 2017 , cash collateral received was $146.0 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. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 78 $ 172,088 $ 2,920 $ — $ 175,086 Credit default swaps 104 16,540 3,953 (5,625 ) 14,972 Total return swaps 28,920 1,517 — (193 ) 30,244 Foreign currency forwards, swaps and options 59,874 157 — (30 ) 60,001 Fixed income forwards 8,512 — — — 8,512 Interest rate swaps, options and forwards 16,544 96,484 151,624 (83,534 ) 181,118 Total $ 114,032 $ 286,786 $ 158,497 $ (89,382 ) 469,933 Cross product counterparty netting (23,732 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 446,201 (1) At November 30, 2017 , we held exchange-traded derivative liabilities and other credit agreements with a fair value of $108.7 million , which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2017 , 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. The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2017 (in thousands): Counterparty credit quality (1): A- or higher $ 163,871 BBB- to BBB+ 40,565 BB+ or lower 48,338 Unrated 34,275 Total $ 287,049 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. Credit Related Derivative Contracts The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2017 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 46.0 $ 49.0 Single name credit default swaps 129.1 89.1 218.2 November 30, 2016 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 54.0 $ — $ 54.0 Single name credit default swaps 122.4 261.2 383.6 Contingent Features Certain of our derivative instruments contain provisions that require our debt to maintain an investment grade credit rating from each of the major credit rating agencies. If our 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 our derivative instruments in liability positions. The aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position at November 30, 2017 and 2016 is $95.1 million and $70.6 million , respectively, for which we have posted collateral of $80.8 million and $44.4 million , respectively, in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on November 30, 2017 and 2016 , we would have been required to post an additional $14.3 million and $26.1 million , respectively, of collateral to our counterparties. |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Nov. 30, 2017 | |
Banking and Thrift [Abstract] | |
Collateralized Transactions | Collateralized Transactions We enter 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 our dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned and noted parenthetically as Securities pledged in our Consolidated Statements of Financial Condition. In instances where we receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities and are permitted to sell or repledge the securities received as collateral, we report the fair value of the collateral received and the related obligation to return the collateral in the Consolidated Statements of Financial Condition. At November 30, 2017 and 2016 , $103,000 and $0 , respectively, were reported as Securities received as collateral and as Obligation to return securities received as collateral. The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral by class of collateral pledged (in thousands): November 30, 2017 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 2,353,798 $ 214,413 $ — $ 2,568,211 Corporate debt securities 470,908 2,336,702 — 2,807,610 Mortgage- and asset-backed securities — 2,562,268 — 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 — 11,811,739 Municipal securities — 444,861 — 444,861 Sovereign obligations — 2,023,530 103 2,023,633 Loans and other receivables — 454,941 — 454,941 Total $ 2,843,911 $ 19,829,249 $ 103 $ 22,673,263 November 30, 2016 Securities Lending Arrangements Repurchase Agreements Total Collateral Pledged: Corporate equity securities $ 2,046,243 $ 66,291 $ 2,112,534 Corporate debt securities 731,276 1,907,888 2,639,164 Mortgage- and asset-backed securities — 2,171,480 2,171,480 U.S. government and federal agency securities 41,613 9,232,624 9,274,237 Municipal securities — 553,010 553,010 Sovereign obligations — 2,625,079 2,625,079 Loans and other receivables — 455,960 455,960 Total $ 2,819,132 $ 17,012,332 $ 19,831,464 The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral by remaining contractual maturity (in thousands): November 30, 2017 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Obligation to return securities received as collateral 103 — — — — 103 Total $ 12,457,517 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,263 November 30, 2016 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 2,131,891 $ 39,673 $ 104,516 $ 543,052 $ 2,819,132 Repurchase agreements 9,147,176 2,008,119 3,809,533 2,047,504 17,012,332 Total $ 11,279,067 $ 2,047,792 $ 3,914,049 $ 2,590,556 $ 19,831,464 We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At November 30, 2017 and 2016 , the approximate fair value of securities received as collateral by us that may be sold or repledged was $27.1 billion and $25.5 billion , respectively. At November 30, 2017 and 2016 , a substantial portion of the securities received by us had been sold or repledged. Offsetting of Securities Financing Agreements To manage our exposure to credit risk associated with securities financing transactions, we 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). See Note 2, Summary of Significant Accounting Policies , for additional information regarding the offsetting of securities financing agreements. The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral and obligation to return securities received as collateral that are recognized in our Consolidated Statements of Financial Condition and 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 U.S. 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). November 30, 2017 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements 14,858,297 (11,168,738 ) 3,689,559 (463,973 ) (3,207,147 ) 18,439 Securities received as collateral 103 — 103 — (103 ) — Liabilities Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements 19,829,249 (11,168,738 ) 8,660,511 (463,973 ) (7,067,512 ) 1,129,026 Obligation to return securities received as collateral 103 — 103 — (103 ) — November 30, 2016 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 7,743,562 $ — $ 7,743,562 $ (710,611 ) $ (647,290 ) $ 6,385,661 Reverse repurchase agreements 14,083,144 (10,220,656 ) 3,862,488 (176,275 ) (3,591,654 ) 94,559 Liabilities Securities lending arrangements $ 2,819,132 $ — $ 2,819,132 $ (710,611 ) $ (2,064,299 ) $ 44,222 Repurchase agreements 17,012,332 (10,220,656 ) 6,791,676 (176,275 ) (5,780,909 ) 834,492 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of U.S. 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) Amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. (4) Amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million , and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million , which are subject to master netting agreements but we have 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 $578.0 million and $857.3 million at November 30, 2017 and 2016 , respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies 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 | 12 Months Ended |
Nov. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, commercial mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In our securitization transactions, we transfer these assets to special purpose entities (“SPEs”) and act as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A significant portion of our securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of VIEs; however, we generally do not consolidate the SPEs as we are not considered the primary beneficiary for these SPEs. See Note 8, Variable Interest Entities , for further discussion on VIEs and our determination of the primary beneficiary. We account for our securitization transactions as sales, provided we have relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. We generally receive cash proceeds in connection with the transfer of assets to an SPE. We may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage- and other-asset backed securities or CLOs), which are included in Financial instruments owned and are generally initially categorized as Level 2 within the fair value hierarchy. We apply fair value accounting to the securities. For further information on fair value measurements and the fair value hierarchy, refer to Note 2, Summary of Significant Accounting Policies , herein and Note 4, Fair Value Disclosures . The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Year Ended November 30, 2017 2016 2015 Transferred assets $ 4,552.9 $ 5,786.0 $ 5,770.5 Proceeds on new securitizations 4,594.5 5,809.0 5,811.3 Cash flows received on retained interests 28.7 28.2 31.2 We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at November 30, 2017 and 2016 . The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): November 30, 2017 2016 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 6,383.5 $ 28.2 $ 7,584.9 $ 31.0 U.S. government agency CMBS 2,075.7 81.4 1,806.3 29.6 CLOs 3,957.8 20.3 4,102.2 37.0 Consumer and other loans 247.6 47.8 395.7 25.3 Total assets represent the unpaid principal amount of assets in the SPEs in which we have continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting our 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. Our risk of loss is limited to this fair value amount which is included in total Financial instruments owned in our Consolidated Statements of Financial Condition. Although not obligated, in connection with secondary market-making activities we may make a market in the securities issued by these SPEs. In these market-making transactions, we buy these securities from and sell these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent we purchased securities through these market-making activities and we are 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, Variable Interest Entities . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Nov. 30, 2017 | |
Equity Method Investments and Joint Ventures [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, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from: • Purchases of securities in connection with our 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 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 significant 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 significant 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 our consolidated VIEs at November 30, 2017 and 2016 (in millions). The assets and liabilities in the tables below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2017 2016 Securitization Vehicles Other Securitization Vehicles Other Cash $ 6.5 $ 1.1 $ 16.1 $ 0.7 Financial instruments owned 37.6 0.4 86.6 0.6 Securities purchased under agreements to resell (1) 729.3 — 733.5 — Fees, interest and other receivables 0.2 — 1.5 — Total assets $ 773.6 $ 1.5 $ 837.7 $ 1.3 Other secured financings (2) $ 766.2 $ — $ 813.1 $ — Other liabilities 5.9 0.2 24.1 0.2 Total liabilities $ 772.1 $ 0.2 $ 837.2 $ 0.2 (1) Securities purchased under agreements to resell represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $44.1 million and $57.6 million of the secured financing represent an amount held by us in inventory and is eliminated in consolidation at November 30, 2017 and 2016 , respectively. Securitization Vehicles . We are the primary beneficiary of mortgage-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans and mortgage-backed securities pursuant to the terms of a master repurchase agreement. We manage the assets within these vehicles. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement 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 our general credit and each such VIE’s assets are not available to satisfy any other debt. We are also the primary beneficiary of securitization vehicles associated with our financing of consumer and small business loans. In the creation of the securitization vehicles, we were involved in the decisions made during the establishment and design of the entities and hold variable interests consisting of the securities retained that could potentially be significant. The assets of the VIEs consist of the small business loans and term loans backed by consumer installment receivables, which are available for the benefit of the vehicles’ beneficial interest holders. The creditors of the VIEs do not have recourse to our general credit and the assets of the VIEs are not available to satisfy any other debt. Other. We are the primary beneficiary of certain investment vehicles set up for the benefit of our employees. We manage and invest alongside our employees in these vehicles. The assets of these VIEs consist of private equity securities, and are available for the benefit of the entities’ equity holders. Our variable interests in these vehicles consist of equity securities. The creditors of these VIEs do not have recourse to our general credit and each such VIE’s assets are not available to satisfy any other debt. Nonconsolidated VIEs The following tables present information about our variable interests in nonconsolidated VIEs (in millions): November 30, 2017 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 163.5 $ 8.9 $ 1,020.5 $ 5,210.4 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other private investment vehicles 48.0 — 48.7 2,938.4 Total $ 490.0 $ 8.9 $ 1,874.4 $ 10,546.5 November 30, 2016 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 263.3 $ 4.8 $ 920.0 $ 4,451.7 Consumer loan vehicles 90.3 — 219.6 985.5 Related party private equity vehicles 37.6 — 63.6 155.6 Other private investment vehicles 52.3 — 53.8 3,874.7 Total $ 443.5 $ 4.8 $ 1,257.0 $ 9,467.5 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 our 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 our 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. We underwrite securities issued in CLO transactions on behalf of sponsors and provide advisory services to the sponsors. We may also sell corporate loans to the CLOs. Our variable interests in connection with CLOs where we have been involved in providing underwriting and/or advisory services consist of the following: • Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs; • 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; • Investments in variable funding notes issued by CLOs; and • A guarantee to a CLO managed by Jefferies Finance, LLC (“Jefferies Finance”), whereby we guarantee certain of the obligations of Jefferies Finance to the CLO. Consumer Loan Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities and forward purchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans. In addition, we may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. We do not control the activities of these entities. Related Party Private Equity Vehicles. We committed to invest equity in private equity funds (the “JCP Funds”) managed by Jefferies Capital Partners, LLC (the “JCP Manager”). Additionally, we committed to invest equity in the general partners of the JCP Funds (the “JCP General Partners”) and the JCP Manager. Our variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the “JCP Entities”) consist of equity interests that, in total, provide us 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. Our total equity commitment in the JCP Entities was $148.1 million , of which $126.3 million and $125.1 million had been funded at November 30, 2017 and 2016 , respectively. The carrying value of our equity investments in the JCP Entities was $23.7 million and $37.6 million at November 30, 2017 and 2016 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments. We also had provided a guarantee of a portion of Energy Partners I, LP’s obligations under a credit agreement (“Energy Partners Credit Agreement”). Energy Partners I, LP, is a private equity fund owned and managed by certain of our employees. The maximum exposure to loss of the guarantee was $3.0 million at November 30, 2016 . Energy Partners I, LP, has assets consisting primarily of debt and equity investments. The Energy Partners Credit Agreement was terminated in April 2017. Other Private Investment Vehicles. At November 30, 2017 and 2016 , we had equity commitments to invest $61.8 million and $75.8 million , respectively, in various other private investment vehicles, of which $61.0 million and $74.3 million was funded, respectively. The carrying value of our equity investments was $48.0 million and $52.3 million at November 30, 2017 and 2016 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These private investment vehicles have assets primarily consisting of private and public equity investments, debt instruments and various oil and gas assets. Mortgage- and Other Asset-Backed Securitization Vehicles. In connection with our secondary trading and market making activities, we buy and sell 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 Financial instruments owned in our Consolidated Statements of Financial Condition. We have no other involvement with the related SPEs and therefore do not consolidate these entities. We also engage 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. We do not consolidate agency-sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of non-agency-sponsored securitizations and therefore do not have power to direct the most significant activities of the SPEs and accordingly, do not consolidate these entities. We may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs. We transfer existing securities, typically mortgage-backed securities, into resecuritization vehicles. These transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests occur in connection with both agency and non-agency-sponsored VIEs. Our consolidation analysis is largely dependent on our role and interest in the resecuritization trusts. Most resecuritizations in which we are involved are in connection with investors seeking securities with specific risk and return characteristics. As such, we have concluded that the decision-making power is shared between us and the investor(s), considering the joint efforts involved in structuring the trust and selecting the underlying assets as well as the level of security interests the investor(s) hold in the SPE; therefore, we do not consolidate the resecuritization VIEs. At November 30, 2017 and 2016 , we held $1,829.6 million and $1,002.2 million of agency mortgage-backed securities, respectively, and $253.2 million and $439.4 million of non-agency mortgage and other asset-backed securities, respectively, as a result of our secondary trading and market making activities, underwriting, placement and structuring activities and resecuritization activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. These mortgage- and other asset-backed securitization vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs. |
Investments
Investments | 12 Months Ended |
Nov. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments We have investments in Jefferies Finance and Epic Gas Ltd. (“Epic Gas”). We also had an investment in Jefferies LoanCore LLC (“Jefferies LoanCore”), which we sold on October 31, 2017. Our investments in Jefferies Finance, Jefferies LoanCore and Epic Gas have been accounted for under the equity method and have been included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition with our share of the investees’ earnings recognized in Other revenues in our Consolidated Statements of Earnings. We have limited partnership interests of 11% and 50% in Jefferies Capital Partners V L.P. and the SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee. In addition, we had an investment in KCG Holdings, Inc. (“KCG”), which was sold on July 20, 2017. Our investment in KCG was accounted for at fair value by electing the fair value option available under U.S. GAAP and was included in corporate equity securities in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition with changes in fair value recognized in Principal transaction revenues in our Consolidated Statements of Earnings. Jefferies Finance Jefferies Finance, a joint venture entity pursuant to an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”), 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. 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 November 30, 2017 , we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million for a combined total commitment of $1.5 billion . At November 30, 2017 , we had funded $636.2 million of our $750.0 million commitment, leaving $113.8 million unfunded. The investment commitment is scheduled to expire on March 1, 2018 with automatic one year extensions absent a 60 day termination notice by either party. Jefferies Finance has executed a Secured Revolving Credit Facility with us and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total Secured Revolving Credit Facility is a committed amount of $500.0 million at November 30, 2017 . Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2018 with automatic one year extensions absent a 60 day termination notice by either party. At November 30, 2017 , we had funded $0.0 million of our $250.0 million commitment. The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions): Year Ended November 30, 2017 2016 2015 Interest income $ 2.9 $ 0.1 $ 0.9 Unfunded commitment fees 1.0 1.2 1.6 Separate financial statements for Jefferies Finance are included in this Annual Report on Form 10-K. The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2017 2016 Total assets $ 8,164.9 $ 7,293.3 Total liabilities 6,892.6 6,352.3 Total equity 1,272.3 941.1 Our total equity balance 636.2 470.5 Year Ended November 30, 2017 2016 2015 Net earnings (loss) $ 181.7 $ (19.6 ) $ 83.4 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2017 2016 2015 Origination and syndication fee revenues (1) $ 327.9 $ 112.6 $ 122.7 Origination fee expenses (1) 2.4 0.5 5.9 CLO placement fee revenues (2) 6.1 2.6 6.2 Derivative gains (losses) (3) (1.1 ) 0.5 — Underwriting fees (4) — — 1.3 Service fees (5) 50.7 46.1 51.7 (1) We engage in debt capital markets transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues in our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings. (2) We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At November 30, 2017 and 2016 , we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned. At November 30, 2016, we provided a guarantee whereby we were required to make certain payments to a CLO in the event that Jefferies Finance was unable to meet its obligations to the CLO, which was terminated in October 2017. (3) We have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO and we have recognized gains (losses) relating to the derivative contracts. (4) We acted as underwriter in connection with senior notes issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. At November 30, 2017 , we had a receivable from Jefferies Finance of $20.5 million included in Other Assets, and at November 30, 2016 , we had a payable to Jefferies Finance of $5.8 million included in Accrued expenses and other liabilities, in our Consolidated Statements of Financial Condition. Jefferies enters into OTC foreign exchange contracts with Jefferies Finance as to which, at November 30, 2017 , we had $1.5 million included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition. Jefferies LoanCore Jefferies LoanCore, a commercial real estate finance company and a joint venture with the Government of Singapore Investment Corporation, the Canada Pension Plan Investment Board and LoanCore, LLC, originates and purchases commercial real estate loans throughout the U.S. and Europe. On October 31, 2017, we sold all of our membership interests (which constituted a 48.5% voting interest) in Jefferies LoanCore for approximately $173.1 million , the estimated book value at October 31, 2017. In addition, we may be entitled to additional cash consideration over the next five years in the event Jefferies LoanCore’s yearly return on equity exceeds certain thresholds. The following is a summary of selected financial information for Jefferies LoanCore (in millions): November 30, 2016 Total assets $ 1,827.2 Total liabilities 1,505.0 Total equity 322.2 Our total equity balance 156.3 Eleven Months Ended October 31, 2017 Year Ended November 30, 2016 2015 Net earnings $ 37.5 $ 71.8 $ 79.0 The following summarizes activity related to our transactions with Jefferies LoanCore (in thousands): Year Ended November 30, 2017 2016 2015 Interest income and fees (1) $ 588 $ 8,412 $ 10,690 Placement fees (2) 100 100 1,643 Service fees (3) 190 200 241 (1) We enter into master repurchase agreements with Jefferies LoanCore and earn interest income and fees related to these agreements. At November 30, 2016, we had reverse repurchase agreements outstanding of $68.1 million in connection with these agreements. (2) In connection with the securitization of commercial real estate loans originated by Jefferies LoanCore, we earned placement fees. (3) Under a service agreement, we charged Jefferies LoanCore for services provided. We also entered into OTC foreign exchange contracts with Jefferies LoanCore. In connection with these contracts, we had $8.3 million at November 30, 2016, recorded in Payables-brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. JCP Fund V The amount of our investments in JCP Fund V included in Investments in managed funds in our Consolidated Statements of Financial Condition was $19.6 million and $29.1 million at November 30, 2017 and 2016 , respectively. We account for these investments at fair value based on the NAV of the funds provided by the fund managers (see Note 2, Summary of Significant Accounting Policies ). The following summarizes the results from these investments which are included in Asset management fees and investment income from managed funds in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2017 2016 2015 Net losses from our investments in JCP Fund V $ (10.7 ) $ (1.1 ) $ (24.3 ) At November 30, 2017 and 2016 , we were committed to invest equity of up to $85.0 million in JCP Fund V. At November 30, 2017 and 2016 , our unfunded commitment relating to JCP Fund V was $10.1 million and $11.3 million , respectively. The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we own effectively 35.2% of the combined equity interests (in thousands): September 30, 2017 (1) 2016 (1) Total assets $ 55,788 $ 82,689 Total liabilities 96 73 Total partners’ capital 55,692 82,616 Nine Months Ended September 30, 2017 (1) Three Months Ended December 31, 2016 (1) Nine Months Ended September 30, 2016 (1) Three Months Ended December 31, 2015 (1) Nine Months Ended September 30, 2015 (1) Three Months Ended December 31, 2014 (1) Net increase (decrease) in net assets resulting from operations $ (24,630 ) $ (2,294 ) $ 6,159 $ (7,886 ) $ (1,751 ) $ (65,700 ) (1) Financial information for JCP Fund V within our financial position and results of operations at November 30, 2017 and 2016 and for the years ended November 30, 2017 , 2016 and 2015 is included based on the presented periods. Epic Gas On July 14, 2015, Jefferies purchased common shares of Epic Gas. In addition, one of our directors serves on the Board of Directors of Epic Gas and owns common shares of Epic Gas. At November 30, 2017 , we own approximately 21.1% of the outstanding common stock of Epic Gas. The amount of our investments in Epic Gas included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition was $22.2 million and $21.5 million at November 30, 2017 and 2016, respectively. The following is a summary of selected financial information for Epic Gas (in millions) reflecting available public financial information for Epic Gas: September 30, 2017 2016 Total assets $ 599.2 $ 579.0 Total liabilities 340.2 315.0 Total equity 259.0 264.0 Nine Months Ended September 30, 2017 (1) Three Months Ended December 31, 2016 (1) Nine Months Ended September 30, 2016 (1) Three Months Ended December 31, 2015 (1) Nine Months Ended September 30, 2015 (1) Three Months Ended December 31, 2014 (1) Net losses $ (14.5 ) $ (15.9 ) $ (7.4 ) $ (11.4 ) $ (4.6 ) $ (16.1 ) (1) Financial information for Epic Gas within our financial position and results of operations at November 30, 2017 and 2016 and for the years ended November 30, 2017 , 2016 and 2015 is included based on the presented periods. KCG Our investment in KCG was sold on July 20, 2017. At November 30, 2016, we owned approximately 24% of the outstanding common stock of KCG. We had elected to record our investment in KCG at fair value under the fair value option as the investment was acquired as part of our capital markets activities. The valuation of our investment at November 30, 2016 was based on the closing exchange price of KCG and included in Level 1 of the fair value hierarchy. The following summarizes the changes in the fair value of our investment in KCG, which were recognized in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2017 2016 2015 Net gains from our investment in KCG $ 93.4 $ 19.6 $ 49.1 The following is a summary of selected financial information for KCG at December 31, 2016, reflecting available public information (in millions): Total assets $ 6,261.3 Total liabilities 4,904.0 Total equity 1,357.3 The following is a summary of net earnings for KCG (in millions), reflecting available public financial information for KCG: Year Ended November 30, 2016 2015 Net earnings for KCG $ 255.7 $ 249.1 In connection with a KCG shares and warrants exchange transaction, we earned advisory fees of $2.9 million during the year ended November 30, 2016. We have separately entered into securities lending transactions with KCG in the normal course of our capital markets activities. The following is a summary of the balances related to these activities (in millions): November 30, 2016 Securities borrowed $ 9.2 Securities loaned 9.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Nov. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill attributed to our reportable business segments are as follows (in thousands): November 30, 2017 2016 Capital Markets (1) $ 1,644,089 $ 1,637,653 Asset Management (1) 3,000 3,000 Total goodwill $ 1,647,089 $ 1,640,653 (1) Accumulated goodwill impairments related to the Capital Markets segment were $51.9 million at December 1, 2017 and 2016 , and goodwill prior to these impairments was $1,696.0 million and $1,689.6 million at December 1, 2017 and 2016 , respectively. Accumulated goodwill impairments related to the Asset Management segment were $2.1 million at December 1, 2017 and 2016 , and goodwill prior to these impairments was $5.1 million at both December 1, 2017 and 2016 . The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2017 2016 Balance, at beginning of period $ 1,640,653 $ 1,656,588 Translation adjustments 6,436 (15,935 ) Balance, at end of period $ 1,647,089 $ 1,640,653 Goodwill Impairment Testing A reporting unit is an operating segment or one level below an operating segment. The quantitative goodwill impairment test is performed at the level of the reporting unit and consists of two steps. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then 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. Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit. The amount of tangible equity allocated to a reporting unit is based on our cash capital model deployed in managing our businesses, which seeks to approximate the capital a business would require if it were operating independently. Intangible assets are allocated to a reporting unit based on either specifically identifying a particular intangible asset as pertaining to a reporting unit or, if shared among reporting units, based on an assessment of the reporting unit’s benefit from the intangible asset in order to generate results. Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using a market valuation method that incorporate price-to-earnings and price-to-book multiples of comparable public companies. 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 each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2017 . Our annual goodwill impairment testing at August 1, 2017 did not indicate any goodwill impairment in any of our reporting units. Substantially all of our goodwill is allocated to our Investment Banking, Equities and Fixed Income reporting units, for which the results of our assessment indicated that these reporting units had a fair value in excess of their carrying amounts based on current projections. At November 30, 2017 , goodwill allocated to these reporting units is $1,644.1 million of total goodwill of $1,647.1 million . Intangible Assets Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2017 and 2016 (in thousands): November 30, 2017 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,412 $ — $ (50,983 ) $ 75,429 11.3 Trade name 129,370 — (17,557 ) 111,813 30.3 Exchange and clearing organization membership interests and registrations 9,164 (613 ) — 8,551 N/A Total $ 264,946 $ (613 ) $ (68,540 ) $ 195,793 November 30, 2016 Weighted average remaining lives (years) Gross cost Disposals (1) Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 125,381 $ — $ — $ (42,283 ) $ 83,098 12.1 Trade name 128,052 — — (13,720 ) 114,332 31.3 Exchange and clearing organization membership interests and registrations 11,704 (1,379 ) (1,284 ) — 9,041 N/A Total $ 265,137 $ (1,379 ) $ (1,284 ) $ (56,003 ) $ 206,471 (1) Activity is primarily related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business. We performed our annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2017 . We elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. A qualitative assessment was performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessment at August 1, 2017 and 2016 , we recognized an impairment loss of $44,000 and $1.3 million , respectively, on certain exchange membership interests and registrations. With regard to our qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired. In addition, we recognized an impairment loss of $569,000 during the year ended November 30, 2017 on certain membership interests that were not renewed. Amortization Expense For finite life intangible assets, aggregate amortization expense amounted to $11.9 million , $12.0 million and $12.2 million for the years ended November 30, 2017 , 2016 and 2015 , respectively. These expenses are included in Other expenses in our Consolidated Statements of Earnings. The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Year ending November 30, 2018 $ 12,198 Year ending November 30, 2019 12,198 Year ending November 30, 2020 12,198 Year ending November 30, 2021 12,198 Year ending November 30, 2022 12,198 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings at November 30, 2017 and 2016 include the following and mature in one year or less (in thousands): November 30, 2017 2016 Bank loans (1) $ 304,651 $ 372,301 Secured revolving loan facilities — 57,086 Floating rate puttable notes 108,240 96,455 Equity-linked notes 23,324 — Total short-term borrowings $ 436,215 $ 525,842 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and us, with original maturities of three months or less. At November 30, 2017 , the weighted average interest rate on short-term borrowings outstanding is 2.51% per annum. Average daily short-term borrowings outstanding were $482.4 million and $399.6 million for the year ended November 30, 2017 and 2016 , respectively. During 2017, we issued equity-linked notes with principal amounts of $30.6 million , which matured on July 18, 2017, $4.2 million , which matured on September 20, 2017 and $23.3 million , which matured on December 7, 2017. See Note 4, Fair Value Disclosures , for further information. During 2016, we issued floating rate puttable notes with an aggregate principal amount of €91.0 million . The Bank of New York Mellon agrees to make revolving intraday credit advances (“Intraday Credit Facility”) for an aggregate committed amount of $150.0 million . The Intraday Credit Facility contains a financial covenant, which includes a minimum regulatory net capital requirement for Jefferies. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At November 30, 2017 , we were in compliance with debt covenants under the Intraday Credit Facility. On December 14, 2015, we entered into secured revolving loan facility (“Secured Revolving Loan Facility”), whereby the lender agreed to make available a revolving loan facility in a maximum principal amount of $50.0 million to purchase eligible receivables that met certain requirements as defined in the Second Secured Revolving Loan Facility agreement. Interest was based on an annual rate equal to the lesser of the LIBOR rate plus four and one-quarter percent or the maximum rate as defined in the Second Secured Revolving Loan Facility agreement. The Secured Revolving Loan Facility was terminated effective January 24, 2017. On February 19, 2016, we entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of our margin obligations. Interest is based on an annual rate equal to weighted average LIBOR as defined in the Demand Loan Facility agreement plus 150 basis points . The Demand Loan Facility was terminated effective November 30, 2016. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): Effective Interest Rate November 30, Maturity 2017 2016 Unsecured long-term debt 5.125% Senior Notes April 13, 2018 3.46% 682,338 817,813 8.500% Senior Notes July 15, 2019 4.00% 728,872 778,367 2.375% Euro Medium Term Notes May 20, 2020 2.42% 593,334 528,250 6.875% Senior Notes April 15, 2021 4.40% 808,157 823,797 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,389 3,848 5.125% Senior Notes January 20, 2023 4.55% 615,703 618,355 4.850% Senior Notes (1) January 15, 2027 4.93% 736,357 — 6.450% Senior Debentures June 8, 2027 5.46% 375,794 377,806 3.875% Convertible Senior Debentures (2) November 1, 2029 3.50% 324,779 346,187 6.250% Senior Debentures January 15, 2036 6.03% 512,040 512,396 6.500% Senior Notes January 20, 2043 6.09% 420,990 421,333 Structured notes (3) (4) Various Various 614,091 255,203 Total long-term debt $ 6,416,844 $ 5,483,355 (1) These senior notes with a principal amount of $750.0 million were issued on January 17, 2017. The carrying value includes a decrease of $8.1 million associated with an interest rate swap based on its designation as a fair value hedge. See Note 2, Summary of Significant Accounting Policies , and Note 5, Derivative Financial Instruments , for further information. (2) The change in fair value of the conversion feature embedded in the debentures, which is included in Principal transaction revenues in our Consolidated Statements of Earnings, was not material for the years ended November 30, 2017 , 2016 and 2015 . (3) The carrying value includes $607.0 million and $248.9 million of notes carried at fair value at November 30, 2017 and 2016 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transaction revenues. A weighted average coupon rate is not meaningful, as substantially all of the structured notes are carried at fair value. (4) Of the $614.1 million of structured notes at November 30, 2017 , $7.1 million matures in 2018, $6.0 million matures in 2019, $25.0 million matures in 2022 and the remaining $576.0 million matures in 2024 or thereafter. During the year ended November 30, 2017 , we issued senior notes with a total principal amount of approximately $609.1 million , net of retirements, and structured notes with a total principal amount of approximately $329.9 million , net of retirements. In addition, during 2017, $20.2 million of our 3.875% convertible debentures due 2029 (principal amount of $345.0 million ) (the “debentures”) were called. During the year ended November 30, 2016 , we issued structured notes with a total principal amount of approximately $275.4 million and approximately $350.0 million of long-term borrowings matured. We did no t issue notes during the year ended November 30, 2015. During the year ended November 30, 2015, approximately $500.0 million of long-term borrowings matured or were retired. On January 23, 2018, we issued 4.150% senior notes with a principal amount of $1.0 billion , due 2030. At November 22, 2017, all of the remaining convertible debentures ( $324.8 million at November 30, 2017) were called for optional redemption, with a redemption date of January 5, 2018, at a redemption price equal to 100% of the principal amount of the convertible debentures redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. All of these remaining convertible debentures were redeemed on January 5, 2018. In addition, our $682.3 million 5.125% senior notes will mature in April 2018 and we will pay a $200.0 million distribution to Leucadia on January 31, 2018, which will reduce our total capital. For further information on this distribution, see Note 19, Related Party Transactions. The conversion option to Leucadia common shares embedded within the debentures met the definition of a derivative contract, did not qualify to be accounted for within Jefferies Group LLC member’s equity and was not clearly and closely related to the economic interest rate or credit risk characteristics of our debt. Accordingly, the conversion option was accounted for on a standalone basis at fair value with changes in fair value recognized in Principal transaction revenues and was presented in Long-term debt in our Consolidated Statements of Financial Condition. The conversion option matured at November 1, 2017. At November 30, 2016 , the fair value of the conversion option was not material. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Nov. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans U.S. Pension Plan We maintain a defined benefit pension plan, Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”), which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and covers certain of our employees. Under the U.S. Pension Plan, benefits to participants are based on years of service and the employee’s career average pay. Effective December 31, 2005, benefits under the U.S. Pension Plan were frozen with no further benefit accruing to participants for future service after December 31, 2005. Employer Contributions - Our funding policy is to contribute to the U.S. Pension Plan at least the minimum amount required for funding purposes under applicable employee benefit and tax laws. We contributed $1.0 million to the U.S. Pension Plan during the year ended November 30, 2017 and plan to make a $1.0 million contribution to the plan during the year ended November 30, 2018 . The following tables summarize the changes in the projected benefit obligation, the fair value of the assets and the funded status of the plan (in thousands): Year Ended November 30, 2017 2016 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 58,731 $ 58,330 Service cost 450 400 Interest cost 2,232 2,311 Actuarial losses 2,327 862 Administrative expenses paid (395 ) (461 ) Benefits paid (2,786 ) (2,711 ) Projected benefit obligation, end of period $ 60,559 $ 58,731 Change in plan assets: Fair value of assets, beginning of period $ 49,992 $ 47,031 Benefits paid (2,786 ) (2,711 ) Administrative expenses paid (395 ) (461 ) Actual return on plan assets 5,138 3,133 Contributions 1,000 3,000 Fair value of assets, end of period $ 52,949 $ 49,992 Funded status at end of period $ (7,610 ) $ (8,739 ) The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2017 2016 Consolidated statements of financial condition: Liabilities $ 7,610 $ 8,739 Accumulated other comprehensive income, before taxes: Net losses $ (6,092 ) $ (5,901 ) The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2017 2016 2015 Components of net periodic pension cost: Service cost $ 450 $ 400 $ 250 Interest cost on projected benefit obligation 2,232 2,311 2,340 Expected return on plan assets (3,021 ) (2,917 ) (3,357 ) Net amortization 19 — — Settlement losses — — 244 Net periodic pension cost $ (320 ) $ (206 ) $ (523 ) Year Ended November 30, 2017 2016 2015 Amounts recognized in Other comprehensive income: Net losses arising during the period $ 210 $ 646 $ 7,890 Amortization of net loss (19 ) — — Settlements during the period — — (244 ) Total losses recognized in Other comprehensive income $ 191 $ 646 $ 7,646 Net losses recognized in net periodic benefit cost and Other comprehensive income $ (129 ) $ 440 $ 7,123 The assumptions used to determine the actuarial present value of the projected obligation and net periodic pension benefit cost are as follows: Year Ended November 30, 2017 2016 2015 Discount rate used to determine benefit obligation 3.60 % 3.90 % 4.10 % Weighted average assumptions used to determine net pension cost: Discount rate 3.90 % 4.10 % 4.30 % Expected long-term rate of return on plan assets 6.25 % 6.25 % 6.75 % Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2018 $ 2,312 2019 3,030 2020 2,527 2021 2,137 2022 2,989 2023 through 2027 24,274 Plan Assets - The following tables present the fair value of plan assets by level within the fair value hierarchy (in thousands): At November 30, 2017 Level 2 Total Plan assets (1): Common collective trusts $ 52,949 $ 52,949 Total plan assets $ 52,949 $ 52,949 (1) There are no plan assets classified within Levels 1 and 3 of the fair value hierarchy. At November 30, 2016 Level 1 Level 2 Total Plan assets (1): Cash and cash equivalents $ 1,135 $ — $ 1,135 Listed equity securities (2) 32,342 — 32,342 Fixed income securities: Corporate debt securities — 4,906 4,906 Foreign corporate debt securities — 1,835 1,835 U.S. government securities 5,370 — 5,370 Agency mortgage-backed securities — 3,330 3,330 CMBS — 591 591 ABS — 483 483 Total plan assets $ 38,847 $ 11,145 $ 49,992 (1) There are no plan assets classified within Level 3 of the fair value hierarchy. (2) Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies. Valuation technique and inputs - The following is a description of the valuation techniques and inputs used in measuring plan assets accounted for at fair value on a recurring basis: • Cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy; • Common collective trusts are valued at their NAV as a practical expedient for fair value and categorized in Level 2; • Listed equity securities are valued using the quoted prices in active markets for identical assets; • Fixed income securities: ◦ Corporate debt, mortgage- and asset-backed securities and other securities valuations use data readily available to all market participants and use inputs available for substantially the full term of the security. Valuation inputs include benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, reference data, and industry and economic events; ◦ U.S. government and agency securities valuations generally include quoted bid prices in active markets for identical or similar assets. Investment Policies and Strategies - Assets in the plan are invested under guidelines adopted by the Administrative Committee of the U.S. Pension Plan. Because the U.S. Pension Plan exists to provide a vehicle for funding future benefit obligations, the investment objectives of the portfolio take into account the nature and timing of future plan liabilities. The policy recognizes that the portfolio’s long-term investment performance and its ability to meet the plan’s overall objectives are dependent on the strategic asset allocation, which includes adequate diversification among assets classes. On May 16, 2017, we entered into an agreement with an external investment manager to invest and manage the plan’s assets under a strategy using a combination of two portfolios. The investment manager allocates the plan’s assets between a growth portfolio and a liability-driven portfolio according to certain target allocations and tolerance bands that are agreed to by the Administrative Committee of the U.S. Pension Plan. Such target allocations will take into consideration the plan’s funded ratio. The manager will also monitor the strategy and, as the plan’s funded ratio changes over time, will rebalance the strategy, if necessary, to be within the agreed tolerance bands and target allocations. The portfolios are comprised of certain common collective investment trusts that are established and maintained by the investment manager. German Pension Plan In connection with the acquisition of Jefferies Bache from Prudential on July 1, 2011, we acquired a defined benefits pension plan located in Germany (the “German Pension Plan”) for the benefit of eligible employees of Jefferies Bache in that territory. The German Pension Plan has no plan assets and is therefore unfunded. We have purchased insurance contracts from multi-national insurers held in the name of Jefferies Bache Limited to provide for the plan’s future obligations. The investment in these insurance contracts is included in Financial instruments owned in our Consolidated Statements of Financial Condition and has a fair value of $16.0 million and $15.2 million at November 30, 2017 and 2016 , respectively. All costs relating to the plan (including insurance premiums and other costs as computed by the insurers) are paid by us. In connection with the acquisition, it was agreed with Prudential that any insurance premiums and funding obligations related to pre-acquisition date service will be reimbursed to us by Prudential. 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 €7.3 million , which will be paid in January 2018 and which will release us from any and all obligations under the German Pension Plan. Subject to certain precedent conditions being fulfilled, this transaction is expected to be completed in the first quarter of 2018. In addition, on December 28, 2017, we entered into an agreement with Prudential under which we received $3.25 million as consideration for the release of Prudential by us from their indemnity relating to the German Pension Plan defined benefit pension obligations. The provisions and assumptions used in the German Pension Plan are based on local conditions in Germany. We did no t contribute to the plan during the years ended November 30, 2017 and 2016 . The following tables summarize the changes in the projected benefit obligation and the components of net periodic pension cost (in thousands): Year Ended November 30, 2017 2016 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 24,166 $ 23,545 Interest cost 426 529 Actuarial loss (gain) (91 ) 1,157 Benefits paid (1,233 ) (1,104 ) Currency adjustment 2,976 39 Projected benefit obligation, end of period $ 26,244 $ 24,166 Funded status at end of period $ (26,244 ) $ (24,166 ) Th The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2017 2016 Consolidated statements of financial condition: Liabilities $ 26,244 $ 24,166 Accumulated other comprehensive income, before taxes: Net losses $ (5,305 ) $ (5,748 ) The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2017 2016 2015 Components of net periodic pension cost: Interest cost on projected benefit obligation $ 426 $ 529 $ 523 Net amortization 353 326 325 Net periodic pension cost $ 779 $ 855 $ 848 Year Ended November 30, 2017 2016 2015 Amounts recognized in Other comprehensive income: Net (gain) loss arising during the period $ (91 ) $ 1,157 $ (39 ) Amortization of net loss (353 ) (326 ) (325 ) Total loss (gain) recognized in Other comprehensive income $ (444 ) $ 831 $ (364 ) Net losses recognized in net periodic benefit cost and Other comprehensive income $ 335 $ 1,686 $ 484 The following are assumptions used to determine the actuarial present value of the projected benefit obligation and net periodic pension benefit cost: Year Ended November 30, 2017 2016 2015 Projected benefit obligation: Discount rate 1.80% 1.70% 2.20% Rate of compensation increase (1) N/A N/A N/A Net periodic pension benefit cost: Discount rate 1.70% 2.20% 2.10% Rate of compensation increase (1) N/A N/A N/A (1) There were no active participants of the pension plan at November 30, 2017 and 2016 . Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2018 $ 1,303 2019 1,275 2020 1,329 2021 1,339 2022 1,320 2023 through 2027 6,571 |
Compensation Plans
Compensation Plans | 12 Months Ended |
Nov. 30, 2017 | |
Compensation Related Costs [Abstract] | |
Compensation Plans | Compensation Plans Leucadia sponsors our following share-based compensation plans: Incentive Compensation Plan, Employee Stock Purchase Plan (“ESPP”) and the Deferred Compensation Plan. The outstanding and future share-based awards relating to these plans relate to Leucadia common shares. The fair value of share-based awards is estimated on the date of grant based on the market price of the underlying common stock less the impact of market conditions and selling restrictions subsequent to vesting, if any, and is amortized as compensation expense over the related requisite service periods. We are allocated costs associated with awards granted to our employees under such plans. In addition, we sponsor non-share-based compensation plans. Non-share-based compensation plans sponsored by us include a profit sharing plan and other forms of restricted cash awards. The components of total compensation cost associated with certain of our compensation plans are as follows (in millions): Year Ended November 30, 2017 2016 2015 Components of compensation cost: Restricted cash awards $ 251.6 $ 263.7 $ 249.2 Restricted stock and RSUs (1) 26.6 23.5 57.9 Profit sharing plan 6.0 6.0 6.1 Total compensation cost $ 284.2 $ 293.2 $ 313.2 (1) Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan. This compensation cost was approximately $227,000 , $150,000 and $399,000 for the years ended November 30, 2017 , 2016 and 2015 , respectively. Remaining unamortized amounts related to certain compensation plans at November 30, 2017 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 38.7 2 Restricted cash awards 481.6 3 Total $ 520.3 In December 2017 , $117.0 million of restricted cash awards related to the 2017 performance year that contain a future service requirement were approved or contractually awarded. Absent actual forfeitures or cancellations or accelerations, the annual compensation cost for these awards will be recognized as follows (in millions): Year Ended November 30, 2017 2018 2019 Thereafter Total Restricted cash awards $ 16.5 $ 24.0 $ 23.6 $ 52.9 $ 117.0 The following are descriptions of the compensation plans: Incentive Compensation Plan. The Incentive Compensation Plan (“Incentive Plan”) allows for awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, restricted stock units, dividend equivalents or other share-based awards. Restricted stock units (“RSUs”) give a participant the right to receive fully vested common shares at the end of a specified deferral period, allowing a participant to hold an interest tied to common stock on a tax deferred basis. Prior to settlement, RSUs carry no voting or dividend rights associated with the stock ownership, but dividend equivalents are accrued to the extent there are dividends declared on the underlying common shares as cash amounts or as deemed reinvestments in additional RSUs. Awards issued and outstanding related to the Incentive Plan relate to shares of Leucadia. Restricted stock and RSUs may be granted to new employees as sign-on awards, to existing employees as “retention” awards and to certain executive officers as awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four -year service period and are amortized as compensation expense on a straight line basis over the related four years. Restricted stock and RSUs are granted to certain senior executives with market, performance and service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if we determine that it is probable that the performance condition will be achieved. Awards granted to senior executives related to the 2015 fiscal year did not meet performance targets, and as a result, compensation expense has been adjusted to reflect the reduced number of shares that have vested. Employee Stock Purchase Plan. There is also an ESPP which we consider noncompensatory effective January 1, 2007. The ESPP permits all regular full-time employees and employees who work part time over 20 hours per week to purchase, at a discount, Leucadia common shares. Annual employee contributions are limited to $21,250 , are voluntary and made through payroll deduction. The stock purchase price is equal to 95% of the closing price of common stock on the last day of the applicable session (monthly). Deferred Compensation Plan. There is also a Deferred Compensation Plan (“Deferred Compensation Plan”), which was established in 2001. Eligible employees are able to defer compensation on a pre-tax basis, with deferred amounts deemed invested at a discount in Leucadia common shares, or by allocating among any combination of other investment funds available under the Deferred Compensation Plan. We often invest directly, as a principal, in investments corresponding to the other investment funds, relating to our obligations to perform under the Deferred Compensation Plan. The compensation deferred by our employees is expensed in the period earned. The change in fair value of our investments in assets corresponding to the specified other investment funds are recognized in Principal transaction revenues and changes in the corresponding deferred compensation liability are reflected as Compensation and benefits expense in our Consolidated Statements of Earnings. Profit Sharing Plan . We have a profit sharing plan, covering substantially all employees, which includes a salary reduction feature designed to qualify under Section 401(k) of the Internal Revenue Code. Restricted Cash Awards. We provide compensation to new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements. We amortize these awards to compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Total income taxes were allocated as follows (in thousands): Year Ended November 30, 2017 2016 2015 Income tax expense $ 147,340 $ 14,566 $ 18,898 Stockholders’ equity, compensation expense for tax purposes less than amounts recognized for financial reporting purposes — 4,186 5,935 The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2017 2016 2015 Current: U.S. Federal $ 147,065 $ 27,473 $ (45,007 ) U.S. state and local 30,611 6,196 (28,260 ) Foreign 12,910 (5,090 ) 3,369 Total current 190,586 28,579 (69,898 ) Deferred: U.S. Federal (53,157 ) (11,249 ) 74,085 U.S. state and local 1,760 (4,819 ) 22,811 Foreign 8,151 2,055 (8,100 ) Total deferred (43,246 ) (14,013 ) 88,796 Total income tax expense $ 147,340 $ 14,566 $ 18,898 The following table presents the U.S. and non-U.S. components of income before income tax expense (in thousands): Year Ended November 30, 2017 2016 2015 U.S. $ 403,445 $ 34,178 $ 82,515 Non-U.S. (1) 101,479 (4,206 ) 31,712 Income before income tax expense $ 504,924 $ 29,972 $ 114,227 (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2017 2016 2015 Amount Percent Amount Percent Amount Percent Computed expected income taxes $ 176,724 35.0 % $ 10,490 35.0 % $ 39,979 35.0 % Increase (decrease) in income taxes resulting from: State and city income taxes, net of Federal income tax benefit 21,041 4.2 124 0.5 (3,542 ) (3.1 ) International operations (including foreign rate differential) (11,577 ) (2.3 ) (3,404 ) (11.4 ) (11,474 ) (10.0 ) Tax exempt income (3,850 ) (0.8 ) (4,640 ) (15.5 ) (6,789 ) (5.9 ) Foreign tax credits (32,974 ) (6.5 ) — — (7,240 ) (6.3 ) Non-deductible Jefferies Bache wind down costs — — — — 3,225 2.8 Meals and entertainment 4,129 0.8 4,640 15.5 5,232 4.6 Excess stock detriment 406 0.1 9,755 32.6 — — Federal benefits related to prior year tax filings (3,786 ) (0.8 ) (2,928 ) (9.8 ) 199 0.1 Other, net (2,773 ) (0.5 ) 529 1.7 (692 ) (0.7 ) Total income tax expense $ 147,340 29.2 % $ 14,566 48.6 % $ 18,898 16.5 % The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2017 2016 2015 Balance at beginning of period $ 109,527 $ 107,902 $ 126,662 Increases based on tax positions related to the current period 18,619 5,045 — Increases based on tax positions related to prior periods 7,310 1,447 2,818 Decreases based on tax positions related to prior periods (5,912 ) (4,520 ) (3,883 ) Decreases related to settlements with taxing authorities — (347 ) (17,695 ) Balance at end of period $ 129,544 $ 109,527 $ 107,902 The total amount of unrecognized benefit that, if recognized, would favorably affect the effective tax rate was $86.1 million and $73.1 million (net of benefits of taxes) at November 30, 2017 and 2016 , respectively. We recognize interest accrued related to unrecognized tax benefits in Interest expense. Penalties, if any, are recognized in Other expenses in our Consolidated Statements of Earnings. Net interest expense related to unrecognized tax benefits was $9.0 million , $6.5 million and $2.2 million for the years ended November 30, 2017 , 2016 and 2015 , respectively. At November 30, 2017 and 2016 , we had interest accrued of approximately $48.3 million and $39.3 million , respectively, included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. No material penalties were accrued for the years ended November 30, 2017 and 2016 . The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2017 2016 Deferred tax assets: Compensation and benefits $ 376,642 $ 285,542 Net operating loss 20,094 11,021 Long-term debt 26,476 60,707 Accrued expenses and other 121,746 124,269 Sub-total 544,958 481,539 Valuation allowance (14,217 ) (9,464 ) Total deferred tax assets 530,741 472,075 Deferred tax liabilities: Amortization of intangibles 102,739 107,474 Other 17,282 21,630 Total deferred tax liabilities 120,021 129,104 Net deferred tax asset, included in Other assets $ 410,720 $ 342,971 The valuation allowance represents the portion of our deferred tax assets for which it is more likely than not that the benefit of such items will not be realized. We believe that the realization of the net deferred tax asset of $410.7 million at November 30, 2017 is more likely than not based on expectations of future taxable income in the jurisdictions in which we operate. At November 30, 2017 , we had gross net operating loss carryforwards of $122.1 million , primarily related to New York State, New York City and various European jurisdictions. A deferred tax asset of $9.7 million related to net operating losses in Europe has been fully offset by a valuation allowance, while $0.3 million of deferred tax assets related to net operating losses in Asia has been fully offset by a valuation allowance. The remaining valuation allowance is attributable to deferred tax assets related to compensation and benefits, capital losses, and tax credits in the U.K. We have a tax sharing agreement between us and Leucadia. Refer to Note 19, Related Party Transactions , for further information. At November 30, 2017 and 2016 , we had approximately $232.0 million and $157.0 million , respectively, of earnings attributable to foreign subsidiaries that are indefinitely reinvested abroad and for which no U.S. Federal income tax provision has been recorded. Accordingly, a deferred tax liability of approximately $73.0 million and $55.0 million has not been recorded with respect to these earnings at November 30, 2017 and 2016 , respectively. We are currently under examination by the Internal Revenue Service and other major tax jurisdictions. We do not expect that resolution of these examinations will have a material effect on our consolidated financial position, but could have a material impact on the consolidated results of operations for the period in which resolution occurs. It is reasonably possible that, within the next twelve months, statutes of limitation will expire which would have the effect of reducing the balance of unrecognized tax benefits by $12.6 million . The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate: Jurisdiction Tax Year United States 2007 California 2007 New Jersey 2010 New York State 2001 New York City 2003 United Kingdom 2014 Hong Kong 2011 India 2010 Italy 2012 On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act has made significant changes to the U.S. Internal Revenue Code, including the taxation of U.S. corporations, by, among other things, limiting interest deductions, reducing the U.S. corporate income tax rate, disallowing certain deductions that had previously been allowed, altering the expensing of capital expenditures, adopting elements of a territorial tax system, assessing a repatriation tax or “toll-charge” on undistributed earnings and profits of U.S.-owned foreign corporations, and introducing certain anti-base erosion provisions. We are currently evaluating the impact that the Tax Act will have on both our Consolidated Statements of Financial Condition and Consolidated Statements of Earnings. At this time, based on information currently available, we anticipate taking a charge of approximately $170.0 million in the first quarter of 2018. Approximately two-thirds of this estimated charge relates to the non-cash write down of our deferred tax asset resulting from the impact of a lower federal tax rate of 21% on the future deductibility of our deferred tax items. The remaining balance relates to a toll charge on the deemed repatriation of unremitted foreign earnings. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Nov. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes our commitments at November 30, 2017 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Maximum Payout Equity commitments (1) $ — $ 0.2 $ 18.6 $ — $ 117.8 $ 136.6 Loan commitments (1) 261.9 — 56.5 — — 318.4 Mortgage-related and other purchase commitments — 177.7 — — — 177.7 Underwriting commitments 11.0 — — — — 11.0 Forward starting reverse repos (2) 3,211.1 — — — — 3,211.1 Forward starting repos (2) 2,987.9 — — — — 2,987.9 Other unfunded commitments (1) 218.8 122.9 18.3 153.0 — 513.0 Total commitments $ 6,690.7 $ 300.8 $ 93.4 $ 153.0 $ 117.8 $ 7,355.7 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At November 30, 2017 , $3,207.4 million within forward starting securities purchased under agreements to resell and $2,982.8 million within securities sold under agreements to repurchase settled within three business days. Equity Commitments. Includes a commitment to invest in our 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 Brian P. Friedman, one of our directors and Chairman of the Executive Committee. At November 30, 2017 , our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $22.0 million . See Note 9, Investments , for additional information regarding our investments in Jefferies Finance. Additionally, at November 30, 2017 , we had other outstanding equity commitments to invest up to $0.8 million in various other investments. Loan Commitments. From time to time we make commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At November 30, 2017 , we had $68.3 million of outstanding loan commitments to clients. Loan commitments outstanding at November 30, 2017 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings by Jefferies Finance. See Note 9, Investments , for additional information. Mortgage-Related and Other Purchase Commitments. We enter into forward contracts to purchase mortgage participation certificates, mortgage-backed securities and consumer loans. The mortgage participation certificates evidence interests in mortgage loans insured by the Federal Housing Administration and the mortgage-backed securities are insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We frequently securitize the mortgage participation certificates and mortgage-backed securities. The fair value of mortgage-related and other purchase commitments recorded in our Consolidated Statements of Financial Condition was $37.6 million at November 30, 2017 . Underwriting Commitments. In connection with investment banking activities, we may from time to time provide underwriting commitments to our clients in connection with capital raising transactions. Forward Starting Reverse Repos and Repos. We enter into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities. Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Leases. As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2017 , future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2018 through 2022 and the aggregate amount thereafter, are as follows (in thousands): Fiscal Year Operating Leases 2018 $ 59,464 2019 57,698 2020 50,254 2021 48,616 2022 51,466 Thereafter 630,991 Total $ 898,489 The total minimum rentals to be received in the future under non-cancelable subleases at November 30, 2017 was $19.4 million . Rental expense, net of subleases, amounted to $56.1 million , $56.1 million and $57.4 million for the years ended November 30, 2017 , 2016 and 2015 , respectively. During 2012, we entered into a master sale and leaseback agreement under which we sold and have leased back existing and additional new equipment supplied by the lessor. The transaction resulted in a gain of $2.0 million , which is being amortized into earnings in proportion to and is reflected net against the leased equipment. The lease term is approximately five years from the start of the supply of new and additional equipment, which commenced on various dates in 2013 and continued into 2015. At November 30, 2017 , minimum future lease payments are as follows (in thousands): Fiscal Year Minimum Future Lease Payments 2018 $ 1,513 2019 189 Net minimum lease payments 1,702 Less amount representing interest 28 Present value of net minimum lease payments $ 1,674 Guarantees Derivative Contracts. As a dealer, we make markets and trade in a variety of derivative instruments. Certain derivative contracts that we have entered into meet the accounting definition of a guarantee under U.S. 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 our maximum potential payout under these contracts. The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at November 30, 2017 (in millions): Expected Maturity Date (Fiscal Years) 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 24,454.8 $ 2,420.2 $ 150.5 $ 45.9 $ 466.3 $ 27,537.7 Written derivative contracts—credit related — 42.0 20.5 155.7 — 218.2 Total derivative contracts $ 24,454.8 $ 2,462.2 $ 171.0 $ 201.6 $ 466.3 $ 27,755.9 The derivative contracts deemed to meet the definition of a guarantee under U.S. 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). We substantially mitigate our exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and we manage the risk associated with these contracts in the context of our overall risk management framework. We believe notional amounts overstate our expected payout and that fair value of these contracts is a more relevant measure of our obligations. At November 30, 2017 , the fair value of derivative contracts meeting the definition of a guarantee is approximately $243.6 million . Standby Letters of Credit. At November 30, 2017 , we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $51.8 million , which expire within one year . Standby letters of credit commit us 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 Guarantees. We are members of various exchanges and clearing houses. In the normal course of business we provide guarantees to securities clearinghouses 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 clearinghouse, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. Our obligations under such guarantees could exceed the collateral amounts posted. Our maximum potential liability under these arrangements cannot be quantified; however, the potential for us to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Nov. 30, 2017 | |
Brokers and Dealers [Abstract] | |
Net Capital Requirements | Net Capital Requirements As a broker-dealer registered with the SEC and member firms of the Financial Industry Regulatory Authority (“FINRA”), Jefferies is subject to the Securities and Exchange Commission Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies, as a dually-registered U.S. broker-dealer and FCM, is also subject to Rule 1.17 of the CFTC, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. In November 2017, Jefferies Execution Services, Inc. merged with and into Jefferies, with Jefferies as the surviving entity. At November 30, 2017 , Jefferies’ net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies $ 1,418,930 $ 1,330,169 FINRA is the designated examining authority for our U.S. broker-dealer and the National Futures Association is the designated self-regulatory organization for Jefferies as an FCM. Certain other U.S. and non-U.S. subsidiaries 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 U.K. The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries. At November 30, 2017 and 2016 , $5,124.9 million and $4,833.0 million , respectively, of net assets of our consolidated subsidiaries are restricted, as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the parent company. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Nov. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate in two reportable business segments – Capital Markets and Asset Management. The Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange trading activities and investment banking, which is composed of underwriting and financial advisory activities. The Capital Markets reportable business segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management reportable business segment provides investment management services to investors in the U.S. and overseas. Our reportable business segment information is prepared using the following methodologies: • Net revenues and non-interest expenses directly associated with each reportable business segment are included in determining earnings before income taxes. • Net revenues and non-interest expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors. • Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization. Our net revenues, non-interest expenses and earnings before income taxes by reportable business segment are summarized below (in millions): Year Ended November 30, 2017 2016 2015 Capital Markets: Net revenues $ 3,174.4 $ 2,339.3 $ 2,415.1 Non-interest expenses 2,636.2 2,321.5 2,325.2 Earnings before income taxes $ 538.2 $ 17.8 $ 89.9 Asset Management: Net revenues $ 23.7 $ 75.3 $ 60.1 Non-interest expenses 57.0 63.1 35.8 Earnings (loss) before income taxes $ (33.3 ) $ 12.2 $ 24.3 Total: Net revenues $ 3,198.1 $ 2,414.6 $ 2,475.2 Non-interest expenses 2,693.2 2,384.6 2,361.0 Earnings before income taxes $ 504.9 $ 30.0 $ 114.2 The following table summarizes our total assets by reportable business segment (in millions): November 30, 2017 2016 Total Assets by Reportable Business Segment: Capital Markets $ 38,620.4 $ 35,931.8 Asset Management 1,085.3 1,009.5 Total assets $ 39,705.7 $ 36,941.3 Net Revenues by Geographic Region Net revenues for the Capital Market reportable business segment are recorded in the geographic region in which the position was risk-managed or, in the case of investment banking, in which the senior coverage banker is located. For the Asset Management reportable business segment, net revenues are allocated according to the location of the investment advisor. Net revenues by geographic region were as follows (in millions): Year Ended November 30, 2017 2016 2015 Americas (1) $ 2,602.7 $ 1,870.4 $ 1,887.0 Europe (2) 489.6 458.0 510.0 Asia 105.8 86.2 78.2 Net revenues $ 3,198.1 $ 2,414.6 $ 2,475.2 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Nov. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Jefferies Capital Partners Related Funds. We have equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee (“Private Equity Related Funds”). At November 30, 2017 and 2016 , our equity investments in Private Equity Related Funds were in aggregate $23.7 million and $37.7 million , respectively. We also charge the JCP Manager for certain services under a service agreement. The following table presents revenues and service charges related to our investment in Private Equity Related Funds (in thousands): Year Ended November 30, 2017 2016 2015 Other revenues and investment income (loss) $ (11,718 ) $ (2,328 ) $ (26,179 ) Service charges 726 760 1,341 For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Note 16, Commitments, Contingencies and Guarantees . Berkadia Commercial Mortgage, LLC. At November 30, 2017 and 2016 , we had commitments to purchase $864.1 million and $817.0 million , respectively, in agency CMBS from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia. HRG Group Inc. ( “ HRG ” ) . We recognized investment banking and advisory revenues of $1.3 million for the year ended November 30, 2015. Officers, Directors and Employees . The following sets forth information regarding related party transactions with our officers, directors and employees: • At November 30, 2017 and 2016 , we had $45.6 million and $38.4 million , respectively, of loans outstanding to certain of our officers and employees (none of whom are executive officers or directors) that are included in Other assets in our Consolidated Statements of Financial Condition. • 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. • At November 30, 2016 and 2015, we had provided a guarantee of a credit agreement for a private equity fund owned by our employees. This guarantee was terminated in April 2017. • One of our directors has investments in a hedge fund managed by us of approximately $4.9 million and $5.0 million at November 30, 2017 and 2016 , respectively. See Note 8, Variable Interest Entities , and Note 16, Commitments, Contingencies and Guarantees , for further information regarding related party transactions with our officers, directors and employees. Leucadia . The following is a description of related party transactions with Leucadia and its affiliates: • Under a service agreement, we provide services to and receive services from Leucadia (in millions): Year Ended November 30, 2017 2016 2015 Charges to Leucadia for services provided $ 42.2 $ 38.8 $ 40.7 Charges from Leucadia for services received 14.2 11.2 6.1 • Receivables from and payables to Leucadia, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition: Year Ended November 30, 2017 2016 Receivable from Leucadia $ 2.5 $ 2.8 Payable to Leucadia 3.1 1.9 • On January 11, 2018, our Board of Directors approved a distribution to our sole limited liability company member, Leucadia, in the amount of $200.0 million , payable on January 31, 2018, which will reduce our total equity. In addition, our Board of Directors approved a quarterly distribution policy authorizing us to pay a quarterly distribution to our limited liability company members following the end of each of our fiscal quarters. Beginning at the end of our fiscal quarter ending February 28, 2018 and on a quarterly basis thereafter, we will pay our limited liability company members a quarterly dividend equal to 50% of our net earnings. • Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. At November 30, 2017 and 2016 , a net current tax payable to Leucadia of $91.5 million and a net current tax receivable from Leucadia of $80.1 million , respectively, is included in Accrued expenses and other liabilities and Other assets, respectively, in our Consolidated Statements of Financial Condition. • In 2017, we entered into OTC foreign exchange contracts with an affiliate of Leucadia. In connection with these contracts, at November 30, 2017 we had $17.0 million included in Payables—brokers, dealers and clearing organizations. • Two of our directors have investments totaling $3.6 million at November 30, 2017 in a hedge fund managed by Leucadia. • In July 2016, a subsidiary of Leucadia made a $30.0 million capital contribution to a hedge fund managed by us. • We made a capital contribution of $0.5 million in June 2017 to a hedge fund managed by Leucadia. We also made capital contributions of $27.0 million and $114.0 million in October 2017 and March 2016, respectively, to another hedge fund managed by Leucadia; and in December 2016, we redeemed $17.0 million from this hedge fund. Net gains on our investment in these hedge funds were $8.0 million and $3.6 million for the years ended November 30, 2017 and 2016 , respectively, which are included in Principal transactions in our Consolidated Statements of Earnings. • As a result of a public offering by Landcadia Holdings Inc., an affiliate of Leucadia, we own 638,561 public units (each unit consisting of one share of Class A common stock and one public warrant) at both November 30, 2017 and 2016 , with fair values of $6.8 million and $6.6 million , respectively, included in Financial instruments owned in our Consolidated Statements of Financial Condition. • We sold securities to Leucadia during the periods presented below at fair value for cash. There was no gain or loss on these transactions. Date Amount (in millions) August 2017 $ 7.1 April 2017 21.9 February 2017 25.6 August 2015 124.4 • We provide capital markets and asset management services to Leucadia and its affiliates. The following table presents the revenues earned by type of services provided (in thousands): Year Ended November 30, 2017 2016 2015 Investment banking and advisory $ 14,700 $ 1,786 $ 21,185 Asset management — 155 400 Commissions and other fees 69 88 43 Other revenues 274 — — • In connection with our sales and trading activities, from time to time we make a market in long-term debt securities of Leucadia ( i.e., we buy and sell debt securities issued by Leucadia). At November 30, 2017 and 2016 , approximately $0.2 million and $1.0 million , respectively, of debt securities issued by Leucadia are included in Financial instruments owned in our Consolidated Statements of Financial Condition. For information on transactions with our equity method investees, see Note 9, Investments . |
Exit Costs
Exit Costs | 12 Months Ended |
Nov. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Exit Costs | Exit Costs Jefferies Bache . On April 9, 2015, we entered into an agreement with Société Générale S.A. (the “Agreement”) to transfer certain client exchange and OTC transactions associated with our Jefferies Bache business for the net book value of the OTC transactions, calculated in accordance with certain principles set forth in the agreement, plus the repayment of certain margin loans in respect of certain exchange transactions. In addition, we initiated a plan to substantially exit the remaining aspects of the business, which was completed during the second quarter of 2016. The pre-tax losses of the Jefferies Bache business were $1.9 million and $134.7 million for the years ended November 30, 2016 and 2015 , respectively. In addition, we terminated our $750.0 million committed senior secured revolving credit facility on July 31, 2015. During the year ended November 30, 2015, we recognized costs of $3.8 million related to this facility. The following summarizes our recorded restructuring and impairment costs (in thousands): Year Ended November 30, 2016 2015 Severance costs $ 279 $ 30,327 Accelerated amortization of restricted stock and restricted cash awards 41 7,922 Accelerated amortization of capitalized software — 19,745 Contract termination costs 1,234 11,247 Other expenses 300 3,853 Total $ 1,854 $ 73,094 Of the above costs, $341,000 and $28.7 million are of a non-cash nature for the years ended November 30, 2016 and 2015, respectively. Restructuring and exit costs are wholly attributed to our Capital Markets reportable business segment and were recorded in the following categories in our Consolidated Statements of Earnings (in thousands): Year Ended November 30, 2016 2015 Compensation and benefits $ 320 $ 38,249 Technology and communications 1,234 30,992 Professional services — 2,508 Other expenses 300 1,345 Total $ 1,854 $ 73,094 The following summarizes our restructuring reserve activity (in thousands): Severance costs Other costs Contract termination costs Total restructuring costs Accelerated amortization of restricted stock and restricted cash awards Accelerated amortization of capitalized software Impairments Total Liability at November 30, 2015 $ 4,805 $ — $ — $ 4,805 Expenses 279 300 1,234 1,813 $ 41 $ — $ — $ 1,854 Payments (5,084 ) (300 ) (1,234 ) (6,618 ) Liability at November 30, 2016 $ — $ — $ — $ — |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Nov. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of unaudited quarterly statements of earnings for the years ended November 30, 2017 and 2016 (in thousands): Three Months Ended November 30, 2017 August 31, 2017 May 31, 2017 February 28, 2017 Total revenues $ 1,081,499 $ 1,048,331 $ 1,038,955 $ 1,009,797 Net revenues 822,610 800,692 779,294 795,513 Earnings before income taxes 142,280 122,264 116,181 124,199 Net earnings attributable to Jefferies Group LLC 89,913 83,815 69,751 114,019 Three Months Ended November 30, 2016 August 31, 2016 May 31, 2016 February 29, 2016 Total revenues $ 939,960 $ 863,841 $ 936,917 $ 493,105 Net revenues 741,769 654,450 719,408 298,987 Earnings (loss) before income taxes 96,529 80,722 102,597 (249,876 ) Net earnings (loss) attributable to Jefferies Group LLC 87,180 41,169 53,898 (166,813 ) |
Schedule I (PARENT COMPANY ONLY
Schedule I (PARENT COMPANY ONLY) | 12 Months Ended |
Nov. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I (PARENT COMPANY ONLY) | JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF FINANCIAL CONDITION (In thousands) November 30, 2017 2016 ASSETS Cash and cash equivalents $ 1,959,536 $ 1,178,475 Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations 57,817 36,148 Financial instruments owned, at fair value 52,641 130,116 Investments in managed funds 21,246 34,170 Loans to and investments in related parties 638,551 473,912 Investment in subsidiaries 5,084,726 4,757,824 Advances to subsidiaries 1,801,573 1,262,211 Subordinated notes receivable 2,708,685 2,802,440 Other assets 610,555 569,291 Total assets $ 12,935,330 $ 11,244,587 LIABILITIES AND EQUITY Short-term borrowings $ 131,567 $ 96,456 Financial instruments sold, not yet purchased, at fair value 18,061 7,285 Accrued expenses and other liabilities 610,036 287,545 Long-term debt 6,416,844 5,483,355 Total liabilities 7,176,508 5,874,641 EQUITY Member’s paid-in capital 5,895,601 5,538,103 Accumulated other comprehensive loss: Currency translation adjustments (98,909 ) (152,305 ) Changes in instrument specific credit risk (27,888 ) (6,494 ) Cash flow hedges (936 ) — Additional minimum pension liability (9,046 ) (9,358 ) Total accumulated other comprehensive loss (136,779 ) (168,157 ) Total member’s equity 5,758,822 5,369,946 Total liabilities and equity $ 12,935,330 $ 11,244,587 See accompanying notes to condensed financial statements. JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands) Year Ended November 30, 2017 2016 2015 Revenues: Principal transactions $ 12,410 $ 952 $ 68,720 Asset management fees and investment income (loss) from managed funds (10,568 ) 1,222 (20,889 ) Interest 241,357 226,781 201,632 Other 78,812 (8,156 ) 33,193 Total revenues 322,011 220,799 282,656 Interest expense 276,727 235,556 250,919 Net revenues 45,284 (14,757 ) 31,737 Non-interest expenses: Total non-interest expenses 13,598 5,187 5,984 Earnings (loss) before income taxes 31,686 (19,944 ) 25,753 Income tax expense (benefit) (21,292 ) (9,574 ) 3,958 Net earnings (loss) before undistributed earnings of subsidiaries 52,978 (10,370 ) 21,795 Undistributed earnings of subsidiaries 304,520 25,804 71,739 Net earnings 357,498 15,434 93,534 Other comprehensive income (loss), net of tax: Currency translation and other adjustments 53,396 (115,494 ) (27,157 ) Change in instrument specific credit risk (21,394 ) (6,494 ) — Cash flow hedges (936 ) — — Minimum pension liability adjustments, net of tax 312 (1,223 ) (3,116 ) Total other comprehensive income (loss), net of tax 31,378 (123,211 ) (30,273 ) Comprehensive income (loss) $ 388,876 $ (107,777 ) $ 63,261 See accompanying notes to condensed financial statements. JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended November 30, 2017 2016 2015 Cash flows from operating activities: Net earnings $ 357,498 $ 15,434 $ 93,534 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Amortization (61,634 ) (63,681 ) (76,945 ) Undistributed earnings of subsidiaries (304,520 ) (25,804 ) (71,739 ) (Income) loss on loans to and investments in related parties (90,724 ) 10,251 (40,460 ) Distributions received on investments in related parties — 17,050 40,500 Other adjustments 39,513 (34,496 ) (98,870 ) Net change in assets and liabilities: Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (21,669 ) 30,055 (4,714 ) Financial instruments owned 77,475 8,704 53,290 Investments in managed funds 12,924 763 19,907 Other assets (29,031 ) 21,475 77,813 Financial instruments sold, not yet purchased 10,776 (13,739 ) (8,802 ) Accrued expenses and other liabilities 324,446 15,125 (36,397 ) Net cash provided by (used in) operating activities 315,054 (18,863 ) (52,883 ) Cash flows from investing activities: Investments in, advances to and subordinated notes receivable from subsidiaries (415,100 ) 327,110 420,797 Loans to and investments in related parties (73,915 ) 19,337 (19,301 ) Cash received from contingent consideration 1,342 2,617 4,444 Net cash provided by (used in) investing activities (487,673 ) 349,064 405,940 Cash flows from financing activities: Proceeds from short-term borrowings 555,652 102,238 750,000 Payments on short-term borrowings (532,326 ) (5,786 ) (750,000 ) Proceeds from issuance of long-term debt, net of issuance costs 1,116,798 277,583 — Repayment of long-term debt (186,444 ) (350,000 ) (500,000 ) Net cash provided by (used in) financing activities 953,680 24,035 (500,000 ) Net increase (decrease) in cash and cash equivalents 781,061 354,236 (146,943 ) Cash and cash equivalents at beginning of period 1,178,475 824,239 971,182 Cash and cash equivalents at end of period $ 1,959,536 $ 1,178,475 $ 824,239 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 332,135 $ 300,680 $ 329,926 Income taxes, net 2,494 (8,654 ) (5,859 ) See accompanying notes to condensed financial statements. Note 1. Introduction and Basis of Presentation The accompanying condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Jefferies Group LLC (the “Company”) and the notes thereto found in the Company’s Annual Report on Form 10-K for the year ended November 30, 2017 . For purposes of these condensed non-consolidated financial statements, the Company’s wholly owned and majority owned subsidiaries are accounted for using the equity method of accounting (“equity method subsidiaries”). The Parent Company is an indirect wholly owned subsidiary of Leucadia National Corporation (“Leucadia”). Leucadia does not guarantee any of our outstanding debt securities. Our 3.875% Convertible Senior Debentures due 2029 (principal amount of $345.0 million ) (the “debentures”) were convertible into Leucadia common shares. At November 1, 2017, $20.2 million of these debentures were called. At November 22, 2017, all of the remaining convertible debentures were called for optional redemption, with a redemption date of January 5, 2018. All of these remaining convertible debentures were redeemed on January 5, 2018. For further information, refer to Note 12, Long-Term Debt , in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2017 . The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Summary of Significant Accounting Policies in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2017 . The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, goodwill and intangible assets, the ability to realize deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Note 2. Transactions with Subsidiaries The Parent Company has transactions with its consolidated subsidiaries, Leucadia and certain other affiliated entities determined on an agreed upon basis and has guaranteed certain unsecured lines of credit and contractual obligations of certain equity method subsidiaries. Note 3. Guarantees In the normal course of its business, the Parent Company issues guarantees in respect of obligations of certain of its wholly owned subsidiaries under trading and other financial arrangements, including guarantees to various trading counterparties and banks. The Parent Company records all derivative contracts and Financial instruments owned and Financial instruments sold, not yet purchased at fair value in its Consolidated Statements of Financial Condition. Certain of the Parent Company’s equity method subsidiaries are members of various exchanges and clearing houses. In the normal course of business, the Parent Company provides guarantees to securities clearinghouses 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 clearinghouse, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. The Parent Company’s obligations under such guarantees could exceed the collateral amounts posted. The maximum potential liability under these arrangements cannot be quantified; however, the potential for the Parent Company to be required to make payments under such guarantees is deemed remote. Accordingly no liability has been recognized for these arrangements. The Parent Company had provided a guarantee in respect of certain obligations of Jefferies Finance LLC that would have matured in January 2021, whereby the Parent Company was required to make certain payments to an SPE sponsored by Jefferies Finance in the event that Jefferies Finance was unable to meet its obligations to the SPE and a guarantee of a credit agreement for a fund owned by employees. These guarantees were terminated during 2017. The Parent Company guarantees certain financing arrangements of subsidiaries. At November 30, 2017 , there were no open guarantees. Structured Notes. Structured notes of $614.1 million at November 30, 2017 were jointly and severally co-issued by our wholly-owned subsidiary Jefferies Group Capital Finance Inc. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize certain deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Consolidation | Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings to noncontrolling interests in our Consolidated Statements of Earnings. In situations in which we have significant influence, but not control, of an entity that does not qualify as a VIE, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP, with our portion of net earnings or gains and losses recorded in Other revenues or Principal transaction revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. |
Revenue Recognition Policies | Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are not the primary obligor for these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transaction revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments ). Fees received on loans carried at fair value are also recorded in Principal transaction revenues. Investment Banking. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Business development and Professional services expenses in our Consolidated Statements of Earnings. Asset Management Fees and Investment Income from Managed Funds. Asset management fees and investment income from managed funds include revenues we earn from management, administrative and performance fees from funds and accounts managed by us, revenues from management and performance fees we earn from related-party managed funds and investment income from our investments in these funds. We earn fees in connection with management and investment advisory services performed for various funds and managed accounts. These fees are based on assets under management or an agreed upon notional amount and may include performance fees based upon the performance of the funds. Management and administrative fees are generally recognized over the period that the related service is provided. Generally, performance fees are earned when the return on assets under management exceeds certain benchmark returns, “high-water marks” or other performance targets. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transaction revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. In addition, we recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis |
Cash Equivalents | Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. |
Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations | Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities. |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transaction revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments that fair values for which have been derived using model inputs that are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based upon consideration of available information, including types of financial instruments, current financial information, restrictions on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions, require that an adjustment be made to the value derived from the models. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. Valuation Process for Financial Instruments Our Independent Price Verification (“IPV”) Group, which is part of our Finance department, in partnership with Risk Management, is responsible for establishing our valuation policies and procedures. The IPV Group and Risk Management, which are independent of our business functions, play an important role and serve as a control function in determining that our financial instruments are appropriately reflected at fair value. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The IPV Group reports to the Global Controller and is subject to the oversight of the IPV Committee, which comprises our Chief Financial Officer, Global Controller, Chief Risk Officer and Principal Accounting Officer, among other personnel. Our independent price verification policies and procedures are reviewed on a periodic basis, and changes to the policies require the approval of the IPV Committee. Price Testing Process. The business units are responsible for determining the fair value of our financial instruments using approved valuation models and methodologies. In order to ensure that the business unit valuations represent a fair value exit price, the IPV Group tests and validates the fair value of our financial instruments inventory. In the testing process, the IPV Group obtains prices and valuation inputs from independent sources, consistently adheres to established procedures set forth in our valuation policies for sourcing prices and valuation inputs and utilizing valuation methodologies. Sources used to validate fair value prices and inputs include, but are not limited to, exchange data, recently executed transactions, pricing data obtained from third party vendors, pricing and valuation services, broker quotes and observed comparable transactions. To the extent discrepancies between the business unit valuations and the pricing or valuations resulting from the price testing process are identified, such discrepancies are investigated by the IPV Group and fair values are adjusted, as appropriate. The IPV Group maintains documentation of its testing, results, rationale and recommendations and prepares a monthly summary of its valuation results. This process also forms the basis for our classification of fair values within the fair value hierarchy ( i.e., Level 1, Level 2 or Level 3). The IPV Group utilizes the additional expertise of Risk Management personnel in valuing more complex financial instruments and financial instruments with less or limited pricing observability. The results of the valuation testing are reported to the IPV Committee on a monthly basis, which discusses the results and determines the financial instrument fair values in our consolidated financial statements. At each quarter end, the overall valuation results, as determined by the IPV Committee, are presented to the Audit Committee. Judgment exercised in determining Level 3 fair value measurements is supplemented by daily analysis of profit and loss performed by the Product Control functions. Gains and losses, which result from changes in fair value, are evaluated and corroborated daily based on an understanding of each trading desk’s overall risk positions and developments in a particular market on the given day. Valuation techniques generally rely on recent transactions of suitably comparable financial instruments and use the observable inputs from those comparable transactions as a validation basis for Level 3 inputs. Level 3 fair value measurements are further validated through subsequent sales testing and market comparable sales, if such information is available. Level 3 fair value measurements require documentation of the valuation rationale applied, which is reviewed for consistency in application from period to period. Third Party Pricing Information. Pricing information obtained from external data providers (including independent pricing services and brokers) may incorporate a range of market quotes from dealers, recent market transactions and benchmarking model derived prices to quoted market prices and trade data for comparable securities. External pricing data is subject to evaluation for reasonableness by the IPV Group using a variety of means including comparisons of prices to those of similar product types, quality and maturities, consideration of the narrowness or wideness of the range of prices obtained, knowledge of recent market transactions and an assessment of the similarity in prices to comparable dealer offerings in a recent time period. Our processes challenge the appropriateness of pricing information obtained from external data providers (including independent pricing services and brokers) to validate the data for consistency with the definition of a fair value exit price. Our process includes understanding and evaluating the external data providers’ valuation methodologies. For corporate, U.S. government and agency, and municipal debt securities, and loans, to the extent we use independent pricing services or broker quotes in our valuation process, the vendor service providers are collecting and aggregating observable market information as to recent trade activity and active bid-ask submissions. The composite pricing information received from the independent pricing service is thus not based on unobservable inputs or proprietary models. For mortgage- and other asset-backed securities, collateralized debt obligations (“CDOs”) and collateralized loan obligations (“CLOs”), our independent pricing services use a matrix evaluation approach, incorporating both observable yield curves and market yields on comparable securities as well as implied inputs from observed trades for comparable securities in order to determine prepayment speeds, cumulative default rates and loss severity. Further, we consider pricing data from multiple service providers as available as well as compare pricing data to prices we have observed for recent transactions, if any, in order to corroborate our valuation inputs. Model Review Process. If a pricing model is used to determine fair value, the pricing model is reviewed for theoretical soundness and appropriateness by Risk Management, independent from the trading desks, and then approved by Risk Management to be used in the valuation process. Review and approval of a model for use may include benchmarking the model against relevant third party valuations, testing sample trades in the model, backtesting the results of the model against actual trades and stress-testing the sensitivity of the pricing model using varying inputs and assumptions. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model. Models are independently reviewed and validated by Risk Management annually or more frequently if market conditions or use of the valuation model changes. |
Investments in Managed Funds | Investments in Managed Funds Investments in managed funds include our investments in funds managed by us and our investments in related-party managed funds. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value (“NAV”) of the funds provided by the fund managers with gains or losses included in Asset management fees and investment income (loss) from managed funds in our Consolidated Statements of Earnings. |
Loans to and Investments in Related Parties | Loans to and Investments in Related Parties Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in our Consolidated Statements of Earnings. See Note 9, Investments , and Note 19, Related Party Transactions , for additional information regarding certain of these investments. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. We have an active securities borrowed and lending matched book business in which we borrow securities from one party and lend them to another party. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. |
Offsetting of Derivative Financial Instruments and Securities Financing Agreements | Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. |
Hedge Accounting | Hedge Accounting Hedge accounting is applied using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. The interest rate swaps are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. We use regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% - 125% . The impact of valuation adjustments related to our own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another, and together with any resulting ineffectiveness, are recorded in Interest expense. |
Premises and Equipment | Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to ten years ). Leasehold improvements are amortized using the straight-line method over the term of the related leases or the estimated useful lives of the assets, whichever is shorter. Premises and equipment includes internally developed software. The carrying values of internally developed software ready for its intended use are depreciated over the remaining useful life. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill . Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The Company’s annual indefinite-lived intangible asset impairment testing date is August 1. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. |
Income Taxes | Income Taxes Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Leucadia. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Legal Reserves | Legal Reserves In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a contingency in Accrued expenses and other liabilities when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the reasonable estimate of a probable loss is a range, we accrue the most likely amount of such loss, and if such amount is not determinable, then we accrue the minimum in the range as the loss accrual. The determination of the outcome and loss estimates requires significant judgment on the part of management. We believe that any other matters for which we have determined a loss to be probable and reasonably estimable are not material to our consolidated financial statements. In many instances, it is not possible to determine whether any loss is probable or even possible or to estimate the amount of any loss or the size of any range of loss. We believe that, in the aggregate, the pending legal actions or regulatory proceedings and any other exams, investigations or similar reviews (both formal and informal) should not have a material adverse effect on our consolidated results of operations, cash flows or financial condition. In addition, we believe that any amount of potential loss or range of potential loss in excess of what has been provided in our consolidated financial statements that could be reasonably estimated is not material. |
Share-based Compensation | Share-based Compensation Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Effective upon our adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) on December 1, 2016, we account for forfeitures as they occur. Prior to the adoption of ASU 2016-09, expected forfeitures were included in determining share-based compensation expense. See Note 3, Accounting Developments , for further information on the adoption of ASU 2016-09. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the end of a period. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, if any, are included in Other comprehensive income. Gains or losses resulting from foreign currency transactions are included in Principal transaction revenues in our Consolidated Statements of Earnings. |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Such transfers of financial assets are accounted for as sales when we have relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. We may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Financial instruments owned in our Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. When a transfer of assets does not meet the criteria of a sale, we account for the transfer as a secured borrowing and continue to recognize the assets of a secured borrowing in Financial instruments owned and recognize the associated financing in Other secured financings in our Consolidated Statements of Financial Condition. |
Accounting Developments | Accounting Standards to be Adopted in Future Periods Derivatives and Hedging. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The objective of the guidance is 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 2019. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Stock Compensation. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation: Scope of Modification Accounting. The guidance provides clarity and reduces diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Retirement Benefits. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The guidance impacts the presentation of net periodic pension costs in the statement of income. The update also allows the service cost to be eligible for capitalization, when applicable. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We plan to adopt this guidance in the first quarter of fiscal 2018. We do not believe the new guidance will have a material impact on our Consolidated Statements of Earnings. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. We plan to adopt this guidance in the first quarter of fiscal 2018. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We plan to adopt this guidance in the first quarter of fiscal 2018. We do not believe these new ASUs will have a material impact on our Consolidated Statements of Cash Flows. Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides 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 and early adoption is permitted in the first quarter of fiscal 2020. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases onto the balance sheet. We plan on adopting the guidance as of our first quarter of fiscal 2019 and are currently evaluating the impact of the new guidance on our consolidated financial statements. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. We are currently evaluating the impact of the new guidance related to equity investments and the presentation and disclosure requirements of financial instruments on our consolidated financial statements. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material effect on our consolidated financial statements. Revenue Recognition . We adopted the new revenue standard on December 1, 2017 and recognized a reduction of $6.1 million after-tax to opening Member’s paid in capital as the cumulative effect of adoption of this accounting change. The impact of adoption is primarily related to 1) investment banking expenses that were deferred as of November 30, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and 2) investment banking revenues that were previously recognized in prior periods, which would have been deferred as of November 30, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach. Accordingly, the new revenue standard will be applied prospectively in our financial statements from December 1, 2017 forward and reported financial information for historical comparable periods will not be revised and will continue to be reported under the accounting standards in effect during those historical periods. The new revenue guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Earnings most closely associated with financial instruments, including Principal transaction revenues, Interest income and Interest expense. The new revenue standard primarily impacts the following of our revenue recognition and presentation accounting policies: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenue from these activities is recognized within Principal transaction revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category on the consolidated income statement and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, we receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., meeting a specified benchmark rate) and are recognized only to the extent it is not probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. The new revenue standard requires enhanced disclosures, which we will include in the footnotes to our consolidated financial statements beginning with the three months ended February 28, 2018. Adopted Accounting Standards Employee Share-Based Payments. In March 2016, the FASB issued ASU 2016-09, which simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include the recognition of all excess tax benefits and tax deficiencies as income tax expense or benefit in our Consolidated Statements of Earnings and changes to the timing of recognition of excess tax benefits, the accounting for forfeitures, classification of awards as either equity or liabilities and classification in the Consolidated Statements of Cash Flows. We early adopted this standard on December 1, 2016 and the adoption did not have a material effect on our consolidated financial statements. We elected to account for forfeitures as they occur, which results in dividends and dividend equivalents originally charged against retained earnings for forfeited shares to be reclassified to compensation cost in the period in which the forfeiture occurs. In addition, the current period’s excess tax benefit related to stock-based compensation is presented as an operating activity rather than a financing activity in our Consolidated Statements of Cash Flows on a retrospective basis. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV of $20.2 million and $24.3 million at November 30, 2017 and 2016 , respectively, by level within the fair value hierarchy (in thousands): November 30, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,801,453 $ 57,091 $ 22,009 $ — $ 1,880,553 Corporate debt securities — 3,261,300 26,036 — 3,287,336 CDOs and CLOs — 139,166 30,004 — 169,170 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 160,168 3,248,586 9,295 (3,254,216 ) 163,833 Investments at fair value — 946 93,454 — 94,400 Total financial instruments owned, excluding Investments at fair value based on NAV $ 4,612,403 $ 12,292,053 $ 327,727 $ (3,254,216 ) $ 13,977,967 Securities received as collateral $ 103 $ — $ — $ — $ 103 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,456,675 $ 32,122 $ 48 $ — $ 1,488,845 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 247,919 3,399,239 16,041 (3,426,249 ) 236,950 Total financial instruments sold, not yet purchased $ 4,351,974 $ 7,226,002 $ 20,202 $ (3,426,249 ) $ 8,171,929 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt $ — $ 606,956 $ — $ — $ 606,956 Obligation to return securities received as collateral $ 103 $ — $ — $ — $ 103 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2016 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,742,463 $ 90,662 $ 21,739 $ — $ 1,854,864 Corporate debt securities — 2,675,020 25,005 — 2,700,025 CDOs and CLOs — 54,306 54,354 — 108,660 U.S. government and federal agency securities 2,389,397 56,726 — — 2,446,123 Municipal securities — 708,469 27,257 — 735,726 Sovereign obligations 1,432,556 990,492 — — 2,423,048 Residential mortgage-backed securities — 960,494 38,772 — 999,266 Commercial mortgage-backed securities — 296,405 20,580 — 316,985 Other asset-backed securities — 63,587 40,911 — 104,498 Loans and other receivables — 1,557,233 81,872 — 1,639,105 Derivatives 3,825 4,606,278 6,429 (4,255,998 ) 360,534 Investments at fair value — — 96,369 — 96,369 Total financial instruments owned, excluding Investments at fair value based on NAV $ 5,568,241 $ 12,059,672 $ 413,288 $ (4,255,998 ) $ 13,785,203 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,577,405 $ 16,806 $ 313 $ — $ 1,594,524 Corporate debt securities — 1,718,424 523 — 1,718,947 U.S. government and federal agency securities 976,497 — — — 976,497 Sovereign obligations 1,375,590 1,253,754 — — 2,629,344 Loans — 801,977 378 — 802,355 Derivatives 568 4,856,310 9,870 (4,229,213 ) 637,535 Total financial instruments sold, not yet purchased $ 3,930,060 $ 8,647,271 $ 11,084 $ (4,229,213 ) $ 8,359,202 Other secured financings $ — $ 41,350 $ 418 $ — $ 41,768 Long-term debt $ — $ 248,856 $ — $ — $ 248,856 (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 Per Share | The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): November 30, 2017 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 33,176 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 417 — — Fund of Funds (4) 189 — — Equity Funds (5) 26,798 19,084 — Multi-asset Funds (6) 154,805 — — Total $ 215,385 $ 19,084 November 30, 2016 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 34,446 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 772 — — Fund of Funds (4) 230 — — Equity Funds (5) 42,179 20,295 — Multi-asset Funds (6) 133,190 — — Total $ 210,817 $ 20,295 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At November 30, 2017 and 2016 , approximately 1% and 2% , respectively, of the fair value of investments in this category are classified as being in liquidation. (3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions. (4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received. (5) At November 30, 2017 and 2016 , the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to liquidate in one to six years. (6) 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 both November 30, 2017 and 2016 , investments representing approximately 12% of the fair value of investments in this category are redeemable with 30 days prior written notice. |
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 year ended November 30, 2017 (in thousands): Year Ended November 30, 2017 Balance at November 30, 2016 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at November 30, 2017 Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2017 (1) Assets: Financial instruments owned: Corporate equity securities $ 21,739 $ 3,262 $ 896 $ (1,623 ) $ 52 $ — $ (2,317 ) $ 22,009 $ 2,515 Corporate debt securities 25,005 (3,723 ) 36,850 (34,077 ) (1,968 ) — 3,949 26,036 (3,768 ) CDOs and CLOs 54,354 (19,858 ) 112,239 (110,907 ) (367 ) — (5,457 ) 30,004 (2,262 ) Municipal securities 27,257 (1,547 ) — (25,710 ) — — — — — RMBS 38,772 (10,817 ) 6,805 (26,193 ) (115 ) — 17,625 26,077 (7,201 ) CMBS 20,580 (5,346 ) 3,275 (5,263 ) (1,018 ) — 191 12,419 (6,976 ) Other ABS 40,911 (17,705 ) 77,508 (8,613 ) (25,799 ) — (5,173 ) 61,129 (12,562 ) Loans and other receivables 81,872 24,794 63,768 (53,095 ) (34,622 ) — (35,413 ) 47,304 17,451 Investments at fair value 96,369 6,361 1,981 (10,157 ) (1,100 ) — — 93,454 8,385 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 313 $ 60 $ (373 ) $ 48 $ — $ — $ — $ 48 $ — Corporate debt securities 523 (1 ) — — — — — 522 1 CMBS — 105 — — — — — 105 (105 ) Net derivatives (2) 3,441 (1,638 ) — — 5,558 456 (1,071 ) 6,746 (17,740 ) Loans 378 196 (385 ) 2,485 — — 812 3,486 (2,639 ) Other secured financings 418 (418 ) — — — — — — — (1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —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 year ended November 30, 2016 (in thousands): Year Ended November 30, 2016 Balance at November 30, 2015 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2016 Change in unrealized gains/ (losses) relating to instruments still held at November 30, 2016 (1) Assets: Financial instruments owned: Corporate equity securities $ 40,906 $ (8,463 ) $ 3,365 $ (49 ) $ (671 ) $ — $ (13,349 ) $ 21,739 $ 291 Corporate debt securities 25,876 (16,230 ) 27,242 (29,347 ) (7,223 ) — 24,687 25,005 (18,799 ) CDOs and CLOs 85,092 (14,918 ) 52,316 (69,394 ) (2,750 ) — 4,008 54,354 (7,628 ) Municipal securities — (1,462 ) — — — — 28,719 27,257 (1,462 ) Sovereign obligations 120 5 — (125 ) — — — — — RMBS 70,263 (9,612 ) 623 (12,249 ) (931 ) — (9,322 ) 38,772 (1,095 ) CMBS 14,326 (7,550 ) 3,132 (2,024 ) (2,229 ) — 14,925 20,580 (7,243 ) Other ABS 42,925 (14,381 ) 133,986 (102,952 ) (8,769 ) — (9,898 ) 40,911 (18,056 ) Loans and other receivables 189,289 (42,566 ) 75,264 (69,262 ) (46,851 ) — (24,002 ) 81,872 (52,003 ) Investments at fair value 53,120 (13,278 ) 26,228 (542 ) (1,107 ) — 31,948 96,369 (13,208 ) Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 38 $ — $ — $ 313 $ (38 ) $ — $ — $ 313 $ — Corporate debt securities — (27 ) — 550 — — — 523 — Net derivatives (2) (242 ) (1,760 ) — 11,101 31 2,067 (7,756 ) 3,441 (6,458 ) Loans 10,469 — — 378 — — (10,469 ) 378 — Other secured financings 544 (126 ) — — — — — 418 (126 ) (1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —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 year ended November 30, 2015 (in thousands): Year Ended November 30, 2015 Balance at November 30, 2014 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at November 30, 2015 Change in unrealized gain/ (losses) relating to instruments still held at November 30, 2015 (1) Assets: Financial instruments owned: Corporate equity securities $ 20,964 $ 11,154 $ 21,385 $ (6,391 ) $ — $ — $ (6,206 ) $ 40,906 $ 11,424 Corporate debt securities 22,766 (11,013 ) 21,534 (14,636 ) — — 7,225 25,876 (9,443 ) CDOs and CLOs 124,650 (66,332 ) 104,998 (107,381 ) (5,754 ) — 34,911 85,092 (48,514 ) Municipal securities — 10 — — (21,551 ) — 21,541 — — Sovereign obligations — 47 1,032 (1,031 ) — — 72 120 39 RMBS 82,557 (12,951 ) 18,961 (31,762 ) (597 ) — 14,055 70,263 (4,498 ) CMBS 26,655 (3,813 ) 3,480 (10,146 ) (6,861 ) — 5,011 14,326 (3,205 ) Other ABS 2,294 (990 ) 42,922 (1,299 ) (2 ) — — 42,925 (254 ) Loans and other receivables 97,258 (14,755 ) 792,345 (576,536 ) (124,365 ) — 15,342 189,289 (16,802 ) Investments, at fair value 53,224 64,380 5,510 (124,852 ) (4,093 ) — 58,951 53,120 (388 ) Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 38 $ — $ — $ — $ — $ — $ — $ 38 $ — Corporate debt securities 223 (110 ) (6,804 ) 6,691 — — — — — Net derivatives (2) (4,638 ) (7,310 ) (6,705 ) 13,522 37 2,437 2,415 (242 ) 4,754 Loans 14,450 (163 ) (2,059 ) 229 — — (1,988 ) 10,469 104 Other secured financings 30,825 — — — (15,704 ) 36,995 (51,572 ) 544 — Embedded conversion option 693 (693 ) — — — — — — 693 (1) Realized and unrealized gains/losses are reported in Principal transaction revenues in our Consolidated Statements of Earnings. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. |
Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument ( i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. November 30, 2017 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Average Corporate equity securities $ 18,109 Non-exchange-traded securities Market approach Price $3-$75 $ 33 Underlying stock price $6 — Comparable pricing Comparable asset price $7 — Corporate debt securities $ 26,036 Convertible bond model Discount rate/yield 8% — Volatility 40% — Market approach Estimated recovery percentage 17% — Price $10 — CDOs and CLOs $ 30,004 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25%-30% 26 % Discount rate/yield 3%-26% 12 % Scenario analysis Estimated recovery percentage 8%-40% 22 % RMBS $ 26,077 Discounted cash flows Cumulative loss rate 3%-19% 10 % Duration (years) 2-4 3 Discount rate/yield 6%-10% 8 % CMBS $ 12,419 Discounted cash flows Cumulative loss rate 8%-65% 44 % Duration (years) 1-3 2 Discount rate/yield 2%-26% 12 % Scenario analysis Estimated recovery percentage 26%-32% 28 % Price $52-$56 $ 54 Other ABS $ 61,129 Discounted cash flows Cumulative loss rate 0%-33% 23 % Duration (years) 1-6 2 Discount rate/yield 5%-39% 9 % Market approach Price $100 — Scenario analysis Estimated recovery percentage 14% — Loans and other receivables $ 46,121 Market approach Estimated recovery percentage 76% — Price $54-$100 $ 95 Scenario analysis Estimated recovery percentage 13%-107% 78 % Derivatives $ 9,295 Total return swaps Market approach Price $101-$106 $ 103 Interest rate swaps Market approach Credit spread 800 bps — Investments at fair value $ 77,423 Private equity securities Market approach Transaction level $3-$250 $ 172 Price $7 — Financial Instruments Sold, Not Yet Purchased: Derivatives $ 16,041 Equity options Option model/default rate Default probability 0% — Unfunded commitments Market approach Price $99 Total return swaps Market approach Price $101-$106 $ 103 Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% — Discount rate/yield 26% — November 30, 2016 Financial Instruments Owned: Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Average Corporate equity securities $ 19,799 Non-exchange-traded securities Market approach Underlying stock price $3-$75 $ 15 Comparable pricing Underlying stock price $218 — Comparable asset price $11 — Present value Average silver production (tons per day) 666 — Corporate debt securities $ 25,005 Convertible bond model Discount rate/yield 9% — Volatility 40% — Market approach Transaction level $30 — CDOs and CLOs $ 33,016 Discounted cash flows Constant prepayment rate 10%-20% 19 % Constant default rate 2%-4% 2 % Loss severity 25%-70% 40 % Yield 7%-17% 12 % Scenario analysis Estimated recovery percentage 28%-38% 31 % RMBS $ 38,772 Discounted cash flows Constant prepayment rate 0%-11% 5 % Constant default rate 1%-7% 3 % Loss severity 35%-100% 62 % Yield 2%-10% 6 % CMBS $ 20,580 Discounted cash flows Yield 6%-11% 8 % Cumulative loss rate 5%-95% 39 % Other ABS $ 40,911 Discounted cash flows Constant prepayment rate 4%-20% 14 % Constant default rate 0%-31% 13 % Loss severity 0%-100% 90 % Yield 4%-17% 15 % Market approach Price $72 — Loans and other receivables $ 54,347 Market approach EBITDA multiple 3.3 — Discount rate/yield 2%-4% 3 % Transaction level $0.42 — Present value Average silver production (tons per day) 666 — Scenario analysis Estimated recovery percentage 6%-50% 37 % Derivatives $ 6,429 Equity swaps Comparable pricing Comparable asset price $102 — Credit default swaps Market approach Credit spread 265 bps — Investments at fair value $ 42,907 Private equity securities Market approach Transaction level $250 — Price $25,815,720 — Financial Instruments Sold, Not Yet Purchased: Derivatives $ 9,870 Equity options Option model Volatility 45% — Default rate Default probability 0% — Equity swaps Comparable pricing Comparable asset price $102 — Unfunded commitments Market approach Discount rate/yield 4% — Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% — Yield 16% — |
Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk and Summary of Contractual Principal Exceeds Fair Value for Loans and Other Receivables | The following is a summary of gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on Long-term debt and Short-term borrowings measured at fair value under the fair value option (in thousands): Year Ended November 30, 2017 2016 2015 Financial instruments owned: Loans and other receivables $ 22,088 $ (68,812 ) $ (17,389 ) Financial instruments sold: Loans $ — $ 9 $ (162 ) Loan commitments 230 5,509 7,502 Long-term debt: Changes in instrument specific credit risk (1) $ (34,609 ) $ (10,745 ) $ — Other changes in fair value (2) 47,291 30,995 — Short-term borrowings: Other changes in fair value (2) $ (681 ) $ — $ — (1) Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (2) Other changes in fair value are included in Principal transactions revenues in our Consolidated Statements of Earnings. 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): November 30, 2017 2016 Financial instruments owned: Loans and other receivables (1) $ 752,076 $ 1,325,938 Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2) 159,462 205,746 Long-term debt and short-term borrowings 32,839 20,202 (1) Interest income is recognized separately from other changes in fair value and is included in Interest revenues in our Consolidated Statements of Earnings. (2) Amounts include loans and other receivables greater than 90 days past due by which contractual principal exceeds fair value of $38.7 million and $64.6 million at November 30, 2017 and 2016 , respectively. |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | The following table presents those assets measured at fair value on a non-recurring basis for which the Company recognized a non-recurring fair value adjustment during the years ended November 30, 2017 , 2016 and 2015 (in thousands): Carrying Value at November 30, 2017 Level 2 Level 3 Impairment Losses for the Year Ended November 30, 2017 Exchange ownership interests and registrations (1) $ 2,672 $ 2,672 $ — $ 613 Carrying Value at November 30, 2016 Level 2 Level 3 Impairment Losses for the Year Ended November 30, 2016 Exchange ownership interests and registrations (1) $ 2,716 $ 2,716 $ — $ 1,284 Carrying Value at November 30, 2015 Level 2 Level 3 Impairment Losses for the Year Ended November 30, 2015 Exchange ownership interests and registrations (1) $ 4,178 $ 4,178 $ — $ 1,289 (1) Impairment losses of $0.6 million , $1.3 million and $1.3 million , were recognized in Other expenses, during the years ended November 30, 2017 , 2016 and 2015 , respectively, for exchange memberships, which represent ownership interests in market exchanges on which trading business is conducted, and registrations. The fair value of these exchange memberships is based on observed quoted sales prices for each individual membership. (See Note 10, Goodwill and Intangible Assets .) The intangible assets are recognized for the years ended November 30, 2017 and 2016 , primarily in the Fixed income reporting unit, and for the year ended November 30, 2015 , primarily in the Futures reporting unit. For further information on the exit of the Futures business, refer to Note 20, Exit Costs . |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract | The following tables present the fair value and related number of derivative contracts at November 30, 2017 and 2016 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 U.S. 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). November 30, 2017 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 2,420 1 Total derivatives designated as accounting hedges — 2,420 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,957 33,972 66 8,515 Cleared OTC 1,334,878 2,711 1,263,994 2,948 Bilateral OTC 380,223 1,804 444,716 1,346 Foreign exchange contracts: Exchange-traded 157 2,045 20 101 Bilateral OTC 303,091 4,338 286,582 4,361 Equity contracts: Exchange-traded 1,288,295 2,654,555 1,375,832 2,090,935 Bilateral OTC 78,812 1,847 247,750 1,722 Commodity contracts: Exchange-traded 209 3,723 18 3,819 Credit contracts: Cleared OTC 5,506 18 8,613 27 Bilateral OTC 24,921 110 33,188 164 Total derivatives not designated as hedges 3,418,049 3,660,779 Total gross derivative assets/ liabilities: Exchange-traded 1,290,618 1,375,936 Cleared OTC 1,340,384 1,275,027 Bilateral OTC 787,047 1,012,236 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (1,268,043 ) (1,268,043 ) Cleared OTC (1,319,895 ) (1,274,900 ) Bilateral OTC (666,278 ) (883,306 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 163,833 $ 236,950 (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 from/Payables to brokers, dealers and clearing organizations 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 our Consolidated Statements of Financial Condition. November 30, 2016 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded $ 2,275 24,300 $ 24 29,773 Cleared OTC (3) 2,835,812 3,596 2,636,469 3,445 Bilateral OTC 444,159 1,136 522,965 1,627 Foreign exchange contracts: Exchange-traded — 376 — 686 Bilateral OTC 529,609 7,448 516,869 7,633 Equity contracts: Exchange-traded 712,767 2,820,702 1,095,582 2,410,956 Bilateral OTC 72,041 1,077 67,033 1,191 Commodity contracts: Exchange-traded — 1,356 — 920 Credit contracts: Cleared OTC 645 6 2,304 8 Bilateral OTC 19,225 213 25,503 184 Total gross derivative assets/liabilities: Exchange-traded 715,042 1,095,606 Cleared OTC 2,836,457 2,638,773 Bilateral OTC 1,065,034 1,132,370 Amounts offset in our Consolidated Statements of Financial Condition (4): Exchange-traded (691,009 ) (691,009 ) Cleared OTC (3) (2,751,650 ) (2,638,774 ) Bilateral OTC (813,340 ) (899,431 ) Net amounts per Consolidated Statements of Financial Condition (5) $ 360,534 $ 637,535 (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 from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) Pursuant to a rule change by the Chicago Mercantile Exchange in the first quarter of 2017, variation margin exchanged each day with this clearing organization on certain interest rate and credit derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of November 30, 2016 of approximately $1.0 billion , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . (4) Amounts netted include both netting by counterparty and for cash collateral paid or received. (5) 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 our 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 in our Consolidated Statements of Earnings on a fair value hedge (in thousands): Year Ended November 30, Gains (Losses) 2017 2016 2015 Interest rate swaps $ (2,091 ) $ — $ — Long-term debt 8,124 — — Total $ 6,033 $ — $ — The following table presents unrealized and realized gains (losses) on derivative contracts recognized in Principal transactions revenue in our Consolidated Statements of Earnings, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Year Ended November 30, Gains (Losses) 2017 2016 2015 Interest rate contracts $ 2,959 $ (34,319 ) $ (37,601 ) Foreign exchange contracts 4,735 18,122 36,101 Equity contracts (303,953 ) (650,815 ) (137,636 ) Commodity contracts (4,911 ) 1,310 21,409 Credit contracts 8,508 13,039 (14,397 ) Total $ (292,662 ) $ (652,663 ) $ (132,124 ) |
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 at November 30, 2017 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 3,082 $ 6,084 $ — $ — $ 9,166 Credit default swaps 567 105 9,510 (5,625 ) 4,557 Total return swaps 34,228 1,581 — (193 ) 35,616 Foreign currency forwards, swaps and options 76,213 231 — (30 ) 76,414 Interest rate swaps, options and forwards 28,111 166,403 74,048 (83,534 ) 185,028 Total $ 142,201 $ 174,404 $ 83,558 $ (89,382 ) 310,781 Cross product counterparty netting (23,732 ) Total OTC derivative assets included in Financial instruments owned $ 287,049 (1) At November 30, 2017 , we held exchange-traded derivative assets and other credit agreements with a fair value of $22.7 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 our Consolidated Statements of Financial Condition. At November 30, 2017 , cash collateral received was $146.0 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. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 78 $ 172,088 $ 2,920 $ — $ 175,086 Credit default swaps 104 16,540 3,953 (5,625 ) 14,972 Total return swaps 28,920 1,517 — (193 ) 30,244 Foreign currency forwards, swaps and options 59,874 157 — (30 ) 60,001 Fixed income forwards 8,512 — — — 8,512 Interest rate swaps, options and forwards 16,544 96,484 151,624 (83,534 ) 181,118 Total $ 114,032 $ 286,786 $ 158,497 $ (89,382 ) 469,933 Cross product counterparty netting (23,732 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 446,201 (1) At November 30, 2017 , we held exchange-traded derivative liabilities and other credit agreements with a fair value of $108.7 million , which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2017 , 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. |
Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets | The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2017 (in thousands): Counterparty credit quality (1): A- or higher $ 163,871 BBB- to BBB+ 40,565 BB+ or lower 48,338 Unrated 34,275 Total $ 287,049 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. |
Credit Related Derivative Contracts | The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2017 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 46.0 $ 49.0 Single name credit default swaps 129.1 89.1 218.2 November 30, 2016 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 54.0 $ — $ 54.0 Single name credit default swaps 122.4 261.2 383.6 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Collateralized Financing Transactions | The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral by class of collateral pledged (in thousands): November 30, 2017 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 2,353,798 $ 214,413 $ — $ 2,568,211 Corporate debt securities 470,908 2,336,702 — 2,807,610 Mortgage- and asset-backed securities — 2,562,268 — 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 — 11,811,739 Municipal securities — 444,861 — 444,861 Sovereign obligations — 2,023,530 103 2,023,633 Loans and other receivables — 454,941 — 454,941 Total $ 2,843,911 $ 19,829,249 $ 103 $ 22,673,263 November 30, 2016 Securities Lending Arrangements Repurchase Agreements Total Collateral Pledged: Corporate equity securities $ 2,046,243 $ 66,291 $ 2,112,534 Corporate debt securities 731,276 1,907,888 2,639,164 Mortgage- and asset-backed securities — 2,171,480 2,171,480 U.S. government and federal agency securities 41,613 9,232,624 9,274,237 Municipal securities — 553,010 553,010 Sovereign obligations — 2,625,079 2,625,079 Loans and other receivables — 455,960 455,960 Total $ 2,819,132 $ 17,012,332 $ 19,831,464 The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral by remaining contractual maturity (in thousands): November 30, 2017 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Obligation to return securities received as collateral 103 — — — — 103 Total $ 12,457,517 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,263 November 30, 2016 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 2,131,891 $ 39,673 $ 104,516 $ 543,052 $ 2,819,132 Repurchase agreements 9,147,176 2,008,119 3,809,533 2,047,504 17,012,332 Total $ 11,279,067 $ 2,047,792 $ 3,914,049 $ 2,590,556 $ 19,831,464 |
Offsetting Assets | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral and obligation to return securities received as collateral that are recognized in our Consolidated Statements of Financial Condition and 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 U.S. 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). November 30, 2017 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements 14,858,297 (11,168,738 ) 3,689,559 (463,973 ) (3,207,147 ) 18,439 Securities received as collateral 103 — 103 — (103 ) — Liabilities Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements 19,829,249 (11,168,738 ) 8,660,511 (463,973 ) (7,067,512 ) 1,129,026 Obligation to return securities received as collateral 103 — 103 — (103 ) — November 30, 2016 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 7,743,562 $ — $ 7,743,562 $ (710,611 ) $ (647,290 ) $ 6,385,661 Reverse repurchase agreements 14,083,144 (10,220,656 ) 3,862,488 (176,275 ) (3,591,654 ) 94,559 Liabilities Securities lending arrangements $ 2,819,132 $ — $ 2,819,132 $ (710,611 ) $ (2,064,299 ) $ 44,222 Repurchase agreements 17,012,332 (10,220,656 ) 6,791,676 (176,275 ) (5,780,909 ) 834,492 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of U.S. 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) Amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. (4) Amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million , and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Offsetting Liabilities | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral and obligation to return securities received as collateral that are recognized in our Consolidated Statements of Financial Condition and 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 U.S. 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). November 30, 2017 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements 14,858,297 (11,168,738 ) 3,689,559 (463,973 ) (3,207,147 ) 18,439 Securities received as collateral 103 — 103 — (103 ) — Liabilities Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements 19,829,249 (11,168,738 ) 8,660,511 (463,973 ) (7,067,512 ) 1,129,026 Obligation to return securities received as collateral 103 — 103 — (103 ) — November 30, 2016 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 7,743,562 $ — $ 7,743,562 $ (710,611 ) $ (647,290 ) $ 6,385,661 Reverse repurchase agreements 14,083,144 (10,220,656 ) 3,862,488 (176,275 ) (3,591,654 ) 94,559 Liabilities Securities lending arrangements $ 2,819,132 $ — $ 2,819,132 $ (710,611 ) $ (2,064,299 ) $ 44,222 Repurchase agreements 17,012,332 (10,220,656 ) 6,791,676 (176,275 ) (5,780,909 ) 834,492 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of U.S. 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) Amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. (4) Amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million , and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Activity Related to Securitizations Accounted for as Sales | The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Year Ended November 30, 2017 2016 2015 Transferred assets $ 4,552.9 $ 5,786.0 $ 5,770.5 Proceeds on new securitizations 4,594.5 5,809.0 5,811.3 Cash flows received on retained interests 28.7 28.2 31.2 |
Summary of Retained Interests in SPEs | The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): November 30, 2017 2016 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 6,383.5 $ 28.2 $ 7,584.9 $ 31.0 U.S. government agency CMBS 2,075.7 81.4 1,806.3 29.6 CLOs 3,957.8 20.3 4,102.2 37.0 Consumer and other loans 247.6 47.8 395.7 25.3 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Variable Interest Entity [Line Items] | |
Assets and Liabilities of Consolidated VIEs Prior to Consolidation | The following table presents information about our consolidated VIEs at November 30, 2017 and 2016 (in millions). The assets and liabilities in the tables below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2017 2016 Securitization Vehicles Other Securitization Vehicles Other Cash $ 6.5 $ 1.1 $ 16.1 $ 0.7 Financial instruments owned 37.6 0.4 86.6 0.6 Securities purchased under agreements to resell (1) 729.3 — 733.5 — Fees, interest and other receivables 0.2 — 1.5 — Total assets $ 773.6 $ 1.5 $ 837.7 $ 1.3 Other secured financings (2) $ 766.2 $ — $ 813.1 $ — Other liabilities 5.9 0.2 24.1 0.2 Total liabilities $ 772.1 $ 0.2 $ 837.2 $ 0.2 (1) Securities purchased under agreements to resell represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $44.1 million and $57.6 million of the secured financing represent an amount held by us in inventory and is eliminated in consolidation at November 30, 2017 and 2016 , respectively. |
Nonconsolidated VIEs | |
Variable Interest Entity [Line Items] | |
Variable Interests in Non-Consolidated Variable Interest Entities | The following tables present information about our variable interests in nonconsolidated VIEs (in millions): November 30, 2017 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 163.5 $ 8.9 $ 1,020.5 $ 5,210.4 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other private investment vehicles 48.0 — 48.7 2,938.4 Total $ 490.0 $ 8.9 $ 1,874.4 $ 10,546.5 November 30, 2016 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 263.3 $ 4.8 $ 920.0 $ 4,451.7 Consumer loan vehicles 90.3 — 219.6 985.5 Related party private equity vehicles 37.6 — 63.6 155.6 Other private investment vehicles 52.3 — 53.8 3,874.7 Total $ 443.5 $ 4.8 $ 1,257.0 $ 9,467.5 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Jefferies Finance | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions): Year Ended November 30, 2017 2016 2015 Interest income $ 2.9 $ 0.1 $ 0.9 Unfunded commitment fees 1.0 1.2 1.6 Separate financial statements for Jefferies Finance are included in this Annual Report on Form 10-K. The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2017 2016 Total assets $ 8,164.9 $ 7,293.3 Total liabilities 6,892.6 6,352.3 Total equity 1,272.3 941.1 Our total equity balance 636.2 470.5 Year Ended November 30, 2017 2016 2015 Net earnings (loss) $ 181.7 $ (19.6 ) $ 83.4 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2017 2016 2015 Origination and syndication fee revenues (1) $ 327.9 $ 112.6 $ 122.7 Origination fee expenses (1) 2.4 0.5 5.9 CLO placement fee revenues (2) 6.1 2.6 6.2 Derivative gains (losses) (3) (1.1 ) 0.5 — Underwriting fees (4) — — 1.3 Service fees (5) 50.7 46.1 51.7 (1) We engage in debt capital markets transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues in our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings. (2) We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At November 30, 2017 and 2016 , we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned. At November 30, 2016, we provided a guarantee whereby we were required to make certain payments to a CLO in the event that Jefferies Finance was unable to meet its obligations to the CLO, which was terminated in October 2017. (3) We have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO and we have recognized gains (losses) relating to the derivative contracts. (4) We acted as underwriter in connection with senior notes issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. |
Jefferies LoanCore | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following is a summary of selected financial information for Jefferies LoanCore (in millions): November 30, 2016 Total assets $ 1,827.2 Total liabilities 1,505.0 Total equity 322.2 Our total equity balance 156.3 Eleven Months Ended October 31, 2017 Year Ended November 30, 2016 2015 Net earnings $ 37.5 $ 71.8 $ 79.0 The following summarizes activity related to our transactions with Jefferies LoanCore (in thousands): Year Ended November 30, 2017 2016 2015 Interest income and fees (1) $ 588 $ 8,412 $ 10,690 Placement fees (2) 100 100 1,643 Service fees (3) 190 200 241 (1) We enter into master repurchase agreements with Jefferies LoanCore and earn interest income and fees related to these agreements. At November 30, 2016, we had reverse repurchase agreements outstanding of $68.1 million in connection with these agreements. (2) In connection with the securitization of commercial real estate loans originated by Jefferies LoanCore, we earned placement fees. (3) Under a service agreement, we charged Jefferies LoanCore for services provided. |
JCP Fund V | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we own effectively 35.2% of the combined equity interests (in thousands): September 30, 2017 (1) 2016 (1) Total assets $ 55,788 $ 82,689 Total liabilities 96 73 Total partners’ capital 55,692 82,616 Nine Months Ended September 30, 2017 (1) Three Months Ended December 31, 2016 (1) Nine Months Ended September 30, 2016 (1) Three Months Ended December 31, 2015 (1) Nine Months Ended September 30, 2015 (1) Three Months Ended December 31, 2014 (1) Net increase (decrease) in net assets resulting from operations $ (24,630 ) $ (2,294 ) $ 6,159 $ (7,886 ) $ (1,751 ) $ (65,700 ) (1) Financial information for JCP Fund V within our financial position and results of operations at November 30, 2017 and 2016 and for the years ended November 30, 2017 , 2016 and 2015 is included based on the presented periods. The following summarizes the results from these investments which are included in Asset management fees and investment income from managed funds in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2017 2016 2015 Net losses from our investments in JCP Fund V $ (10.7 ) $ (1.1 ) $ (24.3 ) |
Epic Gas | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following is a summary of selected financial information for Epic Gas (in millions) reflecting available public financial information for Epic Gas: September 30, 2017 2016 Total assets $ 599.2 $ 579.0 Total liabilities 340.2 315.0 Total equity 259.0 264.0 Nine Months Ended September 30, 2017 (1) Three Months Ended December 31, 2016 (1) Nine Months Ended September 30, 2016 (1) Three Months Ended December 31, 2015 (1) Nine Months Ended September 30, 2015 (1) Three Months Ended December 31, 2014 (1) Net losses $ (14.5 ) $ (15.9 ) $ (7.4 ) $ (11.4 ) $ (4.6 ) $ (16.1 ) (1) Financial information for Epic Gas within our financial position and results of operations at November 30, 2017 and 2016 and for the years ended November 30, 2017 , 2016 and 2015 is included based on the presented periods. |
KCG | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following summarizes the changes in the fair value of our investment in KCG, which were recognized in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2017 2016 2015 Net gains from our investment in KCG $ 93.4 $ 19.6 $ 49.1 The following is a summary of selected financial information for KCG at December 31, 2016, reflecting available public information (in millions): Total assets $ 6,261.3 Total liabilities 4,904.0 Total equity 1,357.3 The following is a summary of net earnings for KCG (in millions), reflecting available public financial information for KCG: Year Ended November 30, 2016 2015 Net earnings for KCG $ 255.7 $ 249.1 The following is a summary of the balances related to these activities (in millions): November 30, 2016 Securities borrowed $ 9.2 Securities loaned 9.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Resulting from Leucadia Transaction Attributable to Reportable Segments and Summary of Changes to Goodwill | Goodwill attributed to our reportable business segments are as follows (in thousands): November 30, 2017 2016 Capital Markets (1) $ 1,644,089 $ 1,637,653 Asset Management (1) 3,000 3,000 Total goodwill $ 1,647,089 $ 1,640,653 (1) Accumulated goodwill impairments related to the Capital Markets segment were $51.9 million at December 1, 2017 and 2016 , and goodwill prior to these impairments was $1,696.0 million and $1,689.6 million at December 1, 2017 and 2016 , respectively. Accumulated goodwill impairments related to the Asset Management segment were $2.1 million at December 1, 2017 and 2016 , and goodwill prior to these impairments was $5.1 million at both December 1, 2017 and 2016 . The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2017 2016 Balance, at beginning of period $ 1,640,653 $ 1,656,588 Translation adjustments 6,436 (15,935 ) Balance, at end of period $ 1,647,089 $ 1,640,653 |
Summary of Finite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2017 and 2016 (in thousands): November 30, 2017 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,412 $ — $ (50,983 ) $ 75,429 11.3 Trade name 129,370 — (17,557 ) 111,813 30.3 Exchange and clearing organization membership interests and registrations 9,164 (613 ) — 8,551 N/A Total $ 264,946 $ (613 ) $ (68,540 ) $ 195,793 November 30, 2016 Weighted average remaining lives (years) Gross cost Disposals (1) Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 125,381 $ — $ — $ (42,283 ) $ 83,098 12.1 Trade name 128,052 — — (13,720 ) 114,332 31.3 Exchange and clearing organization membership interests and registrations 11,704 (1,379 ) (1,284 ) — 9,041 N/A Total $ 265,137 $ (1,379 ) $ (1,284 ) $ (56,003 ) $ 206,471 (1) Activity is primarily related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business. |
Schedule of Indefinite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2017 and 2016 (in thousands): November 30, 2017 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,412 $ — $ (50,983 ) $ 75,429 11.3 Trade name 129,370 — (17,557 ) 111,813 30.3 Exchange and clearing organization membership interests and registrations 9,164 (613 ) — 8,551 N/A Total $ 264,946 $ (613 ) $ (68,540 ) $ 195,793 November 30, 2016 Weighted average remaining lives (years) Gross cost Disposals (1) Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 125,381 $ — $ — $ (42,283 ) $ 83,098 12.1 Trade name 128,052 — — (13,720 ) 114,332 31.3 Exchange and clearing organization membership interests and registrations 11,704 (1,379 ) (1,284 ) — 9,041 N/A Total $ 265,137 $ (1,379 ) $ (1,284 ) $ (56,003 ) $ 206,471 (1) Activity is primarily related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business. |
Future Amortization Expense Related to Intangible Assets | The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Year ending November 30, 2018 $ 12,198 Year ending November 30, 2019 12,198 Year ending November 30, 2020 12,198 Year ending November 30, 2021 12,198 Year ending November 30, 2022 12,198 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings at November 30, 2017 and 2016 include the following and mature in one year or less (in thousands): November 30, 2017 2016 Bank loans (1) $ 304,651 $ 372,301 Secured revolving loan facilities — 57,086 Floating rate puttable notes 108,240 96,455 Equity-linked notes 23,324 — Total short-term borrowings $ 436,215 $ 525,842 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and us, with original maturities of three months or less. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): Effective Interest Rate November 30, Maturity 2017 2016 Unsecured long-term debt 5.125% Senior Notes April 13, 2018 3.46% 682,338 817,813 8.500% Senior Notes July 15, 2019 4.00% 728,872 778,367 2.375% Euro Medium Term Notes May 20, 2020 2.42% 593,334 528,250 6.875% Senior Notes April 15, 2021 4.40% 808,157 823,797 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,389 3,848 5.125% Senior Notes January 20, 2023 4.55% 615,703 618,355 4.850% Senior Notes (1) January 15, 2027 4.93% 736,357 — 6.450% Senior Debentures June 8, 2027 5.46% 375,794 377,806 3.875% Convertible Senior Debentures (2) November 1, 2029 3.50% 324,779 346,187 6.250% Senior Debentures January 15, 2036 6.03% 512,040 512,396 6.500% Senior Notes January 20, 2043 6.09% 420,990 421,333 Structured notes (3) (4) Various Various 614,091 255,203 Total long-term debt $ 6,416,844 $ 5,483,355 (1) These senior notes with a principal amount of $750.0 million were issued on January 17, 2017. The carrying value includes a decrease of $8.1 million associated with an interest rate swap based on its designation as a fair value hedge. See Note 2, Summary of Significant Accounting Policies , and Note 5, Derivative Financial Instruments , for further information. (2) The change in fair value of the conversion feature embedded in the debentures, which is included in Principal transaction revenues in our Consolidated Statements of Earnings, was not material for the years ended November 30, 2017 , 2016 and 2015 . (3) The carrying value includes $607.0 million and $248.9 million of notes carried at fair value at November 30, 2017 and 2016 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transaction revenues. A weighted average coupon rate is not meaningful, as substantially all of the structured notes are carried at fair value. (4) Of the $614.1 million of structured notes at November 30, 2017 , $7.1 million matures in 2018, $6.0 million matures in 2019, $25.0 million matures in 2022 and the remaining $576.0 million matures in 2024 or thereafter. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Item Effected [Line Items] | |
Changes in Projected Benefit Obligation | The following tables summarize the changes in the projected benefit obligation, the fair value of the assets and the funded status of the plan (in thousands): Year Ended November 30, 2017 2016 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 58,731 $ 58,330 Service cost 450 400 Interest cost 2,232 2,311 Actuarial losses 2,327 862 Administrative expenses paid (395 ) (461 ) Benefits paid (2,786 ) (2,711 ) Projected benefit obligation, end of period $ 60,559 $ 58,731 Change in plan assets: Fair value of assets, beginning of period $ 49,992 $ 47,031 Benefits paid (2,786 ) (2,711 ) Administrative expenses paid (395 ) (461 ) Actual return on plan assets 5,138 3,133 Contributions 1,000 3,000 Fair value of assets, end of period $ 52,949 $ 49,992 Funded status at end of period $ (7,610 ) $ (8,739 ) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2017 2016 Consolidated statements of financial condition: Liabilities $ 7,610 $ 8,739 Accumulated other comprehensive income, before taxes: Net losses $ (6,092 ) $ (5,901 ) |
Components of Net Periodic Pension (Benefit) Cost | The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2017 2016 2015 Components of net periodic pension cost: Service cost $ 450 $ 400 $ 250 Interest cost on projected benefit obligation 2,232 2,311 2,340 Expected return on plan assets (3,021 ) (2,917 ) (3,357 ) Net amortization 19 — — Settlement losses — — 244 Net periodic pension cost $ (320 ) $ (206 ) $ (523 ) |
Components of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income | Year Ended November 30, 2017 2016 2015 Amounts recognized in Other comprehensive income: Net losses arising during the period $ 210 $ 646 $ 7,890 Amortization of net loss (19 ) — — Settlements during the period — — (244 ) Total losses recognized in Other comprehensive income $ 191 $ 646 $ 7,646 Net losses recognized in net periodic benefit cost and Other comprehensive income $ (129 ) $ 440 $ 7,123 |
Assumptions Used to Determine the Present Value of the Projected Benefit Obligations and Net Periodic Pension Costs | The assumptions used to determine the actuarial present value of the projected obligation and net periodic pension benefit cost are as follows: Year Ended November 30, 2017 2016 2015 Discount rate used to determine benefit obligation 3.60 % 3.90 % 4.10 % Weighted average assumptions used to determine net pension cost: Discount rate 3.90 % 4.10 % 4.30 % Expected long-term rate of return on plan assets 6.25 % 6.25 % 6.75 % |
Expected Benefit Payments | Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2018 $ 2,312 2019 3,030 2020 2,527 2021 2,137 2022 2,989 2023 through 2027 24,274 |
Summary of Fair Value of Plan Assets | Plan Assets - The following tables present the fair value of plan assets by level within the fair value hierarchy (in thousands): At November 30, 2017 Level 2 Total Plan assets (1): Common collective trusts $ 52,949 $ 52,949 Total plan assets $ 52,949 $ 52,949 (1) There are no plan assets classified within Levels 1 and 3 of the fair value hierarchy. At November 30, 2016 Level 1 Level 2 Total Plan assets (1): Cash and cash equivalents $ 1,135 $ — $ 1,135 Listed equity securities (2) 32,342 — 32,342 Fixed income securities: Corporate debt securities — 4,906 4,906 Foreign corporate debt securities — 1,835 1,835 U.S. government securities 5,370 — 5,370 Agency mortgage-backed securities — 3,330 3,330 CMBS — 591 591 ABS — 483 483 Total plan assets $ 38,847 $ 11,145 $ 49,992 (1) There are no plan assets classified within Level 3 of the fair value hierarchy. (2) Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies. |
German Pension Plan | |
Item Effected [Line Items] | |
Changes in Projected Benefit Obligation | The following tables summarize the changes in the projected benefit obligation and the components of net periodic pension cost (in thousands): Year Ended November 30, 2017 2016 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 24,166 $ 23,545 Interest cost 426 529 Actuarial loss (gain) (91 ) 1,157 Benefits paid (1,233 ) (1,104 ) Currency adjustment 2,976 39 Projected benefit obligation, end of period $ 26,244 $ 24,166 Funded status at end of period $ (26,244 ) $ (24,166 ) Th |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2017 2016 Consolidated statements of financial condition: Liabilities $ 26,244 $ 24,166 Accumulated other comprehensive income, before taxes: Net losses $ (5,305 ) $ (5,748 ) |
Components of Net Periodic Pension (Benefit) Cost | The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2017 2016 2015 Components of net periodic pension cost: Interest cost on projected benefit obligation $ 426 $ 529 $ 523 Net amortization 353 326 325 Net periodic pension cost $ 779 $ 855 $ 848 |
Components of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income | Year Ended November 30, 2017 2016 2015 Amounts recognized in Other comprehensive income: Net (gain) loss arising during the period $ (91 ) $ 1,157 $ (39 ) Amortization of net loss (353 ) (326 ) (325 ) Total loss (gain) recognized in Other comprehensive income $ (444 ) $ 831 $ (364 ) Net losses recognized in net periodic benefit cost and Other comprehensive income $ 335 $ 1,686 $ 484 |
Assumptions Used to Determine the Present Value of the Projected Benefit Obligations and Net Periodic Pension Costs | The following are assumptions used to determine the actuarial present value of the projected benefit obligation and net periodic pension benefit cost: Year Ended November 30, 2017 2016 2015 Projected benefit obligation: Discount rate 1.80% 1.70% 2.20% Rate of compensation increase (1) N/A N/A N/A Net periodic pension benefit cost: Discount rate 1.70% 2.20% 2.10% Rate of compensation increase (1) N/A N/A N/A (1) There were no active participants of the pension plan at November 30, 2017 and 2016 . |
Expected Benefit Payments | Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2018 $ 1,303 2019 1,275 2020 1,329 2021 1,339 2022 1,320 2023 through 2027 6,571 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Compensation Related Costs [Abstract] | |
Schedule of Components of Compensation Cost | The components of total compensation cost associated with certain of our compensation plans are as follows (in millions): Year Ended November 30, 2017 2016 2015 Components of compensation cost: Restricted cash awards $ 251.6 $ 263.7 $ 249.2 Restricted stock and RSUs (1) 26.6 23.5 57.9 Profit sharing plan 6.0 6.0 6.1 Total compensation cost $ 284.2 $ 293.2 $ 313.2 (1) Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan. This compensation cost was approximately $227,000 , $150,000 and $399,000 for the years ended November 30, 2017 , 2016 and 2015 , respectively. Absent actual forfeitures or cancellations or accelerations, the annual compensation cost for these awards will be recognized as follows (in millions): Year Ended November 30, 2017 2018 2019 Thereafter Total Restricted cash awards $ 16.5 $ 24.0 $ 23.6 $ 52.9 $ 117.0 |
Schedule of Remaining Unamortized Amounts Related to Certain Compensation Plans | Remaining unamortized amounts related to certain compensation plans at November 30, 2017 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 38.7 2 Restricted cash awards 481.6 3 Total $ 520.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Total Income Taxes Allocated | Total income taxes were allocated as follows (in thousands): Year Ended November 30, 2017 2016 2015 Income tax expense $ 147,340 $ 14,566 $ 18,898 Stockholders’ equity, compensation expense for tax purposes less than amounts recognized for financial reporting purposes — 4,186 5,935 |
Components of Provision for Income Tax Expense | The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2017 2016 2015 Current: U.S. Federal $ 147,065 $ 27,473 $ (45,007 ) U.S. state and local 30,611 6,196 (28,260 ) Foreign 12,910 (5,090 ) 3,369 Total current 190,586 28,579 (69,898 ) Deferred: U.S. Federal (53,157 ) (11,249 ) 74,085 U.S. state and local 1,760 (4,819 ) 22,811 Foreign 8,151 2,055 (8,100 ) Total deferred (43,246 ) (14,013 ) 88,796 Total income tax expense $ 147,340 $ 14,566 $ 18,898 |
Schedule of Components of Income before Income Tax Expense | The following table presents the U.S. and non-U.S. components of income before income tax expense (in thousands): Year Ended November 30, 2017 2016 2015 U.S. $ 403,445 $ 34,178 $ 82,515 Non-U.S. (1) 101,479 (4,206 ) 31,712 Income before income tax expense $ 504,924 $ 29,972 $ 114,227 (1) For purposes of this table, non-U.S. income is defined as income generated from operations |
Reconciliation of Effective Tax Rate to U.S. Federal Statutory Income Tax Rate | Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2017 2016 2015 Amount Percent Amount Percent Amount Percent Computed expected income taxes $ 176,724 35.0 % $ 10,490 35.0 % $ 39,979 35.0 % Increase (decrease) in income taxes resulting from: State and city income taxes, net of Federal income tax benefit 21,041 4.2 124 0.5 (3,542 ) (3.1 ) International operations (including foreign rate differential) (11,577 ) (2.3 ) (3,404 ) (11.4 ) (11,474 ) (10.0 ) Tax exempt income (3,850 ) (0.8 ) (4,640 ) (15.5 ) (6,789 ) (5.9 ) Foreign tax credits (32,974 ) (6.5 ) — — (7,240 ) (6.3 ) Non-deductible Jefferies Bache wind down costs — — — — 3,225 2.8 Meals and entertainment 4,129 0.8 4,640 15.5 5,232 4.6 Excess stock detriment 406 0.1 9,755 32.6 — — Federal benefits related to prior year tax filings (3,786 ) (0.8 ) (2,928 ) (9.8 ) 199 0.1 Other, net (2,773 ) (0.5 ) 529 1.7 (692 ) (0.7 ) Total income tax expense $ 147,340 29.2 % $ 14,566 48.6 % $ 18,898 16.5 % |
Roll Forward of Gross Unrecognized Tax Benefits | The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2017 2016 2015 Balance at beginning of period $ 109,527 $ 107,902 $ 126,662 Increases based on tax positions related to the current period 18,619 5,045 — Increases based on tax positions related to prior periods 7,310 1,447 2,818 Decreases based on tax positions related to prior periods (5,912 ) (4,520 ) (3,883 ) Decreases related to settlements with taxing authorities — (347 ) (17,695 ) Balance at end of period $ 129,544 $ 109,527 $ 107,902 |
Significant Components of Deferred Tax Assets and Liabilities | The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2017 2016 Deferred tax assets: Compensation and benefits $ 376,642 $ 285,542 Net operating loss 20,094 11,021 Long-term debt 26,476 60,707 Accrued expenses and other 121,746 124,269 Sub-total 544,958 481,539 Valuation allowance (14,217 ) (9,464 ) Total deferred tax assets 530,741 472,075 Deferred tax liabilities: Amortization of intangibles 102,739 107,474 Other 17,282 21,630 Total deferred tax liabilities 120,021 129,104 Net deferred tax asset, included in Other assets $ 410,720 $ 342,971 |
Earliest Tax Year Subject to Examination in the Major Tax Jurisdictions in which the Company Operates | The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate: Jurisdiction Tax Year United States 2007 California 2007 New Jersey 2010 New York State 2001 New York City 2003 United Kingdom 2014 Hong Kong 2011 India 2010 Italy 2012 |
Commitments, Contingencies an44
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following table summarizes our commitments at November 30, 2017 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Maximum Payout Equity commitments (1) $ — $ 0.2 $ 18.6 $ — $ 117.8 $ 136.6 Loan commitments (1) 261.9 — 56.5 — — 318.4 Mortgage-related and other purchase commitments — 177.7 — — — 177.7 Underwriting commitments 11.0 — — — — 11.0 Forward starting reverse repos (2) 3,211.1 — — — — 3,211.1 Forward starting repos (2) 2,987.9 — — — — 2,987.9 Other unfunded commitments (1) 218.8 122.9 18.3 153.0 — 513.0 Total commitments $ 6,690.7 $ 300.8 $ 93.4 $ 153.0 $ 117.8 $ 7,355.7 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At November 30, 2017 , $3,207.4 million within forward starting securities purchased under agreements to resell and $2,982.8 million within securities sold under agreements to repurchase settled within three business days. |
Future Minimum Lease Commitments under Leases | At November 30, 2017 , future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2018 through 2022 and the aggregate amount thereafter, are as follows (in thousands): Fiscal Year Operating Leases 2018 $ 59,464 2019 57,698 2020 50,254 2021 48,616 2022 51,466 Thereafter 630,991 Total $ 898,489 |
Minimum Future Lease Payments | At November 30, 2017 , minimum future lease payments are as follows (in thousands): Fiscal Year Minimum Future Lease Payments 2018 $ 1,513 2019 189 Net minimum lease payments 1,702 Less amount representing interest 28 Present value of net minimum lease payments $ 1,674 |
Guarantees | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at November 30, 2017 (in millions): Expected Maturity Date (Fiscal Years) 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 24,454.8 $ 2,420.2 $ 150.5 $ 45.9 $ 466.3 $ 27,537.7 Written derivative contracts—credit related — 42.0 20.5 155.7 — 218.2 Total derivative contracts $ 24,454.8 $ 2,462.2 $ 171.0 $ 201.6 $ 466.3 $ 27,755.9 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Brokers and Dealers [Abstract] | |
Net Capital, Adjusted and Excess Net Capital | At November 30, 2017 , Jefferies’ net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies $ 1,418,930 $ 1,330,169 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Segment Reporting [Abstract] | |
Net Revenues, Expenses and Total Assets by Segment | Our net revenues, non-interest expenses and earnings before income taxes by reportable business segment are summarized below (in millions): Year Ended November 30, 2017 2016 2015 Capital Markets: Net revenues $ 3,174.4 $ 2,339.3 $ 2,415.1 Non-interest expenses 2,636.2 2,321.5 2,325.2 Earnings before income taxes $ 538.2 $ 17.8 $ 89.9 Asset Management: Net revenues $ 23.7 $ 75.3 $ 60.1 Non-interest expenses 57.0 63.1 35.8 Earnings (loss) before income taxes $ (33.3 ) $ 12.2 $ 24.3 Total: Net revenues $ 3,198.1 $ 2,414.6 $ 2,475.2 Non-interest expenses 2,693.2 2,384.6 2,361.0 Earnings before income taxes $ 504.9 $ 30.0 $ 114.2 The following table summarizes our total assets by reportable business segment (in millions): November 30, 2017 2016 Total Assets by Reportable Business Segment: Capital Markets $ 38,620.4 $ 35,931.8 Asset Management 1,085.3 1,009.5 Total assets $ 39,705.7 $ 36,941.3 |
Net Revenues by Geographic Region | Net revenues by geographic region were as follows (in millions): Year Ended November 30, 2017 2016 2015 Americas (1) $ 2,602.7 $ 1,870.4 $ 1,887.0 Europe (2) 489.6 458.0 510.0 Asia 105.8 86.2 78.2 Net revenues $ 3,198.1 $ 2,414.6 $ 2,475.2 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Interest Income, Other Revenues and Investment Income Attributable to Related Party Private Equity Funds | The following table presents revenues and service charges related to our investment in Private Equity Related Funds (in thousands): Year Ended November 30, 2017 2016 2015 Other revenues and investment income (loss) $ (11,718 ) $ (2,328 ) $ (26,179 ) Service charges 726 760 1,341 |
Schedule of Related Party Transactions | • We sold securities to Leucadia during the periods presented below at fair value for cash. There was no gain or loss on these transactions. Date Amount (in millions) August 2017 $ 7.1 April 2017 21.9 February 2017 25.6 August 2015 124.4 • We provide capital markets and asset management services to Leucadia and its affiliates. The following table presents the revenues earned by type of services provided (in thousands): Year Ended November 30, 2017 2016 2015 Investment banking and advisory $ 14,700 $ 1,786 $ 21,185 Asset management — 155 400 Commissions and other fees 69 88 43 Other revenues 274 — — The following is a description of related party transactions with Leucadia and its affiliates: • Under a service agreement, we provide services to and receive services from Leucadia (in millions): Year Ended November 30, 2017 2016 2015 Charges to Leucadia for services provided $ 42.2 $ 38.8 $ 40.7 Charges from Leucadia for services received 14.2 11.2 6.1 • Receivables from and payables to Leucadia, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition: Year Ended November 30, 2017 2016 Receivable from Leucadia $ 2.5 $ 2.8 Payable to Leucadia 3.1 1.9 |
Exit Costs (Tables)
Exit Costs (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following summarizes our recorded restructuring and impairment costs (in thousands): Year Ended November 30, 2016 2015 Severance costs $ 279 $ 30,327 Accelerated amortization of restricted stock and restricted cash awards 41 7,922 Accelerated amortization of capitalized software — 19,745 Contract termination costs 1,234 11,247 Other expenses 300 3,853 Total $ 1,854 $ 73,094 Restructuring and exit costs are wholly attributed to our Capital Markets reportable business segment and were recorded in the following categories in our Consolidated Statements of Earnings (in thousands): Year Ended November 30, 2016 2015 Compensation and benefits $ 320 $ 38,249 Technology and communications 1,234 30,992 Professional services — 2,508 Other expenses 300 1,345 Total $ 1,854 $ 73,094 |
Schedule of Restructuring Reserve | The following summarizes our restructuring reserve activity (in thousands): Severance costs Other costs Contract termination costs Total restructuring costs Accelerated amortization of restricted stock and restricted cash awards Accelerated amortization of capitalized software Impairments Total Liability at November 30, 2015 $ 4,805 $ — $ — $ 4,805 Expenses 279 300 1,234 1,813 $ 41 $ — $ — $ 1,854 Payments (5,084 ) (300 ) (1,234 ) (6,618 ) Liability at November 30, 2016 $ — $ — $ — $ — |
Selected Quarterly Financial 49
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Statements of Earnings | The following is a summary of unaudited quarterly statements of earnings for the years ended November 30, 2017 and 2016 (in thousands): Three Months Ended November 30, 2017 August 31, 2017 May 31, 2017 February 28, 2017 Total revenues $ 1,081,499 $ 1,048,331 $ 1,038,955 $ 1,009,797 Net revenues 822,610 800,692 779,294 795,513 Earnings before income taxes 142,280 122,264 116,181 124,199 Net earnings attributable to Jefferies Group LLC 89,913 83,815 69,751 114,019 Three Months Ended November 30, 2016 August 31, 2016 May 31, 2016 February 29, 2016 Total revenues $ 939,960 $ 863,841 $ 936,917 $ 493,105 Net revenues 741,769 654,450 719,408 298,987 Earnings (loss) before income taxes 96,529 80,722 102,597 (249,876 ) Net earnings (loss) attributable to Jefferies Group LLC 87,180 41,169 53,898 (166,813 ) |
Organization and Basis of Pre50
Organization and Basis of Presentation (Detail) | Nov. 22, 2017 | Nov. 30, 2017USD ($)segment | Nov. 30, 2016USD ($) | Nov. 30, 2015USD ($) |
Organization And Basis Of Presentation [Line Items] | ||||
Debt called amount | $ 350,000,000 | $ 500,000,000 | ||
Redemption price as percentage of principal amount redeemed | 100.00% | |||
Number of operating segments | segment | 2 | |||
3.875% Convertible Senior Debentures due 2029 | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Debt instrument interest rate | 3.875% | |||
Aggregate principal amount of debt issued | $ 345,000,000 | |||
Debt called amount | $ 20,200,000 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Furniture, fixtures and equipment under capital leases | $ 431.7 | $ 374.2 | |
Leasehold improvements | 214 | 200.5 | |
Accumulated depreciation and amortization | 348 | 309.2 | |
Depreciation and amortization | $ 51.7 | $ 47.9 | $ 78.7 |
Percentage of tax benefit realized upon ultimate settlement with taxing authority | 50.00% | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Hedging relationship effective percentage | 80.00% | ||
Useful life of premises and equipment | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Hedging relationship effective percentage | 125.00% | ||
Useful life of premises and equipment | 10 years |
Accounting Developments (Detail
Accounting Developments (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction of member's paid in capital | $ (5,895,601) | $ (5,538,103) |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction of member's paid in capital | $ 6,100 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Financial instruments owned: | ||
Corporate equity securities | $ 1,880,553 | $ 1,854,864 |
Corporate debt securities | 3,287,336 | 2,700,025 |
CDOs and CLOs | 169,170 | 108,660 |
U.S. government and federal agency securities | 1,308,673 | 2,446,123 |
Municipal securities | 710,513 | 735,726 |
Sovereign obligations | 2,417,459 | 2,423,048 |
Loans and other receivables | 1,667,885 | 1,639,105 |
Derivatives | 163,833 | 360,534 |
Investments at fair value | 94,400 | 96,369 |
Total financial instruments owned, excluding Investments at fair value based on NAV | 13,977,967 | 13,785,203 |
Counterparty and Cash Collateral Netting | (3,254,216) | (4,255,998) |
Securities received as collateral | 103 | 0 |
Financial instruments sold, not yet purchased: | ||
Corporate equity securities | 1,488,845 | 1,594,524 |
Corporate debt securities | 1,689,347 | 1,718,947 |
U.S. government and federal agency securities | 1,430,737 | 976,497 |
Sovereign obligations | 2,173,635 | 2,629,344 |
Loans | 1,152,310 | 802,355 |
Derivatives | 236,950 | 637,535 |
Total financial instruments sold, not yet purchased | 8,171,929 | 8,359,202 |
Counterparty and Cash Collateral Netting | (3,426,249) | (4,229,213) |
Other secured financings | 41,768 | |
Short-term borrowings | 23,324 | 0 |
Long-term debt | 606,956 | 248,856 |
Obligation to return securities received as collateral | 103 | 0 |
Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 1,479,371 | 999,266 |
Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 520,534 | 316,985 |
Financial instruments sold, not yet purchased: | ||
Commercial mortgage-backed securities | 105 | |
Other asset-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 278,240 | 104,498 |
Level 1 | ||
Financial instruments owned: | ||
Corporate equity securities | 1,801,453 | 1,742,463 |
Corporate debt securities | 0 | 0 |
CDOs and CLOs | 0 | 0 |
U.S. government and federal agency securities | 1,269,230 | 2,389,397 |
Municipal securities | 0 | 0 |
Sovereign obligations | 1,381,552 | 1,432,556 |
Loans and other receivables | 0 | 0 |
Derivatives | 160,168 | 3,825 |
Investments at fair value | 0 | 0 |
Total financial instruments owned, excluding Investments at fair value based on NAV | 4,612,403 | 5,568,241 |
Securities received as collateral | 103 | |
Financial instruments sold, not yet purchased: | ||
Corporate equity securities | 1,456,675 | 1,577,405 |
Corporate debt securities | 0 | 0 |
U.S. government and federal agency securities | 1,430,737 | 976,497 |
Sovereign obligations | 1,216,643 | 1,375,590 |
Loans | 0 | 0 |
Derivatives | 247,919 | 568 |
Total financial instruments sold, not yet purchased | 4,351,974 | 3,930,060 |
Other secured financings | 0 | |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Obligation to return securities received as collateral | 103 | |
Level 1 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Commercial mortgage-backed securities | 0 | |
Level 1 | Other asset-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 0 | 0 |
Level 2 | ||
Financial instruments owned: | ||
Corporate equity securities | 57,091 | 90,662 |
Corporate debt securities | 3,261,300 | 2,675,020 |
CDOs and CLOs | 139,166 | 54,306 |
U.S. government and federal agency securities | 39,443 | 56,726 |
Municipal securities | 710,513 | 708,469 |
Sovereign obligations | 1,035,907 | 990,492 |
Loans and other receivables | 1,620,581 | 1,557,233 |
Derivatives | 3,248,586 | 4,606,278 |
Investments at fair value | 946 | 0 |
Total financial instruments owned, excluding Investments at fair value based on NAV | 12,292,053 | 12,059,672 |
Securities received as collateral | 0 | |
Financial instruments sold, not yet purchased: | ||
Corporate equity securities | 32,122 | 16,806 |
Corporate debt securities | 1,688,825 | 1,718,424 |
U.S. government and federal agency securities | 0 | 0 |
Sovereign obligations | 956,992 | 1,253,754 |
Loans | 1,148,824 | 801,977 |
Derivatives | 3,399,239 | 4,856,310 |
Total financial instruments sold, not yet purchased | 7,226,002 | 8,647,271 |
Other secured financings | 41,350 | |
Short-term borrowings | 23,324 | |
Long-term debt | 606,956 | 248,856 |
Obligation to return securities received as collateral | 0 | |
Level 2 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 1,453,294 | 960,494 |
Level 2 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 508,115 | 296,405 |
Financial instruments sold, not yet purchased: | ||
Commercial mortgage-backed securities | 0 | |
Level 2 | Other asset-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 217,111 | 63,587 |
Level 3 | ||
Financial instruments owned: | ||
Corporate equity securities | 22,009 | 21,739 |
Corporate debt securities | 26,036 | 25,005 |
CDOs and CLOs | 30,004 | 54,354 |
U.S. government and federal agency securities | 0 | 0 |
Municipal securities | 0 | 27,257 |
Sovereign obligations | 0 | 0 |
Loans and other receivables | 47,304 | 81,872 |
Derivatives | 9,295 | 6,429 |
Investments at fair value | 93,454 | 96,369 |
Total financial instruments owned, excluding Investments at fair value based on NAV | 327,727 | 413,288 |
Securities received as collateral | 0 | |
Financial instruments sold, not yet purchased: | ||
Corporate equity securities | 48 | 313 |
Corporate debt securities | 522 | 523 |
U.S. government and federal agency securities | 0 | 0 |
Sovereign obligations | 0 | 0 |
Loans | 3,486 | 378 |
Derivatives | 16,041 | 9,870 |
Total financial instruments sold, not yet purchased | 20,202 | 11,084 |
Other secured financings | 418 | |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Obligation to return securities received as collateral | 0 | |
Level 3 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 26,077 | 38,772 |
Level 3 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | 12,419 | 20,580 |
Financial instruments sold, not yet purchased: | ||
Commercial mortgage-backed securities | 105 | |
Level 3 | Other asset-backed securities | ||
Financial instruments owned: | ||
Mortgage- and asset-backed securities, assets | $ 61,129 | $ 40,911 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Investments at fair value | $ 20,200 | $ 24,300 | |
Transfers of assets from Level 2 to Level 3 | 33,800 | 179,600 | $ 236,700 |
Transfers of assets from Level 3 to Level 2 | 60,400 | 133,200 | 85,800 |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (24,600) | (128,500) | (34,300) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 1,700 | 1,900 | 8,300 |
Aggregate fair value of loans and other receivables | 55,100 | 29,800 | |
Loan and other receivables greater than 90 days past due | 37,400 | 18,900 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 578,014 | 857,337 | |
Other secured financings | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of liabilities from Level 3 to Level 2 | 51,600 | ||
Loan liabilities | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of liabilities from Level 3 to Level 2 | 10,500 | ||
CDOs and CLOs | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 19,400 | 69,800 | |
Transfers of assets from Level 3 to Level 2 | 15,400 | 34,900 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (19,858) | (14,918) | (66,332) |
RMBS | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 19,600 | 17,500 | 30,400 |
Transfers of assets from Level 3 to Level 2 | 26,800 | 16,300 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (10,817) | (9,612) | (12,951) |
CMBS | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 17,400 | 11,300 | |
Transfers of assets from Level 3 to Level 2 | 6,300 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (5,346) | (7,550) | (3,813) |
Municipal securities | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 28,700 | 21,500 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (1,547) | (1,462) | 10 |
Other ABS | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 16,900 | ||
Transfers of assets from Level 3 to Level 2 | 26,800 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (17,705) | (14,381) | (990) |
Loans and other receivables | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 13,800 | 20,100 | |
Transfers of assets from Level 3 to Level 2 | 40,900 | 37,800 | 4,700 |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 24,794 | (42,566) | (14,755) |
Corporate debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 8,300 | 28,100 | 7,400 |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (3,723) | (16,230) | (11,013) |
Corporate equity securities | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 3 to Level 2 | 19,200 | 7,700 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 3,262 | (8,463) | 11,154 |
Investments at fair value | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 31,900 | 74,700 | |
Transfers of assets from Level 3 to Level 2 | 15,800 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | $ 6,361 | (13,278) | $ 64,380 |
3.875% Convertible Senior Debentures due 2029 | Leucadia | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Debt instrument interest rate | 3.875% | ||
Volatility curve used in valuing embedded option | 252 days | ||
Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 99,700 | 99,900 | |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | |||
Asset reported NAV or percentage of reported enterprise fair value | 21,100 | 131,500 | |
Liability reported NAV or percentage of reported enterprise fair value | $ 4,200 | $ 1,600 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 215,385 | $ 210,817 |
Unfunded Commitments | 19,084 | 20,295 |
Equity Long/Short Hedge Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 33,176 | 34,446 |
Unfunded Commitments | $ 0 | $ 0 |
Percentage of investments in liquidation | 1.00% | 2.00% |
Fixed Income and High Yield Hedge Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 417 | $ 772 |
Unfunded Commitments | 0 | 0 |
Fund of Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 189 | 230 |
Unfunded Commitments | 0 | 0 |
Equity Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 26,798 | 42,179 |
Unfunded Commitments | $ 19,084 | 20,295 |
Estimated period for the liquidation of the underlying assets, minimum | 1 year | |
Estimated period for the liquidation of the underlying assets, maximum | 6 years | |
Multi-asset Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 154,805 | 133,190 |
Unfunded Commitments | $ 0 | $ 0 |
Percentage of investments redeemable | 12.00% | 12.00% |
Notice period redemption of investment prior written notice | 30 days | 30 days |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Assets: | |||
Total gains/(losses) (realized and unrealized) | $ (24,600) | $ (128,500) | $ (34,300) |
Liabilities: | |||
Total gains/ losses (realized and unrealized) | 1,700 | 1,900 | 8,300 |
Corporate equity securities | |||
Liabilities: | |||
Beginning Balance | 313 | 38 | 38 |
Total gains/ losses (realized and unrealized) | 60 | 0 | 0 |
Purchases | (373) | 0 | 0 |
Sales | 48 | 313 | 0 |
Settlements | 0 | (38) | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 |
Ending Balance | 48 | 313 | 38 |
Change in unrealized gains/ (losses) relating to instruments still held | 0 | 0 | 0 |
Corporate debt securities | |||
Liabilities: | |||
Beginning Balance | 523 | 0 | 223 |
Total gains/ losses (realized and unrealized) | (1) | (27) | (110) |
Purchases | 0 | 0 | (6,804) |
Sales | 0 | 550 | 6,691 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 |
Ending Balance | 522 | 523 | 0 |
Change in unrealized gains/ (losses) relating to instruments still held | 1 | 0 | 0 |
CMBS | |||
Liabilities: | |||
Beginning Balance | 0 | ||
Total gains/ losses (realized and unrealized) | 105 | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Issuances | 0 | ||
Net transfers into/ (out of) Level 3 | 0 | ||
Ending Balance | 105 | 0 | |
Change in unrealized gains/ (losses) relating to instruments still held | (105) | ||
Net derivatives | |||
Liabilities: | |||
Beginning Balance | 3,441 | (242) | (4,638) |
Total gains/ losses (realized and unrealized) | (1,638) | (1,760) | (7,310) |
Purchases | 0 | 0 | (6,705) |
Sales | 0 | 11,101 | 13,522 |
Settlements | 5,558 | 31 | 37 |
Issuances | 456 | 2,067 | 2,437 |
Net transfers into/ (out of) Level 3 | (1,071) | (7,756) | 2,415 |
Ending Balance | 6,746 | 3,441 | (242) |
Change in unrealized gains/ (losses) relating to instruments still held | (17,740) | (6,458) | 4,754 |
Loans | |||
Liabilities: | |||
Beginning Balance | 378 | 10,469 | 14,450 |
Total gains/ losses (realized and unrealized) | 196 | 0 | (163) |
Purchases | (385) | 0 | (2,059) |
Sales | 2,485 | 378 | 229 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 812 | (10,469) | (1,988) |
Ending Balance | 3,486 | 378 | 10,469 |
Change in unrealized gains/ (losses) relating to instruments still held | (2,639) | 0 | 104 |
Other secured financings | |||
Liabilities: | |||
Beginning Balance | 418 | 544 | 30,825 |
Total gains/ losses (realized and unrealized) | (418) | (126) | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | (15,704) |
Issuances | 0 | 0 | 36,995 |
Net transfers into/ (out of) Level 3 | 0 | 0 | (51,572) |
Ending Balance | 0 | 418 | 544 |
Change in unrealized gains/ (losses) relating to instruments still held | 0 | (126) | 0 |
Embedded conversion option | |||
Liabilities: | |||
Beginning Balance | 0 | 693 | |
Total gains/ losses (realized and unrealized) | (693) | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Issuances | 0 | ||
Net transfers into/ (out of) Level 3 | 0 | ||
Ending Balance | 0 | ||
Change in unrealized gains/ (losses) relating to instruments still held | 693 | ||
Corporate equity securities | |||
Assets: | |||
Beginning Balance | 21,739 | 40,906 | 20,964 |
Total gains/(losses) (realized and unrealized) | 3,262 | (8,463) | 11,154 |
Purchases | 896 | 3,365 | 21,385 |
Sales | (1,623) | (49) | (6,391) |
Settlements | 52 | (671) | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (2,317) | (13,349) | (6,206) |
Ending Balance | 22,009 | 21,739 | 40,906 |
Change in unrealized gains/(losses) relating to instruments still held | 2,515 | 291 | 11,424 |
Corporate debt securities | |||
Assets: | |||
Beginning Balance | 25,005 | 25,876 | 22,766 |
Total gains/(losses) (realized and unrealized) | (3,723) | (16,230) | (11,013) |
Purchases | 36,850 | 27,242 | 21,534 |
Sales | (34,077) | (29,347) | (14,636) |
Settlements | (1,968) | (7,223) | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 3,949 | 24,687 | 7,225 |
Ending Balance | 26,036 | 25,005 | 25,876 |
Change in unrealized gains/(losses) relating to instruments still held | (3,768) | (18,799) | (9,443) |
CDOs and CLOs | |||
Assets: | |||
Beginning Balance | 54,354 | 85,092 | 124,650 |
Total gains/(losses) (realized and unrealized) | (19,858) | (14,918) | (66,332) |
Purchases | 112,239 | 52,316 | 104,998 |
Sales | (110,907) | (69,394) | (107,381) |
Settlements | (367) | (2,750) | (5,754) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (5,457) | 4,008 | 34,911 |
Ending Balance | 30,004 | 54,354 | 85,092 |
Change in unrealized gains/(losses) relating to instruments still held | (2,262) | (7,628) | (48,514) |
Municipal securities | |||
Assets: | |||
Beginning Balance | 27,257 | 0 | 0 |
Total gains/(losses) (realized and unrealized) | (1,547) | (1,462) | 10 |
Purchases | 0 | 0 | 0 |
Sales | (25,710) | 0 | 0 |
Settlements | 0 | 0 | (21,551) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 28,719 | 21,541 |
Ending Balance | 0 | 27,257 | 0 |
Change in unrealized gains/(losses) relating to instruments still held | 0 | (1,462) | 0 |
Sovereign obligations | |||
Assets: | |||
Beginning Balance | 0 | 120 | 0 |
Total gains/(losses) (realized and unrealized) | 5 | 47 | |
Purchases | 0 | 1,032 | |
Sales | (125) | (1,031) | |
Settlements | 0 | 0 | |
Issuances | 0 | 0 | |
Net transfers into/ (out of) Level 3 | 0 | 72 | |
Ending Balance | 0 | 120 | |
Change in unrealized gains/(losses) relating to instruments still held | 0 | 39 | |
RMBS | |||
Assets: | |||
Beginning Balance | 38,772 | 70,263 | 82,557 |
Total gains/(losses) (realized and unrealized) | (10,817) | (9,612) | (12,951) |
Purchases | 6,805 | 623 | 18,961 |
Sales | (26,193) | (12,249) | (31,762) |
Settlements | (115) | (931) | (597) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 17,625 | (9,322) | 14,055 |
Ending Balance | 26,077 | 38,772 | 70,263 |
Change in unrealized gains/(losses) relating to instruments still held | (7,201) | (1,095) | (4,498) |
CMBS | |||
Assets: | |||
Beginning Balance | 20,580 | 14,326 | 26,655 |
Total gains/(losses) (realized and unrealized) | (5,346) | (7,550) | (3,813) |
Purchases | 3,275 | 3,132 | 3,480 |
Sales | (5,263) | (2,024) | (10,146) |
Settlements | (1,018) | (2,229) | (6,861) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 191 | 14,925 | 5,011 |
Ending Balance | 12,419 | 20,580 | 14,326 |
Change in unrealized gains/(losses) relating to instruments still held | (6,976) | (7,243) | (3,205) |
Other ABS | |||
Assets: | |||
Beginning Balance | 40,911 | 42,925 | 2,294 |
Total gains/(losses) (realized and unrealized) | (17,705) | (14,381) | (990) |
Purchases | 77,508 | 133,986 | 42,922 |
Sales | (8,613) | (102,952) | (1,299) |
Settlements | (25,799) | (8,769) | (2) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (5,173) | (9,898) | 0 |
Ending Balance | 61,129 | 40,911 | 42,925 |
Change in unrealized gains/(losses) relating to instruments still held | (12,562) | (18,056) | (254) |
Loans and other receivables | |||
Assets: | |||
Beginning Balance | 81,872 | 189,289 | 97,258 |
Total gains/(losses) (realized and unrealized) | 24,794 | (42,566) | (14,755) |
Purchases | 63,768 | 75,264 | 792,345 |
Sales | (53,095) | (69,262) | (576,536) |
Settlements | (34,622) | (46,851) | (124,365) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (35,413) | (24,002) | 15,342 |
Ending Balance | 47,304 | 81,872 | 189,289 |
Change in unrealized gains/(losses) relating to instruments still held | 17,451 | (52,003) | (16,802) |
Investments at fair value | |||
Assets: | |||
Beginning Balance | 96,369 | 53,120 | 53,224 |
Total gains/(losses) (realized and unrealized) | 6,361 | (13,278) | 64,380 |
Purchases | 1,981 | 26,228 | 5,510 |
Sales | (10,157) | (542) | (124,852) |
Settlements | (1,100) | (1,107) | (4,093) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 31,948 | 58,951 |
Ending Balance | 93,454 | 96,369 | 53,120 |
Change in unrealized gains/(losses) relating to instruments still held | $ 8,385 | $ (13,208) | $ (388) |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Nov. 30, 2017USD ($)$ / shares | Nov. 30, 2016USD ($)$ / sharesT / d | Nov. 30, 2015USD ($) | Nov. 30, 2014USD ($) | |
Corporate equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | $ 22,009 | $ 21,739 | $ 40,906 | $ 20,964 |
Corporate debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 26,036 | 25,005 | 25,876 | 22,766 |
CDOs and CLOs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 30,004 | 54,354 | 85,092 | 124,650 |
Residential mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 26,077 | 38,772 | 70,263 | 82,557 |
CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 12,419 | 20,580 | 14,326 | 26,655 |
Other ABS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 61,129 | 40,911 | 42,925 | 2,294 |
Loans and other receivables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 47,304 | 81,872 | 189,289 | 97,258 |
Investments at fair value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 93,454 | 96,369 | $ 53,120 | $ 53,224 |
Financial instruments owned | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 9,295 | 6,429 | ||
Financial instruments owned | Corporate equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 18,109 | 19,799 | ||
Financial instruments owned | Corporate debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 26,036 | 25,005 | ||
Financial instruments owned | CDOs and CLOs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 30,004 | 33,016 | ||
Financial instruments owned | Residential mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 26,077 | 38,772 | ||
Financial instruments owned | CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 12,419 | 20,580 | ||
Financial instruments owned | Other ABS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 61,129 | 40,911 | ||
Financial instruments owned | Loans and other receivables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 46,121 | 54,347 | ||
Financial instruments owned | Investments at fair value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 42,907 | |||
Financial instruments owned | Investments at fair value | Private equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | 77,423 | |||
Financial Instruments Sold, Not Yet Purchased | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of financial instruments owned | $ | $ 9,870 | |||
Fair value of financial instruments sold, not yet purchased | $ | $ 16,041 | |||
Level 3 | Financial instruments owned | Equity swaps | Comparable pricing | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Comparable asset price (in dollars per share) | $ 102 | |||
Level 3 | Financial instruments owned | Interest rate swaps | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Constant default rate / Credit spread | 8.00% | |||
Level 3 | Financial instruments owned | Credit default swaps | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Constant default rate / Credit spread | 2.65% | |||
Level 3 | Financial instruments owned | Total return swaps | Minimum | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 101 | |||
Level 3 | Financial instruments owned | Total return swaps | Maximum | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 106 | |||
Level 3 | Financial instruments owned | Total return swaps | Weighted Average | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 103 | |||
Level 3 | Financial instruments owned | Corporate equity securities | Present value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Average silver production (in tons per day) | T / d | 666 | |||
Level 3 | Financial instruments owned | Corporate equity securities | Non-exchange-traded securities | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Underlying stock price (in dollars per share) | 6 | |||
Level 3 | Financial instruments owned | Corporate equity securities | Non-exchange-traded securities | Comparable pricing | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Underlying stock price (in dollars per share) | $ 218 | |||
Comparable asset price (in dollars per share) | 7 | 11 | ||
Level 3 | Financial instruments owned | Corporate equity securities | Non-exchange-traded securities | Minimum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 3 | |||
Underlying stock price (in dollars per share) | 3 | |||
Level 3 | Financial instruments owned | Corporate equity securities | Non-exchange-traded securities | Maximum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 75 | |||
Underlying stock price (in dollars per share) | 75 | |||
Level 3 | Financial instruments owned | Corporate equity securities | Non-exchange-traded securities | Weighted Average | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 33 | |||
Underlying stock price (in dollars per share) | 15 | |||
Level 3 | Financial instruments owned | Corporate debt securities | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 10 | |||
Transaction level (in dollars per share) | $ 30 | |||
Estimated recovery percentage | 17.00% | |||
Level 3 | Financial instruments owned | Corporate debt securities | Convertible bond model | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 8.00% | 9.00% | ||
Volatility | 40.00% | 40.00% | ||
Level 3 | Financial instruments owned | CDOs and CLOs | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Constant prepayment rate | 20.00% | |||
Constant default rate / Credit spread | 2.00% | |||
Level 3 | Financial instruments owned | CDOs and CLOs | Minimum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 3.00% | |||
Constant prepayment rate | 10.00% | |||
Constant default rate / Credit spread | 2.00% | |||
Loss severity | 25.00% | 25.00% | ||
Yield | 7.00% | |||
Level 3 | Financial instruments owned | CDOs and CLOs | Minimum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 8.00% | 28.00% | ||
Level 3 | Financial instruments owned | CDOs and CLOs | Maximum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 26.00% | |||
Constant prepayment rate | 20.00% | |||
Constant default rate / Credit spread | 4.00% | |||
Loss severity | 30.00% | 70.00% | ||
Yield | 17.00% | |||
Level 3 | Financial instruments owned | CDOs and CLOs | Maximum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 40.00% | 38.00% | ||
Level 3 | Financial instruments owned | CDOs and CLOs | Weighted Average | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 12.00% | |||
Constant prepayment rate | 19.00% | |||
Constant default rate / Credit spread | 2.00% | |||
Loss severity | 26.00% | 40.00% | ||
Yield | 12.00% | |||
Level 3 | Financial instruments owned | CDOs and CLOs | Weighted Average | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 22.00% | 31.00% | ||
Level 3 | Financial instruments owned | Residential mortgage-backed securities | Minimum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 6.00% | |||
Constant prepayment rate | 0.00% | |||
Constant default rate / Credit spread | 1.00% | |||
Loss severity | 35.00% | |||
Yield | 2.00% | |||
Cumulative loss rate | 3.00% | |||
Duration (years) | 2 years | |||
Level 3 | Financial instruments owned | Residential mortgage-backed securities | Maximum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 10.00% | |||
Constant prepayment rate | 11.00% | |||
Constant default rate / Credit spread | 7.00% | |||
Loss severity | 100.00% | |||
Yield | 10.00% | |||
Cumulative loss rate | 19.00% | |||
Duration (years) | 4 years | |||
Level 3 | Financial instruments owned | Residential mortgage-backed securities | Weighted Average | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 8.00% | |||
Constant prepayment rate | 5.00% | |||
Constant default rate / Credit spread | 3.00% | |||
Loss severity | 62.00% | |||
Yield | 6.00% | |||
Cumulative loss rate | 10.00% | |||
Duration (years) | 3 years | |||
Level 3 | Financial instruments owned | CMBS | Minimum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 2.00% | |||
Yield | 6.00% | |||
Cumulative loss rate | 8.00% | 5.00% | ||
Duration (years) | 1 year | |||
Level 3 | Financial instruments owned | CMBS | Minimum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 52 | |||
Estimated recovery percentage | 26.00% | |||
Level 3 | Financial instruments owned | CMBS | Maximum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 26.00% | |||
Yield | 11.00% | |||
Cumulative loss rate | 65.00% | 95.00% | ||
Duration (years) | 3 years | |||
Level 3 | Financial instruments owned | CMBS | Maximum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 56 | |||
Estimated recovery percentage | 32.00% | |||
Level 3 | Financial instruments owned | CMBS | Weighted Average | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 12.00% | |||
Yield | 8.00% | |||
Cumulative loss rate | 44.00% | 39.00% | ||
Duration (years) | 2 years | |||
Level 3 | Financial instruments owned | CMBS | Weighted Average | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 54 | |||
Estimated recovery percentage | 28.00% | |||
Level 3 | Financial instruments owned | Other ABS | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 100 | $ 72 | ||
Level 3 | Financial instruments owned | Other ABS | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 14.00% | |||
Level 3 | Financial instruments owned | Other ABS | Minimum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 5.00% | |||
Constant prepayment rate | 4.00% | |||
Constant default rate / Credit spread | 0.00% | |||
Loss severity | 0.00% | |||
Yield | 4.00% | |||
Cumulative loss rate | 0.00% | |||
Duration (years) | 1 year | |||
Level 3 | Financial instruments owned | Other ABS | Maximum | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 39.00% | |||
Constant prepayment rate | 20.00% | |||
Constant default rate / Credit spread | 31.00% | |||
Loss severity | 100.00% | |||
Yield | 17.00% | |||
Cumulative loss rate | 33.00% | |||
Duration (years) | 6 years | |||
Level 3 | Financial instruments owned | Other ABS | Weighted Average | Discounted cash flows | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 9.00% | |||
Constant prepayment rate | 14.00% | |||
Constant default rate / Credit spread | 13.00% | |||
Loss severity | 90.00% | |||
Yield | 15.00% | |||
Cumulative loss rate | 23.00% | |||
Duration (years) | 2 years | |||
Level 3 | Financial instruments owned | Loans and other receivables | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transaction level (in dollars per share) | $ 0.42 | |||
Estimated recovery percentage | 76.00% | |||
EBITDA multiple | 3.3 | |||
Level 3 | Financial instruments owned | Loans and other receivables | Present value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Average silver production (in tons per day) | 666 | |||
Level 3 | Financial instruments owned | Loans and other receivables | Minimum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 54 | |||
Discount rate/yield | 2.00% | |||
Level 3 | Financial instruments owned | Loans and other receivables | Minimum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 13.00% | 6.00% | ||
Level 3 | Financial instruments owned | Loans and other receivables | Maximum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 100 | |||
Discount rate/yield | 4.00% | |||
Level 3 | Financial instruments owned | Loans and other receivables | Maximum | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 107.00% | 50.00% | ||
Level 3 | Financial instruments owned | Loans and other receivables | Weighted Average | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 95 | |||
Discount rate/yield | 3.00% | |||
Level 3 | Financial instruments owned | Loans and other receivables | Weighted Average | Scenario analysis | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Estimated recovery percentage | 78.00% | 37.00% | ||
Level 3 | Financial instruments owned | Investments at fair value | Private equity securities | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 7 | $ 25,815,720 | ||
Transaction level (in dollars per share) | $ 250 | |||
Level 3 | Financial instruments owned | Investments at fair value | Private equity securities | Minimum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transaction level (in dollars per share) | 3 | |||
Level 3 | Financial instruments owned | Investments at fair value | Private equity securities | Maximum | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transaction level (in dollars per share) | 250 | |||
Level 3 | Financial instruments owned | Investments at fair value | Private equity securities | Weighted Average | Market approach | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transaction level (in dollars per share) | $ 172 | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Equity options | Option model | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Volatility | 45.00% | |||
Default probability | 0.00% | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Equity options | Weighted Average | Default rate | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Default probability | 0.00% | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Equity swaps | Weighted Average | Comparable pricing | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Comparable asset price (in dollars per share) | $ 102 | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Unfunded commitments | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 99 | |||
Discount rate/yield | 4.00% | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Total return swaps | Minimum | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 101 | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Total return swaps | Maximum | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | 106 | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Total return swaps | Weighted Average | Market approach | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ 103 | |||
Level 3 | Financial Instruments Sold, Not Yet Purchased | Variable funding note swaps | Discounted cash flows | Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Discount rate/yield | 26.00% | |||
Constant prepayment rate | 20.00% | 20.00% | ||
Constant default rate / Credit spread | 2.00% | 2.00% | ||
Loss severity | 25.00% | 25.00% | ||
Yield | 16.00% |
Fair Value Disclosures - Summ58
Fair Value Disclosures - Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk for Loans and Other Receivables and Loan Commitments Measured at Fair Value under Fair Value Option (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Financial instruments owned: | |||
Loans and other receivables | $ 22,088 | $ (68,812) | $ (17,389) |
Loans | |||
Financial instruments sold: | |||
Gains (losses) due to changes in instrument specific credit risk | 0 | 9 | (162) |
Loan commitments | |||
Financial instruments sold: | |||
Gains (losses) due to changes in instrument specific credit risk | 230 | 5,509 | 7,502 |
Long-term debt | |||
Financial instruments sold: | |||
Gains (losses) due to changes in instrument specific credit risk | (34,609) | (10,745) | 0 |
Other changes in fair value | 47,291 | 30,995 | 0 |
Short-term borrowings | |||
Financial instruments sold: | |||
Other changes in fair value | $ (681) | $ 0 | $ 0 |
Fair Value Disclosures - Summ59
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 (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Financial instruments owned: | ||
Loans and other receivables | $ 752,076 | $ 1,325,938 |
Loans and other receivables on nonaccrual status and/or greater than 90 days past due | 159,462 | 205,746 |
Long-term debt and short-term borrowings | 32,839 | 20,202 |
Loans and other receivables greater than 90 days past due | $ 38,700 | $ 64,600 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Aug. 01, 2017 | Aug. 01, 2016 | Feb. 28, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, impairment loss | $ 613 | $ 1,284 | ||||
Exchange ownership interests and registrations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, impairment loss | $ 44 | $ 1,300 | $ 569 | 613 | 1,284 | |
Nonrecurring | Exchange ownership interests and registrations | Other expenses | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, impairment loss | 600 | 1,300 | $ 1,300 | |||
Nonrecurring | Capital Markets Reporting Unit | Exchange ownership interests and registrations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, carrying value | 2,672 | 2,716 | ||||
Exchange ownership interest, impairment loss | 613 | 1,284 | ||||
Nonrecurring | Capital Markets Reporting Unit | Exchange ownership interests and registrations | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, fair value | 2,672 | 2,716 | ||||
Nonrecurring | Capital Markets Reporting Unit | Exchange ownership interests and registrations | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, fair value | $ 0 | $ 0 | ||||
Nonrecurring | Futures Reporting Unit | Exchange ownership interests and registrations | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, carrying value | 4,178 | |||||
Exchange ownership interest, impairment loss | 1,289 | |||||
Nonrecurring | Futures Reporting Unit | Exchange ownership interests and registrations | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, fair value | 4,178 | |||||
Nonrecurring | Futures Reporting Unit | Exchange ownership interests and registrations | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Exchange ownership interest, fair value | $ 0 |
Derivative Financial Instrume61
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Detail) $ in Thousands | Nov. 30, 2017USD ($)Contract | Nov. 30, 2016USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net amounts per Consolidated Statements of Financial Condition, Assets | $ 163,833 | $ 360,534 |
Net amounts per Consolidated Statements of Financial Condition, Liabilities | 236,950 | 637,535 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 1,290,618 | 715,042 |
Fair Value, Liabilities | 1,375,936 | 1,095,606 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (1,268,043) | (691,009) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (1,268,043) | (691,009) |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 1,340,384 | 2,836,457 |
Fair Value, Liabilities | 1,275,027 | 2,638,773 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (1,319,895) | (2,751,650) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (1,274,900) | (2,638,774) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 787,047 | 1,065,034 |
Fair Value, Liabilities | 1,012,236 | 1,132,370 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (666,278) | (813,340) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (883,306) | (899,431) |
Interest rate contracts | Rule change by Chicago Mercantile Exchange | ||
Derivatives, Fair Value [Line Items] | ||
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (1,000,000) | |
Derivatives designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 0 | |
Fair Value, Liabilities | 2,420 | |
Derivatives designated as accounting hedges | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | |
Number of Contracts, Assets | Contract | 0 | |
Fair Value, Liabilities | $ 2,420 | |
Number of Contracts, Liabilities | Contract | 1 | |
Derivatives not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 3,418,049 | |
Fair Value, Liabilities | 3,660,779 | |
Derivatives not designated as accounting hedges | Interest rate contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,957 | $ 2,275 |
Number of Contracts, Assets | Contract | 33,972 | 24,300 |
Fair Value, Liabilities | $ 66 | $ 24 |
Number of Contracts, Liabilities | Contract | 8,515 | 29,773 |
Derivatives not designated as accounting hedges | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,334,878 | $ 2,835,812 |
Number of Contracts, Assets | Contract | 2,711 | 3,596 |
Fair Value, Liabilities | $ 1,263,994 | $ 2,636,469 |
Number of Contracts, Liabilities | Contract | 2,948 | 3,445 |
Derivatives not designated as accounting hedges | Interest rate contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 380,223 | $ 444,159 |
Number of Contracts, Assets | Contract | 1,804 | 1,136 |
Fair Value, Liabilities | $ 444,716 | $ 522,965 |
Number of Contracts, Liabilities | Contract | 1,346 | 1,627 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 157 | $ 0 |
Number of Contracts, Assets | Contract | 2,045 | 376 |
Fair Value, Liabilities | $ 20 | $ 0 |
Number of Contracts, Liabilities | Contract | 101 | 686 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 303,091 | $ 529,609 |
Number of Contracts, Assets | Contract | 4,338 | 7,448 |
Fair Value, Liabilities | $ 286,582 | $ 516,869 |
Number of Contracts, Liabilities | Contract | 4,361 | 7,633 |
Derivatives not designated as accounting hedges | Equity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,288,295 | $ 712,767 |
Number of Contracts, Assets | Contract | 2,654,555 | 2,820,702 |
Fair Value, Liabilities | $ 1,375,832 | $ 1,095,582 |
Number of Contracts, Liabilities | Contract | 2,090,935 | 2,410,956 |
Derivatives not designated as accounting hedges | Equity contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 78,812 | $ 72,041 |
Number of Contracts, Assets | Contract | 1,847 | 1,077 |
Fair Value, Liabilities | $ 247,750 | $ 67,033 |
Number of Contracts, Liabilities | Contract | 1,722 | 1,191 |
Derivatives not designated as accounting hedges | Commodity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 209 | $ 0 |
Number of Contracts, Assets | Contract | 3,723 | 1,356 |
Fair Value, Liabilities | $ 18 | $ 0 |
Number of Contracts, Liabilities | Contract | 3,819 | 920 |
Derivatives not designated as accounting hedges | Credit contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 5,506 | $ 645 |
Number of Contracts, Assets | Contract | 18 | 6 |
Fair Value, Liabilities | $ 8,613 | $ 2,304 |
Number of Contracts, Liabilities | Contract | 27 | 8 |
Derivatives not designated as accounting hedges | Credit contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 24,921 | $ 19,225 |
Number of Contracts, Assets | Contract | 110 | 213 |
Fair Value, Liabilities | $ 33,188 | $ 25,503 |
Number of Contracts, Liabilities | Contract | 164 | 184 |
Derivative Financial Instrume62
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ 6,033 | $ 0 | $ 0 |
Unrealized and realized gains (losses) | (292,662) | (652,663) | (132,124) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 2,959 | (34,319) | (37,601) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 4,735 | 18,122 | 36,101 |
Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (303,953) | (650,815) | (137,636) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (4,911) | 1,310 | 21,409 |
Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 8,508 | 13,039 | (14,397) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | (2,091) | 0 | 0 |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ 8,124 | $ 0 | $ 0 |
Derivative Financial Instrume63
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Detail) $ in Thousands | Nov. 30, 2017USD ($) |
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 | $ 142,201 |
OTC derivative assets having maturity period of 1 to 5 years | 174,404 |
OTC derivative assets having maturity period of greater than 5 years | 83,558 |
OTC derivative assets cross-maturity netting | (89,382) |
Total OTC derivative assets, net of cross-maturity netting | 310,781 |
Cross product counterparty netting | (23,732) |
Total OTC derivative assets included in Financial instruments owned | 287,049 |
OTC derivative liabilities having maturity period of 0 to 12 months | 114,032 |
OTC derivative liabilities having maturity period of 1 to 5 years | 286,786 |
OTC derivative liabilities having maturity period of greater than 5 years | 158,497 |
OTC derivative liabilities cross-maturity netting | (89,382) |
Total OTC derivative liabilities, net of cross-maturity netting | 469,933 |
Cross product counterparty netting | (23,732) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased | 446,201 |
Exchange traded derivative assets | 22,700 |
Cash collateral received | 146,000 |
Exchange traded derivative liabilities, with fair value | 108,700 |
Cash collateral pledged | 318,000 |
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 | 3,082 |
OTC derivative assets having maturity period of 1 to 5 years | 6,084 |
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 | 9,166 |
OTC derivative liabilities having maturity period of 0 to 12 months | 78 |
OTC derivative liabilities having maturity period of 1 to 5 years | 172,088 |
OTC derivative liabilities having maturity period of greater than 5 years | 2,920 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 175,086 |
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 | 567 |
OTC derivative assets having maturity period of 1 to 5 years | 105 |
OTC derivative assets having maturity period of greater than 5 years | 9,510 |
OTC derivative assets cross-maturity netting | (5,625) |
Total OTC derivative assets, net of cross-maturity netting | 4,557 |
OTC derivative liabilities having maturity period of 0 to 12 months | 104 |
OTC derivative liabilities having maturity period of 1 to 5 years | 16,540 |
OTC derivative liabilities having maturity period of greater than 5 years | 3,953 |
OTC derivative liabilities cross-maturity netting | (5,625) |
Total OTC derivative liabilities, net of cross-maturity netting | 14,972 |
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 | 34,228 |
OTC derivative assets having maturity period of 1 to 5 years | 1,581 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (193) |
Total OTC derivative assets, net of cross-maturity netting | 35,616 |
OTC derivative liabilities having maturity period of 0 to 12 months | 28,920 |
OTC derivative liabilities having maturity period of 1 to 5 years | 1,517 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (193) |
Total OTC derivative liabilities, net of cross-maturity netting | 30,244 |
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 | 76,213 |
OTC derivative assets having maturity period of 1 to 5 years | 231 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (30) |
Total OTC derivative assets, net of cross-maturity netting | 76,414 |
OTC derivative liabilities having maturity period of 0 to 12 months | 59,874 |
OTC derivative liabilities having maturity period of 1 to 5 years | 157 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (30) |
Total OTC derivative liabilities, net of cross-maturity netting | 60,001 |
Fixed income forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative liabilities having maturity period of 0 to 12 months | 8,512 |
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 | 8,512 |
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 | 28,111 |
OTC derivative assets having maturity period of 1 to 5 years | 166,403 |
OTC derivative assets having maturity period of greater than 5 years | 74,048 |
OTC derivative assets cross-maturity netting | (83,534) |
Total OTC derivative assets, net of cross-maturity netting | 185,028 |
OTC derivative liabilities having maturity period of 0 to 12 months | 16,544 |
OTC derivative liabilities having maturity period of 1 to 5 years | 96,484 |
OTC derivative liabilities having maturity period of greater than 5 years | 151,624 |
OTC derivative liabilities cross-maturity netting | (83,534) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 181,118 |
Derivative Financial Instrume64
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Detail) $ in Thousands | Nov. 30, 2017USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of OTC derivatives assets, Counterparty credit quality, A- or higher | $ 163,871 |
Fair value of OTC derivatives assets, Counterparty credit quality, BBB- to BBB+ | 40,565 |
Fair value of OTC derivatives assets, Counterparty credit quality, BB+ or lower | 48,338 |
Fair value of OTC derivatives assets, Counterparty credit quality, Unrated | 34,275 |
Total OTC derivative assets included in Financial instruments owned | $ 287,049 |
Derivative Financial Instrume65
Derivative Financial Instruments - External Credit Ratings of Underlyings or Referenced Assets (Details) - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 49 | $ 54 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 218.2 | 383.6 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 3 | 54 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 129.1 | 122.4 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 46 | 0 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 89.1 | $ 261.2 |
Derivative Financial Instrume66
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative instruments in a liability position | $ 95.1 | $ 70.6 |
Collateral posted for derivative instruments in a liability position | 80.8 | 44.4 |
Additional collateral required for derivative instruments in a liability position | $ 14.3 | $ 26.1 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Banking and Thrift [Abstract] | ||
Securities Loaned, Gross | $ 2,843,911 | $ 2,819,132 |
Securities Borrowed, Gross | 7,721,803 | 7,743,562 |
Securities received as collateral | 103 | 0 |
Obligation to return securities received as collateral | 103 | 0 |
Fair value of securities received as collateral | 27,100,000 | 25,500,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 578,014 | $ 857,337 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 2,843,911 | $ 2,819,132 |
Repurchase Agreements | 19,829,249 | 17,012,332 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 22,673,263 | 19,831,464 |
Corporate equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 2,353,798 | 2,046,243 |
Repurchase Agreements | 214,413 | 66,291 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,568,211 | 2,112,534 |
Corporate debt securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 470,908 | 731,276 |
Repurchase Agreements | 2,336,702 | 1,907,888 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,807,610 | 2,639,164 |
Mortgage- and asset-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,562,268 | 2,171,480 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,562,268 | 2,171,480 |
U.S. government and federal agency securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 19,205 | 41,613 |
Repurchase Agreements | 11,792,534 | 9,232,624 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 11,811,739 | 9,274,237 |
Municipal securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 444,861 | 553,010 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 444,861 | 553,010 |
Sovereign obligations | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,023,530 | 2,625,079 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 2,023,633 | 2,625,079 |
Loans and other receivables | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 454,941 | 455,960 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | $ 454,941 | $ 455,960 |
Collateralized Transactions -69
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,843,911 | $ 2,819,132 |
Repurchase agreements | 19,829,249 | 17,012,332 |
Obligation to return securities received as collateral | 103 | |
Total | 22,673,263 | 19,831,464 |
Overnight and Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,676,940 | 2,131,891 |
Repurchase agreements | 10,780,474 | 9,147,176 |
Obligation to return securities received as collateral | 103 | |
Total | 12,457,517 | 11,279,067 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 39,673 |
Repurchase agreements | 4,058,228 | 2,008,119 |
Obligation to return securities received as collateral | 0 | |
Total | 4,058,228 | 2,047,792 |
31-90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities lending arrangements | 741,971 | 104,516 |
Repurchase agreements | 3,211,464 | 3,809,533 |
Obligation to return securities received as collateral | 0 | |
Total | 3,953,435 | 3,914,049 |
Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities lending arrangements | 425,000 | 543,052 |
Repurchase agreements | 1,779,083 | 2,047,504 |
Obligation to return securities received as collateral | 0 | |
Total | $ 2,204,083 | $ 2,590,556 |
Collateralized Transactions - S
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Assets | ||
Gross amounts | $ 7,721,803 | $ 7,743,562 |
Netting in consolidated statement of financial condition | 0 | 0 |
Net amounts in consolidated statement of financial condition | 7,721,803 | 7,743,562 |
Additional amounts available for setoff | (966,712) | (710,611) |
Available collateral | (1,032,629) | (647,290) |
Net amount | 5,722,462 | 6,385,661 |
Reverse repurchase agreements, Gross amounts | 14,858,297 | 14,083,144 |
Reverse repurchase agreements, Netting in consolidated statement of financial condition | (11,168,738) | (10,220,656) |
Reverse repurchase agreements, Net amounts in consolidated statement of financial condition | 3,689,559 | 3,862,488 |
Reverse repurchase agreements, Additional amounts available for setoff | (463,973) | (176,275) |
Reverse repurchase agreements, Available collateral | (3,207,147) | (3,591,654) |
Reverse repurchase agreements, Net amount | 18,439 | 94,559 |
Liabilities | ||
Gross amounts | 2,843,911 | 2,819,132 |
Netting in consolidated statement of financial condition | 0 | 0 |
Net amounts in consolidated statement of financial condition | 2,843,911 | 2,819,132 |
Additional amounts available for setoff | (966,712) | (710,611) |
Available collateral | (1,795,408) | (2,064,299) |
Net amount | 81,791 | 44,222 |
Repurchase agreements, Gross amounts | 19,829,249 | 17,012,332 |
Repurchase agreements, Netting in consolidated statement of financial condition | (11,168,738) | (10,220,656) |
Repurchase agreements, Net amounts in consolidated statement of financial condition | 8,660,511 | 6,791,676 |
Repurchase agreements, Additional amounts available for setoff | (463,973) | (176,275) |
Repurchase agreements, Available collateral | (7,067,512) | (5,780,909) |
Repurchase agreements, Net amount | 1,129,026 | $ 834,492 |
Securities received as collateral | ||
Assets | ||
Gross amounts | 103 | |
Netting in consolidated statement of financial condition | 0 | |
Net amounts in consolidated statement of financial condition | 103 | |
Additional amounts available for setoff | 0 | |
Available collateral | (103) | |
Net amount | 0 | |
Obligation to return securities received as collateral | ||
Liabilities | ||
Gross amounts | 103 | |
Netting in consolidated statement of financial condition | 0 | |
Net amounts in consolidated statement of financial condition | 103 | |
Additional amounts available for setoff | 0 | |
Available collateral | (103) | |
Net amount | $ 0 |
Collateralized Transactions -71
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Footnote) (Detail) - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Banking and Thrift [Abstract] | ||
Securities borrowing arrangements | $ 5,678.6 | $ 6,337.5 |
Securities borrowing arrangements, collateral | 5,516.7 | 6,146 |
Securities borrowing arrangements, repurchase agreements | 1,084.4 | 810.4 |
Securities borrowing arrangements, pledged securities collateral | $ 1,115.9 | $ 834.2 |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Transfers and Servicing [Abstract] | |||
Transferred assets | $ 4,552.9 | $ 5,786 | $ 5,770.5 |
Proceeds on new securitizations | 4,594.5 | 5,809 | 5,811.3 |
Cash flows received on retained interests | $ 28.7 | $ 28.2 | $ 31.2 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Detail) - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 773.6 | $ 837.7 |
Liabilities | 772.1 | 837.2 |
Secured financing included in inventory and eliminated | 44.1 | 57.6 |
Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1.5 | 1.3 |
Liabilities | 0.2 | 0.2 |
Cash | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | 6.5 | 16.1 |
Cash | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1.1 | 0.7 |
Financial instruments owned | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | 37.6 | 86.6 |
Financial instruments owned | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 0.4 | 0.6 |
Securities purchased under agreement to resell | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | 729.3 | 733.5 |
Securities purchased under agreement to resell | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Fees, interest and other receivables | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | 0.2 | 1.5 |
Fees, interest and other receivables | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Other secured financings | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 766.2 | 813.1 |
Other secured financings | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Other liabilities | Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 5.9 | 24.1 |
Other liabilities | Other | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 0.2 | $ 0.2 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Detail) - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Securitization Vehicles [Line Items] | ||
Total RMBS securitization assets | $ 6,383.5 | $ 7,584.9 |
Total CMBS securitization assets | 2,075.7 | 1,806.3 |
Total Collateralized loan obligations | 3,957.8 | 4,102.2 |
Consumer and other loans | 247.6 | 395.7 |
U.S. government agency RMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 28.2 | 31 |
U.S. government agency CMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 81.4 | 29.6 |
CLOs | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 20.3 | 37 |
Consumer and other loans | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | $ 47.8 | $ 25.3 |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Detail) - Nonconsolidated VIEs - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | $ 490 | $ 443.5 |
Carrying Amount, Liabilities | 8.9 | 4.8 |
Maximum exposure to loss | 1,874.4 | 1,257 |
VIE Assets | 10,546.5 | 9,467.5 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 163.5 | 263.3 |
Carrying Amount, Liabilities | 8.9 | 4.8 |
Maximum exposure to loss | 1,020.5 | 920 |
VIE Assets | 5,210.4 | 4,451.7 |
Consumer loan vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 254.8 | 90.3 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 759.8 | 219.6 |
VIE Assets | 2,322.7 | 985.5 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 23.7 | 37.6 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 45.4 | 63.6 |
VIE Assets | 75 | 155.6 |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 48 | 52.3 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum exposure to loss | 48.7 | 53.8 |
VIE Assets | $ 2,938.4 | $ 3,874.7 |
Securitization Activities - Add
Securitization Activities - Additional Information (Details) - USD ($) | Nov. 30, 2017 | Nov. 30, 2016 |
Transfers and Servicing [Abstract] | ||
Carrying value of assets resulting from transfers | $ 0 | |
Carrying value of liabilities resulting from transfers | $ 0 | $ 0 |
Variable Interest Entities - No
Variable Interest Entities - Non-consolidated VIEs - Additional Information (Detail) - USD ($) | Nov. 30, 2017 | Nov. 30, 2016 |
Variable Interest Entity [Line Items] | ||
Maximum exposure | $ 243,600,000 | |
Agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 1,829,600,000 | $ 1,002,200,000 |
Non agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 253,200,000 | 439,400,000 |
Related party private equity vehicles | JCP Entities | ||
Variable Interest Entity [Line Items] | ||
Equity commitments amount | 148,100,000 | 148,100,000 |
Funded equity commitments | 126,300,000 | 125,100,000 |
Carrying amount of equity investment | 23,700,000 | 37,600,000 |
Related party private equity vehicles | Jefferies Energy Partners I LP | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure | 3,000,000 | |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity commitments amount | 61,800,000 | 75,800,000 |
Funded equity commitments | 61,000,000 | 74,300,000 |
Carrying amount of equity investment | $ 48,000,000 | $ 52,300,000 |
Investments - Additional Inform
Investments - Additional Information (Details) | Nov. 30, 2017 |
Jefferies Capital Partners V L.P. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 11.00% |
SBI USA Fund L.P. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.00% |
Investments - Jefferies Finance
Investments - Jefferies Finance - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Guarantor Obligations [Line Items] | ||
Financial instruments owned, at fair value | $ 13,998,125 | $ 13,809,512 |
Jefferies Finance | ||
Guarantor Obligations [Line Items] | ||
Equity commitment | 750,000 | |
Total committed equity capitalization of JIFN | 1,500,000 | |
Funded portion of equity commitment to subsidiary | 636,200 | |
Unfunded portion of equity commitment to subsidiary | $ 113,800 | |
Extension period | 1 year | |
Termination notice period | 60 days | |
Funded portion of loan commitment | $ 0 | |
Loan commitment | 250,000 | |
Financial instruments owned, at fair value | 1,500 | |
Jefferies Finance | Committed advances | ||
Guarantor Obligations [Line Items] | ||
Committed line of credit facility amount | 500,000 | |
Other Assets | Jefferies Finance | ||
Guarantor Obligations [Line Items] | ||
Receivables under service agreement | $ 20,500 | |
Accounts expenses and other liabilities | Jefferies Finance | ||
Guarantor Obligations [Line Items] | ||
Payables under service agreement | $ 5,800 |
Investments - Summary of Select
Investments - Summary of Selected Financial Information for Jefferies Finance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
CLO placement fee revenues | $ 593,257 | $ 611,574 | $ 659,002 |
Jefferies Finance | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest income | 2,900 | 100 | 900 |
Unfunded commitment fees | 1,000 | 1,200 | 1,600 |
Total assets | 8,164,900 | 7,293,300 | |
Total liabilities | 6,892,600 | 6,352,300 | |
Total equity | 1,272,300 | 941,100 | |
Our total equity balance | 636,200 | 470,500 | |
Net earnings (loss) | 181,700 | (19,600) | 83,400 |
Origination and syndication fee revenues | 327,900 | 112,600 | 122,700 |
Origination fee expenses | 2,400 | 500 | 5,900 |
CLO placement fee revenues | 6,100 | 2,600 | 6,200 |
Derivative gains (losses) | (1,100) | 500 | 0 |
Underwriting fees | 0 | 0 | 1,300 |
Service fees | $ 50,700 | $ 46,100 | $ 51,700 |
Investments - Jefferies LoanCor
Investments - Jefferies LoanCore - Narrative (Detail) - USD ($) $ in Thousands | Oct. 31, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Guarantor Obligations [Line Items] | ||||
Proceeds from sale of Jefferies LoanCore | $ 173,105 | $ 0 | $ 0 | |
Brokers, dealers and clearing organizations | $ 2,226,768 | 3,290,404 | ||
Jefferies LoanCore | ||||
Guarantor Obligations [Line Items] | ||||
Ownership percentage | 48.50% | |||
Proceeds from sale of Jefferies LoanCore | $ 173,100 | |||
Period entitled to additional cash consideration | 5 years | |||
Brokers, dealers and clearing organizations | $ 8,300 |
Investments - Summary of Sele82
Investments - Summary of Selected Financial Information for Jefferies LoanCore (Detail) - Jefferies LoanCore - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total assets | $ 1,827,200 | |||
Total liabilities | 1,505,000 | |||
Total equity | 322,200 | |||
Our total equity balance | 156,300 | |||
Net earnings (loss) | $ 37,500 | 71,800 | $ 79,000 | |
Interest income and fees | $ 588 | 8,412 | 10,690 | |
Placement fees | 100 | 100 | 1,643 | |
Service fees | $ 190 | 200 | $ 241 | |
Reverse repurchase agreements | $ 68,100 |
Investments - JCP Fund V - Narr
Investments - JCP Fund V - Narrative (Details) - JCP Fund V - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment amount | $ 19,600,000 | $ 29,100,000 |
Unfunded portion of equity commitment to subsidiary | $ 10,100,000 | 11,300,000 |
Percent of financial information presented | 100.00% | |
Ownership percentage | 35.20% | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Total committed equity capitalization | $ 85,000,000 | $ 85,000,000 |
Investments - Summary of Sele84
Investments - Summary of Selected Financial Information for JCP Fund V (Details) - JCP Fund V - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Net losses from our investments in JCP Fund V | $ (10,700) | $ (1,100) | $ (24,300) | ||||||
Total assets | $ 55,788 | $ 82,689 | |||||||
Total liabilities | 96 | 73 | |||||||
Total partners’ capital | 55,692 | 82,616 | |||||||
Net increase (decrease) in net assets resulting from operations | $ (2,294) | $ (7,886) | $ (65,700) | $ (24,630) | $ 6,159 | $ (1,751) |
Investments - Epic Gas - Narrat
Investments - Epic Gas - Narrative (Details) - Epic Gas - USD ($) $ in Millions | Nov. 30, 2017 | Nov. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 21.10% | |
Investment amount | $ 22.2 | $ 21.5 |
Investments - Summary of Sele86
Investments - Summary of Selected Financial Information for Epic Gas (Details) - Epic Gas - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Total assets | $ 599.2 | $ 579 | ||||
Total liabilities | 340.2 | 315 | ||||
Total equity | 259 | 264 | ||||
Net earnings (loss) | $ (15.9) | $ (11.4) | $ (16.1) | $ (14.5) | $ (7.4) | $ (4.6) |
Investments - KCG - Narrative (
Investments - KCG - Narrative (Details) - KCG $ in Millions | 12 Months Ended |
Nov. 30, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 24.00% |
Advisory fees | $ 2.9 |
Investments - Summary of Sele88
Investments - Summary of Selected Financial Information for KCG (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Securities borrowed | $ 7,721,803 | $ 7,743,562 | ||
Securities loaned | 2,843,911 | 2,819,132 | ||
KCG | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net gains from our investment in KCG | $ 93,400 | 19,600 | $ 49,100 | |
Total assets | $ 6,261,300 | |||
Total liabilities | 4,904,000 | |||
Total equity | $ 1,357,300 | |||
Net earnings (loss) | 255,700 | $ 249,100 | ||
Securities borrowed | 9,200 | |||
Securities loaned | $ 9,200 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Goodwill [Roll Forward] | ||
Balance, at beginning of period | $ 1,640,653 | $ 1,656,588 |
Translation adjustments | 6,436 | (15,935) |
Balance, at end of period | 1,647,089 | 1,640,653 |
Capital Markets | ||
Goodwill [Roll Forward] | ||
Balance, at beginning of period | 1,637,653 | |
Balance, at end of period | 1,644,089 | 1,637,653 |
Accumulated goodwill impairments | 51,900 | 51,900 |
Goodwill, gross | 1,696,000 | 1,689,600 |
Asset management | ||
Goodwill [Roll Forward] | ||
Balance, at beginning of period | 3,000 | |
Balance, at end of period | 3,000 | 3,000 |
Accumulated goodwill impairments | 2,100 | 2,100 |
Goodwill, gross | $ 5,100 | $ 5,100 |
Goodwill and Intangible Asset90
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Aug. 01, 2017 | Aug. 01, 2016 | Feb. 28, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 1,647,089 | $ 1,640,653 | $ 1,656,588 | |||
Impairment losses | 613 | 1,284 | ||||
Aggregate amortization expense | 11,900 | 12,000 | $ 12,200 | |||
Exchange and clearing organization membership interests and registrations | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment losses | $ 44 | $ 1,300 | $ 569 | 613 | 1,284 | |
Capital Markets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 1,644,089 | $ 1,637,653 |
Goodwill and Intangible Asset91
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Aug. 01, 2017 | Aug. 01, 2016 | Feb. 28, 2017 | Nov. 30, 2017 | Nov. 30, 2016 |
Trade name | |||||
Total gross costs - intangible assets | $ 264,946 | $ 265,137 | |||
Disposals | (1,379) | ||||
Impairment losses | (613) | (1,284) | |||
Accumulated amortization - finite lived intangible assets | (68,540) | (56,003) | |||
Total net carrying amount - intangible assets | 195,793 | 206,471 | |||
Customer relationships | |||||
Trade name | |||||
Gross costs - finite lived intangible assets | 126,412 | 125,381 | |||
Accumulated amortization - finite lived intangible assets | (50,983) | (42,283) | |||
Net carrying amount - finite lived intangible assets | $ 75,429 | $ 83,098 | |||
Weighted average remaining lives (years) | 11 years 4 months | 12 years 1 month | |||
Trade name [Member] | |||||
Trade name | |||||
Gross costs - finite lived intangible assets | $ 129,370 | $ 128,052 | |||
Accumulated amortization - finite lived intangible assets | (17,557) | (13,720) | |||
Net carrying amount - finite lived intangible assets | $ 111,813 | $ 114,332 | |||
Weighted average remaining lives (years) | 30 years 4 months | 31 years 4 months | |||
Exchange and clearing organization membership interests and registrations | |||||
Trade name | |||||
Gross costs - indefinite lived intangible assets | $ 9,164 | $ 11,704 | |||
Disposals | (1,379) | ||||
Impairment losses | $ (44) | $ (1,300) | $ (569) | (613) | (1,284) |
Accumulated amortization - finite lived intangible assets | 0 | 0 | |||
Net carrying amount - indefinite lived intangible assets | $ 8,551 | $ 9,041 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Nov. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year ending November 30, 2018 | $ 12,198 |
Year ending November 30, 2019 | 12,198 |
Year ending November 30, 2020 | 12,198 |
Year ending November 30, 2021 | 12,198 |
Year ending November 30, 2022 | $ 12,198 |
Short-Term Borrowings (Detail)
Short-Term Borrowings (Detail) | Feb. 19, 2016USD ($) | Dec. 14, 2015USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Nov. 30, 2017EUR (€) |
Short-term Debt [Line Items] | |||||
Short-term borrowings | $ 436,215,000 | $ 525,842,000 | |||
Interest rate on short-term borrowings outstanding | 2.51% | 2.51% | |||
Average daily short-term borrowings | $ 482,400,000 | 399,600,000 | |||
Equity-linked notes | |||||
Short-term Debt [Line Items] | |||||
Short-term borrowings | 23,324,000 | 0 | |||
Equity-linked notes matured on July 18, 2017 | |||||
Short-term Debt [Line Items] | |||||
Aggregate principal amount of debt issued | 30,600,000 | ||||
Equity-linked notes matured on September 20, 2017 | |||||
Short-term Debt [Line Items] | |||||
Aggregate principal amount of debt issued | 4,200,000 | ||||
Equity-linked notes matured on December 7, 2017 | |||||
Short-term Debt [Line Items] | |||||
Aggregate principal amount of debt issued | 23,300,000 | ||||
Bank loans | |||||
Short-term Debt [Line Items] | |||||
Short-term borrowings | 304,651,000 | 372,301,000 | |||
Bank loans | Puttable Notes | |||||
Short-term Debt [Line Items] | |||||
Short-term borrowings | 108,240,000 | 96,455,000 | |||
Aggregate principal amount of debt issued | € | € 91,000,000 | ||||
Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Short-term borrowings | 0 | $ 57,086,000 | |||
Credit Facility | Demand Loan Facility | |||||
Short-term Debt [Line Items] | |||||
Revolving credit facility maximum principal amount | $ 25,000,000 | ||||
Credit Facility | Demand Loan Facility | LIBOR | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Credit Facility | Intraday Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Revolving credit facility maximum principal amount | $ 150,000,000 | ||||
Credit Facility | Intraday Credit Facility | Federal funds effective rate | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Credit Facility | Second Secured Revolving Loan Facility | |||||
Short-term Debt [Line Items] | |||||
Revolving credit facility maximum principal amount | $ 50,000,000 | ||||
Credit Facility | Second Secured Revolving Loan Facility | LIBOR | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate | 4.25% |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums (Detail) - USD ($) | Jan. 17, 2017 | Nov. 30, 2017 | Nov. 30, 2016 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,416,844,000 | $ 5,483,355,000 | |
3.875% Convertible Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.875% | ||
Debt principal amount | $ 345,000,000 | ||
Unsecured debt | 5.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.125% | ||
Effective interest rate | 3.46% | ||
Long-term debt | $ 682,338,000 | 817,813,000 | |
Unsecured debt | 8.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.50% | ||
Effective interest rate | 4.00% | ||
Long-term debt | $ 728,872,000 | 778,367,000 | |
Unsecured debt | 2.375% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.375% | ||
Effective interest rate | 2.42% | ||
Long-term debt | $ 593,334,000 | 528,250,000 | |
Unsecured debt | 6.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.875% | ||
Effective interest rate | 4.40% | ||
Long-term debt | $ 808,157,000 | 823,797,000 | |
Unsecured debt | 2.250% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.25% | ||
Effective interest rate | 4.08% | ||
Long-term debt | $ 4,389,000 | 3,848,000 | |
Unsecured debt | 5.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.125% | ||
Effective interest rate | 4.55% | ||
Long-term debt | $ 615,703,000 | 618,355,000 | |
Unsecured debt | 4.850% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.85% | ||
Effective interest rate | 4.93% | ||
Long-term debt | $ 736,357,000 | 0 | |
Debt principal amount | $ 750,000,000 | ||
Unsecured debt | 6.450% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.45% | ||
Effective interest rate | 5.46% | ||
Long-term debt | $ 375,794,000 | 377,806,000 | |
Unsecured debt | 3.875% Convertible Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.875% | ||
Effective interest rate | 3.50% | ||
Long-term debt | $ 324,779,000 | 346,187,000 | |
Unsecured debt | 6.250% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.25% | ||
Effective interest rate | 6.03% | ||
Long-term debt | $ 512,040,000 | 512,396,000 | |
Unsecured debt | 6.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.50% | ||
Effective interest rate | 6.09% | ||
Long-term debt | $ 420,990,000 | 421,333,000 | |
Unsecured debt | Structured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 614,091,000 | 255,203,000 | |
Debt principal amount | 329,900,000 | 275,400,000 | |
Debt fair value | 607,000,000 | $ 248,900,000 | |
Debt maturities in 2018 | 7,100,000 | ||
Debt maturities in 2019 | 6,000,000 | ||
Debt maturities in 2022 | 25,000,000 | ||
Debt maturities in 2024 or thereafter | $ 576,000,000 | ||
Unsecured debt | Interest rate swaps | 4.850% Senior Notes | |||
Debt Instrument [Line Items] | |||
Decrease of long-term debt | $ 8,100,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 22, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | Jan. 31, 2018 | Jan. 23, 2018 |
Debt Instrument [Line Items] | ||||||
Long-term borrowings matured or retired during period | $ 350,000,000 | $ 500,000,000 | ||||
Proceeds from the issuance of long-term debt | $ 1,116,798,000 | 299,779,000 | 0 | |||
Long-term debt | 6,416,844,000 | 5,483,355,000 | ||||
Redemption price as percentage of principal amount redeemed | 100.00% | |||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt principal amount | 609,100,000 | |||||
3.875% Convertible Senior Debentures due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt principal amount | $ 345,000,000 | |||||
Debt instrument interest rate | 3.875% | |||||
Long-term borrowings matured or retired during period | $ 20,200,000 | |||||
3.875% Convertible Senior Debentures due 2029 | Unsecured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 3.875% | |||||
Long-term debt | $ 324,779,000 | 346,187,000 | ||||
Structured notes | Unsecured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt principal amount | 329,900,000 | 275,400,000 | ||||
Proceeds from the issuance of long-term debt | $ 0 | |||||
Long-term debt | $ 614,091,000 | 255,203,000 | ||||
5.125% Senior Notes | Unsecured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 5.125% | |||||
Long-term debt | $ 682,338,000 | 817,813,000 | ||||
Subsequent event | 4.150% Senior Notes | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt principal amount | $ 1,000,000,000 | |||||
Debt instrument interest rate | 4.15% | |||||
Leucadia | Affiliated Entity | ||||||
Debt Instrument [Line Items] | ||||||
Payable to Leucadia | $ 3,100,000 | $ 1,900,000 | ||||
Leucadia | Affiliated Entity | Subsequent event | ||||||
Debt Instrument [Line Items] | ||||||
Payable to Leucadia | $ 200,000,000 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) € in Millions | 12 Months Ended | |||
Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Dec. 28, 2017USD ($) | Dec. 28, 2017EUR (€) | |
U.S. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions amount | $ 1,000,000 | $ 3,000,000 | ||
Estimated employer contributions in next fiscal year | 1,000,000 | |||
German Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions amount | 0 | 0 | ||
Investment in insurance contract | $ 16,000,000 | $ 15,200,000 | ||
Subsequent event | German Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension obligations and insurance contracts transfer amount | € | € 7.3 | |||
Consideration for release indemnity relating to pension obligation | $ 3,250,000 |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation and Components of Net Periodic Pension Costs (Detail) - USD ($) | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
U.S. Pension Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | $ 58,731,000 | $ 58,330,000 | |
Service cost | 450,000 | 400,000 | $ 250,000 |
Interest cost | 2,232,000 | 2,311,000 | 2,340,000 |
Actuarial loss (gain) | 2,327,000 | 862,000 | |
Administrative expenses paid | (395,000) | (461,000) | |
Benefits paid | (2,786,000) | (2,711,000) | |
Projected benefit obligation, end of period | 60,559,000 | 58,731,000 | 58,330,000 |
Change in plan assets: | |||
Fair value of assets, beginning of period | 49,992,000 | 47,031,000 | |
Benefits paid | (2,786,000) | (2,711,000) | |
Administrative expenses paid | (395,000) | (461,000) | |
Actual return on plan assets | 5,138,000 | 3,133,000 | |
Contributions | 1,000,000 | 3,000,000 | |
Fair value of assets, end of period | 52,949,000 | 49,992,000 | 47,031,000 |
Funded status at end of period | (7,610,000) | (8,739,000) | |
German Pension Plan | |||
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | 24,166,000 | 23,545,000 | |
Interest cost | 426,000 | 529,000 | 523,000 |
Actuarial loss (gain) | (91,000) | 1,157,000 | |
Benefits paid | (1,233,000) | (1,104,000) | |
Currency adjustment | 2,976,000 | 39,000 | |
Projected benefit obligation, end of period | 26,244,000 | 24,166,000 | $ 23,545,000 |
Change in plan assets: | |||
Benefits paid | (1,233,000) | (1,104,000) | |
Contributions | 0 | 0 | |
Funded status at end of period | $ (26,244,000) | $ (24,166,000) |
Benefit Plans - Pension Liabili
Benefit Plans - Pension Liability Recognized on Balance Sheet (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
U.S. Pension Plan | ||
Consolidated statements of financial condition: | ||
Liabilities | $ 7,610 | $ 8,739 |
Accumulated other comprehensive income, before taxes: | ||
Net losses | (6,092) | (5,901) |
German Pension Plan | ||
Consolidated statements of financial condition: | ||
Liabilities | 26,244 | 24,166 |
Accumulated other comprehensive income, before taxes: | ||
Net losses | $ (5,305) | $ (5,748) |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension (Benefit) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 450 | $ 400 | $ 250 |
Interest cost on projected benefit obligation | 2,232 | 2,311 | 2,340 |
Expected return on plan assets | (3,021) | (2,917) | (3,357) |
Net amortization | 19 | 0 | 0 |
Settlement losses | 0 | 0 | 244 |
Net periodic pension income | (320) | (206) | (523) |
German Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on projected benefit obligation | 426 | 529 | 523 |
Net amortization | 353 | 326 | 325 |
Net periodic pension income | $ 779 | $ 855 | $ 848 |
Benefit Plans - Components o100
Benefit Plans - Components of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
U.S. Pension Plan | |||
Amounts recognized in other comprehensive income: | |||
Net (gain) loss arising during the period | $ 210 | $ 646 | $ 7,890 |
Amortization of net loss | (19) | 0 | 0 |
Settlements during the period | 0 | 0 | (244) |
Total loss (gain) recognized in Other comprehensive income | 191 | 646 | 7,646 |
Net losses recognized in net periodic benefit cost and Other comprehensive income | (129) | 440 | 7,123 |
German Pension Plan | |||
Amounts recognized in other comprehensive income: | |||
Net (gain) loss arising during the period | (91) | 1,157 | (39) |
Amortization of net loss | (353) | (326) | (325) |
Total loss (gain) recognized in Other comprehensive income | (444) | 831 | (364) |
Net losses recognized in net periodic benefit cost and Other comprehensive income | $ 335 | $ 1,686 | $ 484 |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used to Determine Actuarial Present Value of Projected Benefit Obligation and Net Periodic Pension Benefit Cost (Detail) | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
U.S. Pension Plan | |||
Projected benefit obligation: | |||
Discount rate used to determine benefit obligation | 3.60% | 3.90% | 4.10% |
Net periodic pension benefit cost: | |||
Discount rate | 3.90% | 4.10% | 4.30% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.75% |
German Pension Plan | |||
Projected benefit obligation: | |||
Discount rate used to determine benefit obligation | 1.80% | 1.70% | 2.20% |
Net periodic pension benefit cost: | |||
Discount rate | 1.70% | 2.20% | 2.10% |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments (Detail) $ in Thousands | Nov. 30, 2017USD ($) |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 2,312 |
2,019 | 3,030 |
2,020 | 2,527 |
2,021 | 2,137 |
2,022 | 2,989 |
2023 through 2027 | 24,274 |
German Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1,303 |
2,019 | 1,275 |
2,020 | 1,329 |
2,021 | 1,339 |
2,022 | 1,320 |
2023 through 2027 | $ 6,571 |
Benefit Plans - Summary of Fair
Benefit Plans - Summary of Fair Value of Plan Assets (Detail) - U.S. Pension Plan - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 52,949 | $ 49,992 | $ 47,031 |
Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 52,949 | ||
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,135 | ||
Listed equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32,342 | ||
Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,906 | ||
Foreign corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,835 | ||
U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 5,370 | ||
Agency mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,330 | ||
CMBS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 591 | ||
ABS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 483 | ||
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 38,847 | ||
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,135 | ||
Level 1 | Listed equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32,342 | ||
Level 1 | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 1 | Foreign corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 1 | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 5,370 | ||
Level 1 | Agency mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 1 | CMBS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 1 | ABS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 52,949 | 11,145 | |
Level 2 | Common collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 52,949 | ||
Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 2 | Listed equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 2 | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,906 | ||
Level 2 | Foreign corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,835 | ||
Level 2 | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Level 2 | Agency mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,330 | ||
Level 2 | CMBS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 591 | ||
Level 2 | ABS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 483 |
Compensation Plans - Compensati
Compensation Plans - Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Profit sharing plan | $ 6,000 | $ 6,000 | $ 6,100 |
Total compensation cost | 284,200 | 293,200 | 313,200 |
Restricted cash awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted cash awards | 251,600 | 263,700 | 249,200 |
Restricted stock and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock and RSUs | 26,600 | 23,500 | 57,900 |
Deferred Compensation Plan | Restricted stock and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted cash awards | $ 227 | $ 150 | $ 399 |
Compensation Plans - Remaining
Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions | 12 Months Ended |
Nov. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 520.3 |
Non-vested share-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 38.7 |
Weighted Average Vesting Period (in Years) | 2 years |
Restricted cash awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 481.6 |
Weighted Average Vesting Period (in Years) | 3 years |
Compensation Plans - Restricted
Compensation Plans - Restricted Cash Awards (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Year Ended November 30, 2017 | $ 284.2 | $ 293.2 | $ 313.2 | |
Subsequent event | Restricted cash awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Year Ended November 30, 2017 | $ 16.5 | |||
Year Ended November 30, 2018 | 24 | |||
Year Ended November 30, 2019 | 23.6 | |||
Thereafter | 52.9 | |||
Total | $ 117 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Detail) | 12 Months Ended |
Nov. 30, 2017USD ($) | |
Compensation Related Costs [Abstract] | |
Vesting period | 4 years |
Number of years in which restricted stock awards amortized as compensation expense | 4 years |
Annual employee contributions | $ 21,250 |
Employee service share based compensation plan stock price | 95.00% |
Income Taxes - Total Income Tax
Income Taxes - Total Income Taxes Allocated (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 147,340 | $ 14,566 | $ 18,898 |
Stockholders’ equity, compensation expense for tax purposes less than amounts recognized for financial reporting purposes | $ 0 | $ 4,186 | $ 5,935 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Current: | |||
U.S. Federal | $ 147,065 | $ 27,473 | $ (45,007) |
U.S. state and local | 30,611 | 6,196 | (28,260) |
Foreign | 12,910 | (5,090) | 3,369 |
Total current | 190,586 | 28,579 | (69,898) |
Deferred: | |||
U.S. Federal | (53,157) | (11,249) | 74,085 |
U.S. state and local | 1,760 | (4,819) | 22,811 |
Foreign | 8,151 | 2,055 | (8,100) |
Total deferred | (43,246) | (14,013) | 88,796 |
Total income tax expense | $ 147,340 | $ 14,566 | $ 18,898 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 403,445 | $ 34,178 | $ 82,515 | ||||||||
Non-U.S. | 101,479 | (4,206) | 31,712 | ||||||||
Earnings before income taxes | $ 142,280 | $ 122,264 | $ 116,181 | $ 124,199 | $ 96,529 | $ 80,722 | $ 102,597 | $ (249,876) | $ 504,924 | $ 29,972 | $ 114,227 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate to U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Amount | |||
Computed expected income taxes | $ 176,724 | $ 10,490 | $ 39,979 |
State and city income taxes, net of Federal income tax benefit | 21,041 | 124 | (3,542) |
International operations (including foreign rate differential) | (11,577) | (3,404) | (11,474) |
Tax exempt income | (3,850) | (4,640) | (6,789) |
Foreign tax credits | (32,974) | 0 | (7,240) |
Non-deductible Jefferies Bache wind down costs | 0 | 0 | 3,225 |
Meals and entertainment | 4,129 | 4,640 | 5,232 |
Excess stock detriment | 406 | 9,755 | 0 |
Federal benefits related to prior year tax filings | (3,786) | (2,928) | 199 |
Other, net | (2,773) | 529 | (692) |
Total income tax expense | $ 147,340 | $ 14,566 | $ 18,898 |
Percent | |||
Computed expected income taxes | 35.00% | 35.00% | 35.00% |
State and city income taxes, net of Federal income tax benefit | 4.20% | 0.50% | (3.10%) |
International operations (including foreign rate differential) | (2.30%) | (11.40%) | (10.00%) |
Tax exempt income | (0.80%) | (15.50%) | (5.90%) |
Foreign tax credits | (6.50%) | (0.00%) | (6.30%) |
Non-deductible Jefferies Bache wind down costs | 0.00% | 0.00% | 2.80% |
Meals and entertainment | 0.80% | 15.50% | 4.60% |
Excess stock detriment | 0.10% | 32.60% | 0.00% |
Federal benefits related to prior year tax filings | (0.80%) | (9.80%) | 0.10% |
Other, net | (0.50%) | 1.70% | (0.70%) |
Total income tax expense, percent | 29.20% | 48.60% | 16.50% |
Income Taxes - Roll Forward of
Income Taxes - Roll Forward of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 109,527 | $ 107,902 | $ 126,662 |
Increases based on tax positions related to the current period | 18,619 | 5,045 | 0 |
Increases based on tax positions related to prior periods | 7,310 | 1,447 | 2,818 |
Decreases based on tax positions related to prior periods | (5,912) | (4,520) | (3,883) |
Decreases related to settlements with taxing authorities | 0 | (347) | (17,695) |
Balance at end of period | $ 129,544 | $ 109,527 | $ 107,902 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Income Tax Examination [Line Items] | ||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits that would impact effective tax rate in future | $ 86,100 | $ 73,100 | ||
Net interest expense related to unrecognized tax benefits | 9,000 | 6,500 | $ 2,200 | |
Accrued interest on unrecognized tax benefits | 48,300 | 39,300 | ||
Net deferred tax asset | 410,720 | 342,971 | ||
United Kingdom and Japan loss carryforwards | 122,100 | |||
Deferred tax asset related to net operating losses | 20,094 | 11,021 | ||
Undistributed earnings of foreign subsidiaries | 232,000 | 157,000 | ||
Deferred tax liability | 73,000 | 55,000 | ||
Decrease in unrecognized tax benefits is reasonably possible | 12,600 | |||
Income tax expense | 147,340 | $ 14,566 | $ 18,898 | |
Europe | ||||
Income Tax Examination [Line Items] | ||||
Deferred tax asset related to net operating losses | 9,700 | |||
Asia | ||||
Income Tax Examination [Line Items] | ||||
Deferred tax asset related to net operating losses | $ 300 | |||
Forecast | ||||
Income Tax Examination [Line Items] | ||||
Income tax expense | $ 170,000 | |||
Percentage of estimated charge relates to non-cash write down of deferred tax assets | 66.67% | |||
Federal tax rate on future deductibility of deferred tax items | 21.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Deferred tax assets: | ||
Compensation and benefits | $ 376,642 | $ 285,542 |
Net operating loss | 20,094 | 11,021 |
Long-term debt | 26,476 | 60,707 |
Accrued expenses and other | 121,746 | 124,269 |
Sub-total | 544,958 | 481,539 |
Valuation allowance | (14,217) | (9,464) |
Total deferred tax assets | 530,741 | 472,075 |
Deferred tax liabilities: | ||
Amortization of intangibles | 102,739 | 107,474 |
Other | 17,282 | 21,630 |
Total deferred tax liabilities | 120,021 | 129,104 |
Net deferred tax asset, included in Other assets | $ 410,720 | $ 342,971 |
Commitments, Contingencies a115
Commitments, Contingencies and Guarantees - Commitments and Contingencies (Detail) $ in Millions | 12 Months Ended |
Nov. 30, 2017USD ($) | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | $ 6,690.7 |
2,019 | 300.8 |
2020 and 2021 | 93.4 |
2022 and 2023 | 153 |
2024 and Later | 117.8 |
Maximum Payout | $ 7,355.7 |
Guarantor obligation settled period | 3 days |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | $ 0 |
2,019 | 0.2 |
2020 and 2021 | 18.6 |
2022 and 2023 | 0 |
2024 and Later | 117.8 |
Maximum Payout | 136.6 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 261.9 |
2,019 | 0 |
2020 and 2021 | 56.5 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 318.4 |
Mortgage-related and other purchase commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 0 |
2,019 | 177.7 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 177.7 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 11 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 11 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 3,211.1 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 3,211.1 |
Guarantor obligation settled amount | 3,207.4 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 2,987.9 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 2,987.9 |
Guarantor obligation settled amount | 2,982.8 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 218.8 |
2,019 | 122.9 |
2020 and 2021 | 18.3 |
2022 and 2023 | 153 |
2024 and Later | 0 |
Maximum Payout | $ 513 |
Commitments, Contingencies a116
Commitments, Contingencies and Guarantees - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2012 | |
Loss Contingencies [Line Items] | ||||
Loan commitments outstanding to clients | $ 68.3 | |||
Contractual obligation at fair value | 7,355.7 | |||
Future minimum rentals due from non-cancelable sublease | 19.4 | |||
Rent expense, net | 56.1 | $ 56.1 | $ 57.4 | |
Gain on leaseback transaction | $ 2 | |||
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee | 243.6 | |||
Standby Letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit commitments | $ 51.8 | |||
Letters of credit commitments expiration period | 1 year | |||
Jefferies Capital Partners LLC | ||||
Loss Contingencies [Line Items] | ||||
Outstanding equity commitments | $ 22 | |||
Other Investments | ||||
Loss Contingencies [Line Items] | ||||
Outstanding equity commitments | 0.8 | |||
Mortgage-related and other purchase commitments | ||||
Loss Contingencies [Line Items] | ||||
Contractual obligation at fair value | $ 37.6 |
Commitments, Contingencies a117
Commitments, Contingencies and Guarantees - Future Minimum Lease Commitments under Leases (Details) $ in Thousands | Nov. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 59,464 |
2,019 | 57,698 |
2,020 | 50,254 |
2,021 | 48,616 |
2,022 | 51,466 |
Thereafter | 630,991 |
Total | $ 898,489 |
Commitments, Contingencies a118
Commitments, Contingencies and Guarantees Commitments, Contingencies and Guarantees - Minimum Future Lease Payments (Details) $ in Thousands | Nov. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1,513 |
2,019 | 189 |
Net minimum lease payments | 1,702 |
Less amount representing interest | 28 |
Present value of net minimum lease payments | $ 1,674 |
Commitments, Contingencies a119
Commitments, Contingencies and Guarantees - Guarantees (Detail) $ in Millions | Nov. 30, 2017USD ($) |
Derivative contracts—non-credit related | |
Guarantor Obligations [Line Items] | |
2,018 | $ 24,454.8 |
2,019 | 2,420.2 |
2020 and 2021 | 150.5 |
2022 and 2023 | 45.9 |
2024 and Later | 466.3 |
Notional/ Maximum Payout | 27,537.7 |
Written derivative contracts—credit related | |
Guarantor Obligations [Line Items] | |
2,018 | 0 |
2,019 | 42 |
2020 and 2021 | 20.5 |
2022 and 2023 | 155.7 |
2024 and Later | 0 |
Notional/ Maximum Payout | 218.2 |
Derivative contracts | |
Guarantor Obligations [Line Items] | |
2,018 | 24,454.8 |
2,019 | 2,462.2 |
2020 and 2021 | 171 |
2022 and 2023 | 201.6 |
2024 and Later | 466.3 |
Notional/ Maximum Payout | $ 27,755.9 |
Net Capital Requirements (Detai
Net Capital Requirements (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
Net Capital Requirements [Line Items] | ||
Amount of restricted net assets for consolidated subsidiaries | $ 5,124,900 | $ 4,833,000 |
Jefferies | ||
Net Capital Requirements [Line Items] | ||
Net Capital | 1,418,930 | |
Excess Net Capital | $ 1,330,169 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Nov. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues, Expenses and Total Assets by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 822,610 | $ 800,692 | $ 779,294 | $ 795,513 | $ 741,769 | $ 654,450 | $ 719,408 | $ 298,987 | $ 3,198,109 | $ 2,414,614 | $ 2,475,241 |
Non-interest expenses | 2,693,185 | 2,384,642 | 2,361,014 | ||||||||
Earnings before income taxes | 142,280 | $ 122,264 | $ 116,181 | $ 124,199 | 96,529 | $ 80,722 | $ 102,597 | $ (249,876) | 504,924 | 29,972 | 114,227 |
Segment assets | 39,705,691 | 36,941,276 | 39,705,691 | 36,941,276 | |||||||
Capital Markets | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 3,174,400 | 2,339,300 | 2,415,100 | ||||||||
Non-interest expenses | 2,636,200 | 2,321,500 | 2,325,200 | ||||||||
Earnings before income taxes | 538,200 | 17,800 | 89,900 | ||||||||
Segment assets | 38,620,400 | 35,931,800 | 38,620,400 | 35,931,800 | |||||||
Asset Management | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 23,700 | 75,300 | 60,100 | ||||||||
Non-interest expenses | 57,000 | 63,100 | 35,800 | ||||||||
Earnings before income taxes | (33,300) | 12,200 | $ 24,300 | ||||||||
Segment assets | $ 1,085,300 | $ 1,009,500 | $ 1,085,300 | $ 1,009,500 |
Segment Reporting - Net Reve123
Segment Reporting - Net Revenues by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Revenues: | |||||||||||
Net revenues | $ 822,610 | $ 800,692 | $ 779,294 | $ 795,513 | $ 741,769 | $ 654,450 | $ 719,408 | $ 298,987 | $ 3,198,109 | $ 2,414,614 | $ 2,475,241 |
Americas | |||||||||||
Revenues: | |||||||||||
Net revenues | 2,602,700 | 1,870,400 | 1,887,000 | ||||||||
Europe | |||||||||||
Revenues: | |||||||||||
Net revenues | 489,600 | 458,000 | 510,000 | ||||||||
Asia | |||||||||||
Revenues: | |||||||||||
Net revenues | $ 105,800 | $ 86,200 | $ 78,200 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Purchase commitments from Berkadia Commercial Mortgage, LLC | $ 864,100 | $ 817,000 | |
Loans to and investments in related parties | 45,600 | 38,400 | |
Equity Method Investee | Equity Investments in Jefferies Capital Partners Related Funds | |||
Related Party Transaction [Line Items] | |||
Equity investments loans in related funds | 23,700 | 37,700 | |
Charges to Leucadia for services provided | 726 | 760 | $ 1,341 |
HRG Group Inc. | Affiliated Entity | Investment banking and advisory | |||
Related Party Transaction [Line Items] | |||
Charges to Leucadia for services provided | $ 1,300 | ||
Director | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Investment in related party | $ 4,900 | $ 5,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Interest Income, Other Revenues and Investment Income to Private Equity Related Funds (Detail) - Equity Investments in Jefferies Capital Partners Related Funds - Equity Method Investee - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Other revenues and investment income (loss) | $ (11,718) | $ (2,328) | $ (26,179) |
Service charges | $ 726 | $ 760 | $ 1,341 |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions with Leucadia (Details) $ in Thousands | Nov. 30, 2017USD ($)sharesWarrant | Aug. 01, 2015USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Apr. 30, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Feb. 28, 2018 | Nov. 30, 2017USD ($)sharesWarrant | Nov. 30, 2016USD ($) | Nov. 30, 2015USD ($) | Jan. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |||||||||||||||
Payables to brokers, dealers and clearing organizations | $ 2,226,768 | $ 2,226,768 | $ 3,290,404 | ||||||||||||
Financial instruments owned, at fair value | 13,998,125 | 13,998,125 | 13,809,512 | ||||||||||||
Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Charges to Leucadia for services provided | 42,200 | 38,800 | $ 40,700 | ||||||||||||
Charges from Leucadia for services received | 14,200 | 11,200 | 6,100 | ||||||||||||
Receivable from Leucadia | 2,500 | 2,500 | 2,800 | ||||||||||||
Payable to Leucadia | 3,100 | 3,100 | 1,900 | ||||||||||||
Financial instruments owned, at fair value | 200 | 200 | 1,000 | ||||||||||||
Proceeds from sale of securities | $ 124,400 | $ 7,100 | $ 21,900 | $ 25,600 | |||||||||||
Leucadia | Affiliated Entity | Investment banking and advisory | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Charges to Leucadia for services provided | 14,700 | 1,786 | 21,185 | ||||||||||||
Leucadia | Affiliated Entity | Asset management | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Charges to Leucadia for services provided | 0 | 155 | 400 | ||||||||||||
Leucadia | Affiliated Entity | Commissions and other fees | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Charges to Leucadia for services provided | 69 | 88 | 43 | ||||||||||||
Leucadia | Affiliated Entity | Other revenues | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Charges to Leucadia for services provided | 274 | 0 | $ 0 | ||||||||||||
Affiliate of Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payables to brokers, dealers and clearing organizations | $ 17,000 | 17,000 | |||||||||||||
Leucadia Funding LLC | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Capital redemption amount | $ 30,000 | ||||||||||||||
Hedge Fund Managed by Subsidiary of Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Capital contribution amount | $ 27,000 | $ 500 | $ 114,000 | ||||||||||||
Capital redemption amount | $ 17,000 | ||||||||||||||
Net gains on investment in related party hedge funds | $ 8,000 | 3,600 | |||||||||||||
Landcadia Holdings Inc. | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of related party public offering units owned (in shares) | shares | 638,561 | 638,561 | |||||||||||||
Number of common stock per related party public offering unit (in shares) | shares | 1 | 1 | |||||||||||||
Number of public warrant per related party public offering unit (in shares) | Warrant | 1 | 1 | |||||||||||||
Financial instruments owned, at fair value | $ 6,800 | $ 6,800 | 6,600 | ||||||||||||
Accrued expense and other liabilities | Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Net current tax payable from related party | 91,500 | $ 91,500 | |||||||||||||
Other Assets | Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Net current tax receivable from related party | $ 80,100 | ||||||||||||||
Director | Hedge Fund Managed by Subsidiary of Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Capital contribution amount | $ 3,600 | ||||||||||||||
Subsequent event | Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Payable to Leucadia | $ 200,000 | ||||||||||||||
Forecast | Subsequent event | Leucadia | Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Quarterly dividend as percentage of net earnings | 50.00% |
Exit Costs - Additional Informa
Exit Costs - Additional Information (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Nov. 30, 2016 | Nov. 30, 2015 |
Restructuring and Related Activities [Abstract] | |||
Pre-tax losses of disposal business | $ 1,900 | $ 134,700 | |
Line of credit reduced borrowing capacity | $ 750,000 | ||
Unamortized deferred origination costs | 3,800 | ||
Non-cash restructuring costs | $ 341 | $ 28,700 |
Exit Costs - Restructuring and
Exit Costs - Restructuring and Impairment Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | $ 1,854 | $ 73,094 |
Compensation and benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 320 | 38,249 |
Technology and communications | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 1,234 | 30,992 |
Professional services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 0 | 2,508 |
Other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 300 | 1,345 |
Severance costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 279 | 30,327 |
Accelerated amortization of restricted stock and restricted cash awards | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 41 | 7,922 |
Accelerated amortization of capitalized software | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 0 | 19,745 |
Contract termination costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | 1,234 | 11,247 |
Other expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and impairment costs | $ 300 | $ 3,853 |
Exit Costs - Restructuring Rese
Exit Costs - Restructuring Reserve (Details) $ in Thousands | 12 Months Ended |
Nov. 30, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Expenses | $ 1,854 |
Severance costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 4,805 |
Expenses | 279 |
Payments | (5,084) |
Ending balance | 0 |
Other expenses | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Expenses | 300 |
Payments | (300) |
Ending balance | 0 |
Contract termination costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Expenses | 1,234 |
Payments | (1,234) |
Ending balance | 0 |
Total restructuring costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 4,805 |
Expenses | 1,813 |
Payments | (6,618) |
Ending balance | 0 |
Accelerated amortization of restricted stock and restricted cash awards | |
Restructuring Reserve [Roll Forward] | |
Expenses | 41 |
Accelerated amortization of capitalized software | |
Restructuring Reserve [Roll Forward] | |
Expenses | 0 |
Impairments | |
Restructuring Reserve [Roll Forward] | |
Expenses | $ 0 |
Selected Quarterly Financial130
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Statements of Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 1,081,499 | $ 1,048,331 | $ 1,038,955 | $ 1,009,797 | $ 939,960 | $ 863,841 | $ 936,917 | $ 493,105 | $ 4,178,582 | $ 3,233,823 | $ 3,274,895 |
Net revenues | 822,610 | 800,692 | 779,294 | 795,513 | 741,769 | 654,450 | 719,408 | 298,987 | 3,198,109 | 2,414,614 | 2,475,241 |
Earnings (loss) before income taxes | 142,280 | 122,264 | 116,181 | 124,199 | 96,529 | 80,722 | 102,597 | (249,876) | $ 504,924 | $ 29,972 | $ 114,227 |
Net earnings (loss) attributable to Jefferies Group LLC | $ 89,913 | $ 83,815 | $ 69,751 | $ 114,019 | $ 87,180 | $ 41,169 | $ 53,898 | $ (166,813) |
Schedule I (PARENT COMPANY O131
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Nov. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 5,164,492 | $ 3,529,069 |
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations | 578,014 | 857,337 |
Financial instruments owned, at fair value | 13,998,125 | 13,809,512 |
Investments in managed funds | 195,227 | 186,508 |
Loans to and investments in related parties | 45,600 | 38,400 |
Investment in subsidiaries | 682,790 | 653,872 |
Other assets | 1,270,912 | 1,229,551 |
Total assets | 39,705,691 | 36,941,276 |
LIABILITIES AND EQUITY | ||
Short-term borrowings | 436,215 | 525,842 |
Financial instruments sold, not yet purchased, at fair value | 8,171,929 | 8,359,202 |
Accrued expenses and other liabilities | 1,803,720 | 1,248,200 |
Long-term debt | 6,416,844 | 5,483,355 |
Total liabilities | 33,946,132 | 31,570,679 |
EQUITY | ||
Member’s paid-in capital | 5,895,601 | 5,538,103 |
Accumulated other comprehensive loss: | ||
Currency translation adjustments | (98,909) | (152,305) |
Changes in instrument specific credit risk | (27,888) | (6,494) |
Cash flow hedges | (936) | 0 |
Additional minimum pension liability | (9,046) | (9,358) |
Total accumulated other comprehensive loss | (136,779) | (168,157) |
Total Jefferies Group LLC member’s equity | 5,758,822 | 5,369,946 |
Total liabilities and equity | 39,705,691 | 36,941,276 |
Parent Company | ||
ASSETS | ||
Cash and cash equivalents | 1,959,536 | 1,178,475 |
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations | 57,817 | 36,148 |
Financial instruments owned, at fair value | 52,641 | 130,116 |
Investments in managed funds | 21,246 | 34,170 |
Loans to and investments in related parties | 638,551 | 473,912 |
Investment in subsidiaries | 5,084,726 | 4,757,824 |
Advances to subsidiaries | 1,801,573 | 1,262,211 |
Subordinated notes receivable | 2,708,685 | 2,802,440 |
Other assets | 610,555 | 569,291 |
Total assets | 12,935,330 | 11,244,587 |
LIABILITIES AND EQUITY | ||
Short-term borrowings | 131,567 | 96,456 |
Financial instruments sold, not yet purchased, at fair value | 18,061 | 7,285 |
Accrued expenses and other liabilities | 610,036 | 287,545 |
Long-term debt | 6,416,844 | 5,483,355 |
Total liabilities | 7,176,508 | 5,874,641 |
EQUITY | ||
Member’s paid-in capital | 5,895,601 | 5,538,103 |
Accumulated other comprehensive loss: | ||
Currency translation adjustments | (98,909) | (152,305) |
Changes in instrument specific credit risk | (27,888) | (6,494) |
Cash flow hedges | (936) | 0 |
Additional minimum pension liability | (9,046) | (9,358) |
Total accumulated other comprehensive loss | (136,779) | (168,157) |
Total Jefferies Group LLC member’s equity | 5,758,822 | 5,369,946 |
Total liabilities and equity | $ 12,935,330 | $ 11,244,587 |
Schedule I (PARENT COMPANY O132
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | ||||
Revenues: | ||||||||||||||
Principal transactions | $ 800,660 | $ 519,652 | $ 172,608 | |||||||||||
Asset management fees and investment income from managed funds | 16,463 | 31,062 | 8,015 | |||||||||||
Interest | 905,601 | 857,838 | 922,189 | |||||||||||
Other | 98,316 | 19,724 | 74,074 | |||||||||||
Total revenues | $ 1,081,499 | $ 1,048,331 | $ 1,038,955 | $ 1,009,797 | $ 939,960 | $ 863,841 | $ 936,917 | $ 493,105 | 4,178,582 | 3,233,823 | 3,274,895 | |||
Interest expense | 980,473 | 819,209 | 799,654 | |||||||||||
Net revenues | 822,610 | 800,692 | 779,294 | 795,513 | 741,769 | 654,450 | 719,408 | 298,987 | 3,198,109 | 2,414,614 | 2,475,241 | |||
Non-interest expenses: | ||||||||||||||
Total non-interest expenses | 2,693,185 | 2,384,642 | 2,361,014 | |||||||||||
Earnings before income taxes | $ 142,280 | $ 122,264 | $ 116,181 | $ 124,199 | $ 96,529 | $ 80,722 | $ 102,597 | $ (249,876) | 504,924 | 29,972 | 114,227 | |||
Income tax expense (benefit) | 147,340 | 14,566 | 18,898 | |||||||||||
Net earnings | 357,584 | 15,406 | 95,329 | |||||||||||
Net earnings attributable to Jefferies Group LLC | 357,498 | 15,434 | 93,534 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Currency translation and other adjustments | 53,396 | (115,494) | (27,157) | |||||||||||
Changes in instrument specific credit risk | (21,394) | [1] | (6,494) | [1] | 0 | |||||||||
Cash flow hedges | (936) | [2] | 0 | 0 | ||||||||||
Minimum pension liability adjustments, net of tax | [3] | 312 | (1,223) | (3,116) | ||||||||||
Total other comprehensive income (loss), net of tax | [4] | 31,378 | (123,211) | (30,273) | ||||||||||
Comprehensive income (loss) attributable to Jefferies Group LLC | 388,876 | (107,777) | 63,261 | |||||||||||
Parent Company | ||||||||||||||
Revenues: | ||||||||||||||
Principal transactions | 12,410 | 952 | 68,720 | |||||||||||
Asset management fees and investment income from managed funds | (10,568) | 1,222 | (20,889) | |||||||||||
Interest | 241,357 | 226,781 | 201,632 | |||||||||||
Other | 78,812 | (8,156) | 33,193 | |||||||||||
Total revenues | 322,011 | 220,799 | 282,656 | |||||||||||
Interest expense | 276,727 | 235,556 | 250,919 | |||||||||||
Net revenues | 45,284 | (14,757) | 31,737 | |||||||||||
Non-interest expenses: | ||||||||||||||
Total non-interest expenses | 13,598 | 5,187 | 5,984 | |||||||||||
Earnings before income taxes | 31,686 | (19,944) | 25,753 | |||||||||||
Income tax expense (benefit) | (21,292) | (9,574) | 3,958 | |||||||||||
Net earnings | 52,978 | (10,370) | 21,795 | |||||||||||
Undistributed earnings of subsidiaries | 304,520 | 25,804 | 71,739 | |||||||||||
Net earnings attributable to Jefferies Group LLC | 357,498 | 15,434 | 93,534 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Currency translation and other adjustments | 53,396 | (115,494) | (27,157) | |||||||||||
Changes in instrument specific credit risk | (21,394) | (6,494) | 0 | |||||||||||
Cash flow hedges | (936) | 0 | 0 | |||||||||||
Minimum pension liability adjustments, net of tax | 312 | (1,223) | (3,116) | |||||||||||
Total other comprehensive income (loss), net of tax | 31,378 | (123,211) | (30,273) | |||||||||||
Comprehensive income (loss) attributable to Jefferies Group LLC | $ 388,876 | $ (107,777) | $ 63,261 | |||||||||||
[1] | Includes income tax benefit of approximately $13.2 million and $4.3 million for the years ended November 30, 2017 and 2016, respectively. | |||||||||||||
[2] | Includes income tax benefit of approximately $0.6 million for the year ended November 30, 2017. | |||||||||||||
[3] | Includes income tax benefit of approximately $0.1 million, $0.3 million and $4.2 million for the years ended November 30, 2017, 2016 and 2015, respectively. | |||||||||||||
[4] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
Schedule I (PARENT COMPANY O133
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Cash flows from operating activities: | |||
Net earnings | $ 357,498 | $ 15,434 | $ 93,534 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Amortization | 1,977 | (2,365) | 15,236 |
(Income) loss on loans to and investments in related parties | (109,395) | (17,184) | (75,717) |
Distributions received on investments in related parties | 21,038 | 38,180 | 76,681 |
Other adjustments | 44,043 | (32,711) | (97,804) |
Net change in assets and liabilities: | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 280,703 | (107,771) | 2,691,028 |
Financial instruments owned | (110,368) | 2,529,114 | 2,003,978 |
Investments in managed funds | (8,719) | (138,572) | 15,498 |
Other assets | 8,435 | (173,127) | (62,361) |
Financial instruments sold, not yet purchased | (279,282) | 1,753,647 | (2,043,319) |
Accrued expenses and other liabilities | 524,304 | 296,067 | (259,665) |
Net cash provided by (used in) operating activities | 820,486 | (121,610) | (238,638) |
Cash flows from investing activities: | |||
Cash received from contingent consideration | 1,342 | 2,617 | 4,444 |
Net cash provided by (used in) investing activities | 9,136 | 79,758 | (134,612) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 34,499,230 | 15,313,383 | 17,263,217 |
Payments on short-term borrowings | (34,594,992) | (15,108,501) | (16,964,558) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,116,798 | 299,779 | 0 |
Repayment of long-term debt | (186,444) | (373,246) | (500,000) |
Net cash provided by (used in) financing activities | 795,474 | 86,373 | (189,943) |
Net increase (decrease) in cash and cash equivalents | 1,635,423 | 18,906 | (569,805) |
Cash and cash equivalents at beginning of period | 3,529,069 | 3,510,163 | 4,079,968 |
Cash and cash equivalents at end of period | 5,164,492 | 3,529,069 | 3,510,163 |
Cash paid (received) during the period for: | |||
Interest | 1,025,576 | 859,466 | 859,815 |
Income taxes, net | 8,910 | (6,410) | (683) |
Parent Company | |||
Cash flows from operating activities: | |||
Net earnings | 357,498 | 15,434 | 93,534 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Amortization | (61,634) | (63,681) | (76,945) |
Undistributed earnings of subsidiaries | (304,520) | (25,804) | (71,739) |
(Income) loss on loans to and investments in related parties | (90,724) | 10,251 | (40,460) |
Distributions received on investments in related parties | 0 | 17,050 | 40,500 |
Other adjustments | 39,513 | (34,496) | (98,870) |
Net change in assets and liabilities: | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | (21,669) | 30,055 | (4,714) |
Financial instruments owned | 77,475 | 8,704 | 53,290 |
Investments in managed funds | 12,924 | 763 | 19,907 |
Other assets | (29,031) | 21,475 | 77,813 |
Financial instruments sold, not yet purchased | 10,776 | (13,739) | (8,802) |
Accrued expenses and other liabilities | 324,446 | 15,125 | (36,397) |
Net cash provided by (used in) operating activities | 315,054 | (18,863) | (52,883) |
Cash flows from investing activities: | |||
Investments in, advances to and subordinated notes receivable from subsidiaries | (415,100) | 327,110 | 420,797 |
Loans to and investments in related parties | (73,915) | 19,337 | (19,301) |
Cash received from contingent consideration | 1,342 | 2,617 | 4,444 |
Net cash provided by (used in) investing activities | (487,673) | 349,064 | 405,940 |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 555,652 | 102,238 | 750,000 |
Payments on short-term borrowings | (532,326) | (5,786) | (750,000) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,116,798 | 277,583 | 0 |
Repayment of long-term debt | (186,444) | (350,000) | (500,000) |
Net cash provided by (used in) financing activities | 953,680 | 24,035 | (500,000) |
Net increase (decrease) in cash and cash equivalents | 781,061 | 354,236 | (146,943) |
Cash and cash equivalents at beginning of period | 1,178,475 | 824,239 | 971,182 |
Cash and cash equivalents at end of period | 1,959,536 | 1,178,475 | 824,239 |
Cash paid (received) during the period for: | |||
Interest | 332,135 | 300,680 | 329,926 |
Income taxes, net | $ 2,494 | $ (8,654) | $ (5,859) |
Schedule I (PARENT COMPANY O134
Schedule I (PARENT COMPANY ONLY) - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Debt Instrument [Line Items] | |||
Debt called amount | $ 350,000,000 | $ 500,000,000 | |
Long-term debt | $ 6,416,844,000 | 5,483,355,000 | |
3.875% Convertible Senior Debentures due 2029 | |||
Debt Instrument [Line Items] | |||
Senior long-term debt, interest rate | 3.875% | ||
Debt principal amount | $ 345,000,000 | ||
Debt called amount | $ 20,200,000 | ||
3.875% Convertible Senior Debentures due 2029 | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Senior long-term debt, interest rate | 3.875% | ||
Long-term debt | $ 324,779,000 | 346,187,000 | |
Structured notes | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Debt principal amount | 329,900,000 | 275,400,000 | |
Long-term debt | 614,091,000 | 255,203,000 | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,416,844,000 | $ 5,483,355,000 | |
Parent Company | 3.875% Convertible Senior Debentures due 2029 | |||
Debt Instrument [Line Items] | |||
Senior long-term debt, interest rate | 3.875% | ||
Debt principal amount | $ 345,000,000 | ||
Debt called amount | 20,200,000 | ||
Parent Company | Structured notes | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 614,100,000 |