Document and Entity Information
Document and Entity Information | 9 Months Ended |
Aug. 31, 2018shares | |
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-Q |
Document Period End Date | Aug. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
ASSETS | ||
Cash and cash equivalents ($1,094 and $7,514 at August 31, 2018 and November 30, 2017, respectively, related to consolidated VIEs) | $ 4,812,564 | $ 5,164,492 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 913,456 | 578,014 |
Financial instruments owned, at fair value, (including securities pledged of $12,868,364 and $10,842,051 at August 31, 2018 and November 30, 2017, respectively; and $381 and $38,044 at August 31, 2018 and November 30, 2017, respectively, related to consolidated VIEs) | 15,195,619 | 14,193,352 |
Loans to and investments in related parties | 758,807 | 682,790 |
Securities borrowed | 7,369,908 | 7,721,803 |
Securities purchased under agreements to resell | 3,659,059 | 3,689,559 |
Securities received as collateral | 0 | 103 |
Receivables: | ||
Brokers, dealers and clearing organizations | 2,524,122 | 2,514,838 |
Customers | 1,951,807 | 1,563,758 |
Fees, interest and other ($0 and $197 at August 31, 2018 and November 30, 2017, respectively, related to consolidated VIEs) | 308,855 | 381,231 |
Premises and equipment | 298,982 | 297,750 |
Goodwill | 1,643,058 | 1,647,089 |
Other assets ($2 at both August 31, 2018 and November 30, 2017, related to consolidated VIEs) | 1,136,236 | 1,270,912 |
Total assets | 40,572,473 | 39,705,691 |
LIABILITIES AND EQUITY | ||
Short-term borrowings (includes $0 and $23,324 at fair value at August 31, 2018 and November 30, 2017, respectively) | 382,006 | 436,215 |
Financial instruments sold, not yet purchased, at fair value | 8,128,200 | 8,171,929 |
Collateralized financings: | ||
Securities loaned | 2,531,504 | 2,843,911 |
Securities sold under agreements to repurchase | 9,864,483 | 8,660,511 |
Other secured financings (includes $1,004,822 and $722,108 at August 31, 2018 and November 30, 2017, respectively, related to consolidated VIEs) | 1,004,822 | 722,108 |
Obligation to return securities received as collateral | 0 | 103 |
Payables: | ||
Brokers, dealers and clearing organizations | 1,938,308 | 2,226,768 |
Customers | 3,187,580 | 2,664,023 |
Accrued expenses and other liabilities ($890 and $1,391 at August 31, 2018 and November 30, 2017, respectively, related to consolidated VIEs) | 1,403,568 | 1,803,720 |
Long-term debt (includes $709,557 and $606,956 at fair value at August 31, 2018 and November 30, 2017, respectively) | 6,574,866 | 6,416,844 |
Total liabilities | 35,015,337 | 33,946,132 |
EQUITY | ||
Member’s paid-in capital | 5,745,719 | 5,895,601 |
Accumulated other comprehensive loss: | ||
Currency translation adjustments | (174,626) | (98,909) |
Changes in instrument specific credit risk | (18,917) | (27,888) |
Cash flow hedges | 446 | (936) |
Additional minimum pension liability | (4,548) | (9,046) |
Total accumulated other comprehensive loss | (197,645) | (136,779) |
Total Jefferies Group LLC member’s equity | 5,548,074 | 5,758,822 |
Noncontrolling interests | 9,062 | 737 |
Total equity | 5,557,136 | 5,759,559 |
Total liabilities and equity | $ 40,572,473 | $ 39,705,691 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Cash and cash equivalents | $ 4,812,564 | $ 5,164,492 |
Pledged financial instruments | 12,868,364 | 10,842,051 |
Financial instruments owned, at fair value | 15,195,619 | 14,193,352 |
Fees, interest and other | 308,855 | 381,231 |
Other assets | 1,136,236 | 1,270,912 |
Short-term borrowings at fair value | 0 | 23,324 |
Other secured financings | 1,004,822 | 722,108 |
Accrued expenses and other liabilities | 1,403,568 | 1,803,720 |
Long-term debt at fair value | 709,557 | 606,956 |
Variable Interest Entities | ||
Cash and cash equivalents | 1,094 | 7,514 |
Financial instruments owned, at fair value | 381 | 38,044 |
Fees, interest and other | 0 | 197 |
Other assets | 2 | 2 |
Other secured financings | 1,004,822 | 722,108 |
Accrued expenses and other liabilities | $ 890 | $ 1,391 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenues: | ||||
Commissions and other fees | $ 155,539 | $ 139,082 | $ 461,545 | $ 437,547 |
Principal transactions | 143,308 | 186,408 | 498,583 | 688,568 |
Investment banking | 465,326 | 475,702 | 1,405,614 | 1,235,586 |
Asset management fees | 5,184 | 4,272 | 16,130 | 16,368 |
Interest | 305,347 | 230,496 | 870,490 | 660,323 |
Other | 13,581 | 12,371 | 79,327 | 58,691 |
Total revenues | 1,088,285 | 1,048,331 | 3,331,689 | 3,097,083 |
Interest expense | 310,670 | 247,639 | 910,271 | 721,584 |
Net revenues | 777,615 | 800,692 | 2,421,418 | 2,375,499 |
Non-interest expenses: | ||||
Compensation and benefits | 428,033 | 462,933 | 1,327,760 | 1,373,627 |
Non-compensation expenses: | ||||
Floor brokerage and clearing fees | 45,745 | 44,869 | 135,808 | 138,221 |
Underwriting costs | 20,528 | 0 | 47,832 | 0 |
Technology and communications | 76,877 | 72,440 | 222,335 | 205,425 |
Occupancy and equipment rental | 25,559 | 27,736 | 75,143 | 77,145 |
Business development | 39,733 | 23,125 | 124,233 | 72,223 |
Professional services | 35,316 | 25,007 | 101,715 | 83,544 |
Other | 18,723 | 22,318 | 54,888 | 62,670 |
Total non-compensation expenses | 262,481 | 215,495 | 761,954 | 639,228 |
Total non-interest expenses | 690,514 | 678,428 | 2,089,714 | 2,012,855 |
Earnings before income taxes | 87,101 | 122,264 | 331,704 | 362,644 |
Income tax expense | 26,923 | 38,439 | 234,337 | 95,009 |
Net earnings | 60,178 | 83,825 | 97,367 | 267,635 |
Net earnings (loss) attributable to noncontrolling interests | (4) | 10 | (1) | 50 |
Net earnings attributable to Jefferies Group LLC | $ 60,182 | $ 83,815 | $ 97,368 | $ 267,585 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net earnings | $ 60,178 | $ 83,825 | $ 97,367 | $ 267,635 | |||
Other comprehensive income (loss), net of tax: | |||||||
Currency translation and other adjustments | [1] | (26,050) | 3,830 | (71,219) | 27,182 | ||
Changes in instrument specific credit risk | [2] | 1,067 | 3,508 | 8,971 | (8,870) | ||
Cash flow hedges | 85 | (1,585) | 1,382 | [3] | (1,585) | [3] | |
Total other comprehensive income (loss), net of tax | [4] | (24,898) | 5,753 | (60,866) | 16,727 | ||
Comprehensive income | 35,280 | 89,578 | 36,501 | 284,362 | |||
Net earnings (loss) attributable to noncontrolling interests | (4) | 10 | (1) | 50 | |||
Comprehensive income attributable to Jefferies Group LLC | $ 35,284 | $ 89,568 | $ 36,502 | $ 284,312 | |||
[1] | The amounts during the nine months ended August 31, 2018 include $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and ($0.8) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital and a gain of $20.5 million related to foreign currency gains, which was reclassified to Other income within the Consolidated Statements of Earnings. The amounts during the three and nine months ended August 31, 2018 include $2.8 million related to the impact of certain discrete items related to our non-U.S. subsidiaries planning for the Tax Act. | ||||||
[2] | The amounts include income tax expense of approximately $0.3 million and $11.0 million for the three and nine months ended August 31, 2018, respectively, and income tax expense of approximately $2.1 million and income tax benefit of approximately $5.3 million for the three and nine months ended August 31, 2017, respectively. The amounts during the three and nine months ended August 31, 2018 also include a gain of $0.1 million and $0.4 million, net of taxes of $0.1 million, respectively, related to changes in instrument specific credit risk, which was reclassified to Principal transaction revenues within the Consolidated Statements of Earnings. The amount during the nine months ended August 31, 2018 includes ($6.5) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | ||||||
[3] | The amount during the nine months ended August 31, 2018 includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | ||||||
[4] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | ||
Currency translation and other adjustments | [1] | $ (26,050) | $ 3,830 | $ (71,219) | $ 27,182 |
Adjustment related to foreign currency gains reclassified to earnings | 20,500 | ||||
Impact of certain discrete items related to non-U.S. subsidiaries planning for the Tax Act | 160,200 | ||||
Changes in instrument specific credit risk, tax expense (benefit) | 300 | $ (2,100) | 11,000 | $ (5,300) | |
Changes in instrument specific credit risk reclassified to earnings | 100 | 400 | |||
Changes in instrument specific credit risk reclassified to earnings, tax | 100 | 100 | |||
German Plan | Pension Plan | |||||
Currency translation and other adjustments | [1] | 5,300 | |||
Currency translation and other adjustments | |||||
Reclassification amount related to the Tax Cuts and Jobs Act | [1] | (800) | |||
Impact of certain discrete items related to non-U.S. subsidiaries planning for the Tax Act | $ 2,800 | 2,800 | |||
Changes in instrument specific credit risk | |||||
Reclassification amount related to the Tax Cuts and Jobs Act | (6,500) | ||||
Cash flow hedges | |||||
Reclassification amount related to the Tax Cuts and Jobs Act | [2] | $ (200) | |||
[1] | The amounts during the nine months ended August 31, 2018 include $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and ($0.8) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital and a gain of $20.5 million related to foreign currency gains, which was reclassified to Other income within the Consolidated Statements of Earnings. The amounts during the three and nine months ended August 31, 2018 include $2.8 million related to the impact of certain discrete items related to our non-U.S. subsidiaries planning for the Tax Act. | ||||
[2] | The amount during the nine months ended August 31, 2018 includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Member's paid-in capital | Accumulated other comprehensive income (loss) | Total Jefferies Group LLC member’s equity | Noncontrolling interests | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Cumulative effect of the adoption of the new revenue standard, net of tax | $ 0 | |||||||
Balance, beginning of period at Nov. 30, 2016 | 5,538,103 | $ (168,157) | [1],[2] | $ 651 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings (loss) | 357,498 | 86 | ||||||
Distribution to Jefferies Financial Group Inc. | 0 | |||||||
Tax Cuts and Jobs Act adjustment | 0 | |||||||
Currency adjustments | [1],[2],[3] | 53,396 | ||||||
Changes in instrument specific credit risk | [1],[2],[4] | (21,394) | ||||||
Cash flow hedges | [1],[2],[5] | (936) | ||||||
Pension adjustments | [1],[2],[6] | 312 | ||||||
Contributions | 0 | |||||||
Consolidation of asset management entity | 0 | |||||||
Balance, end of period at Nov. 30, 2017 | $ 5,759,559 | 5,895,601 | (136,779) | [1],[2] | $ 5,758,822 | 737 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Cumulative effect of the adoption of the new revenue standard, net of tax | (6,121) | |||||||
Net earnings (loss) | 97,367 | 97,368 | (1) | |||||
Distribution to Jefferies Financial Group Inc. | (248,684) | |||||||
Tax Cuts and Jobs Act adjustment | 7,555 | |||||||
Currency adjustments | (71,219) | [7] | (75,717) | [1],[2],[3] | ||||
Changes in instrument specific credit risk | 8,971 | [8] | 8,971 | [1],[2],[4] | ||||
Cash flow hedges | 1,382 | [9] | 1,382 | [1],[2],[5] | ||||
Pension adjustments | [1],[2],[6] | 4,498 | ||||||
Contributions | 10 | |||||||
Consolidation of asset management entity | (130) | 8,316 | ||||||
Balance, end of period at Aug. 31, 2018 | $ 5,557,136 | $ 5,745,719 | $ (197,645) | [1],[2] | $ 5,548,074 | $ 9,062 | ||
[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 year ended November 30, 2017. | |||||||
[3] | The amount during the nine months ended August 31, 2018 includes a gain of $20.5 million related to foreign currency gains, which was reclassified to earnings, and $2.8 million related to the impact of certain discrete items related to tax planning for our non-U.S. subsidiaries in connection with the Tax Act. | |||||||
[4] | The amount during the nine months ended August 31, 2018 includes a gain of $0.4 million, net of taxes of $0.1 million, related to changes in instrument specific credit risk, which was reclassified to earnings, and ($6.5) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||
[5] | The amount during the nine months ended August 31, 2018 includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||
[6] | The amount during the nine months ended August 31, 2018 includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to earnings, and ($0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||
[7] | The amounts during the nine months ended August 31, 2018 include $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and ($0.8) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital and a gain of $20.5 million related to foreign currency gains, which was reclassified to Other income within the Consolidated Statements of Earnings. The amounts during the three and nine months ended August 31, 2018 include $2.8 million related to the impact of certain discrete items related to our non-U.S. subsidiaries planning for the Tax Act. | |||||||
[8] | The amounts include income tax expense of approximately $0.3 million and $11.0 million for the three and nine months ended August 31, 2018, respectively, and income tax expense of approximately $2.1 million and income tax benefit of approximately $5.3 million for the three and nine months ended August 31, 2017, respectively. The amounts during the three and nine months ended August 31, 2018 also include a gain of $0.1 million and $0.4 million, net of taxes of $0.1 million, respectively, related to changes in instrument specific credit risk, which was reclassified to Principal transaction revenues within the Consolidated Statements of Earnings. The amount during the nine months ended August 31, 2018 includes ($6.5) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||
[9] | The amount during the nine months ended August 31, 2018 includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2018 | ||
Adjustment related to foreign currency gains reclassified to earnings | $ 20,500 | ||
Impact of certain discrete items related to non-U.S. subsidiaries planning for the Tax Act | 160,200 | ||
Changes in instrument specific credit risk reclassified to earnings | $ 100 | 400 | |
Changes in instrument specific credit risk reclassified to earnings, tax | 100 | 100 | |
Currency translation and other adjustments | [1] | (26,050) | (71,219) |
Accumulated other comprehensive income (loss) | |||
Adjustment related to foreign currency gains reclassified to earnings | 20,500 | ||
Changes in instrument specific credit risk reclassified to earnings | 400 | ||
Currency translation and other adjustments | [2],[3],[4] | (75,717) | |
Currency translation and other adjustments | |||
Impact of certain discrete items related to non-U.S. subsidiaries planning for the Tax Act | $ 2,800 | 2,800 | |
Reclassification amount related to the Tax Cuts and Jobs Act | [1] | (800) | |
Changes in instrument specific credit risk | |||
Reclassification amount related to the Tax Cuts and Jobs Act | (6,500) | ||
Cash flow hedges | |||
Reclassification amount related to the Tax Cuts and Jobs Act | [5] | (200) | |
German Plan | Pension Plan | |||
Currency translation and other adjustments | [1] | $ 5,300 | |
[1] | The amounts during the nine months ended August 31, 2018 include $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and ($0.8) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital and a gain of $20.5 million related to foreign currency gains, which was reclassified to Other income within the Consolidated Statements of Earnings. The amounts during the three and nine months ended August 31, 2018 include $2.8 million related to the impact of certain discrete items related to our non-U.S. subsidiaries planning for the Tax Act. | ||
[2] | The amount during the nine months ended August 31, 2018 includes a gain of $20.5 million related to foreign currency gains, which was reclassified to earnings, and $2.8 million related to the impact of certain discrete items related to tax planning for our non-U.S. subsidiaries in connection with the Tax Act. | ||
[3] | 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. | ||
[4] | There were no material reclassifications out of Accumulated other comprehensive income (loss) during the year ended November 30, 2017. | ||
[5] | The amount during the nine months ended August 31, 2018 includes ($0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 97,367 | $ 267,635 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 10,208 | 1,820 |
Income on loans to and investments in related parties | (30,687) | (65,323) |
Distributions received on investments in related parties | 2,330 | 8,021 |
Other adjustments | (96,359) | 91,313 |
Net change in assets and liabilities: | ||
Securities deposited with clearing and depository organizations | 64,890 | 119 |
Receivables: | ||
Brokers, dealers and clearing organizations | (27,967) | (546,424) |
Customers | (388,076) | (448,494) |
Fees, interest and other | 64,563 | (31,877) |
Securities borrowed | 309,722 | 0 |
Financial instruments owned | (1,115,411) | (160,080) |
Securities purchased under agreements to resell | (53,020) | 524,937 |
Other assets | 117,440 | (50,147) |
Payables: | ||
Brokers, dealers and clearing organizations | (260,193) | (652,668) |
Customers | 523,611 | 162,387 |
Securities loaned | (275,629) | (68,310) |
Financial instruments sold, not yet purchased | 52,196 | 50,267 |
Securities sold under agreements to repurchase | 1,250,575 | 1,668,725 |
Accrued expenses and other liabilities | (392,471) | 209,756 |
Net cash provided by (used in) operating activities | (146,911) | 961,657 |
Cash flows from investing activities: | ||
Contributions to loans to and investments in related parties | (1,918,500) | (2,916,204) |
Distributions from loans to and investments in related parties | 1,873,000 | 2,729,276 |
Net payments on premises and equipment | (52,699) | (53,595) |
Cash received from contingent consideration | 0 | 1,342 |
Consolidation of asset management entity | 130 | 0 |
Net cash used in investing activities | (98,069) | (239,181) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 616,283 | 144,174 |
Payments on short-term borrowings | (669,466) | (247,130) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,321,714 | 1,030,027 |
Repayment of long-term debt | (1,025,563) | (121,957) |
Dividend distribution | (218,593) | 0 |
Net proceeds from (payments on) other secured financings | 282,714 | (203,036) |
Net change in bank overdrafts | 2,369 | (5,764) |
Proceeds from noncontrolling interests | 10 | 0 |
Net cash provided by financing activities | 309,468 | 596,314 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (16,084) | 5,391 |
Net increase in cash, cash equivalents and restricted cash | 48,404 | 1,324,181 |
Cash, cash equivalents and restricted cash at beginning of period | 5,642,776 | 4,286,513 |
Cash, cash equivalents and restricted cash at end of period | 5,691,180 | 5,610,694 |
Cash paid during the period for | ||
Interest | 1,001,307 | 777,969 |
Income taxes, net | $ 152,600 | $ 3,329 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Cash, Cash Equivalents and Restricted Cash by Category [Abstract] | ||
Cash and cash equivalents | $ 4,812,564 | $ 5,164,492 |
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 878,616 | 478,284 |
Total cash, cash equivalents and restricted cash | $ 5,691,180 | $ 5,642,776 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Aug. 31, 2018 | |
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 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. Jefferies Group LLC is a direct wholly owned subsidiary of publicly traded Jefferies Financial Group Inc. (“Jefferies”), formerly known as Leucadia National Corporation. Jefferies 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 Jefferies common shares. At November 22, 2017, all of the remaining convertible debentures were called for optional redemption and 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 Jefferies, as well as a Director of Jefferies. Brian P. Friedman, our Chairman of the Executive Committee, is Jefferies’ President and a Director of Jefferies. 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. On December 28, 2017, a Liquidation Insurance Contract was entered into with Generali Lebensversicherung AG (“Generali”) to transfer the defined benefit pension obligations and insurance contracts to Generali, for approximately €6.5 million , which was paid in January 2018 and released us from any and all obligations under the German Pension Plan. 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. 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”) and should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended November 30, 2017 . Certain footnote disclosures included in our Annual Report on Form 10-K for the year ended November 30, 2017 have been condensed or omitted from the consolidated financial statements as they are not required for interim reporting under U.S. GAAP. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results presented in the Consolidated Financial Statements for interim periods are not necessarily indicative of the results for the entire year. 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 (loss) 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. Changes to the Consolidated Statements of Operations We have reorganized the presentation of our gains and losses generated from our capital invested in asset management funds managed by us and related parties in the first quarter of 2018. This was previously presented as Asset management: Investment income (loss) from investments in managed funds and is now presented within Principal transactions revenues. Changes to the Consolidated Statements of Cash Flows In the first quarter of 2018, we made certain changes to the presentation of our Consolidated Statements of Cash Flows in order to net certain Short-term borrowings, primarily related to revolving intraday credit advances. Refer to Note 11, Short-Term Borrowings , for further information. The changes had the impact of reducing Proceeds from short-term borrowings by $25,640.4 million and increasing Payments on short-term borrowings by $25,640.4 million for the nine month period ended August 31, 2017 . There was no change to the total Net cash provided by financing activities. We do not believe these changes are material to our Consolidated Statements of Cash Flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies For a detailed discussion about the Company’s significant accounting policies, see Note 2, Summary of Significant Accounting Policies , in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2017. During the nine months ended August 31, 2018 , other than the following, there were no significant changes made to the Company’s significant accounting policies. The accounting policy changes are attributable to the adoption of the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (the “new revenue standard” or Accounting Standards Codification 606, (“ASC 606”)) on December 1, 2017. These revenue recognition policy updates are applied prospectively in our financial statements from December 1, 2017 forward. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical periods. Investment Banking Revenues: • Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. • Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. • All investment banking expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Asset Management Fees: • Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Refer to Note 3, Accounting Developments , and Note 13, Revenues From Contracts With Customers , for further information. |
Accounting Developments
Accounting Developments | 9 Months Ended |
Aug. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Developments | Accounting Developments Accounting Standards to be Adopted in Future Periods Internal-Use Software. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The objective of the guidance is to improve the effectiveness of disclosure requirements on defined benefit pension plans and other postretirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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 2020. We do not believe the new guidance will have a material impact 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. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. 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 (“ASU 2016-02”). The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements. The guidance allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption of ASU 2016-02. We plan on adopting both lease ASUs in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening member’s equity in the period of adoption. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Adopted Accounting Standards Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The objective of this guidance is to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of fiscal 2018 and the adoption did not have a material impact on our consolidated financial statements. Comprehensive Income. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance allows companies the option to reclassify stranded taxes from Accumulated other comprehensive income to retained earnings due to the decrease in the Federal Statutory tax rate from 35% to 21% resulting from the Tax Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted corporate income tax rate. We early adopted this guidance as of February 28, 2018, resulting in a reclassification adjustment of $7.6 million related to unamortized pension liabilities, cash flow hedges and instrument specific credit risk in 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. We early adopted this guidance in the first quarter of fiscal 2018 and the adoption did not have a material impact on our Consolidated Statements of Earnings. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (“ASU 2016-18”), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted both ASUs in the first quarter of fiscal 2018. Prior periods were retrospectively adjusted to conform to the current period’s presentation. The adoption of ASU 2016-15 did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption of ASU 2016-18, we recorded an increase of $45.9 million in Net cash used for operating activities for the nine months ended August 31, 2017 related to reclassifying the changes in our restricted cash balance from operating activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. 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. We adopted the guidance on financial liabilities under the fair value option in the first quarter of fiscal 2016 and we adopted the remaining guidance in the first quarter of fiscal 2018. 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 beginning Member’s paid-in capital as the cumulative effect of adoption of this accounting change. The impact of adoption is primarily related to 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 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 applied to contracts that were not completed as of December 1, 2017. Accordingly, the new revenue standard is applied prospectively in our financial statements from December 1, 2017 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue 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 Statements of Earnings 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. , exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. There was no significant impact as a result of applying the new revenue standard to our consolidated financial statements for the three and nine months ended August 31, 2018 , except as it relates to the presentation of investment banking expenses. The table below presents the impact to revenues and expenses as a result of the change in presentation of investment banking expenses (in thousands): Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 As Reported ASC 606 Impact Adjusted (1) As Reported ASC 606 Impact Adjusted (1) Revenues: Investment banking $ 465,326 $ 36,319 $ 429,007 $ 1,405,614 $ 101,146 $ 1,304,468 Total revenues 1,088,285 36,319 1,051,966 3,331,689 101,146 3,230,543 Net revenues 777,615 36,319 741,296 2,421,418 101,146 2,320,272 Non-interest expenses: Underwriting costs 20,528 20,528 — 47,832 47,832 — Technology and communications 76,877 97 76,780 222,335 311 222,024 Business development 39,733 14,946 24,787 124,233 50,187 74,046 Professional services 35,316 401 34,915 101,715 1,968 99,747 Other expenses 18,723 347 18,376 54,888 848 54,040 Total non-compensation expenses 262,481 36,319 226,162 761,954 101,146 660,808 Total non-interest expenses 690,514 36,319 654,195 2,089,714 101,146 1,988,568 (1) The amounts reflect each affected financial statement line item as they would have been reported under U.S. GAAP, prior to the adoption of the new revenue standard. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Aug. 31, 2018 | |
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 net asset value (“NAV”) of $325.3 million and $215.4 million at August 31, 2018 and November 30, 2017 , respectively, by level within the fair value hierarchy (in thousands): August 31, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,881,376 $ 72,569 $ 48,045 $ — $ 2,001,990 Corporate debt securities — 2,286,852 9,651 — 2,296,503 Collateralized debt obligations and collateralized loan obligations — 82,339 23,601 — 105,940 U.S. government and federal agency securities 2,876,669 45,889 — — 2,922,558 Municipal securities — 749,616 — — 749,616 Sovereign obligations 1,319,415 666,745 — — 1,986,160 Residential mortgage-backed securities — 1,894,533 4,954 — 1,899,487 Commercial mortgage-backed securities — 791,449 23,916 — 815,365 Other asset-backed securities — 263,967 69,305 — 333,272 Loans and other receivables — 1,455,496 48,985 — 1,504,481 Derivatives 6,644 3,496,790 3,137 (3,331,143 ) 175,428 Investments at fair value — — 79,539 — 79,539 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,084,104 $ 11,806,245 $ 311,133 $ (3,331,143 ) $ 14,870,339 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,312,412 $ 1,507 $ 413 $ — $ 1,314,332 Corporate debt securities — 1,375,530 1,557 — 1,377,087 U.S. government and federal agency securities 1,127,608 — — — 1,127,608 Sovereign obligations 1,513,237 958,998 55 — 2,472,290 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,136,579 8,661 — 1,145,240 Derivatives 4,976 4,125,994 12,134 (3,451,531 ) 691,573 Total financial instruments sold, not yet purchased $ 3,958,233 $ 7,598,608 $ 22,890 $ (3,451,531 ) $ 8,128,200 Long-term debt $ — $ 545,927 $ 163,630 $ — $ 709,557 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. 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 Collateralized debt obligations and collateralized loan obligations — 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. 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 and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Corporate Debt Securities • Corporate Bonds: Corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds. • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized debt obligations (“CDOs”) and collateralized loan obligations (“CLOs”) are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third-party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations are categorized within Level 1 or Level 2 of the fair value hierarchy, primarily based on the country of issuance. Sovereign government obligations are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability of these input parameters. 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 and interest-only (including inverse interest-only) securities. Agency RMBS are generally measured using recent transactions, pricing data from external pricing services or expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral and are categorized within Level 2 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • Non-Agency 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, prices observed from recently executed market transactions or based on expected cash flow models that incorporate underlying loan collateral characteristics and performance. Non-Agency CMBS are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability of the underlying inputs. Other Asset-Backed Securities Other asset-backed securities (“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 or Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services, broker quotes and prices observed from recently executed market transactions. In addition, recent transaction data from comparable deals is deployed to develop market clearing yields and cumulative loss assumptions. The cumulative loss assumptions are based on the analysis of the underlying collateral and comparisons to earlier deals from the same issuer to gauge the relative performance of the deal. Loans and Other Receivables • Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market consensus pricing service quotations. Where available, market price quotations from external pricing services are reviewed to ensure they are supported by transaction data. Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent, market prices for debt securities of the same creditor and estimates of future cash flows incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer’s capital structure. • Participation Certificates in Agency Residential Loans: Valuations of participation certificates in agency residential loans are based on observed market prices of recently executed purchases and sales of similar loans and data provider pricing. The loan participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions and availability of data provider pricing. • Project Loans and Participation Certificates in GNMA Project and Construction Loans: Valuations of participation certificates in GNMA project and construction loans are based on inputs corroborated from and benchmarked to observed prices of recent securitizations with similar underlying loan collateral to derive an implied spread. Securitization prices are adjusted to estimate the fair value of the loans to account for the arbitrage that is realized at the time of securitization. The measurements are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions. • Consumer Loans and Funding Facilities: Consumer and small business whole loans and related funding facilities are valued based on observed market transactions and incorporating valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy. • Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. Derivatives • Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, broker quotes or vanilla option valuation models, such as Black-Scholes, using observable valuation inputs from the principal market or consensus pricing services. Exchange quotes and/or valuation inputs are generally obtained from external vendors and pricing services. Broker quotes are validated directly through observable and tradeable quotes. Listed derivative contracts that use unadjusted exchange close prices are generally categorized within Level 1 of the fair value hierarchy. All other listed derivative contracts are generally categorized within Level 2 of the fair value hierarchy. • Over-the-Counter (“OTC”) Derivative Contracts: OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current transaction. 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 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 Investments at fair value based on NAV includes 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): August 31, 2018 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 16,606 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 219 — — Fund of Funds (4) 175 — — Equity Funds (5) 36,702 20,209 — Commodity Funds (6) 10,228 — — Multi-asset Funds (7) 261,350 — — Total $ 325,280 $ 20,209 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 (7) 154,805 — — Total $ 215,385 $ 19,084 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2018 and November 30, 2017 , approximately 2% and 1% , 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 August 31, 2018 and November 30, 2017 , the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to be liquidated in one to ten years. (6) This category includes investments in hedge funds that invest, long and short, primarily in commodities. Investments in this category are redeemable with 60 days prior written notice. (7) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2018 and November 30, 2017 , investments representing approximately 17% and 12% , respectively, 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 categorized within Level 2 or Level 3 of 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 within Level 2 of 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), digital 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 as well as prices for transactions in a given note during the period. Long-term debt notes are generally categorized within Level 2 of the fair value hierarchy where market trades have been observed during the quarter, otherwise categorized within Level 3. Level 3 Rollforwards The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2018 (in thousands): Three Months Ended August 31, 2018 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at August 31, 2018, changes in unrealized gains/(losses) included in: Balance at Purchases Sales Settlements Issuances Balance at earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 42,901 $ 12,128 $ 17,652 $ (23,010 ) $ (302 ) $ — $ (1,324 ) $ 48,045 $ 9,468 $ — Corporate debt securities 28,066 1,057 507 (21,403 ) (59 ) — 1,483 9,651 (165 ) — CDOs and CLOs 30,603 567 238,281 (240,002 ) (2,127 ) — (3,721 ) 23,601 (2,338 ) — RMBS 3,655 (66 ) 72 (1,597 ) (1 ) — 2,891 4,954 90 — CMBS 27,239 (222 ) 8 — (1,156 ) — (1,953 ) 23,916 (288 ) — Other ABS 55,535 (2,269 ) 307,358 (290,838 ) (4,356 ) — 3,875 69,305 (1,124 ) — Loans and other receivables 64,036 (1,353 ) 14,932 (23,700 ) (3,453 ) — (1,477 ) 48,985 1,007 — Investments at fair value 79,488 — 51 — — — — 79,539 — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 87 $ 326 $ — $ — $ — $ — $ — $ 413 $ (326 ) $ — Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) — Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) — CMBS — 70 — — — — — 70 (70 ) — Loans 12,881 (148 ) (4,871 ) 1,787 — — (988 ) 8,661 149 — Net derivatives (2) 5,874 1,107 — — 1,990 — 26 8,997 (2,090 ) — Long-term debt 160,626 3,004 — — — — — 163,630 (2,953 ) (51 ) (1) Realized and unrealized gains/losses are primarily reported in Principal transaction revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (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 Three Months Ended August 31, 2018 During the three months ended August 31, 2018 , transfers of assets of $13.6 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Other ABS of $3.9 million , RMBS of $2.9 million and CMBS of $2.6 million due to reduced pricing transparency. During the three months ended August 31, 2018 , transfers of assets of $13.8 million from Level 3 to Level 2 are primarily attributed to: • CMBS of $4.6 million , CDOs and CLOs of $3.7 million and corporate equity securities of $2.6 million due to greater pricing transparency supporting classification into Level 2. Net gains on Level 3 assets were $9.8 million and net losses on Level 3 liabilities were $4.4 million for the three months ended August 31, 2018 . Net gains on Level 3 assets were primarily due to increased market values in corporate equity securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain structured notes. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2018 (in thousands): Nine Months Ended August 31, 2018 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at August 31, 2018, changes in unrealized gains/(losses) included in: Balance at November 30, 2017 Purchases Sales Settlements Issuances Balance at August 31, 2018 earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 22,009 $ 30,098 $ 35,993 $ (39,008 ) $ (2,082 ) $ — $ 1,035 $ 48,045 $ 25,475 $ — Corporate debt securities 26,036 1,090 22,204 (38,553 ) (2,066 ) — 940 9,651 (1,738 ) — CDOs and CLOs 30,004 (2,323 ) 242,864 (249,691 ) (5,859 ) — 8,606 23,601 (5,533 ) — RMBS 26,077 (7,334 ) 2,018 (12,621 ) (6 ) — (3,180 ) 4,954 316 — CMBS 12,419 (1,236 ) 1,720 (548 ) (5,415 ) — 16,976 23,916 (2,272 ) — Other ABS 61,129 (7,528 ) 523,045 (495,055 ) (12,281 ) — (5 ) 69,305 (3,307 ) — Loans and other receivables 47,304 (2,812 ) 104,009 (98,733 ) (14,610 ) — 13,827 48,985 (3,769 ) — Investments at fair value 93,454 417 2,291 (17,569 ) — — 946 79,539 (177 ) — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 48 $ 365 $ — $ — $ — $ — $ — $ 413 $ (365 ) $ — Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) — Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) — CMBS 105 (35 ) — — — — — 70 (70 ) — Loans 3,486 (1,059 ) (15,702 ) 19,409 — — 2,527 8,661 1,059 — Net derivatives (2) 6,746 (1,034 ) (6 ) — 2,984 296 11 8,997 (2,660 ) — Long-term debt — (25,078 ) — — — 81,284 107,424 163,630 36,921 (11,843 ) (1) Realized and unrealized gains/losses are primarily reported in Principal transaction revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (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 Nine Months Ended August 31, 2018 During the nine months ended August 31, 2018 , transfers of assets of $49.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • CMBS of $17.0 million , loans and other receivables of $15.3 million and CDOs and CLOs of $8.7 million due to reduced pricing transparency. During the nine months ended August 31, 2018 , transfers of assets of $10.0 million from Level 3 to Level 2 are primarily attributed to: • RMBS of $4.6 million and corporate equity securities of $2.5 million due to greater pricing transparency supporting classification into Level 2. During the nine months ended August 31, 2018 , there were transfers of structured notes of $107.4 million from Level 2 to Level 3 due to a decrease in market observability. Net gains on Level 3 assets were $10.4 million and net gains on Level 3 liabilities were $26.8 million for the nine months ended August 31, 2018 . Net gains on Level 3 assets were primarily due to increased market values in corporate equity securities, partially offset by decreased market values across other ABS, RMBS and certain loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain structured notes. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2017 (in thousands): Three Months Ended August 31, 2017 Balance at Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at August 31, 2017 Change in Assets: |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Aug. 31, 2018 | |
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 , in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2017 for additional information regarding the offsetting of derivative contracts. The following tables present the fair value and related number of derivative contracts at August 31, 2018 and November 30, 2017 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). August 31, 2018 (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 $ — — $ 30,018 1 Total derivatives designated as accounting hedges — 30,018 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,047 17,218 12 35,304 Cleared OTC 411,969 2,116 405,580 2,325 Bilateral OTC 353,217 1,533 486,970 702 Foreign exchange contracts: Exchange-traded 232 2,073 127 901 Bilateral OTC 234,331 6,488 223,397 6,580 Equity contracts: Exchange-traded 2,332,241 1,765,239 2,718,615 1,632,359 Bilateral OTC 150,206 2,610 259,262 5,266 Commodity contracts: Exchange-traded 17 1,218 89 1,366 Credit contracts: Cleared OTC 15,076 13 5,166 16 Bilateral OTC 8,235 123 13,868 54 Total derivatives not designated as accounting hedges 3,506,571 4,113,086 Total gross derivative assets/ liabilities: Exchange-traded 2,333,537 2,718,843 Cleared OTC 427,045 440,764 Bilateral OTC 745,989 983,497 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (2,248,951 ) (2,248,951 ) Cleared OTC (405,840 ) (425,242 ) Bilateral OTC (676,352 ) (777,338 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 175,428 $ 691,573 (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, 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 (3) $ — — $ 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 (3) 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 accounting 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 (4): Exchange-traded (1,268,043 ) (1,268,043 ) Cleared OTC (3) (1,319,895 ) (1,274,900 ) Bilateral OTC (666,278 ) (883,306 ) Net amounts per Consolidated Statements of Financial Condition (5) $ 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) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of November 30, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . (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): Three Months Ended Nine Months Ended Gains (Losses) 2018 2017 2018 2017 Interest rate swaps $ (1,161 ) $ 6,217 $ (22,363 ) $ 13,960 Long-term debt 1,221 (4,680 ) 24,055 (9,570 ) Total $ 60 $ 1,537 $ 1,692 $ 4,390 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): Three Months Ended Nine Months Ended Gains (Losses) 2018 2017 2018 2017 Interest rate contracts $ 13,951 $ (6,432 ) $ 36,053 $ 2,605 Foreign exchange contracts (4,421 ) 1,028 6,207 4,135 Equity contracts 1,807 (106,425 ) (215,232 ) (275,124 ) Commodity contracts 281 1,508 3,025 (5,398 ) Credit contracts 620 311 3,026 11,218 Total $ 12,238 $ (110,010 ) $ (166,921 ) $ (262,564 ) 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 August 31, 2018 (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 $ 10,226 $ 8,071 $ 2,195 $ — $ 20,492 Credit default swaps 82 17,846 — (11 ) 17,917 Total return swaps 46,036 29,910 — (4,334 ) 71,612 Foreign currency forwards, swaps and options 42,326 22,130 — (9,550 ) 54,906 Fixed income forwards 2,113 — — — 2,113 Interest rate swaps, options and forwards 13,104 96,631 95,973 (91,673 ) 114,035 Total $ 113,887 $ 174,588 $ 98,168 $ (105,568 ) 281,075 Cross product counterparty netting (32,615 ) Total OTC derivative assets included in Financial instruments owned $ 248,460 (1) At August 31, 2018 , we held exchange-traded derivative assets and other credit agreements with a fair value of $85.2 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At August 31, 2018 , cash collateral received was $158.2 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 15,125 $ 92,491 $ 13,048 $ — $ 120,664 Credit default swaps 17 10,374 — (11 ) 10,380 Total return swaps 67,526 19,806 — (4,334 ) 82,998 Foreign currency forwards, swaps and options 36,176 17,496 — (9,550 ) 44,122 Fixed income forwards 685 — — — 685 Interest rate swaps, options and forwards 16,388 148,685 198,569 (91,673 ) 271,969 Total $ 135,917 $ 288,852 $ 211,617 $ (105,568 ) 530,818 Cross product counterparty netting (32,615 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 498,203 (1) At August 31, 2018 , we held exchange-traded derivative liabilities and other credit agreements with a fair value of $472.0 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 August 31, 2018 , cash collateral pledged was $278.6 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 August 31, 2018 (in thousands): Counterparty credit quality (1): A- or higher $ 135,060 BBB- to BBB+ 20,490 BB+ or lower 74,097 Unrated 18,813 Total $ 248,460 (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): August 31, 2018 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 15.0 $ — $ 18.0 Single name credit default swaps 32.5 34.8 2.9 70.2 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 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 following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): August 31, 2018 November 30, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 106.3 $ 95.1 Collateral posted (59.3 ) (86.4 ) Collateral received 129.7 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 176.6 14.3 (1) These outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Aug. 31, 2018 | |
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 of 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 August 31, 2018 and November 30, 2017 , $0 and $103,000 , 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): August 31, 2018 Securities Lending Arrangements Repurchase Agreements Total Collateral Pledged: Cash $ — $ 4,361 $ 4,361 Corporate equity securities 2,214,433 490,609 2,705,042 Corporate debt securities 315,718 1,496,127 1,811,845 Mortgage- and asset-backed securities — 2,667,439 2,667,439 U.S. government and federal agency securities 1,353 10,124,642 10,125,995 Municipal securities — 582,699 582,699 Sovereign obligations — 1,955,879 1,955,879 Loans and other receivables — 517,703 517,703 Total $ 2,531,504 $ 17,839,459 $ 20,370,963 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 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): August 31, 2018 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 1,354,136 $ — $ 847,577 $ 329,791 $ 2,531,504 Repurchase agreements 8,122,962 2,733,400 4,342,923 2,640,174 17,839,459 Total $ 9,477,098 $ 2,733,400 $ 5,190,500 $ 2,969,965 $ 20,370,963 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 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 August 31, 2018 and November 30, 2017 , the approximate fair value of securities received as collateral by us that may be sold or repledged was $25.2 billion and $27.1 billion , respectively. At August 31, 2018 and November 30, 2017 , 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 , in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2017 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). August 31, 2018 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 $ 7,369,908 $ — $ 7,369,908 $ (529,662 ) $ (1,088,612 ) $ 5,751,634 Reverse repurchase agreements 11,634,035 (7,974,976 ) 3,659,059 (187,426 ) (3,441,009 ) 30,624 Liabilities: Securities lending arrangements $ 2,531,504 $ — $ 2,531,504 $ (529,662 ) $ (1,977,558 ) $ 24,284 Repurchase agreements 17,839,459 (7,974,976 ) 9,864,483 (187,426 ) (8,632,482 ) 1,044,575 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 (4) 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 ) — (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 $5,717.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,544.1 million , and $1,019.6 million of repurchase agreements, for which we have pledged securities collateral of $1,054.1 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. (4) 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. 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 $913.5 million and $578.0 million at August 31, 2018 and November 30, 2017 , respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies LLC as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers. |
Securitization Activities
Securitization Activities | 9 Months Ended |
Aug. 31, 2018 | |
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 4, Fair Value Disclosures , herein, and Note 2, Summary of Significant Accounting Policies , in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2017 . The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Transferred assets $ 1,865.5 $ 1,009.1 $ 5,665.9 $ 2,677.7 Proceeds on new securitizations 1,866.2 1,017.2 5,668.6 2,703.3 Cash flows received on retained interests 17.2 8.7 35.7 22.7 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 August 31, 2018 and November 30, 2017 . The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): August 31, 2018 November 30, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 13,306.0 $ 192.7 $ 6,383.5 $ 28.2 U.S. government agency CMBS 2,101.5 276.1 2,075.7 81.4 CLOs 3,442.3 26.4 3,957.8 20.3 Consumer and other loans 648.9 53.0 247.6 47.8 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 | 9 Months Ended |
Aug. 31, 2018 | |
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, forward sale agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires 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 August 31, 2018 and November 30, 2017 (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. August 31, 2018 November 30, 2017 Securitization Vehicles Other Securitization Vehicles Other Cash $ — $ 1.1 $ 6.5 $ 1.1 Financial instruments owned — 0.4 37.6 0.4 Securities purchased under agreements to resell (1) 1,043.4 — 729.3 — Fees, interest and other receivables — — 0.2 — Total assets $ 1,043.4 $ 1.5 $ 773.6 $ 1.5 Other secured financings (2) $ 1,042.5 $ — $ 766.2 $ — Other liabilities 0.9 0.2 5.9 0.2 Total liabilities $ 1,043.4 $ 0.2 $ 772.1 $ 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 $37.7 million and $44.1 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at August 31, 2018 and November 30, 2017 , respectively. Securitization Vehicles . We are the primary beneficiary of asset-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans, mortgage-backed securities and consumer loans 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 were previously the primary beneficiary of a securitization vehicle associated with our financing of small business loans. In the creation of the securitization vehicle, we were involved in the decisions made during the establishment and design of the entity and held variable interests consisting of the securities retained that could potentially be significant. The assets of the VIE consisted of small business loans, which were available for the benefit of the vehicles’ beneficial interest holders. The creditors of the VIE did not have recourse to our general credit and the assets of the VIE were 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): August 31, 2018 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 53.9 $ 0.7 $ 780.9 $ 3,155.3 Consumer loan vehicles 323.5 — 602.4 3,441.8 Related party private equity vehicles 34.1 — 52.0 107.2 Other private investment vehicles 50.1 — 53.4 3,179.9 Total $ 461.6 $ 0.7 $ 1,488.7 $ 9,884.2 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 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; and • Investments in variable funding notes issued by CLOs. 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. At August 31, 2018 and November 30, 2017, our total equity commitment in the JCP Entities was $139.3 million and $148.1 million , respectively, of which $121.3 million and $126.3 million had been funded, respectively. The carrying value of our equity investments in the JCP Entities was $34.1 million and $23.7 million at August 31, 2018 and November 30, 2017 , 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. Other Private Investment Vehicles. At August 31, 2018 and November 30, 2017 , we had equity commitments to invest $65.3 million and $61.8 million , respectively, in various other private investment vehicles, of which $62.0 million and $61.0 million was funded, respectively. The carrying value of our equity investments was $50.1 million and $48.0 million at August 31, 2018 and November 30, 2017 , 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 August 31, 2018 and November 30, 2017 , we held $2,622.2 million and $1,829.6 million of agency mortgage-backed securities, respectively, and $156.6 million and $253.2 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 | 9 Months Ended |
Aug. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments We have investments in Jefferies Finance LLC (“Jefferies Finance”) and Epic Gas Ltd. (“Epic Gas”). Our investments in Jefferies Finance 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 investments in KCG Holdings, Inc. (“KCG”) and Jefferies LoanCore LLC (“Jefferies LoanCore”), which were sold on July 20, 2017 and October 31, 2017, respectively. Our investment in KCG was accounted for at fair value by electing the fair value option available under U.S. GAAP with changes in fair value recognized in Principal transaction revenues in our Consolidated Statements of Earnings. Our investment in Jefferies LoanCore was accounted for under the equity method with our share of the investees’ earnings recognized in Other 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 LLC. Jefferies Finance may also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market and acts as an investment advisor for various loan funds. At August 31, 2018 , we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million , for a combined total commitment of $1.5 billion . At August 31, 2018 , we had funded $706.5 million of our $750.0 million commitment, leaving $43.5 million unfunded. The investment commitment is scheduled to expire on March 1, 2019 with automatic one year extensions absent a 60 day termination notice by either party. Jefferies Finance has executed a Secured Revolving Credit Facility with 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 August 31, 2018 . Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2019 with automatic one year extensions absent a 60 day termination notice by either party. At August 31, 2018 , 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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Interest income $ — $ 0.2 $ 1.2 $ 2.5 Unfunded commitment fees 0.3 0.3 0.8 0.8 The following is a summary of selected financial information for Jefferies Finance (in millions): August 31, 2018 November 30, 2017 Our total equity balance $ 706.5 $ 636.2 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net earnings $ 38.0 $ 40.8 $ 140.7 $ 133.5 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Origination and syndication fee revenues (1) $ 71.1 $ 104.2 $ 282.1 $ 243.5 Origination fee expenses (1) 12.1 — 45.5 2.5 CLO placement fee revenues (2) 0.4 0.8 3.1 4.7 Derivative losses (3) (0.3 ) (0.2 ) (0.9 ) (0.6 ) Underwriting fees (4) — — 0.3 — Service fees (5) 13.3 7.9 48.3 37.4 (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 August 31, 2018 and November 30, 2017 , 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 term loans issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. Receivables from Jefferies Finance, included in Other assets in our Consolidated Statements of Financial Condition, were $36.3 million and $20.5 million at August 31, 2018 and November 30, 2017 , respectively. Payables from Jefferies Finance, related to cash deposited with us and included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition, were $14.1 million at August 31, 2018 . We enter into OTC foreign exchange contracts with Jefferies Finance. In connection with these contracts we had $0.2 million recorded in Payables—brokers, dealers and clearing organizations and $1.5 million recorded in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition at August 31, 2018 and November 30, 2017 , respectively. JCP Fund V The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition was $30.0 million and $19.6 million at August 31, 2018 and November 30, 2017 , 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 in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2017 ). The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net gains (losses) from our investments in JCP Fund V $ 0.3 $ (1.2 ) $ 10.1 $ (9.1 ) At August 31, 2018 and November 30, 2017 , we were committed to invest equity of up to $85.0 million in JCP Fund V. At August 31, 2018 and November 30, 2017 , our unfunded commitment relating to JCP Fund V was $9.7 million and $10.1 million , respectively. The following is a summary of the Net increase (decrease) in net assets resulting from operations for 100.0% of JCP Fund V, in which we owned effectively 35.1% and 35.2% of the combined equity interests at August 31, 2018 and November 30, 2017 , respectively (in thousands): Three Months Ended June 30, 2018 (1) March 31, 2018 (1) December 31, 2017 (1) June 30, 2017 (1) March 31, 2017 (1) December 31, 2016 (1) Net increase (decrease) in net assets resulting from operations $ 1,663 $ 8,463 $ 19,712 $ (552 ) $ (19,552 ) $ (2,294 ) (1) Financial information for JCP Fund V within our results of operations for the three and nine months ended August 31, 2018 and 2017 is included based on the presented periods. Epic Gas On July 14, 2015, Jefferies LLC 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 August 31, 2018 and November 30, 2017 , we owned approximately 21.1% of the outstanding common stock of Epic Gas. The following is a summary of selected financial information for Epic Gas (in millions): August 31, 2018 November 30, 2017 Our investment in Epic Gas (1) $ 21.2 $ 22.2 Three Months Ended June 30, 2018 (2) March 31, 2018 (2) December 31, 2017 (2) June 30, 2017 (2) March 31, 2017 (2) December 31, 2016 (2) Net losses $ (2.3 ) $ (2.7 ) $ (16.4 ) $ (5.4 ) $ (3.4 ) $ (15.9 ) (1) Included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition. (2) Financial information for Epic Gas in our results of operations for the three and nine months ended August 31, 2018 and 2017 is included based on the presented periods. 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 net earnings of Jefferies LoanCore were $3.8 million and $12.4 million for the three and nine months ended August 31, 2017 , respectively, and were recognized in Other revenues in our Consolidated Statements of Earnings. KCG Our investment in KCG was sold on July 20, 2017. The change in the fair value of our investment in KCG was a net gain of $2.2 million and $93.4 million for the three and nine months ended August 31, 2017 , respectively, and was included in Principal transaction revenues in our Consolidated Statements of Earnings. 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 was based on the closing exchange price of KCG and included in Level 1 of the fair value hierarchy. For the three months ended March 31, 2017 and December 31, 2016, KCG reported net earnings of $3.2 million and $196.2 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill attributed to our reportable business segments are as follows (in thousands): August 31, 2018 November 30, 2017 Capital Markets $ 1,640,058 $ 1,644,089 Asset Management 3,000 3,000 Total goodwill $ 1,643,058 $ 1,647,089 The following table is a summary of the changes to goodwill for the nine months ended August 31, 2018 (in thousands): Balance at November 30, 2017 $ 1,647,089 Translation adjustments (4,031 ) Balance at August 31, 2018 $ 1,643,058 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, 2018 . Our annual goodwill impairment testing at August 1, 2018 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 August 31, 2018 , goodwill allocated to these reporting units is $1,640.1 million of total goodwill of $1,643.1 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 August 31, 2018 and November 30, 2017 (dollars in thousands): August 31, 2018 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 125,763 $ — $ (56,923 ) $ 68,840 10.7 Trade name 128,617 — (20,211 ) 108,406 29.5 Exchange and clearing organization membership interests and registrations 8,484 (9 ) — 8,475 N/A Total $ 262,864 $ (9 ) $ (77,134 ) $ 185,721 November 30, 2017 Weighted average remaining lives (years) Gross cost 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 8,551 — 8,551 N/A Total $ 264,333 $ (68,540 ) $ 195,793 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, 2018 . 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, we recognized an impairment loss of $9,000 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. Amortization Expense For finite life intangible assets, aggregate amortization expense amounted to $3.0 million and $9.0 million for both the three and nine months ended August 31, 2018 and 2017, 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): Remainder of fiscal 2018 $ 3,049 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 | 9 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings at August 31, 2018 and November 30, 2017 include the following and mature in one year or less (in thousands): August 31, 2018 November 30, 2017 Bank loans (1) $ 324,021 $ 304,651 Floating rate puttable notes 57,985 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 382,006 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and us. At August 31, 2018 , the weighted average interest rate on short-term borrowings outstanding is 3.39% per annum. Average daily short-term borrowings outstanding were $422.9 million and $498.6 million for the three and nine months ended August 31, 2018 , respectively, $436.7 million and $474.2 million for the three and nine months ended August 31, 2017 , respectively. During the nine months ended August 31, 2018 , we issued equity-linked notes with a principal amount of $70.5 million , which matured on July 12, 2018. In addition, during the nine months ended August 31, 2018 , our floating rate puttable notes with principal amounts of €30.0 million and €11.0 million matured on April 8, 2018 and May 3, 2018, respectively and our equity-linked notes with a principal amount of $23.3 million matured on December 7, 2017. See Note 4, Fair Value Disclosures , for further information. During the nine months ended August 31, 2017 , we issued equity-linked notes with principal amounts of $30.6 million , which matured on July 18, 2017, and $4.2 million , which matured on September 20, 2017. See Note 4, Fair Value Disclosures , for further information. The Bank of New York Mellon has agreed to make revolving intraday credit advances (“Intraday Credit Facility”) for an aggregate committed amount of $150.0 million . The Intraday Credit Facility contains financial covenants, which includes a minimum regulatory net capital requirement for Jefferies LLC. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. During the nine months ended August 31, 2018 , we were in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Aug. 31, 2018 | |
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): Maturity Effective Interest Rate August 31, November 30, 2017 Unsecured long-term debt 5.125% Senior Notes April 13, 2018 —% $ — $ 682,338 8.500% Senior Notes July 15, 2019 3.99% 707,072 728,872 2.375% Euro Medium Term Notes May 20, 2020 2.42% 578,896 593,334 6.875% Senior Notes April 15, 2021 4.40% 795,967 808,157 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,332 4,389 5.125% Senior Notes January 20, 2023 4.55% 613,634 615,703 4.850% Senior Notes (1) January 15, 2027 4.93% 712,667 736,357 6.450% Senior Debentures June 8, 2027 5.46% 374,211 375,794 3.875% Convertible Senior Debentures (2) November 1, 2029 —% — 324,779 4.150% Senior Notes January 23, 2030 4.26% 987,576 — 6.250% Senior Debentures January 15, 2036 6.03% 511,758 512,040 6.500% Senior Notes January 20, 2043 6.09% 420,718 420,990 Structured notes (3) Various Various 709,557 614,091 Total unsecured long-term debt 6,416,388 6,416,844 Secured long-term debt Revolving Credit Facility 158,478 — Total long-term debt $ 6,574,866 $ 6,416,844 (1) These senior notes with a principal amount of $750.0 million were issued on January 17, 2017. The carrying value includes a gain of $24.1 million and a loss of $9.6 million in the nine months ended August 31, 2018 and 2017, respectively, associated with an interest rate swap based on its designation as a fair value hedge. See 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 three and nine months ended August 31, 2017 . (3) The carrying value includes $709.6 million and $607.0 million of notes carried at fair value at August 31, 2018 and November 30, 2017 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in 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. During the nine months ended August 31, 2018 , we issued 4.150% senior notes with a total principal amount of $1.0 billion , due 2030. Additionally, structured notes with a total principal amount of approximately $162.6 million , net of retirements, were issued during the period. During the nine months ended August 31, 2017 , we issued senior notes with a total principal amount of $641.0 million , net of retirements, and structured notes with a total principal amount of approximately $287.5 million , net of retirements. On November 22, 2017, all of our 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 5.125% senior notes with a principal of $668.3 million were redeemed in April 2018. On May 16, 2018, we entered into a senior secured revolving credit facility (“Revolving Credit Facility”) with a group of commercial banks for an aggregate principal amount of $160.0 million . The Revolving Credit Facility contains certain financial covenants, including, but not limited to, restrictions on future indebtedness of certain of our subsidiaries and its’ minimum tangible net worth, liquidity requirements and minimum capital requirements. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate, as defined in the Revolving Credit Facility agreement. The obligations of certain of our subsidiaries under the Revolving Credit Facility are secured by substantially all its assets. At August 31, 2018 , we were in compliance with debt covenants under the Revolving Credit Facility. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Aug. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 Revenues from contracts with customers: Commissions and other fees $ 155,539 $ 461,545 Investment banking 465,326 1,405,614 Asset management fees 5,184 16,130 Other 7,161 20,649 Total revenue from contracts with customers 633,210 1,903,938 Other sources of revenue: Principal transactions 143,308 498,583 Interest 305,347 870,490 Other 6,420 58,678 Total revenues $ 1,088,285 $ 3,331,689 Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services ( i.e. , the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The following provides detailed information on the recognition of our revenues from contracts with customers: Commissions and Other Fees. We earn commission revenue by executing, settling and clearing transactions for clients primarily in equity, equity-related and futures products. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade-date. Commissions revenues are generally paid on settlement date and we record a receivable between trade-date and payment on settlement date. 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. We act as an agent in the soft dollar arrangements as the customer controls the use of the soft dollars and directs our payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues in our Consolidated Statements of Earnings. We earn account advisory and distribution fees in connection with wealth management services. Account advisory fees are recognized over time using the time-elapsed method as we determined that the customer simultaneously receives and consumes the benefits of investment advisory services as they are provided. Account advisory fees may be paid in advance of a specified service period or in arrears at the end of the specified service period ( e.g. , quarterly). Account advisory fees paid in advance are initially deferred within Accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Distribution fees are variable and recognized when the uncertainties with respect to the amounts are resolved. Investment Banking. We provide our clients with a full range of capital markets and financial advisory services. Capital markets services include underwriting and placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal bonds and mortgage- and asset-backed securities. Underwriting and placement agent revenues are recognized at a point in time on trade-date, as the client obtains the control and benefit of the capital markets offering at that point. Costs associated with capital markets transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis within Underwriting costs in the Consolidated Statements of Earnings as we are acting as a principal in the arrangement. Any expenses reimbursed by our clients are recognized as Investment banking revenues. Revenues from financial advisory services primarily consist of fees generated in connection with merger, acquisition and restructuring transactions. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. Fees received prior to the completion of the transaction are deferred within Accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. A significant portion of the fees we receive for our advisory services are considered variable as they are contingent upon a future event ( e.g. , completion of a transaction or third-party emergence from bankruptcy) and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Payment for advisory services are generally due promptly upon completion of a specified milestone or, for retainer fees, periodically over the course of the engagement. We recognize a receivable between the date of completion of the milestone and payment by the customer. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Earnings and any expenses reimbursed by our clients are recognized as Investment banking revenues. Asset Management Fees. We earn management and performance fees in connection with investment advisory services provided to various funds and accounts, which are satisfied over time and measured using a time elapsed measure of progress as the customer receives the benefits of the services evenly throughout the term of the contract. Management and performance fees are considered variable as they are subject to fluctuation ( e.g. , changes in assets under management, market performance) and/ or are contingent on a future event during the measurement period ( e.g. , meeting a specified benchmark) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Management fees are generally based on month-end assets under management or an agreed upon notional amount and are included in the transaction price at the end of each month when the assets under management or notional amount is known. Performance fees are received when the return on assets under management for a specified performance period exceed certain benchmark returns, “high-water marks” or other performance targets. The performance period related to our performance fees is annual or semi-annual. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. Disaggregation of Revenue The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the three and nine months ended August 31, 2018 (in thousands): Reportable Segment Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 Capital Markets Asset Management Total Capital Markets Asset Management Total Major business activity: Equities (1) $ 159,693 $ — $ 159,693 $ 471,683 $ — $ 471,683 Fixed income (1) 3,007 — 3,007 10,511 — 10,511 Investment banking - Capital markets 277,735 — 277,735 809,884 — 809,884 Investment banking - Advisory 187,591 — 187,591 595,730 — 595,730 Asset management — 5,184 5,184 — 16,130 16,130 Total $ 628,026 $ 5,184 $ 633,210 $ 1,887,808 $ 16,130 $ 1,903,938 Primary geographic region: Americas $ 546,219 $ 5,184 $ 551,403 $ 1,628,503 $ 16,130 $ 1,644,633 Europe 62,914 — 62,914 203,103 — 203,103 Asia 18,893 — 18,893 56,202 — 56,202 Total $ 628,026 $ 5,184 $ 633,210 $ 1,887,808 $ 16,130 $ 1,903,938 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Refer to Note 18, Segment Reporting , for a further discussion on the allocation of revenues to geographic regions. Information on Remaining Performance Obligations and Revenue Recognized from Past Performance We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at August 31, 2018 . Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at August 31, 2018 . During the three and nine months ended August 31, 2018 , we recognized $4.4 million and $18.3 million , respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, we recognized $4.6 million and $13.5 million , respectively, of revenues primarily associated with distribution services during the three and nine months ended August 31, 2018 , a portion of which relates to prior periods. Contract Balances The timing of our revenue recognition may differ from the timing of payment by our customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. We had receivables related to revenues from contracts with customers of $191.4 million and $246.0 million at August 31, 2018 and December 1, 2017, respectively. We had no significant impairments related to these receivables during the three and nine months ended August 31, 2018 . Our deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Deferred revenue at August 31, 2018 and December 1, 2017 was $12.0 million and $8.8 million , respectively, which are recorded in Accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. During the three and nine months ended August 31, 2018 , we recognized revenue of $2.2 million and $4.0 million , respectively, that was recorded as deferred revenue at the beginning of the periods. Contract Costs We capitalize costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized cost to fulfill a contract are recognized at the point in time that the related revenue is recognized. At August 31, 2018 , capitalized costs to fulfill a contract were $4.8 million , which are recorded in Receivables – Fees, interest and other in the Consolidated Statement of Financial Condition. For both the three and nine months ended August 31, 2018 , we recognized expenses of $1.5 million , related costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the three and nine months ended August 31, 2018 . |
Compensation Plans
Compensation Plans | 9 Months Ended |
Aug. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Compensation Plans | Compensation Plans Jefferies 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 Jefferies 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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Components of compensation cost: Restricted cash awards $ 60.0 $ 65.2 $ 183.6 $ 188.5 Restricted stock and RSUs (1) 7.1 6.5 21.1 18.0 Profit sharing plan 1.1 1.2 5.6 5.2 Total compensation cost $ 68.2 $ 72.9 $ 210.3 $ 211.7 (1) Total compensation cost associated with restricted stock and restricted stock units (“RSUs”) includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Remaining unamortized amounts related to certain compensation plans at August 31, 2018 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 71.7 3 Restricted cash awards 446.9 2 Total $ 518.6 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. 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 Jefferies. 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. 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, Jefferies 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 Jefferies 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 | 9 Months Ended |
Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At August 31, 2018 and November 30, 2017 , we had approximately $131.5 million and $129.5 million , respectively, of total gross unrecognized tax benefits. The total amount of unrecognized benefits that, if recognized, would favorably affect the effective tax rate was $104.1 million and $86.1 million (net of Federal benefit) at August 31, 2018 and November 30, 2017 , 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. At August 31, 2018 and November 30, 2017 , we had interest accrued of approximately $52.5 million and $48.3 million , respectively, included in Accrued expenses and other liabilities. No penalties were accrued for the nine months ended August 31, 2018 and the year ended November 30, 2017 . During the nine months ended August 31, 2018 , we closed Federal tax exams related to years 2007 - 2013 with the Internal Revenue Service. In the United Kingdom, we also closed an exam related to 2014, while the statute for the 2015 tax year has expired. The resolution of these examinations did not have a material effect on our consolidated financial position. We are also currently under examination in other major tax jurisdictions. Though we do not expect that the resolution of these examinations will have a material effect on our consolidated financial position, they may have a material impact on our consolidated results of operations for the period in which the resolution occurs. 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 2014 California 2007 New Jersey 2010 New York State 2001 New York City 2003 United Kingdom 2016 Hong Kong 2012 India 2010 Italy 2012 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code that will impact many areas of taxation, including, but not limited to: (1) reduction of the U.S. federal corporate tax rate from 35% to 21% ; (2) elimination of the corporate alternative minimum tax; (3) the introduction of the base erosion anti-abuse tax, a new minimum tax; (4) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (5) a new provision designed to tax global intangible low-taxed income; (6) a new limitation on deductible interest expense; (7) limitations on the deductibility of certain executive compensation; (8) limitations on the use of foreign tax credits to reduce U.S. income tax liability; (9) limitations on net operating losses generated after December 31, 2017, to 80% of taxable income; (10) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; and (11) bonus depreciation that will allow for full expensing of qualified property. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification 740, Income Taxes (“ASC 740”). While the initial estimated impact of the Tax Act was calculated using all available information, we anticipate modifications based on the procedures set forth under SAB 118. This process is applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which the accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where the accounting is not complete, but a reasonable estimate has been determined; and (3) where a reasonable estimate cannot yet be made, taxes are reflected in accordance with the law prior to the enactment of the Tax Act. Due to the complex nature of the Tax Act and the unavailability of certain information, we have not completed our accounting for the income tax effects of certain elements of the Tax Act. If we were able to make reasonable estimates of the effects of certain elements for which our analysis is not yet complete, we recorded a provisional estimate in our consolidated financial statements. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before the Tax Act. The ultimate impact of the Tax Act may differ from this estimate, possibly materially, due to refinement of our calculations based on updated information, changes in the interpretations and assumptions, guidance that may be issued and actions we may take in response to the Tax Act. We consider the accounting for the deferred tax asset remeasurements, the transition tax and other items to be incomplete. In connection with our initial analysis, we have recorded a discrete tax expense of $163.7 million in the three months ended February 28, 2018, as a result of the enactment of the Tax Act, as a provisional estimate of the impact of the Tax Act. This provisional estimate was revised in the second quarter of 2018 by a reduction of $3.2 million and in the third quarter by a reduction of $0.3 million , which resulted in a total provisional tax charge of $160.2 million during the nine months ended August 31, 2018 . This provisional estimate primarily consists of a $108.5 million expense related to the revaluation of our deferred tax asset and a $51.7 million expense related to the deemed repatriation of foreign earnings. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes our commitments at August 31, 2018 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 2022 2024 Maximum Payout Equity commitments (1) $ — $ 43.7 $ 18.4 $ — $ 2.9 $ 65.0 Loan commitments (1) — 250.0 54.4 31.9 — 336.3 Underwriting commitments 411.0 — — — — 411.0 Forward starting reverse repos (2) 3,159.4 — — — — 3,159.4 Forward starting repos (2) 2,057.8 — — — — 2,057.8 Other unfunded commitments (1) 60.0 148.7 42.3 — 4.9 255.9 Total commitments $ 5,688.2 $ 442.4 $ 115.1 $ 31.9 $ 7.8 $ 6,285.4 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At August 31, 2018 , $3,141.9 million within forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. Equity Commitments. 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 August 31, 2018 , our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $18.1 million . See Note 9, Investments , for additional information regarding our investments in Jefferies Finance. Additionally, at August 31, 2018 , we had other outstanding equity commitments to invest up to $3.3 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 August 31, 2018 , we had $86.3 million of outstanding loan commitments to clients. Loan commitments outstanding at August 31, 2018 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. 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. 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 August 31, 2018 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 2022 2024 Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 10,898.5 $ 5,978.6 $ 2,948.5 $ 1,015.0 $ 454.6 $ 21,295.2 Written derivative contracts—credit related — — 36.4 33.8 — 70.2 Total derivative contracts $ 10,898.5 $ 5,978.6 $ 2,984.9 $ 1,048.8 $ 454.6 $ 21,365.4 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 August 31, 2018 , the fair value of derivative contracts meeting the definition of a guarantee is approximately $216.9 million . Standby Letters of Credit. At August 31, 2018 , 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 clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. 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 | 9 Months Ended |
Aug. 31, 2018 | |
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 LLC is subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S broker-dealer and futures commission merchant (“FCM”), is also subject to Rule 1.17 of the Commodity Futures Trading Commission (“CFTC”), which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. At August 31, 2018 , Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 1,917,634 $ 1,806,197 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 LLC 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. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Aug. 31, 2018 | |
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 (loss) 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 (loss) before income taxes by reportable business segment are summarized below (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Capital Markets: Net revenues $ 771.1 $ 788.4 $ 2,388.8 $ 2,349.6 Non-interest expenses 678.8 663.4 2,050.4 1,971.9 Earnings before income taxes $ 92.3 $ 125.0 $ 338.4 $ 377.7 Asset Management: Net revenues $ 6.5 $ 12.3 $ 32.6 $ 25.9 Non-interest expenses 11.7 15.0 39.3 41.0 Loss before income taxes $ (5.2 ) $ (2.7 ) $ (6.7 ) $ (15.1 ) Total: Net revenues $ 777.6 $ 800.7 $ 2,421.4 $ 2,375.5 Non-interest expenses 690.5 678.4 2,089.7 2,012.9 Earnings before income taxes $ 87.1 $ 122.3 $ 331.7 $ 362.6 The following table summarizes our total assets by reportable business segment (in millions): August 31, 2018 November 30, 2017 Total Assets by Reportable Business Segment: Capital Markets $ 39,532.2 $ 38,620.4 Asset Management 1,040.3 1,085.3 Total assets $ 40,572.5 $ 39,705.7 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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Americas (1) $ 639.7 $ 674.5 $ 2,042.4 $ 1,921.7 Europe (2) 115.9 99.1 313.4 378.4 Asia 22.0 27.1 65.6 75.4 Net revenues $ 777.6 $ 800.7 $ 2,421.4 $ 2,375.5 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Aug. 31, 2018 | |
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 August 31, 2018 and November 30, 2017 , our equity investments in Private Equity Related Funds were in aggregate $34.1 million and $23.7 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): Nine Months Ended Nine Months Ended 2018 2017 2018 2017 Other revenues and investment income (loss) $ 172 $ (373 ) $ 10,175 $ (9,793 ) Service charges 92 200 212 523 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 (“Berkadia”). At August 31, 2018 and November 30, 2017 , we had commitments to purchase $748.8 million and $864.1 million , respectively, in agency CMBS from Berkadia, which is partially owned by Jefferies. HRG Group Inc. (“HRG”). We recognized investment banking revenues of $3.0 million for the three and nine months ended August 31, 2018 in connection with the merger of HRG into Spectrum Brands Holdings, Inc., which is partially owned by Jefferies. Officers, Directors and Employees. The following sets forth information regarding related party transactions with our officers, directors and employees: • At August 31, 2018 and November 30, 2017 , we had $41.2 million and $45.6 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. • One of our directors has investments in a hedge fund managed by us of approximately $4.8 million and $4.9 million at August 31, 2018 and November 30, 2017 , 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. Jefferies . The following is a description of related party transactions with Jefferies and its affiliates: • We provide services to and receive services from Jefferies under service agreements. We also receive revenues from Jefferies under a revenue sharing agreement (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Charges to Jefferies for services provided $ 15.8 $ 13.0 $ 46.1 $ 34.8 Charges from Jefferies for services received 2.2 4.9 6.9 13.8 • We provide capital markets and asset management services to Jefferies and its affiliates. The following table presents the revenues earned by type of services provided (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Investment banking $ 5.6 $ — $ 5.6 $ — Commissions and other fees 0.1 — 0.5 — Principal transactions — — 0.1 — Other revenues 0.3 — 0.7 — • Receivables from and payables to Jefferies, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition (in millions): August 31, November 30, 2017 Receivable from Jefferies $ 3.2 $ 2.5 Payable to Jefferies 0.6 3.1 • On January 11, 2018, our Board of Directors approved a distribution to our sole limited liability company member, Jefferies, in the amount of $200.0 million , which was paid on January 31, 2018. 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 positive net earnings attributable to us (as adjusted for preceding loss quarters, if any). During the three months ended August 31, 2018 , we paid a dividend in the amount of $18.6 million to Jefferies, based on our results for the six months ended May 31, 2018 . Our results at August 31, 2018 include a dividend payable in the amount of $30.1 million . • Pursuant to a tax sharing agreement entered into between us and Jefferies, payments are made between us and Jefferies to settle current tax receivables and payables. At August 31, 2018 and November 30, 2017 , a net current tax payable to Jefferies of $44.0 million and $91.5 million , respectively, is included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. On April 3, June 15 and September 25, 2018, we made payments of $115.0 million , $36.0 million and $42.0 million , respectively, to Jefferies, which reduced the cumulative net current tax payable balance. • We entered into a foreign exchange prime brokerage agreement with an affiliate of Jefferies in 2017. The following table presents the balances relating to these foreign exchange contracts, which are included in our Consolidated Statements of Financial Condition (in millions). August 31, November 30, Payables-brokers, dealers and clearing organizations $ 12.3 $ 17.0 • Two of our directors have investments totaling $2.8 million and $3.6 million at August 31, 2018 and November 30, 2017 , respectively, in a hedge fund managed by Jefferies. • We have investments in hedge funds managed by Jefferies of $218.1 million and $136.1 million at August 31, 2018 and November 30, 2017 , respectively, included in Financial instruments owned in our Consolidated Statements of Financial Condition. Net gains on our investments in these hedge funds, which are included in Principal transactions in our Consolidated Statements of Earnings (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net gains on our investments $ 0.5 $ 1.9 $ 5.0 $ 5.1 • As a result of a public offering by Landcadia Holdings Inc., an affiliate of Jefferies, we own 638,561 public units (each unit consisting of one share of Class A common stock and one public warrant) at August 31, 2018 and November 30, 2017 , with a fair value of $7.1 million and $6.8 million , respectively, included in Financial instruments owned in our Consolidated Statements of Financial Condition. • A subsidiary of Jefferies had an investment in a hedge fund managed by us of $27.3 million at November 30, 2017 . This investment was transferred to Jefferies LLC effective December 31, 2017, and we paid $26.7 million , the investment’s NAV, to Jefferies in January 2018. • We sold securities to Jefferies at fair value for cash during the following periods: Date Amount (in millions) (1) February 2017 $ 25.6 April 2017 21.9 August 2017 7.1 (1) There was no gain or loss on these transactions • In connection with our sales and trading activities, from time to time we make a market in long-term debt securities of Jefferies ( i.e., we buy and sell debt securities issued by Jefferies). At August 31, 2018 and November 30, 2017 , approximately $1.5 million and $0.2 million , respectively, is 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 . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Aug. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 1, 2018, Jefferies transferred its interest in the following assets to us (collectively, “the Transfer”): • Its entire 50% interest in Berkadia and • Its membership interests in certain funds and separately managed accounts (collectively, “membership interests”), which are managed by Leucadia Asset Management, a subsidiary of Jefferies. The Transfer was accomplished as a capital contribution from Jefferies of approximately $596 million and a payment of $78.3 million to Jefferies on October 1, 2018. In connection with the Transfer, related deferred tax liabilities of approximately $45 million were transferred to us, for which Jefferies has indemnified us. In addition, we have agreed to invest an additional approximate $208 million in membership interests during the fourth quarter of 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
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 (loss) 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. |
Investment Banking Revenues and Asset Management Fees | Investment Banking Revenues: • Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. • Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. • All investment banking expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Asset Management Fees: • Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. |
Accounting Standards to be Adopted in Future Periods and Adopted Accounting Standards | Accounting Standards to be Adopted in Future Periods Internal-Use Software. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The objective of the guidance is to improve the effectiveness of disclosure requirements on defined benefit pension plans and other postretirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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 2020. We do not believe the new guidance will have a material impact 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. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. 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 (“ASU 2016-02”). The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements. The guidance allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption of ASU 2016-02. We plan on adopting both lease ASUs in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening member’s equity in the period of adoption. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Adopted Accounting Standards Fair Value Measurement. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The objective of this guidance is to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of fiscal 2018 and the adoption did not have a material impact on our consolidated financial statements. Comprehensive Income. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance allows companies the option to reclassify stranded taxes from Accumulated other comprehensive income to retained earnings due to the decrease in the Federal Statutory tax rate from 35% to 21% resulting from the Tax Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted corporate income tax rate. We early adopted this guidance as of February 28, 2018, resulting in a reclassification adjustment of $7.6 million related to unamortized pension liabilities, cash flow hedges and instrument specific credit risk in 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. We early adopted this guidance in the first quarter of fiscal 2018 and the adoption did not have a material impact on our Consolidated Statements of Earnings. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (“ASU 2016-18”), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted both ASUs in the first quarter of fiscal 2018. Prior periods were retrospectively adjusted to conform to the current period’s presentation. The adoption of ASU 2016-15 did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption of ASU 2016-18, we recorded an increase of $45.9 million in Net cash used for operating activities for the nine months ended August 31, 2017 related to reclassifying the changes in our restricted cash balance from operating activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. 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. We adopted the guidance on financial liabilities under the fair value option in the first quarter of fiscal 2016 and we adopted the remaining guidance in the first quarter of fiscal 2018. 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 beginning Member’s paid-in capital as the cumulative effect of adoption of this accounting change. The impact of adoption is primarily related to 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 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 applied to contracts that were not completed as of December 1, 2017. Accordingly, the new revenue standard is applied prospectively in our financial statements from December 1, 2017 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue 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 Statements of Earnings 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. , exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. |
Accounting Developments (Tables
Accounting Developments (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements | The table below presents the impact to revenues and expenses as a result of the change in presentation of investment banking expenses (in thousands): Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 As Reported ASC 606 Impact Adjusted (1) As Reported ASC 606 Impact Adjusted (1) Revenues: Investment banking $ 465,326 $ 36,319 $ 429,007 $ 1,405,614 $ 101,146 $ 1,304,468 Total revenues 1,088,285 36,319 1,051,966 3,331,689 101,146 3,230,543 Net revenues 777,615 36,319 741,296 2,421,418 101,146 2,320,272 Non-interest expenses: Underwriting costs 20,528 20,528 — 47,832 47,832 — Technology and communications 76,877 97 76,780 222,335 311 222,024 Business development 39,733 14,946 24,787 124,233 50,187 74,046 Professional services 35,316 401 34,915 101,715 1,968 99,747 Other expenses 18,723 347 18,376 54,888 848 54,040 Total non-compensation expenses 262,481 36,319 226,162 761,954 101,146 660,808 Total non-interest expenses 690,514 36,319 654,195 2,089,714 101,146 1,988,568 (1) The amounts reflect each affected financial statement line item as they would have been reported under U.S. GAAP, prior to the adoption of the new revenue standard. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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 net asset value (“NAV”) of $325.3 million and $215.4 million at August 31, 2018 and November 30, 2017 , respectively, by level within the fair value hierarchy (in thousands): August 31, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 1,881,376 $ 72,569 $ 48,045 $ — $ 2,001,990 Corporate debt securities — 2,286,852 9,651 — 2,296,503 Collateralized debt obligations and collateralized loan obligations — 82,339 23,601 — 105,940 U.S. government and federal agency securities 2,876,669 45,889 — — 2,922,558 Municipal securities — 749,616 — — 749,616 Sovereign obligations 1,319,415 666,745 — — 1,986,160 Residential mortgage-backed securities — 1,894,533 4,954 — 1,899,487 Commercial mortgage-backed securities — 791,449 23,916 — 815,365 Other asset-backed securities — 263,967 69,305 — 333,272 Loans and other receivables — 1,455,496 48,985 — 1,504,481 Derivatives 6,644 3,496,790 3,137 (3,331,143 ) 175,428 Investments at fair value — — 79,539 — 79,539 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,084,104 $ 11,806,245 $ 311,133 $ (3,331,143 ) $ 14,870,339 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,312,412 $ 1,507 $ 413 $ — $ 1,314,332 Corporate debt securities — 1,375,530 1,557 — 1,377,087 U.S. government and federal agency securities 1,127,608 — — — 1,127,608 Sovereign obligations 1,513,237 958,998 55 — 2,472,290 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,136,579 8,661 — 1,145,240 Derivatives 4,976 4,125,994 12,134 (3,451,531 ) 691,573 Total financial instruments sold, not yet purchased $ 3,958,233 $ 7,598,608 $ 22,890 $ (3,451,531 ) $ 8,128,200 Long-term debt $ — $ 545,927 $ 163,630 $ — $ 709,557 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. 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 Collateralized debt obligations and collateralized loan obligations — 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. |
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): August 31, 2018 Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) Equity Long/Short Hedge Funds (2) $ 16,606 $ — Monthly, Quarterly Fixed Income and High Yield Hedge Funds (3) 219 — — Fund of Funds (4) 175 — — Equity Funds (5) 36,702 20,209 — Commodity Funds (6) 10,228 — — Multi-asset Funds (7) 261,350 — — Total $ 325,280 $ 20,209 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 (7) 154,805 — — Total $ 215,385 $ 19,084 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds’ capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2018 and November 30, 2017 , approximately 2% and 1% , 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 August 31, 2018 and November 30, 2017 , the investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are expected to be liquidated in one to ten years. (6) This category includes investments in hedge funds that invest, long and short, primarily in commodities. Investments in this category are redeemable with 60 days prior written notice. (7) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2018 and November 30, 2017 , investments representing approximately 17% and 12% , respectively, 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 three months ended August 31, 2018 (in thousands): Three Months Ended August 31, 2018 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at August 31, 2018, changes in unrealized gains/(losses) included in: Balance at Purchases Sales Settlements Issuances Balance at earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 42,901 $ 12,128 $ 17,652 $ (23,010 ) $ (302 ) $ — $ (1,324 ) $ 48,045 $ 9,468 $ — Corporate debt securities 28,066 1,057 507 (21,403 ) (59 ) — 1,483 9,651 (165 ) — CDOs and CLOs 30,603 567 238,281 (240,002 ) (2,127 ) — (3,721 ) 23,601 (2,338 ) — RMBS 3,655 (66 ) 72 (1,597 ) (1 ) — 2,891 4,954 90 — CMBS 27,239 (222 ) 8 — (1,156 ) — (1,953 ) 23,916 (288 ) — Other ABS 55,535 (2,269 ) 307,358 (290,838 ) (4,356 ) — 3,875 69,305 (1,124 ) — Loans and other receivables 64,036 (1,353 ) 14,932 (23,700 ) (3,453 ) — (1,477 ) 48,985 1,007 — Investments at fair value 79,488 — 51 — — — — 79,539 — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 87 $ 326 $ — $ — $ — $ — $ — $ 413 $ (326 ) $ — Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) — Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) — CMBS — 70 — — — — — 70 (70 ) — Loans 12,881 (148 ) (4,871 ) 1,787 — — (988 ) 8,661 149 — Net derivatives (2) 5,874 1,107 — — 1,990 — 26 8,997 (2,090 ) — Long-term debt 160,626 3,004 — — — — — 163,630 (2,953 ) (51 ) (1) Realized and unrealized gains/losses are primarily reported in Principal transaction revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (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 three months ended August 31, 2017 (in thousands): Three Months Ended August 31, 2017 Balance at Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at August 31, 2017 Change in Assets: Financial instruments owned: Corporate equity securities $ 20,548 $ 4,344 $ 4 $ (645 ) $ (55 ) $ — $ (2,022 ) $ 22,174 $ 4,319 Corporate debt securities 24,727 (2,350 ) 5,901 (5,551 ) (31 ) — 2,319 25,015 (2,224 ) CDOs and CLOs 27,255 (6,119 ) 52,918 (36,564 ) 245 — 468 38,203 (3,552 ) RMBS 33,032 (263 ) 494 (732 ) (291 ) — (11,591 ) 20,649 188 CMBS 16,263 (125 ) — (676 ) (637 ) — 2,811 17,636 (161 ) Other ABS 43,349 (6,454 ) 5,798 (3,789 ) (2,924 ) — 32,966 68,946 (3,570 ) Loans and other receivables 49,365 15,261 9,265 (5,854 ) (8,249 ) — 2,868 62,656 14,005 Investments at fair value 89,006 1,703 — — (292 ) — — 90,417 1,703 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 354 $ 107 $ (369 ) $ 27 $ — $ — $ — $ 119 $ (92 ) Corporate debt securities 522 — — — — — — 522 — CMBS 70 (35 ) — — — — — 35 (35 ) Loans 4,967 (3,071 ) — 333 — — 1,056 3,285 3,018 Net derivatives (2) 3,022 (2,980 ) — — 5,040 — — 5,082 (2,474 ) (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 nine months ended August 31, 2017 (in thousands): Nine Months Ended August 31, 2017 Balance at Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at Change in Assets: Financial instruments owned: Corporate equity securities $ 21,739 $ 3,416 $ 945 $ (1,502 ) $ (356 ) $ — $ (2,068 ) $ 22,174 $ 2,689 Corporate debt securities 25,005 (3,280 ) 19,610 (18,364 ) (1,724 ) — 3,768 25,015 (3,424 ) CDOs and CLOs 54,354 (13,902 ) 65,523 (72,122 ) 239 — 4,111 38,203 (3,685 ) Municipal securities 27,257 (1,547 ) — (25,710 ) — — — — — RMBS 38,772 (1,446 ) 113,391 (125,731 ) (572 ) — (3,765 ) 20,649 (2,005 ) CMBS 20,580 (1,180 ) 2,033 (5,199 ) (985 ) — 2,387 17,636 (952 ) Other ABS 40,911 (15,338 ) 67,611 (4,121 ) (16,891 ) — (3,226 ) 68,946 (8,872 ) Loans and other receivables 81,872 27,709 84,342 (83,791 ) (23,241 ) — (24,235 ) 62,656 16,294 Investments at fair value 96,369 4,698 300 (10,119 ) (831 ) — — 90,417 6,721 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 313 $ 134 $ (355 ) $ 27 $ — $ — $ — $ 119 $ (92 ) Corporate debt securities 523 (1 ) — — — — — 522 1 CMBS — 35 — — — — — 35 (35 ) Loans 378 1,604 (364 ) 333 — — 1,334 3,285 (1,583 ) Net derivatives (2) 3,441 (2,854 ) — — 5,162 404 (1,071 ) 5,082 (2,333 ) 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 nine months ended August 31, 2018 (in thousands): Nine Months Ended August 31, 2018 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at August 31, 2018, changes in unrealized gains/(losses) included in: Balance at November 30, 2017 Purchases Sales Settlements Issuances Balance at August 31, 2018 earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 22,009 $ 30,098 $ 35,993 $ (39,008 ) $ (2,082 ) $ — $ 1,035 $ 48,045 $ 25,475 $ — Corporate debt securities 26,036 1,090 22,204 (38,553 ) (2,066 ) — 940 9,651 (1,738 ) — CDOs and CLOs 30,004 (2,323 ) 242,864 (249,691 ) (5,859 ) — 8,606 23,601 (5,533 ) — RMBS 26,077 (7,334 ) 2,018 (12,621 ) (6 ) — (3,180 ) 4,954 316 — CMBS 12,419 (1,236 ) 1,720 (548 ) (5,415 ) — 16,976 23,916 (2,272 ) — Other ABS 61,129 (7,528 ) 523,045 (495,055 ) (12,281 ) — (5 ) 69,305 (3,307 ) — Loans and other receivables 47,304 (2,812 ) 104,009 (98,733 ) (14,610 ) — 13,827 48,985 (3,769 ) — Investments at fair value 93,454 417 2,291 (17,569 ) — — 946 79,539 (177 ) — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 48 $ 365 $ — $ — $ — $ — $ — $ 413 $ (365 ) $ — Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) — Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) — CMBS 105 (35 ) — — — — — 70 (70 ) — Loans 3,486 (1,059 ) (15,702 ) 19,409 — — 2,527 8,661 1,059 — Net derivatives (2) 6,746 (1,034 ) (6 ) — 2,984 296 11 8,997 (2,660 ) — Long-term debt — (25,078 ) — — — 81,284 107,424 163,630 36,921 (11,843 ) (1) Realized and unrealized gains/losses are primarily reported in Principal transaction revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (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. August 31, 2018 Financial Instruments Owned: Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Average Corporate equity securities $ 41,038 Non-exchange-traded securities Market approach Price $3-$75 $ 25 Underlying stock price $1-$11 $ 9 Corporate debt securities $ 9,651 Market approach Discount rate/yield 19% — Estimated recovery percentage 46% — Price $10 — Comparable asset price $101 — CDOs and CLOs $ 23,601 Discounted cash flows Constant prepayment rate 20% — Constant default rate 1%-2% 2 % Loss severity 30% — Discount rate/yield 5%-41% 16 % Scenario analysis Estimated recovery percentage 2% — RMBS $ 4,954 Discounted cash flows Cumulative loss rate 23% — Duration (years) 15 — Discount rate/yield 9% — Market approach Price $100 — CMBS $ 23,916 Discounted cash flows Cumulative loss rate 8%-84% 33 % Duration (years) 0-3 1 Discount rate/yield 3%-38% 12 % Scenario analysis Estimated recovery percentage 26% — Price $49 — Other ABS $ 69,305 Discounted cash flows Cumulative loss rate 0%-29% 18 % Duration (years) 1-5 2 Discount rate/yield 5%-12% 7 % Market approach Price $100 — Loans and other receivables $ 48,985 Market approach Estimated recovery percentage 0% — Price $50-$100 $ 95 Scenario analysis Estimated recovery percentage 57%-107% 88 % Derivatives $ 3,137 Total return swaps Market approach Price $100 — Investments at fair value $ 79,539 Private equity securities Market approach Price $3-$250 $ 105 Financial Instruments Sold, Not Yet Purchased: Corporate debt securities $ 1,557 Market approach Estimated recovery percentage 53% — Loans $ 8,661 Market approach Estimated recovery percentage 0% — Price $50 — Derivatives $ 12,134 Equity options Option model/default rate Default probability 0% — Unfunded commitments Market approach Price $99 — Total return swaps Market approach Price $95-$100 $ 97 Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 30% — Discount rate/yield 41% — Long-term debt Structured notes $ 163,630 Market approach Price $70-$100 $ 80 Price €80-€112 € 96 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% — |
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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Financial instruments owned: Loans and other receivables $ 14,002 $ 24,846 $ 7,495 $ 27,715 Financial instruments sold: Loans $ (2,708 ) $ 3,436 $ (2,467 ) $ (7,286 ) Loan commitments (1,695 ) 82 (1,964 ) 229 Long-term debt: Changes in instrument specific credit risk (1) $ 1,401 $ 5,638 $ 19,986 $ (14,141 ) Other changes in fair value (2) (6,842 ) (1,854 ) 33,626 2,786 Short-term borrowings: Changes in instrument specific credit risk (1) $ — $ 19 $ — $ 1 Other changes in fair value (2) — (2,570 ) — (37 ) (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, long-term debt and short-term borrowings measured at fair value under the fair value option (in thousands): August 31, 2018 November 30, 2017 Financial instruments owned: Loans and other receivables (1) $ 896,470 $ 752,076 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) 167,355 159,462 Long-term debt and short-term borrowings 89,345 32,839 (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 90 days or greater past due by which contractual principal exceeds fair value of $33.7 million and $38.7 million at August 31, 2018 and November 30, 2017 , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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 August 31, 2018 and November 30, 2017 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). August 31, 2018 (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 $ — — $ 30,018 1 Total derivatives designated as accounting hedges — 30,018 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,047 17,218 12 35,304 Cleared OTC 411,969 2,116 405,580 2,325 Bilateral OTC 353,217 1,533 486,970 702 Foreign exchange contracts: Exchange-traded 232 2,073 127 901 Bilateral OTC 234,331 6,488 223,397 6,580 Equity contracts: Exchange-traded 2,332,241 1,765,239 2,718,615 1,632,359 Bilateral OTC 150,206 2,610 259,262 5,266 Commodity contracts: Exchange-traded 17 1,218 89 1,366 Credit contracts: Cleared OTC 15,076 13 5,166 16 Bilateral OTC 8,235 123 13,868 54 Total derivatives not designated as accounting hedges 3,506,571 4,113,086 Total gross derivative assets/ liabilities: Exchange-traded 2,333,537 2,718,843 Cleared OTC 427,045 440,764 Bilateral OTC 745,989 983,497 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (2,248,951 ) (2,248,951 ) Cleared OTC (405,840 ) (425,242 ) Bilateral OTC (676,352 ) (777,338 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 175,428 $ 691,573 (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, 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 (3) $ — — $ 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 (3) 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 accounting 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 (4): Exchange-traded (1,268,043 ) (1,268,043 ) Cleared OTC (3) (1,319,895 ) (1,274,900 ) Bilateral OTC (666,278 ) (883,306 ) Net amounts per Consolidated Statements of Financial Condition (5) $ 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) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of November 30, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . (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): Three Months Ended Nine Months Ended Gains (Losses) 2018 2017 2018 2017 Interest rate swaps $ (1,161 ) $ 6,217 $ (22,363 ) $ 13,960 Long-term debt 1,221 (4,680 ) 24,055 (9,570 ) Total $ 60 $ 1,537 $ 1,692 $ 4,390 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): Three Months Ended Nine Months Ended Gains (Losses) 2018 2017 2018 2017 Interest rate contracts $ 13,951 $ (6,432 ) $ 36,053 $ 2,605 Foreign exchange contracts (4,421 ) 1,028 6,207 4,135 Equity contracts 1,807 (106,425 ) (215,232 ) (275,124 ) Commodity contracts 281 1,508 3,025 (5,398 ) Credit contracts 620 311 3,026 11,218 Total $ 12,238 $ (110,010 ) $ (166,921 ) $ (262,564 ) |
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 August 31, 2018 (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 $ 10,226 $ 8,071 $ 2,195 $ — $ 20,492 Credit default swaps 82 17,846 — (11 ) 17,917 Total return swaps 46,036 29,910 — (4,334 ) 71,612 Foreign currency forwards, swaps and options 42,326 22,130 — (9,550 ) 54,906 Fixed income forwards 2,113 — — — 2,113 Interest rate swaps, options and forwards 13,104 96,631 95,973 (91,673 ) 114,035 Total $ 113,887 $ 174,588 $ 98,168 $ (105,568 ) 281,075 Cross product counterparty netting (32,615 ) Total OTC derivative assets included in Financial instruments owned $ 248,460 (1) At August 31, 2018 , we held exchange-traded derivative assets and other credit agreements with a fair value of $85.2 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At August 31, 2018 , cash collateral received was $158.2 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity swaps and options $ 15,125 $ 92,491 $ 13,048 $ — $ 120,664 Credit default swaps 17 10,374 — (11 ) 10,380 Total return swaps 67,526 19,806 — (4,334 ) 82,998 Foreign currency forwards, swaps and options 36,176 17,496 — (9,550 ) 44,122 Fixed income forwards 685 — — — 685 Interest rate swaps, options and forwards 16,388 148,685 198,569 (91,673 ) 271,969 Total $ 135,917 $ 288,852 $ 211,617 $ (105,568 ) 530,818 Cross product counterparty netting (32,615 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 498,203 (1) At August 31, 2018 , we held exchange-traded derivative liabilities and other credit agreements with a fair value of $472.0 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 August 31, 2018 , cash collateral pledged was $278.6 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 August 31, 2018 (in thousands): Counterparty credit quality (1): A- or higher $ 135,060 BBB- to BBB+ 20,490 BB+ or lower 74,097 Unrated 18,813 Total $ 248,460 (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): August 31, 2018 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 15.0 $ — $ 18.0 Single name credit default swaps 32.5 34.8 2.9 70.2 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 |
Derivative Instruments with Contingent Features | The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): August 31, 2018 November 30, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 106.3 $ 95.1 Collateral posted (59.3 ) (86.4 ) Collateral received 129.7 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 176.6 14.3 (1) These outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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): August 31, 2018 Securities Lending Arrangements Repurchase Agreements Total Collateral Pledged: Cash $ — $ 4,361 $ 4,361 Corporate equity securities 2,214,433 490,609 2,705,042 Corporate debt securities 315,718 1,496,127 1,811,845 Mortgage- and asset-backed securities — 2,667,439 2,667,439 U.S. government and federal agency securities 1,353 10,124,642 10,125,995 Municipal securities — 582,699 582,699 Sovereign obligations — 1,955,879 1,955,879 Loans and other receivables — 517,703 517,703 Total $ 2,531,504 $ 17,839,459 $ 20,370,963 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 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): August 31, 2018 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 1,354,136 $ — $ 847,577 $ 329,791 $ 2,531,504 Repurchase agreements 8,122,962 2,733,400 4,342,923 2,640,174 17,839,459 Total $ 9,477,098 $ 2,733,400 $ 5,190,500 $ 2,969,965 $ 20,370,963 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 |
Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements | 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). August 31, 2018 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 $ 7,369,908 $ — $ 7,369,908 $ (529,662 ) $ (1,088,612 ) $ 5,751,634 Reverse repurchase agreements 11,634,035 (7,974,976 ) 3,659,059 (187,426 ) (3,441,009 ) 30,624 Liabilities: Securities lending arrangements $ 2,531,504 $ — $ 2,531,504 $ (529,662 ) $ (1,977,558 ) $ 24,284 Repurchase agreements 17,839,459 (7,974,976 ) 9,864,483 (187,426 ) (8,632,482 ) 1,044,575 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 (4) 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 ) — (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 $5,717.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,544.1 million , and $1,019.6 million of repurchase agreements, for which we have pledged securities collateral of $1,054.1 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. (4) 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. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Transferred assets $ 1,865.5 $ 1,009.1 $ 5,665.9 $ 2,677.7 Proceeds on new securitizations 1,866.2 1,017.2 5,668.6 2,703.3 Cash flows received on retained interests 17.2 8.7 35.7 22.7 |
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): August 31, 2018 November 30, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 13,306.0 $ 192.7 $ 6,383.5 $ 28.2 U.S. government agency CMBS 2,101.5 276.1 2,075.7 81.4 CLOs 3,442.3 26.4 3,957.8 20.3 Consumer and other loans 648.9 53.0 247.6 47.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Variable Interest Entity [Line Items] | |
Assets and Liabilities of Consolidated VIEs Prior to Consolidation | The following table presents information about our consolidated VIEs at August 31, 2018 and November 30, 2017 (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. August 31, 2018 November 30, 2017 Securitization Vehicles Other Securitization Vehicles Other Cash $ — $ 1.1 $ 6.5 $ 1.1 Financial instruments owned — 0.4 37.6 0.4 Securities purchased under agreements to resell (1) 1,043.4 — 729.3 — Fees, interest and other receivables — — 0.2 — Total assets $ 1,043.4 $ 1.5 $ 773.6 $ 1.5 Other secured financings (2) $ 1,042.5 $ — $ 766.2 $ — Other liabilities 0.9 0.2 5.9 0.2 Total liabilities $ 1,043.4 $ 0.2 $ 772.1 $ 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 $37.7 million and $44.1 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at August 31, 2018 and November 30, 2017 , respectively. |
Variable Interests in Non-Consolidated Variable Interest Entities | The following tables present information about our variable interests in nonconsolidated VIEs (in millions): August 31, 2018 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 53.9 $ 0.7 $ 780.9 $ 3,155.3 Consumer loan vehicles 323.5 — 602.4 3,441.8 Related party private equity vehicles 34.1 — 52.0 107.2 Other private investment vehicles 50.1 — 53.4 3,179.9 Total $ 461.6 $ 0.7 $ 1,488.7 $ 9,884.2 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 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Jefferies Finance, LLC | |
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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Interest income $ — $ 0.2 $ 1.2 $ 2.5 Unfunded commitment fees 0.3 0.3 0.8 0.8 The following is a summary of selected financial information for Jefferies Finance (in millions): August 31, 2018 November 30, 2017 Our total equity balance $ 706.5 $ 636.2 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net earnings $ 38.0 $ 40.8 $ 140.7 $ 133.5 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Origination and syndication fee revenues (1) $ 71.1 $ 104.2 $ 282.1 $ 243.5 Origination fee expenses (1) 12.1 — 45.5 2.5 CLO placement fee revenues (2) 0.4 0.8 3.1 4.7 Derivative losses (3) (0.3 ) (0.2 ) (0.9 ) (0.6 ) Underwriting fees (4) — — 0.3 — Service fees (5) 13.3 7.9 48.3 37.4 (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 August 31, 2018 and November 30, 2017 , 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 term loans issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. |
JCP Fund V | |
Schedule of Equity Method Investments [Line Items] | |
Summary of Selected Financial Information | The following is a summary of the Net increase (decrease) in net assets resulting from operations for 100.0% of JCP Fund V, in which we owned effectively 35.1% and 35.2% of the combined equity interests at August 31, 2018 and November 30, 2017 , respectively (in thousands): Three Months Ended June 30, 2018 (1) March 31, 2018 (1) December 31, 2017 (1) June 30, 2017 (1) March 31, 2017 (1) December 31, 2016 (1) Net increase (decrease) in net assets resulting from operations $ 1,663 $ 8,463 $ 19,712 $ (552 ) $ (19,552 ) $ (2,294 ) (1) Financial information for JCP Fund V within our results of operations for the three and nine months ended August 31, 2018 and 2017 is included based on the presented periods. The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net gains (losses) from our investments in JCP Fund V $ 0.3 $ (1.2 ) $ 10.1 $ (9.1 ) |
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): August 31, 2018 November 30, 2017 Our investment in Epic Gas (1) $ 21.2 $ 22.2 Three Months Ended June 30, 2018 (2) March 31, 2018 (2) December 31, 2017 (2) June 30, 2017 (2) March 31, 2017 (2) December 31, 2016 (2) Net losses $ (2.3 ) $ (2.7 ) $ (16.4 ) $ (5.4 ) $ (3.4 ) $ (15.9 ) (1) Included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition. (2) Financial information for Epic Gas in our results of operations for the three and nine months ended August 31, 2018 and 2017 is included based on the presented periods. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill attributed to our reportable business segments are as follows (in thousands): August 31, 2018 November 30, 2017 Capital Markets $ 1,640,058 $ 1,644,089 Asset Management 3,000 3,000 Total goodwill $ 1,643,058 $ 1,647,089 The following table is a summary of the changes to goodwill for the nine months ended August 31, 2018 (in thousands): Balance at November 30, 2017 $ 1,647,089 Translation adjustments (4,031 ) Balance at August 31, 2018 $ 1,643,058 |
Summary of 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 August 31, 2018 and November 30, 2017 (dollars in thousands): August 31, 2018 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 125,763 $ — $ (56,923 ) $ 68,840 10.7 Trade name 128,617 — (20,211 ) 108,406 29.5 Exchange and clearing organization membership interests and registrations 8,484 (9 ) — 8,475 N/A Total $ 262,864 $ (9 ) $ (77,134 ) $ 185,721 November 30, 2017 Weighted average remaining lives (years) Gross cost 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 8,551 — 8,551 N/A Total $ 264,333 $ (68,540 ) $ 195,793 |
Future Amortization Expense Related to Intangible Assets | The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Remainder of fiscal 2018 $ 3,049 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) | 9 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Short-term borrowings at August 31, 2018 and November 30, 2017 include the following and mature in one year or less (in thousands): August 31, 2018 November 30, 2017 Bank loans (1) $ 324,021 $ 304,651 Floating rate puttable notes 57,985 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 382,006 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York Mellon and us. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums | The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): Maturity Effective Interest Rate August 31, November 30, 2017 Unsecured long-term debt 5.125% Senior Notes April 13, 2018 —% $ — $ 682,338 8.500% Senior Notes July 15, 2019 3.99% 707,072 728,872 2.375% Euro Medium Term Notes May 20, 2020 2.42% 578,896 593,334 6.875% Senior Notes April 15, 2021 4.40% 795,967 808,157 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,332 4,389 5.125% Senior Notes January 20, 2023 4.55% 613,634 615,703 4.850% Senior Notes (1) January 15, 2027 4.93% 712,667 736,357 6.450% Senior Debentures June 8, 2027 5.46% 374,211 375,794 3.875% Convertible Senior Debentures (2) November 1, 2029 —% — 324,779 4.150% Senior Notes January 23, 2030 4.26% 987,576 — 6.250% Senior Debentures January 15, 2036 6.03% 511,758 512,040 6.500% Senior Notes January 20, 2043 6.09% 420,718 420,990 Structured notes (3) Various Various 709,557 614,091 Total unsecured long-term debt 6,416,388 6,416,844 Secured long-term debt Revolving Credit Facility 158,478 — Total long-term debt $ 6,574,866 $ 6,416,844 (1) These senior notes with a principal amount of $750.0 million were issued on January 17, 2017. The carrying value includes a gain of $24.1 million and a loss of $9.6 million in the nine months ended August 31, 2018 and 2017, respectively, associated with an interest rate swap based on its designation as a fair value hedge. See 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 three and nine months ended August 31, 2017 . (3) The carrying value includes $709.6 million and $607.0 million of notes carried at fair value at August 31, 2018 and November 30, 2017 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in 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. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the three and nine months ended August 31, 2018 (in thousands): Reportable Segment Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 Capital Markets Asset Management Total Capital Markets Asset Management Total Major business activity: Equities (1) $ 159,693 $ — $ 159,693 $ 471,683 $ — $ 471,683 Fixed income (1) 3,007 — 3,007 10,511 — 10,511 Investment banking - Capital markets 277,735 — 277,735 809,884 — 809,884 Investment banking - Advisory 187,591 — 187,591 595,730 — 595,730 Asset management — 5,184 5,184 — 16,130 16,130 Total $ 628,026 $ 5,184 $ 633,210 $ 1,887,808 $ 16,130 $ 1,903,938 Primary geographic region: Americas $ 546,219 $ 5,184 $ 551,403 $ 1,628,503 $ 16,130 $ 1,644,633 Europe 62,914 — 62,914 203,103 — 203,103 Asia 18,893 — 18,893 56,202 — 56,202 Total $ 628,026 $ 5,184 $ 633,210 $ 1,887,808 $ 16,130 $ 1,903,938 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): Three Months Ended August 31, 2018 Nine Months Ended August 31, 2018 Revenues from contracts with customers: Commissions and other fees $ 155,539 $ 461,545 Investment banking 465,326 1,405,614 Asset management fees 5,184 16,130 Other 7,161 20,649 Total revenue from contracts with customers 633,210 1,903,938 Other sources of revenue: Principal transactions 143,308 498,583 Interest 305,347 870,490 Other 6,420 58,678 Total revenues $ 1,088,285 $ 3,331,689 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Components of compensation cost: Restricted cash awards $ 60.0 $ 65.2 $ 183.6 $ 188.5 Restricted stock and RSUs (1) 7.1 6.5 21.1 18.0 Profit sharing plan 1.1 1.2 5.6 5.2 Total compensation cost $ 68.2 $ 72.9 $ 210.3 $ 211.7 (1) Total compensation cost associated with restricted stock and restricted stock units (“RSUs”) includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. |
Schedule of Remaining Unamortized Amounts Related to Certain Compensation Plans | Remaining unamortized amounts related to certain compensation plans at August 31, 2018 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 71.7 3 Restricted cash awards 446.9 2 Total $ 518.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
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 2014 California 2007 New Jersey 2010 New York State 2001 New York City 2003 United Kingdom 2016 Hong Kong 2012 India 2010 Italy 2012 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following table summarizes our commitments at August 31, 2018 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 2022 2024 Maximum Payout Equity commitments (1) $ — $ 43.7 $ 18.4 $ — $ 2.9 $ 65.0 Loan commitments (1) — 250.0 54.4 31.9 — 336.3 Underwriting commitments 411.0 — — — — 411.0 Forward starting reverse repos (2) 3,159.4 — — — — 3,159.4 Forward starting repos (2) 2,057.8 — — — — 2,057.8 Other unfunded commitments (1) 60.0 148.7 42.3 — 4.9 255.9 Total commitments $ 5,688.2 $ 442.4 $ 115.1 $ 31.9 $ 7.8 $ 6,285.4 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At August 31, 2018 , $3,141.9 million within forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. |
Guarantees | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at August 31, 2018 (in millions): Expected Maturity Date (fiscal years) 2018 2019 2020 2022 2024 Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 10,898.5 $ 5,978.6 $ 2,948.5 $ 1,015.0 $ 454.6 $ 21,295.2 Written derivative contracts—credit related — — 36.4 33.8 — 70.2 Total derivative contracts $ 10,898.5 $ 5,978.6 $ 2,984.9 $ 1,048.8 $ 454.6 $ 21,365.4 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Brokers and Dealers [Abstract] | |
Net Capital, Adjusted and Excess Net Capital | At August 31, 2018 , Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 1,917,634 $ 1,806,197 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Revenues, Expenses and Total Assets by Segment | Our net revenues, non-interest expenses and earnings (loss) before income taxes by reportable business segment are summarized below (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Capital Markets: Net revenues $ 771.1 $ 788.4 $ 2,388.8 $ 2,349.6 Non-interest expenses 678.8 663.4 2,050.4 1,971.9 Earnings before income taxes $ 92.3 $ 125.0 $ 338.4 $ 377.7 Asset Management: Net revenues $ 6.5 $ 12.3 $ 32.6 $ 25.9 Non-interest expenses 11.7 15.0 39.3 41.0 Loss before income taxes $ (5.2 ) $ (2.7 ) $ (6.7 ) $ (15.1 ) Total: Net revenues $ 777.6 $ 800.7 $ 2,421.4 $ 2,375.5 Non-interest expenses 690.5 678.4 2,089.7 2,012.9 Earnings before income taxes $ 87.1 $ 122.3 $ 331.7 $ 362.6 The following table summarizes our total assets by reportable business segment (in millions): August 31, 2018 November 30, 2017 Total Assets by Reportable Business Segment: Capital Markets $ 39,532.2 $ 38,620.4 Asset Management 1,040.3 1,085.3 Total assets $ 40,572.5 $ 39,705.7 |
Net Revenues by Geographic Region | Net revenues by geographic region were as follows (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Americas (1) $ 639.7 $ 674.5 $ 2,042.4 $ 1,921.7 Europe (2) 115.9 99.1 313.4 378.4 Asia 22.0 27.1 65.6 75.4 Net revenues $ 777.6 $ 800.7 $ 2,421.4 $ 2,375.5 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Aug. 31, 2018 | |
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): Nine Months Ended Nine Months Ended 2018 2017 2018 2017 Other revenues and investment income (loss) $ 172 $ (373 ) $ 10,175 $ (9,793 ) Service charges 92 200 212 523 |
Schedule of related party transactions | Net gains on our investments in these hedge funds, which are included in Principal transactions in our Consolidated Statements of Earnings (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net gains on our investments $ 0.5 $ 1.9 $ 5.0 $ 5.1 We sold securities to Jefferies at fair value for cash during the following periods: Date Amount (in millions) (1) February 2017 $ 25.6 April 2017 21.9 August 2017 7.1 (1) There was no gain or loss on these transactions The following table presents the balances relating to these foreign exchange contracts, which are included in our Consolidated Statements of Financial Condition (in millions). August 31, November 30, Payables-brokers, dealers and clearing organizations $ 12.3 $ 17.0 We provide services to and receive services from Jefferies under service agreements. We also receive revenues from Jefferies under a revenue sharing agreement (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Charges to Jefferies for services provided $ 15.8 $ 13.0 $ 46.1 $ 34.8 Charges from Jefferies for services received 2.2 4.9 6.9 13.8 • We provide capital markets and asset management services to Jefferies and its affiliates. The following table presents the revenues earned by type of services provided (in millions): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Investment banking $ 5.6 $ — $ 5.6 $ — Commissions and other fees 0.1 — 0.5 — Principal transactions — — 0.1 — Other revenues 0.3 — 0.7 — • Receivables from and payables to Jefferies, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition (in millions): August 31, November 30, 2017 Receivable from Jefferies $ 3.2 $ 2.5 Payable to Jefferies 0.6 3.1 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Detail) € in Millions | 9 Months Ended | |||
Aug. 31, 2018USD ($)segment | Aug. 31, 2017USD ($) | Dec. 28, 2017EUR (€) | Dec. 28, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Decrease of proceeds from short-term borrowings | $ (616,283,000) | $ (144,174,000) | ||
Increase of payments on short-term borrowings | $ 669,466,000 | 247,130,000 | ||
Changes to presentation of Consolidated Statements of Cash Flows | ||||
Debt Instrument [Line Items] | ||||
Decrease of proceeds from short-term borrowings | 25,640,400,000 | |||
Increase of payments on short-term borrowings | $ 25,640,400,000 | |||
3.875% Convertible Senior Debentures | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 3.875% | |||
Debt principal amount | $ 345,000,000 | |||
German Plan | Pension Plan | ||||
Debt Instrument [Line Items] | ||||
Consideration for release of indemnity relating to pension obligations | $ 3,250,000 | |||
German Plan | Pension Plan | Jefferies Bache Limited | ||||
Debt Instrument [Line Items] | ||||
Payment to transfer defined benefit obligation and insurance contracts | € | € 6.5 |
Accounting Developments - Addit
Accounting Developments - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash used in operating activities | $ 146,911 | $ (961,657) | ||
Member's paid-in capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Tax Cuts and Jobs Act adjustment | $ 7,555 | $ 0 | ||
Cumulative effect of the adoption of the new revenue standard | 6,121 | $ 0 | ||
Accounting Standards Update 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash used in operating activities | $ 45,900 | |||
Accounting Standards Update 2014-09 | Member's paid-in capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of the adoption of the new revenue standard | $ 6,100 |
Accounting Developments - Sched
Accounting Developments - Schedule of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Investment banking | $ 465,326 | $ 475,702 | $ 1,405,614 | $ 1,235,586 |
Total revenues | 1,088,285 | 1,048,331 | 3,331,689 | 3,097,083 |
Net revenues | 777,615 | 800,692 | 2,421,418 | 2,375,499 |
Underwriting costs | 20,528 | 0 | 47,832 | 0 |
Technology and communications | 76,877 | 72,440 | 222,335 | 205,425 |
Business development | 39,733 | 23,125 | 124,233 | 72,223 |
Professional services | 35,316 | 25,007 | 101,715 | 83,544 |
Other | 18,723 | 22,318 | 54,888 | 62,670 |
Total non-compensation expenses | 262,481 | 215,495 | 761,954 | 639,228 |
Total non-interest expenses | 690,514 | $ 678,428 | 2,089,714 | $ 2,012,855 |
ASC 606 Impact | Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Investment banking | 36,319 | 101,146 | ||
Total revenues | 36,319 | 101,146 | ||
Net revenues | 36,319 | 101,146 | ||
Underwriting costs | 20,528 | 47,832 | ||
Technology and communications | 97 | 311 | ||
Business development | 14,946 | 50,187 | ||
Professional services | 401 | 1,968 | ||
Other | 347 | 848 | ||
Total non-compensation expenses | 36,319 | 101,146 | ||
Total non-interest expenses | 36,319 | 101,146 | ||
Adjusted | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Investment banking | 429,007 | 1,304,468 | ||
Total revenues | 1,051,966 | 3,230,543 | ||
Net revenues | 741,296 | 2,320,272 | ||
Underwriting costs | 0 | 0 | ||
Technology and communications | 76,780 | 222,024 | ||
Business development | 24,787 | 74,046 | ||
Professional services | 34,915 | 99,747 | ||
Other | 18,376 | 54,040 | ||
Total non-compensation expenses | 226,162 | 660,808 | ||
Total non-interest expenses | $ 654,195 | $ 1,988,568 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | $ 325,280 | $ 215,385 |
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 14,870,339 | 13,977,967 |
Derivative assets | 175,428 | 163,833 |
Counterparty and Cash Collateral Netting | (3,331,143) | (3,254,216) |
Securities received as collateral | 0 | 103 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 8,128,200 | 8,171,929 |
Derivative liabilities | 691,573 | 236,950 |
Counterparty and Cash Collateral Netting | (3,451,531) | (3,426,249) |
Short-term borrowings | 0 | 23,324 |
Long-term debt | 709,557 | 606,956 |
Obligation to return securities received as collateral | 0 | 103 |
Corporate equity securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,001,990 | 1,880,553 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,314,332 | 1,488,845 |
Corporate debt securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,296,503 | 3,287,336 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,377,087 | 1,689,347 |
CDOs and CLOs | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 105,940 | 169,170 |
U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,922,558 | 1,308,673 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,127,608 | 1,430,737 |
Municipal securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 749,616 | 710,513 |
Sovereign obligations | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,986,160 | 2,417,459 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,472,290 | 2,173,635 |
Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,899,487 | 1,479,371 |
Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 815,365 | 520,534 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 70 | 105 |
Other asset-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 333,272 | 278,240 |
Loans and other receivables | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,504,481 | 1,667,885 |
Investments at fair value | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 79,539 | 94,400 |
Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,145,240 | 1,152,310 |
Level 1 | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 6,084,104 | 4,612,403 |
Derivative assets | 6,644 | 160,168 |
Securities received as collateral | 103 | |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 3,958,233 | 4,351,974 |
Derivative liabilities | 4,976 | 247,919 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Obligation to return securities received as collateral | 103 | |
Level 1 | Corporate equity securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,881,376 | 1,801,453 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,312,412 | 1,456,675 |
Level 1 | Corporate debt securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 1 | CDOs and CLOs | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,876,669 | 1,269,230 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,127,608 | 1,430,737 |
Level 1 | Municipal securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Sovereign obligations | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,319,415 | 1,381,552 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,513,237 | 1,216,643 |
Level 1 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 1 | Other asset-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Loans and other receivables | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Investments at fair value | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 2 | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 11,806,245 | 12,292,053 |
Derivative assets | 3,496,790 | 3,248,586 |
Securities received as collateral | 0 | |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 7,598,608 | 7,226,002 |
Derivative liabilities | 4,125,994 | 3,399,239 |
Short-term borrowings | 23,324 | |
Long-term debt | 545,927 | 606,956 |
Obligation to return securities received as collateral | 0 | |
Level 2 | Corporate equity securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 72,569 | 57,091 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,507 | 32,122 |
Level 2 | Corporate debt securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,286,852 | 3,261,300 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,375,530 | 1,688,825 |
Level 2 | CDOs and CLOs | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 82,339 | 139,166 |
Level 2 | U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 45,889 | 39,443 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 2 | Municipal securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 749,616 | 710,513 |
Level 2 | Sovereign obligations | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 666,745 | 1,035,907 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 958,998 | 956,992 |
Level 2 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,894,533 | 1,453,294 |
Level 2 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 791,449 | 508,115 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 2 | Other asset-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 263,967 | 217,111 |
Level 2 | Loans and other receivables | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,455,496 | 1,620,581 |
Level 2 | Investments at fair value | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 946 |
Level 2 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,136,579 | 1,148,824 |
Level 3 | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 311,133 | 327,727 |
Derivative assets | 3,137 | 9,295 |
Securities received as collateral | 0 | |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 22,890 | 20,202 |
Derivative liabilities | 12,134 | 16,041 |
Short-term borrowings | 0 | |
Long-term debt | 163,630 | 0 |
Obligation to return securities received as collateral | 0 | |
Level 3 | Corporate equity securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 48,045 | 22,009 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 413 | 48 |
Level 3 | Corporate debt securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 9,651 | 26,036 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,557 | 522 |
Level 3 | CDOs and CLOs | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 23,601 | 30,004 |
Level 3 | U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 3 | Municipal securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 3 | Sovereign obligations | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 55 | 0 |
Level 3 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 4,954 | 26,077 |
Level 3 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 23,916 | 12,419 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 70 | 105 |
Level 3 | Other asset-backed securities | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 69,305 | 61,129 |
Level 3 | Loans and other receivables | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 48,985 | 47,304 |
Level 3 | Investments at fair value | ||
Financial instruments owned: | ||
Financial instruments owned, excluding Investments at fair value based on NAV | 79,539 | 93,454 |
Level 3 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 8,661 | 3,486 |
Fair value based on net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | $ 325,300 | $ 215,400 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 325,280 | $ 215,385 |
Unfunded Commitments | 20,209 | 19,084 |
Equity Long/Short Hedge Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 16,606 | 33,176 |
Unfunded Commitments | $ 0 | $ 0 |
Percentage of investment at fair value in liquidation | 2.00% | 1.00% |
Fixed Income and High Yield Hedge Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 219 | $ 417 |
Unfunded Commitments | 0 | 0 |
Fund of Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 175 | 189 |
Unfunded Commitments | 0 | 0 |
Private equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 36,702 | 26,798 |
Unfunded Commitments | $ 20,209 | $ 19,084 |
Estimated period for the liquidation of the underlying assets, minimum | 1 year | 1 year |
Estimated period for the liquidation of the underlying assets, maximum | 10 years | 10 years |
Commodity Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 10,228 | |
Unfunded Commitments | $ 0 | |
Notice period redemption of investment prior written notice period | 60 days | |
Multi-asset Funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 261,350 | $ 154,805 |
Unfunded Commitments | $ 0 | $ 0 |
Notice period redemption of investment prior written notice period | 30 days | 30 days |
Percentage of redeemable investments | 17.00% | 12.00% |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 Rollforwards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Assets: | ||||
Total gains/(losses) (realized and unrealized) | $ 9,800 | $ 6,000 | $ 10,400 | $ (900) |
Liabilities: | ||||
Total gains/(losses) (realized and unrealized) | (4,400) | 6,000 | 26,800 | 1,500 |
Corporate equity securities | ||||
Assets: | ||||
Beginning Balance | 42,901 | 20,548 | 22,009 | 21,739 |
Total gains/(losses) (realized and unrealized) | 12,128 | 4,344 | 30,098 | 3,416 |
Purchases | 17,652 | 4 | 35,993 | 945 |
Sales | (23,010) | (645) | (39,008) | (1,502) |
Settlements | (302) | (55) | (2,082) | (356) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (1,324) | (2,022) | 1,035 | (2,068) |
Ending Balance | 48,045 | 22,174 | 48,045 | 22,174 |
Change in unrealized gains/(losses) included in earnings for instruments still held | 9,468 | 4,319 | 25,475 | 2,689 |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Liabilities: | ||||
Beginning Balance | 87 | 354 | 48 | 313 |
Total gains/(losses) (realized and unrealized) | 326 | 107 | 365 | 134 |
Purchases | 0 | (369) | 0 | (355) |
Sales | 0 | 27 | 0 | 27 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 413 | 119 | 413 | 119 |
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (326) | (92) | (365) | (92) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Corporate debt securities | ||||
Assets: | ||||
Beginning Balance | 28,066 | 24,727 | 26,036 | 25,005 |
Total gains/(losses) (realized and unrealized) | 1,057 | (2,350) | 1,090 | (3,280) |
Purchases | 507 | 5,901 | 22,204 | 19,610 |
Sales | (21,403) | (5,551) | (38,553) | (18,364) |
Settlements | (59) | (31) | (2,066) | (1,724) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 1,483 | 2,319 | 940 | 3,768 |
Ending Balance | 9,651 | 25,015 | 9,651 | 25,015 |
Change in unrealized gains/(losses) included in earnings for instruments still held | (165) | (2,224) | (1,738) | (3,424) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Liabilities: | ||||
Beginning Balance | 522 | 522 | 522 | 523 |
Total gains/(losses) (realized and unrealized) | 39 | 0 | 39 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 996 | 0 | 996 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1,557 | 522 | 1,557 | 522 |
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (39) | 0 | (39) | 1 |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
CDOs and CLOs | ||||
Assets: | ||||
Beginning Balance | 30,603 | 27,255 | 30,004 | 54,354 |
Total gains/(losses) (realized and unrealized) | 567 | (6,119) | (2,323) | (13,902) |
Purchases | 238,281 | 52,918 | 242,864 | 65,523 |
Sales | (240,002) | (36,564) | (249,691) | (72,122) |
Settlements | (2,127) | 245 | (5,859) | 239 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (3,721) | 468 | 8,606 | 4,111 |
Ending Balance | 23,601 | 38,203 | 23,601 | 38,203 |
Change in unrealized gains/(losses) included in earnings for instruments still held | (2,338) | (3,552) | (5,533) | (3,685) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Municipal securities | ||||
Assets: | ||||
Beginning Balance | 27,257 | |||
Total gains/(losses) (realized and unrealized) | (1,547) | |||
Purchases | 0 | |||
Sales | (25,710) | |||
Settlements | 0 | |||
Issuances | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | |||
Ending Balance | 0 | 0 | ||
Change in unrealized gains/(losses) included in earnings for instruments still held | 0 | |||
RMBS | ||||
Assets: | ||||
Beginning Balance | 3,655 | 33,032 | 26,077 | 38,772 |
Total gains/(losses) (realized and unrealized) | (66) | (263) | (7,334) | (1,446) |
Purchases | 72 | 494 | 2,018 | 113,391 |
Sales | (1,597) | (732) | (12,621) | (125,731) |
Settlements | (1) | (291) | (6) | (572) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 2,891 | (11,591) | (3,180) | (3,765) |
Ending Balance | 4,954 | 20,649 | 4,954 | 20,649 |
Change in unrealized gains/(losses) included in earnings for instruments still held | 90 | 188 | 316 | (2,005) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
CMBS | ||||
Assets: | ||||
Beginning Balance | 27,239 | 16,263 | 12,419 | 20,580 |
Total gains/(losses) (realized and unrealized) | (222) | (125) | (1,236) | (1,180) |
Purchases | 8 | 0 | 1,720 | 2,033 |
Sales | 0 | (676) | (548) | (5,199) |
Settlements | (1,156) | (637) | (5,415) | (985) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (1,953) | 2,811 | 16,976 | 2,387 |
Ending Balance | 23,916 | 17,636 | 23,916 | 17,636 |
Change in unrealized gains/(losses) included in earnings for instruments still held | (288) | (161) | (2,272) | (952) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Liabilities: | ||||
Beginning Balance | 0 | 70 | 105 | 0 |
Total gains/(losses) (realized and unrealized) | 70 | (35) | (35) | 35 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 70 | 35 | 70 | 35 |
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (70) | (35) | (70) | (35) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Other ABS | ||||
Assets: | ||||
Beginning Balance | 55,535 | 43,349 | 61,129 | 40,911 |
Total gains/(losses) (realized and unrealized) | (2,269) | (6,454) | (7,528) | (15,338) |
Purchases | 307,358 | 5,798 | 523,045 | 67,611 |
Sales | (290,838) | (3,789) | (495,055) | (4,121) |
Settlements | (4,356) | (2,924) | (12,281) | (16,891) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 3,875 | 32,966 | (5) | (3,226) |
Ending Balance | 69,305 | 68,946 | 69,305 | 68,946 |
Change in unrealized gains/(losses) included in earnings for instruments still held | (1,124) | (3,570) | (3,307) | (8,872) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Loans and other receivables | ||||
Assets: | ||||
Beginning Balance | 64,036 | 49,365 | 47,304 | 81,872 |
Total gains/(losses) (realized and unrealized) | (1,353) | 15,261 | (2,812) | 27,709 |
Purchases | 14,932 | 9,265 | 104,009 | 84,342 |
Sales | (23,700) | (5,854) | (98,733) | (83,791) |
Settlements | (3,453) | (8,249) | (14,610) | (23,241) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (1,477) | 2,868 | 13,827 | (24,235) |
Ending Balance | 48,985 | 62,656 | 48,985 | 62,656 |
Change in unrealized gains/(losses) included in earnings for instruments still held | 1,007 | 14,005 | (3,769) | 16,294 |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Investments at fair value | ||||
Assets: | ||||
Beginning Balance | 79,488 | 89,006 | 93,454 | 96,369 |
Total gains/(losses) (realized and unrealized) | 0 | 1,703 | 417 | 4,698 |
Purchases | 51 | 0 | 2,291 | 300 |
Sales | 0 | 0 | (17,569) | (10,119) |
Settlements | 0 | (292) | 0 | (831) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 946 | 0 |
Ending Balance | 79,539 | 90,417 | 79,539 | 90,417 |
Change in unrealized gains/(losses) included in earnings for instruments still held | 0 | 1,703 | (177) | 6,721 |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Sovereign obligations | ||||
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Total gains/(losses) (realized and unrealized) | 3 | 3 | ||
Purchases | (598) | (598) | ||
Sales | 629 | 629 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into/ (out of) Level 3 | 21 | 21 | ||
Ending Balance | 55 | 55 | ||
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (124) | (124) | ||
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Loans | ||||
Liabilities: | ||||
Beginning Balance | 12,881 | 4,967 | 3,486 | 378 |
Total gains/(losses) (realized and unrealized) | (148) | (3,071) | (1,059) | 1,604 |
Purchases | (4,871) | 0 | (15,702) | (364) |
Sales | 1,787 | 333 | 19,409 | 333 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (988) | 1,056 | 2,527 | 1,334 |
Ending Balance | 8,661 | 3,285 | 8,661 | 3,285 |
Change in unrealized gains/ (losses) included in earnings for to instruments still held | 149 | 3,018 | 1,059 | (1,583) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Net derivatives | ||||
Liabilities: | ||||
Beginning Balance | 5,874 | 3,022 | 6,746 | 3,441 |
Total gains/(losses) (realized and unrealized) | 1,107 | (2,980) | (1,034) | (2,854) |
Purchases | 0 | 0 | (6) | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 1,990 | 5,040 | 2,984 | 5,162 |
Issuances | 0 | 0 | 296 | 404 |
Net transfers into/ (out of) Level 3 | 26 | 0 | 11 | (1,071) |
Ending Balance | 8,997 | 5,082 | 8,997 | 5,082 |
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (2,090) | (2,474) | (2,660) | (2,333) |
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | ||
Other secured financings | ||||
Liabilities: | ||||
Beginning Balance | 418 | |||
Total gains/(losses) (realized and unrealized) | (418) | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Issuances | 0 | |||
Net transfers into/ (out of) Level 3 | 0 | |||
Ending Balance | $ 0 | 0 | ||
Change in unrealized gains/ (losses) included in earnings for to instruments still held | $ 0 | |||
Long-term debt | ||||
Liabilities: | ||||
Beginning Balance | 160,626 | 0 | ||
Total gains/(losses) (realized and unrealized) | 3,004 | (25,078) | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 81,284 | ||
Net transfers into/ (out of) Level 3 | 0 | 107,424 | ||
Ending Balance | 163,630 | 163,630 | ||
Change in unrealized gains/ (losses) included in earnings for to instruments still held | (2,953) | 36,921 | ||
Change in unrealized gains/ (losses) included in other comprehensive income for instruments still held | $ (51) | $ (11,843) |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | $ 13,600 | $ 63,500 | $ 49,100 | $ 26,500 | |
Transfers of assets from Level 3 to Level 2 | 13,800 | 35,700 | 10,000 | 49,500 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 9,800 | 6,000 | 10,400 | (900) | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | (4,400) | 6,000 | 26,800 | 1,500 | |
Aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due | 77,000 | 77,000 | $ 55,100 | ||
Loans and other receivables greater than 90 days past due | 25,600 | 25,600 | 37,400 | ||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 913,456 | 913,456 | 578,014 | ||
Level 1 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 34,800 | 34,800 | $ 99,700 | ||
Corporate equity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 3 to Level 2 | 2,600 | 2,500 | |||
Transfers of liabilities from Level 2 to Level 3 | 0 | 0 | 0 | 0 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 12,128 | 4,344 | 30,098 | 3,416 | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 326 | 107 | 365 | 134 | |
Corporate debt securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 8,100 | ||||
Transfers of liabilities from Level 2 to Level 3 | 0 | 0 | 0 | 0 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 1,057 | (2,350) | 1,090 | (3,280) | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 39 | 0 | 39 | (1) | |
CDOs and CLOs | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 8,700 | 9,600 | |||
Transfers of assets from Level 3 to Level 2 | 3,700 | ||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | 567 | (6,119) | (2,323) | (13,902) | |
Municipal securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (1,547) | ||||
RMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,900 | ||||
Transfers of assets from Level 3 to Level 2 | 14,600 | 4,600 | |||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (66) | (263) | (7,334) | (1,446) | |
Investments at fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | 0 | 1,703 | 417 | 4,698 | |
Other ABS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 3,900 | 46,400 | |||
Transfers of assets from Level 3 to Level 2 | 13,500 | ||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (2,269) | (6,454) | (7,528) | (15,338) | |
CMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,600 | 17,000 | |||
Transfers of assets from Level 3 to Level 2 | 4,600 | ||||
Transfers of liabilities from Level 2 to Level 3 | 0 | 0 | 0 | 0 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (222) | (125) | (1,236) | (1,180) | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 70 | (35) | (35) | 35 | |
Loans and other receivables | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 15,300 | ||||
Transfers of assets from Level 3 to Level 2 | 28,300 | ||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (1,353) | 15,261 | (2,812) | 27,709 | |
Long-term debt | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 0 | 107,424 | |||
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 3,004 | (25,078) | |||
Other changes in fair value | $ (6,842) | $ (1,854) | $ 33,626 | $ 2,786 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Aug. 31, 2018$ / shares | Nov. 30, 2017USD ($)$ / shares | Aug. 31, 2018 | Aug. 31, 2018USD ($) | Aug. 31, 2018€ / shares | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 14,193,352 | $ 15,195,619 | |||
Derivative assets | $ | 163,833 | 175,428 | |||
Financial instruments sold, not yet purchased, at fair value | $ | 8,171,929 | 8,128,200 | |||
Derivative liabilities | $ | 236,950 | 691,573 | |||
Value of asset excluded from significant unobservable inputs | $ | 21,100 | 7,000 | |||
Value of liability excluded from significant unobservable inputs | $ | 4,200 | 500 | |||
Corporate equity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | 1,488,845 | 1,314,332 | |||
Corporate debt securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | 1,689,347 | 1,377,087 | |||
CMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | 105 | 70 | |||
Loans | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | 1,152,310 | 1,145,240 | |||
Level 3 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | 79,539 | ||||
Derivative assets | $ | 9,295 | 3,137 | |||
Financial instruments sold, not yet purchased, at fair value | $ | 20,202 | 22,890 | |||
Derivative liabilities | $ | 16,041 | 12,134 | |||
Level 3 | Corporate equity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | 18,109 | 41,038 | |||
Financial instruments sold, not yet purchased, at fair value | $ | $ 48 | 413 | |||
Level 3 | Non-exchange-traded securities | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 3 | ||||
Level 3 | Non-exchange-traded securities | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 75 | ||||
Level 3 | Non-exchange-traded securities | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 25 | ||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 1 | ||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 11 | ||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 9 | ||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 3 | ||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 75 | ||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 33 | ||||
Level 3 | Non-exchange-traded securities | Market approach | Underlying stock price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 6 | ||||
Level 3 | Non-exchange-traded securities | Comparable pricing | Comparable asset price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 7 | ||||
Level 3 | Corporate debt securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 26,036 | 9,651 | |||
Financial instruments sold, not yet purchased, at fair value | $ | $ 522 | 1,557 | |||
Level 3 | Corporate debt securities | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 10 | ||||
Level 3 | Corporate debt securities | Comparable asset price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 101 | ||||
Level 3 | Corporate debt securities | Discount rate/yield | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.19 | ||||
Level 3 | Corporate debt securities | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.46 | ||||
Financial instruments sold, not yet purchased, measurement input | 0.53 | ||||
Level 3 | Corporate debt securities | Market approach | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 10 | ||||
Level 3 | Corporate debt securities | Market approach | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.17 | ||||
Level 3 | Corporate debt securities | Convertible bond model | Discount rate/yield | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.08 | ||||
Level 3 | Corporate debt securities | Convertible bond model | Volatility | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.40 | ||||
Level 3 | CDOs and CLOs | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 30,004 | 23,601 | |||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.03 | 0.05 | |||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.26 | 0.41 | |||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.12 | 0.16 | |||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant prepayment rate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.20 | 0.20 | |||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.02 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.01 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.02 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.02 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.30 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.25 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.30 | ||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.26 | ||||
Level 3 | CDOs and CLOs | Scenario analysis | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.02 | ||||
Level 3 | CDOs and CLOs | Scenario analysis | Estimated recovery percentage | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.08 | ||||
Level 3 | CDOs and CLOs | Scenario analysis | Estimated recovery percentage | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.40 | ||||
Level 3 | CDOs and CLOs | Scenario analysis | Estimated recovery percentage | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.22 | ||||
Level 3 | RMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 26,077 | 4,954 | |||
Level 3 | RMBS | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 2 years | ||||
Level 3 | RMBS | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 4 years | ||||
Level 3 | RMBS | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 3 years | ||||
Level 3 | RMBS | Discount rate/yield | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.06 | ||||
Level 3 | RMBS | Discount rate/yield | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.10 | ||||
Level 3 | RMBS | Discount rate/yield | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.08 | ||||
Level 3 | RMBS | Cumulative loss rate | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.03 | ||||
Level 3 | RMBS | Cumulative loss rate | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.19 | ||||
Level 3 | RMBS | Cumulative loss rate | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.10 | ||||
Level 3 | RMBS | Market approach | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 100 | ||||
Level 3 | RMBS | Discounted cash flows | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 15 years | ||||
Level 3 | RMBS | Discounted cash flows | Discount rate/yield | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.09 | ||||
Level 3 | RMBS | Discounted cash flows | Cumulative loss rate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.23 | ||||
Level 3 | CMBS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 12,419 | 23,916 | |||
Financial instruments sold, not yet purchased, at fair value | $ | $ 105 | 70 | |||
Level 3 | CMBS | Discounted cash flows | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 0 years | 1 year | |||
Level 3 | CMBS | Discounted cash flows | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 3 years | 3 years | |||
Level 3 | CMBS | Discounted cash flows | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 1 year | 2 years | |||
Level 3 | CMBS | Discounted cash flows | Discount rate/yield | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.02 | 0.03 | |||
Level 3 | CMBS | Discounted cash flows | Discount rate/yield | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.26 | 0.38 | |||
Level 3 | CMBS | Discounted cash flows | Discount rate/yield | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.12 | 0.12 | |||
Level 3 | CMBS | Discounted cash flows | Cumulative loss rate | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.08 | 0.08 | |||
Level 3 | CMBS | Discounted cash flows | Cumulative loss rate | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.65 | 0.84 | |||
Level 3 | CMBS | Discounted cash flows | Cumulative loss rate | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.44 | 0.33 | |||
Level 3 | CMBS | Scenario analysis | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 49 | ||||
Level 3 | CMBS | Scenario analysis | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 52 | ||||
Level 3 | CMBS | Scenario analysis | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 56 | ||||
Level 3 | CMBS | Scenario analysis | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 54 | ||||
Level 3 | CMBS | Scenario analysis | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.26 | ||||
Level 3 | CMBS | Scenario analysis | Estimated recovery percentage | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.26 | ||||
Level 3 | CMBS | Scenario analysis | Estimated recovery percentage | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.32 | ||||
Level 3 | CMBS | Scenario analysis | Estimated recovery percentage | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.28 | ||||
Level 3 | Other ABS | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 61,129 | 69,305 | |||
Level 3 | Other ABS | Market approach | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 100 | 100 | |||
Level 3 | Other ABS | Discounted cash flows | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 1 year | 1 year | |||
Level 3 | Other ABS | Discounted cash flows | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input, term | 5 years | 6 years | |||
Level 3 | Other ABS | Discounted cash flows | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.07 | ||||
Financial instruments owned, measurement input, term | 2 years | 2 years | |||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.05 | 0.05 | |||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.39 | 0.12 | |||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.09 | ||||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0 | 0 | |||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.33 | 0.29 | |||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.23 | 0.18 | |||
Level 3 | Other ABS | Scenario analysis | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.14 | ||||
Level 3 | Loans and other receivables | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 46,121 | 48,985 | |||
Level 3 | Loans and other receivables | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 50 | ||||
Level 3 | Loans and other receivables | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 100 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.57 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 1.07 | ||||
Level 3 | Loans and other receivables | Market approach | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 54 | ||||
Level 3 | Loans and other receivables | Market approach | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 100 | ||||
Level 3 | Loans and other receivables | Market approach | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 95 | 95 | |||
Level 3 | Loans and other receivables | Market approach | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.76 | 0 | |||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.13 | ||||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 1.07 | ||||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 0.78 | 0.88 | |||
Level 3 | Derivatives | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative assets | $ | $ 9,295 | ||||
Derivative liabilities | $ | $ 16,041 | ||||
Level 3 | Derivatives | Total return swaps | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset, measurement input | 100 | ||||
Level 3 | Derivatives | Total return swaps | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset, measurement input | 101 | ||||
Level 3 | Derivatives | Total return swaps | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset, measurement input | 106 | ||||
Level 3 | Derivatives | Total return swaps | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset, measurement input | 103 | ||||
Level 3 | Derivatives | Total return swaps | Market approach | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 95 | 101 | |||
Level 3 | Derivatives | Total return swaps | Market approach | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 100 | 106 | |||
Level 3 | Derivatives | Total return swaps | Market approach | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 97 | 103 | |||
Level 3 | Derivatives | Equity options | Option model/default rate | Default probability | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 0 | 0 | |||
Level 3 | Derivatives | Unfunded commitments | Market approach | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 99 | 99 | |||
Level 3 | Derivatives | Variable funding note swaps | Discounted cash flows | Discount rate/yield | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 0.26 | 0.41 | |||
Level 3 | Derivatives | Variable funding note swaps | Discounted cash flows | Constant prepayment rate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 0.20 | 0.20 | |||
Level 3 | Derivatives | Variable funding note swaps | Discounted cash flows | Constant default rate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 0.02 | 0.02 | |||
Level 3 | Derivatives | Variable funding note swaps | Discounted cash flows | Loss severity | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative liability, measurement input | 0.25 | 0.30 | |||
Level 3 | Derivatives | Interest rate swaps | Credit spread | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Derivative asset, measurement input | 0.0800 | ||||
Level 3 | Investments at fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, at fair value | $ | $ 77,423 | ||||
Level 3 | Private equity securities | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 7 | ||||
Level 3 | Private equity securities | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 3 | ||||
Level 3 | Private equity securities | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 250 | ||||
Level 3 | Private equity securities | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 105 | ||||
Level 3 | Private equity securities | Transaction level | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 3 | ||||
Level 3 | Private equity securities | Transaction level | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 250 | ||||
Level 3 | Private equity securities | Transaction level | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments owned, measurement input | 172 | ||||
Level 3 | Loans | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | $ 3,486 | 8,661 | |||
Level 3 | Loans | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | 50 | ||||
Level 3 | Loans | Estimated recovery percentage | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | 0 | ||||
Level 3 | Long-term debt | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, at fair value | $ | $ 163,630 | ||||
Level 3 | Long-term debt | Price | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | € / shares | 96 | ||||
Level 3 | Long-term debt | Price | Minimum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | 70 | 80 | |||
Level 3 | Long-term debt | Price | Maximum | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | 100 | 112 | |||
Level 3 | Long-term debt | Price | Weighted Average | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Financial instruments sold, not yet purchased, measurement input | 80 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk for Loans and Other Receivables and Loan Commitments Measured at Fair Value under Fair Value Option (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Financial instruments owned: | ||||
Loans and other receivables | $ 14,002 | $ 24,846 | $ 7,495 | $ 27,715 |
Long-term debt | ||||
Financial Instruments Sold and Long-term Debt | ||||
Changes in instrument specific credit risk | 1,401 | 5,638 | 19,986 | (14,141) |
Other changes in fair value | (6,842) | (1,854) | 33,626 | 2,786 |
Short-term borrowings | ||||
Financial Instruments Sold and Long-term Debt | ||||
Changes in instrument specific credit risk | 0 | 19 | 0 | 1 |
Other changes in fair value | 0 | (2,570) | 0 | (37) |
Loans | ||||
Financial Instruments Sold and Long-term Debt | ||||
Changes in instrument specific credit risk | (2,708) | 3,436 | (2,467) | (7,286) |
Loan commitments | ||||
Financial Instruments Sold and Long-term Debt | ||||
Changes in instrument specific credit risk | $ (1,695) | $ 82 | $ (1,964) | $ 229 |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value under Fair Value Option (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Financial instruments owned: | ||
Loans and other receivables | $ 896,470 | $ 752,076 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 167,355 | 159,462 |
Long-term debt and short-term borrowings | 89,345 | 32,839 |
Loans and other receivables 90 days or greater past due | $ 33,700 | $ 38,700 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Detail) $ in Thousands | Aug. 31, 2018USD ($)Contract | Nov. 30, 2017USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net amounts per Consolidated Statements of Financial Condition, Assets | $ 175,428 | $ 163,833 |
Net amounts per Consolidated Statements of Financial Condition, Liabilities | 691,573 | 236,950 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 2,333,537 | 1,290,618 |
Fair Value, Liabilities | 2,718,843 | 1,375,936 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (2,248,951) | (1,268,043) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (2,248,951) | (1,268,043) |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 427,045 | 1,340,384 |
Fair Value, Liabilities | 440,764 | 1,275,027 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (405,840) | (1,319,895) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (425,242) | (1,274,900) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 745,989 | 787,047 |
Fair Value, Liabilities | 983,497 | 1,012,236 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (676,352) | (666,278) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (777,338) | (883,306) |
Interest rate contracts | Rule change by London Clearing House | ||
Derivatives, Fair Value [Line Items] | ||
Amounts offset in the Consolidated Statements of Financial Condition, Assets | 800,000 | |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | 800,000 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 0 | 0 |
Fair Value, Liabilities | 30,018 | 2,420 |
Designated as Hedging Instrument | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 0 |
Number of Contracts, Assets | Contract | 0 | 0 |
Fair Value, Liabilities | $ 30,018 | $ 2,420 |
Number of Contracts, Liabilities | Contract | 1 | 1 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 3,506,571 | $ 3,418,049 |
Fair Value, Liabilities | 4,113,086 | 3,660,779 |
Not Designated as Hedging Instrument | Interest rate contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,047 | $ 1,957 |
Number of Contracts, Assets | Contract | 17,218 | 33,972 |
Fair Value, Liabilities | $ 12 | $ 66 |
Number of Contracts, Liabilities | Contract | 35,304 | 8,515 |
Not Designated as Hedging Instrument | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 411,969 | $ 1,334,878 |
Number of Contracts, Assets | Contract | 2,116 | 2,711 |
Fair Value, Liabilities | $ 405,580 | $ 1,263,994 |
Number of Contracts, Liabilities | Contract | 2,325 | 2,948 |
Not Designated as Hedging Instrument | Interest rate contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 353,217 | $ 380,223 |
Number of Contracts, Assets | Contract | 1,533 | 1,804 |
Fair Value, Liabilities | $ 486,970 | $ 444,716 |
Number of Contracts, Liabilities | Contract | 702 | 1,346 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 232 | $ 157 |
Number of Contracts, Assets | Contract | 2,073 | 2,045 |
Fair Value, Liabilities | $ 127 | $ 20 |
Number of Contracts, Liabilities | Contract | 901 | 101 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 234,331 | $ 303,091 |
Number of Contracts, Assets | Contract | 6,488 | 4,338 |
Fair Value, Liabilities | $ 223,397 | $ 286,582 |
Number of Contracts, Liabilities | Contract | 6,580 | 4,361 |
Not Designated as Hedging Instrument | Equity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,332,241 | $ 1,288,295 |
Number of Contracts, Assets | Contract | 1,765,239 | 2,654,555 |
Fair Value, Liabilities | $ 2,718,615 | $ 1,375,832 |
Number of Contracts, Liabilities | Contract | 1,632,359 | 2,090,935 |
Not Designated as Hedging Instrument | Equity contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 150,206 | $ 78,812 |
Number of Contracts, Assets | Contract | 2,610 | 1,847 |
Fair Value, Liabilities | $ 259,262 | $ 247,750 |
Number of Contracts, Liabilities | Contract | 5,266 | 1,722 |
Not Designated as Hedging Instrument | Commodity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 17 | $ 209 |
Number of Contracts, Assets | Contract | 1,218 | 3,723 |
Fair Value, Liabilities | $ 89 | $ 18 |
Number of Contracts, Liabilities | Contract | 1,366 | 3,819 |
Not Designated as Hedging Instrument | Credit contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 15,076 | $ 5,506 |
Number of Contracts, Assets | Contract | 13 | 18 |
Fair Value, Liabilities | $ 5,166 | $ 8,613 |
Number of Contracts, Liabilities | Contract | 16 | 27 |
Not Designated as Hedging Instrument | Credit contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 8,235 | $ 24,921 |
Number of Contracts, Assets | Contract | 123 | 110 |
Fair Value, Liabilities | $ 13,868 | $ 33,188 |
Number of Contracts, Liabilities | Contract | 54 | 164 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in interest expense on fair value hedge | $ 60 | $ 1,537 | $ 1,692 | $ 4,390 |
Unrealized and realized gains (losses) | 12,238 | (110,010) | (166,921) | (262,564) |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 13,951 | (6,432) | 36,053 | 2,605 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (4,421) | 1,028 | 6,207 | 4,135 |
Equity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 1,807 | (106,425) | (215,232) | (275,124) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 281 | 1,508 | 3,025 | (5,398) |
Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 620 | 311 | 3,026 | 11,218 |
Long-term debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in interest expense on fair value hedge | 1,221 | (4,680) | 24,055 | (9,570) |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in interest expense on fair value hedge | $ (1,161) | $ 6,217 | $ (22,363) | $ 13,960 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Detail) $ in Thousands | Aug. 31, 2018USD ($) |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | $ 113,887 |
OTC derivative assets having maturity period of 1 to 5 years | 174,588 |
OTC derivative assets having maturity period of greater than 5 years | 98,168 |
OTC derivative assets cross-maturity netting | (105,568) |
Total OTC derivative assets, net of cross-maturity netting | 281,075 |
Cross product counterparty netting | (32,615) |
Total OTC derivative assets included in Financial instruments owned | 248,460 |
OTC derivative liabilities having maturity period of 0 to 12 months | 135,917 |
OTC derivative liabilities having maturity period of 1 to 5 years | 288,852 |
OTC derivative liabilities having maturity period of greater than 5 years | 211,617 |
OTC derivative liabilities cross-maturity netting | (105,568) |
Total OTC derivative liabilities, net of cross-maturity netting | 530,818 |
Cross product counterparty netting | (32,615) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased | 498,203 |
Exchange traded derivative assets | 85,200 |
Cash collateral received | 158,200 |
Exchange traded derivative liabilities, with fair value | 472,000 |
Cash collateral pledged | 278,600 |
Equity swaps and options | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 10,226 |
OTC derivative assets having maturity period of 1 to 5 years | 8,071 |
OTC derivative assets having maturity period of greater than 5 years | 2,195 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 20,492 |
OTC derivative liabilities having maturity period of 0 to 12 months | 15,125 |
OTC derivative liabilities having maturity period of 1 to 5 years | 92,491 |
OTC derivative liabilities having maturity period of greater than 5 years | 13,048 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 120,664 |
Credit default swaps | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 82 |
OTC derivative assets having maturity period of 1 to 5 years | 17,846 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (11) |
Total OTC derivative assets, net of cross-maturity netting | 17,917 |
OTC derivative liabilities having maturity period of 0 to 12 months | 17 |
OTC derivative liabilities having maturity period of 1 to 5 years | 10,374 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (11) |
Total OTC derivative liabilities, net of cross-maturity netting | 10,380 |
Total return swaps | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 46,036 |
OTC derivative assets having maturity period of 1 to 5 years | 29,910 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (4,334) |
Total OTC derivative assets, net of cross-maturity netting | 71,612 |
OTC derivative liabilities having maturity period of 0 to 12 months | 67,526 |
OTC derivative liabilities having maturity period of 1 to 5 years | 19,806 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (4,334) |
Total OTC derivative liabilities, net of cross-maturity netting | 82,998 |
Foreign currency forwards, swaps and options | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 42,326 |
OTC derivative assets having maturity period of 1 to 5 years | 22,130 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (9,550) |
Total OTC derivative assets, net of cross-maturity netting | 54,906 |
OTC derivative liabilities having maturity period of 0 to 12 months | 36,176 |
OTC derivative liabilities having maturity period of 1 to 5 years | 17,496 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (9,550) |
Total OTC derivative liabilities, net of cross-maturity netting | 44,122 |
Fixed income forwards | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 2,113 |
OTC derivative assets having maturity period of 1 to 5 years | 0 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 2,113 |
OTC derivative liabilities having maturity period of 0 to 12 months | 685 |
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 | 685 |
Interest rate swaps, options and forwards | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 13,104 |
OTC derivative assets having maturity period of 1 to 5 years | 96,631 |
OTC derivative assets having maturity period of greater than 5 years | 95,973 |
OTC derivative assets cross-maturity netting | (91,673) |
Total OTC derivative assets, net of cross-maturity netting | 114,035 |
OTC derivative liabilities having maturity period of 0 to 12 months | 16,388 |
OTC derivative liabilities having maturity period of 1 to 5 years | 148,685 |
OTC derivative liabilities having maturity period of greater than 5 years | 198,569 |
OTC derivative liabilities cross-maturity netting | (91,673) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 271,969 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Detail) $ in Thousands | Aug. 31, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 135,060 |
BBB- to BBB | 20,490 |
BB or lower | 74,097 |
Unrated | 18,813 |
Total OTC derivative assets included in Financial instruments owned | $ 248,460 |
Derivative Financial Instrume_7
Derivative Financial Instruments - External Credit Ratings of Underlyings or Referenced Assets (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | $ 18 | $ 49 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 70.2 | 218.2 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 3 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 32.5 | 129.1 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 15 | 46 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 34.8 | $ 89.1 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | 0 | |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Total Notional | $ 2.9 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Contingent Features (Detail) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 106.3 | $ 95.1 |
Collateral posted | (59.3) | (86.4) |
Collateral received | 129.7 | 5.6 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 176.6 | $ 14.3 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Banking and Thrift [Abstract] | ||
Securities received as collateral | $ 0 | $ 103 |
Fair value of securities received as collateral | 25,200,000 | 27,100,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 913,456 | $ 578,014 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 2,531,504 | $ 2,843,911 |
Repurchase Agreements | 17,839,459 | 19,829,249 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 20,370,963 | 22,673,263 |
Cash | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | |
Repurchase Agreements | 4,361 | |
Total | 4,361 | |
Corporate equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 2,214,433 | 2,353,798 |
Repurchase Agreements | 490,609 | 214,413 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,705,042 | 2,568,211 |
Corporate debt securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 315,718 | 470,908 |
Repurchase Agreements | 1,496,127 | 2,336,702 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 1,811,845 | 2,807,610 |
Mortgage- and asset-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,667,439 | 2,562,268 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,667,439 | 2,562,268 |
U.S. government and federal agency securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,353 | 19,205 |
Repurchase Agreements | 10,124,642 | 11,792,534 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 10,125,995 | 11,811,739 |
Municipal securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 582,699 | 444,861 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 582,699 | 444,861 |
Sovereign obligations | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 1,955,879 | 2,023,530 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 1,955,879 | 2,023,633 |
Loans and other receivables | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 517,703 | 454,941 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | $ 517,703 | $ 454,941 |
Collateralized Transactions -_2
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 2,531,504 | $ 2,843,911 |
Repurchase Agreements | 17,839,459 | 19,829,249 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 20,370,963 | 22,673,263 |
Overnight and Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,354,136 | 1,676,940 |
Repurchase Agreements | 8,122,962 | 10,780,474 |
Obligation To Return Securities Received As Collateral | 103 | |
Total | 9,477,098 | 12,457,517 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,733,400 | 4,058,228 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 2,733,400 | 4,058,228 |
31-90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 847,577 | 741,971 |
Repurchase Agreements | 4,342,923 | 3,211,464 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | 5,190,500 | 3,953,435 |
Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 329,791 | 425,000 |
Repurchase Agreements | 2,640,174 | 1,779,083 |
Obligation To Return Securities Received As Collateral | 0 | |
Total | $ 2,969,965 | $ 2,204,083 |
Collateralized Transactions - S
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Nov. 30, 2017 |
Securities borrowing arrangements | ||
Gross Amounts | $ 7,369,908 | $ 7,721,803 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 7,369,908 | 7,721,803 |
Additional Amounts Available for Setoff | (529,662) | (966,712) |
Available Collateral | (1,088,612) | (1,032,629) |
Net Amount | 5,751,634 | 5,722,462 |
Reverse repurchase agreements | ||
Gross Amounts | 11,634,035 | 14,858,297 |
Netting in Consolidated Statement of Financial Condition | (7,974,976) | (11,168,738) |
Net Amounts in Consolidated Statement of Financial Condition | 3,659,059 | 3,689,559 |
Additional Amounts Available for Setoff | (187,426) | (463,973) |
Available Collateral | (3,441,009) | (3,207,147) |
Net Amount | 30,624 | 18,439 |
Securities lending arrangements | ||
Gross Amounts | 2,531,504 | 2,843,911 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 2,531,504 | 2,843,911 |
Additional Amounts Available for Setoff | (529,662) | (966,712) |
Available Collateral | (1,977,558) | (1,795,408) |
Net Amount | 24,284 | 81,791 |
Repurchase agreements | ||
Gross Amounts | 17,839,459 | 19,829,249 |
Netting in Consolidated Statement of Financial Condition | (7,974,976) | (11,168,738) |
Net Amounts in Consolidated Statement of Financial Condition | 9,864,483 | 8,660,511 |
Additional Amounts Available for Setoff | (187,426) | (463,973) |
Available Collateral | (8,632,482) | (7,067,512) |
Net Amount | 1,044,575 | 1,129,026 |
Securities borrowing arrangements | 5,717,100 | 5,678,600 |
Securities borrowing arrangements, collateral | 5,544,100 | 5,516,700 |
Securities borrowing arrangements, repurchase agreements | 1,019,600 | 1,084,400 |
Securities borrowing arrangements, repurchase agreements, pledged securities collateral | $ 1,054,100 | 1,115,900 |
Obligation To Return Securities Received As Collateral [Member] | ||
Securities lending arrangements | ||
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 | |
Securities Received As Collateral [Member] | ||
Securities borrowing arrangements | ||
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 |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Transfers and Servicing [Abstract] | ||||
Transferred assets | $ 1,865.5 | $ 1,009.1 | $ 5,665.9 | $ 2,677.7 |
Proceeds on new securitizations | 1,866.2 | 1,017.2 | 5,668.6 | 2,703.3 |
Cash flows received on retained interests | $ 17.2 | $ 8.7 | $ 35.7 | $ 22.7 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Detail) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total RMBS securitization assets | $ 13,306 | $ 6,383.5 |
Total CMBS securitization assets | 2,101.5 | 2,075.7 |
Total Collateralized loan obligations | 3,442.3 | 3,957.8 |
Consumer and other loans | 648.9 | 247.6 |
U.S. government agency RMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 192.7 | 28.2 |
U.S. government agency CMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 276.1 | 81.4 |
CLOs | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 26.4 | 20.3 |
Consumer and other loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | $ 53 | $ 47.8 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Detail) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Securitization Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1,043.4 | $ 773.6 |
Liabilities | 1,043.4 | 772.1 |
Secured financing included in inventory and eliminated | 37.7 | 44.1 |
Securitization Vehicles | Cash | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 6.5 |
Securitization Vehicles | Financial instruments owned | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 37.6 |
Securitization Vehicles | Securities purchased under agreement to resell | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,043.4 | 729.3 |
Securitization Vehicles | Fees, interest and other receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0.2 |
Securitization Vehicles | Other secured financings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,042.5 | 766.2 |
Securitization Vehicles | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0.9 | 5.9 |
Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1.5 | 1.5 |
Liabilities | 0.2 | 0.2 |
Other | Cash | ||
Variable Interest Entity [Line Items] | ||
Assets | 1.1 | 1.1 |
Other | Financial instruments owned | ||
Variable Interest Entity [Line Items] | ||
Assets | 0.4 | 0.4 |
Other | Securities purchased under agreement to resell | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Other | Fees, interest and other receivables | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
Other | Other secured financings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
Other | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 0.2 | $ 0.2 |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Detail) - Nonconsolidated VIEs - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | $ 461.6 | $ 490 |
Carrying Amount, Liabilities | 0.7 | 8.9 |
Maximum Exposure to Loss | 1,488.7 | 1,874.4 |
VIE Assets | 9,884.2 | 10,546.5 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 53.9 | 163.5 |
Carrying Amount, Liabilities | 0.7 | 8.9 |
Maximum Exposure to Loss | 780.9 | 1,020.5 |
VIE Assets | 3,155.3 | 5,210.4 |
Consumer loan vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 323.5 | 254.8 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 602.4 | 759.8 |
VIE Assets | 3,441.8 | 2,322.7 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 34.1 | 23.7 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 52 | 45.4 |
VIE Assets | 107.2 | 75 |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 50.1 | 48 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 53.4 | 48.7 |
VIE Assets | $ 3,179.9 | $ 2,938.4 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Variable Interest Entity [Line Items] | ||
Maximum exposure | $ 216.9 | |
Related party private equity vehicles | JCP Entities | ||
Variable Interest Entity [Line Items] | ||
Equity investments | 139.3 | $ 148.1 |
Funded equity commitments | 121.3 | 126.3 |
Carrying amount of equity investment | 34.1 | 23.7 |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity investments | 65.3 | 61.8 |
Funded equity commitments | 62 | 61 |
Carrying amount of equity investment | 50.1 | 48 |
Agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 2,622.2 | 1,829.6 |
Non-agency mortgage and other asset-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 156.6 | $ 253.2 |
Investments - Narrative (Detail
Investments - Narrative (Details) | Aug. 31, 2018 |
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 | 9 Months Ended | |
Aug. 31, 2018 | Nov. 30, 2017 | |
Guarantee Obligations [Line Items] | ||
Payables—brokers, dealers and clearing organizations | $ 1,938,308 | $ 2,226,768 |
Financial instruments owned, at fair value | 15,195,619 | 14,193,352 |
Jefferies Finance, LLC | ||
Guarantee Obligations [Line Items] | ||
Equity commitment | 750,000 | |
Total committed equity capitalization of JFIN | 1,500,000 | |
Funded portion of equity commitment to subsidiary | 706,500 | |
Unfunded portion of equity commitment to subsidiary | $ 43,500 | |
Extension period | 1 year | |
Termination notice period | 60 days | |
Funded portion of loan commitment | $ 0 | |
Loan commitment | 250,000 | |
Payables—brokers, dealers and clearing organizations | 200 | |
Financial instruments owned, at fair value | 1,500 | |
Jefferies Finance, LLC | Corporate debt securities | ||
Guarantee Obligations [Line Items] | ||
Committed line of credit facility amount | 500,000 | |
Jefferies Finance, LLC | Other Assets | ||
Guarantee Obligations [Line Items] | ||
Receivables under service agreement | 36,300 | $ 20,500 |
Jefferies Finance, LLC | Accrued expense and other liabilities | ||
Guarantee Obligations [Line Items] | ||
Payables under service agreement | $ 14,100 |
Investments - Summary of Select
Investments - Summary of Selected Financial Information for Jefferies Finance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
CLO placement fee revenues | $ 155,539 | $ 139,082 | $ 461,545 | $ 437,547 | |
Jefferies Finance, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest income | 0 | 200 | 1,200 | 2,500 | |
Unfunded commitment fees | 300 | 300 | 800 | 800 | |
Our total equity balance | 706,500 | 706,500 | $ 636,200 | ||
Net earnings | 38,000 | 40,800 | 140,700 | 133,500 | |
Origination and syndication fee revenues | 71,100 | 104,200 | 282,100 | 243,500 | |
Origination fee expenses | 12,100 | 0 | 45,500 | 2,500 | |
CLO placement fee revenues | 400 | 800 | 3,100 | 4,700 | |
Derivative losses | (300) | (200) | (900) | (600) | |
Underwriting fees | 0 | 0 | 300 | 0 | |
Service fees | $ 13,300 | $ 7,900 | $ 48,300 | $ 37,400 |
Investments - JCP Fund V - Narr
Investments - JCP Fund V - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2018 | Nov. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Financial instruments owned, at fair value | $ 15,195,619 | $ 14,193,352 |
JCP Fund V | ||
Schedule of Equity Method Investments [Line Items] | ||
Financial instruments owned, at fair value | 30,000 | 19,600 |
Unfunded portion of equity commitment to subsidiary | $ 9,700 | $ 10,100 |
Percent of financial information presented | 100.00% | |
Ownership percentage | 35.10% | 35.20% |
Maximum | JCP Fund V | ||
Schedule of Equity Method Investments [Line Items] | ||
Total committed equity capitalization | $ 85,000 | $ 85,000 |
Investments - Summary of Sele_2
Investments - Summary of Selected Financial Information for JCP Fund V (Details) - JCP Fund V - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Aug. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2018 | Aug. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Net gains (losses) from our investments in JCP Fund V | $ 300 | $ (1,200) | $ 10,100 | $ (9,100) | ||||||
Net increase (decrease) in net assets resulting from operations | $ 1,663 | $ 8,463 | $ 19,712 | $ (552) | $ (19,552) | $ (2,294) |
Investments - Epic Gas (Details
Investments - Epic Gas (Details) - Epic Gas - USD ($) $ in Millions | 3 Months Ended | |||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2018 | Nov. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 21.10% | 21.10% | ||||||
Our investment in Epic Gas | $ 21.2 | $ 22.2 | ||||||
Net losses | $ (2.3) | $ (2.7) | $ (16.4) | $ (5.4) | $ (3.4) | $ (15.9) |
Investments - Jefferies LoanCor
Investments - Jefferies LoanCore (Detail) - Jefferies LoanCore, LLC - USD ($) $ in Millions | Oct. 31, 2017 | Aug. 31, 2017 | Aug. 31, 2017 |
Guarantee Obligations [Line Items] | |||
Ownership percentage | 48.50% | ||
Proceeds from sale of Jefferies LoanCore | $ 173.1 | ||
Period entitled to additional cash consideration | 5 years | ||
Net earnings | $ 3.8 | $ 12.4 |
Investments - KCG (Details)
Investments - KCG (Details) - KCG - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net earnings | $ 3.2 | $ 196.2 | ||
Net gain on change in fair value of investment | $ (2.2) | $ (93.4) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Detail) $ in Thousands | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 1,647,089 |
Translation adjustments | (4,031) |
Goodwill, Ending Balance | 1,643,058 |
Capital Markets | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1,644,089 |
Goodwill, Ending Balance | 1,640,058 |
Asset Management | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 3,000 |
Goodwill, Ending Balance | $ 3,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Aug. 31, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table] [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 9 | ||
Goodwill | $ 1,643,058 | 1,643,058 | $ 1,647,089 |
Total gross costs - intangible assets | 262,864 | 262,864 | 264,333 |
Accumulated amortization - finite lived intangible assets | (77,134) | (77,134) | (68,540) |
Total net carrying amount - intangible assets | 185,721 | 185,721 | 195,793 |
Exchange and clearing organization membership interests and registrations | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table] [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 9 | 9 | |
Gross costs - indefinite lived intangible assets | 8,484 | 8,484 | 8,551 |
Net carrying amount - indefinite lived intangible assets | 8,475 | 8,475 | 8,551 |
Customer relationships | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table] [Line Items] | |||
Gross costs - finite lived intangible assets | 125,763 | 125,763 | 126,412 |
Accumulated amortization - finite lived intangible assets | (56,923) | (56,923) | (50,983) |
Net carrying amount - finite lived intangible assets | 68,840 | $ 68,840 | $ 75,429 |
Weighted average remaining lives (years) | 10 years 8 months | 11 years 3 months | |
Trade name | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Table] [Line Items] | |||
Gross costs - finite lived intangible assets | 128,617 | $ 128,617 | $ 129,370 |
Accumulated amortization - finite lived intangible assets | (20,211) | (20,211) | (17,557) |
Net carrying amount - finite lived intangible assets | $ 108,406 | $ 108,406 | $ 111,813 |
Weighted average remaining lives (years) | 29 years 6 months | 30 years 3 months |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Aggregate amortization expense | $ 3,000 | $ 3,000 | $ 9,000 | $ 9,000 |
Remainder of fiscal 2018 | 3,049 | 3,049 | ||
Year ending November 30, 2019 | 12,198 | 12,198 | ||
Year ending November 30, 2020 | 12,198 | 12,198 | ||
Year ending November 30, 2021 | 12,198 | 12,198 | ||
Year ending November 30, 2022 | $ 12,198 | $ 12,198 |
Short-Term Borrowings (Detail)
Short-Term Borrowings (Detail) € in Millions | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2018EUR (€) | Aug. 31, 2018USD ($) | Nov. 30, 2017USD ($) | |
Short-term Debt [Line Items] | |||||||
Short-term borrowings | $ 382,006,000 | $ 436,215,000 | |||||
Interest rate on short-term borrowings outstanding | 3.39% | 3.39% | |||||
Average daily short-term borrowings | $ 422,900,000 | $ 436,700,000 | $ 498,600,000 | $ 474,200,000 | |||
Floating rate puttable notes | |||||||
Short-term Debt [Line Items] | |||||||
Short-term borrowings | $ 57,985,000 | 108,240,000 | |||||
Floating rate puttable notes matured April 8, 2018 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | € | € 30 | ||||||
Floating rate puttable notes matured May 3, 2018 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | € | € 11 | ||||||
Equity-linked notes | |||||||
Short-term Debt [Line Items] | |||||||
Short-term borrowings | 0 | 23,324,000 | |||||
Equity-inked Notes Matured On December 7, 2017 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | 23,300,000 | ||||||
Equity-linked Notes Matured On July 12, 2018 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | 70,500,000 | ||||||
Equity-lined Notes Matured On July 18, 2017 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | 30,600,000 | 30,600,000 | |||||
Equity-linked Notes Matured On September 20, 2017 | |||||||
Short-term Debt [Line Items] | |||||||
Debt principal amount | $ 4,200,000 | $ 4,200,000 | |||||
Bank loans | |||||||
Short-term Debt [Line Items] | |||||||
Short-term borrowings | 324,021,000 | $ 304,651,000 | |||||
Line of credit | Intraday Credit Facility | |||||||
Short-term Debt [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 150,000,000 | ||||||
Line of credit | Intraday Credit Facility | Federal funds effective rate | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable rate | 0.50% |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums (Detail) - USD ($) $ in Thousands | Aug. 31, 2018 | Apr. 30, 2018 | Nov. 30, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,574,866 | $ 6,416,844 | |
3.875% Convertible Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.875% | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,416,388 | 6,416,844 | |
Unsecured Debt | 5.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 668,300 | 682,338 |
Debt instrument interest rate | 5.125% | ||
Effective Interest Rate | 0.00% | ||
Unsecured Debt | 8.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 707,072 | 728,872 | |
Debt instrument interest rate | 8.50% | ||
Effective Interest Rate | 3.99% | ||
Unsecured Debt | 2.375% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 578,896 | 593,334 | |
Debt instrument interest rate | 2.375% | ||
Effective Interest Rate | 2.42% | ||
Unsecured Debt | 6.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 795,967 | 808,157 | |
Debt instrument interest rate | 6.875% | ||
Effective Interest Rate | 4.40% | ||
Unsecured Debt | 2.250% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,332 | 4,389 | |
Debt instrument interest rate | 2.25% | ||
Effective Interest Rate | 4.08% | ||
Unsecured Debt | 5.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 613,634 | 615,703 | |
Debt instrument interest rate | 5.125% | ||
Effective Interest Rate | 4.55% | ||
Unsecured Debt | 4.850% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 712,667 | 736,357 | |
Debt instrument interest rate | 4.85% | ||
Effective Interest Rate | 4.93% | ||
Unsecured Debt | 6.450% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 374,211 | 375,794 | |
Debt instrument interest rate | 6.45% | ||
Effective Interest Rate | 5.46% | ||
Unsecured Debt | 3.875% Convertible Senior Debentures | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 324,779 | |
Debt instrument interest rate | 3.875% | ||
Effective Interest Rate | 0.00% | ||
Unsecured Debt | 4.150% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 987,576 | 0 | |
Debt instrument interest rate | 4.15% | ||
Effective Interest Rate | 4.26% | ||
Unsecured Debt | 6.250% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 511,758 | 512,040 | |
Debt instrument interest rate | 6.25% | ||
Effective Interest Rate | 6.03% | ||
Unsecured Debt | 6.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 420,718 | 420,990 | |
Debt instrument interest rate | 6.50% | ||
Effective Interest Rate | 6.09% | ||
Unsecured Debt | Structured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 709,557 | 614,091 | |
Secured Debt | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 158,478 | $ 0 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 22, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | May 16, 2018 | Apr. 30, 2018 | Nov. 30, 2017 | Jan. 17, 2017 |
Debt Instrument [Line Items] | |||||||
Long-term debt at fair value | $ 709,557,000 | $ 606,956,000 | |||||
Long-term debt | 6,574,866,000 | 6,416,844,000 | |||||
Redemption price as percentage of principal amount redeemed | 100.00% | ||||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 6,416,388,000 | 6,416,844,000 | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 641,000,000 | ||||||
4.850% Senior Notes | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 750,000,000 | ||||||
Long-term debt | $ 712,667,000 | 736,357,000 | |||||
Debt instrument interest rate | 4.85% | ||||||
3.875% Convertible Senior Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 345,000,000 | ||||||
Debt instrument interest rate | 3.875% | ||||||
3.875% Convertible Senior Debentures | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | 324,779,000 | |||||
Debt instrument interest rate | 3.875% | ||||||
Structured notes | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 162,600,000 | 287,500,000 | |||||
Long-term debt at fair value | 709,600,000 | 607,000,000 | |||||
Long-term debt | 709,557,000 | 614,091,000 | |||||
4.150% Senior Notes | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 987,576,000 | 0 | |||||
Debt instrument interest rate | 4.15% | ||||||
4.150% Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 1,000,000,000 | ||||||
Debt instrument interest rate | 4.15% | ||||||
5.125% Senior Notes | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 668,300,000 | 682,338,000 | ||||
Debt instrument interest rate | 5.125% | ||||||
Interest rate swaps | 4.850% Senior Notes | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | $ 24,100,000 | $ (9,600,000) | |||||
Revolving Credit Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt principal amount | $ 160,000,000 | ||||||
Long-term debt | $ 158,478,000 | $ 0 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Components of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 633,210 | $ 1,903,938 | ||
Revenues | 1,088,285 | $ 1,048,331 | 3,331,689 | $ 3,097,083 |
Commissions and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 155,539 | 461,545 | ||
Investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 465,326 | 1,405,614 | ||
Asset management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,184 | 16,130 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7,161 | 20,649 | ||
Principal transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 143,308 | 498,583 | ||
Interest | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 305,347 | 870,490 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 6,420 | $ 58,678 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Aug. 31, 2018 | Aug. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 633,210 | $ 1,903,938 |
Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 628,026 | 1,887,808 |
Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,184 | 16,130 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 551,403 | 1,644,633 |
Americas | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 546,219 | 1,628,503 |
Americas | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,184 | 16,130 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 62,914 | 203,103 |
Europe | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 62,914 | 203,103 |
Europe | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 18,893 | 56,202 |
Asia | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 18,893 | 56,202 |
Asia | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Equities | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 159,693 | 471,683 |
Equities | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 159,693 | 471,683 |
Equities | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Fixed Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,007 | 10,511 |
Fixed Income | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 3,007 | 10,511 |
Fixed Income | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Investment banking - Capital markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 277,735 | 809,884 |
Investment banking - Capital markets | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 277,735 | 809,884 |
Investment banking - Capital markets | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Investment banking - Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 187,591 | 595,730 |
Investment banking - Advisory | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 187,591 | 595,730 |
Investment banking - Advisory | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Asset management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5,184 | 16,130 |
Asset management | Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
Asset management | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 5,184 | $ 16,130 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2018 | Dec. 01, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue related to performance obligations satisfied | $ 4.4 | $ 18.3 | |
Revenue associated with distribution services, a portion of which related to prior periods | 4.6 | 13.5 | |
Receivables related to revenue from contracts with customers | 191.4 | 191.4 | $ 246 |
Deferred revenue | 12 | 12 | $ 8.8 |
Deferred revenue, revenue recognized | 2.2 | 4 | |
Capitalized contract cost | 4.8 | 4.8 | |
Expenses related to capitalized costs to fulfill a contract | $ 1.5 | $ 1.5 |
Compensation Plans - Compensati
Compensation Plans - Compensation Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Compensation Plans [Line Items] | ||||
Profit sharing plan | $ 1.1 | $ 1.2 | $ 5.6 | $ 5.2 |
Total compensation cost | 68.2 | 72.9 | 210.3 | 211.7 |
Restricted cash awards | ||||
Compensation Plans [Line Items] | ||||
Restricted cash awards | 60 | 65.2 | 183.6 | 188.5 |
Restricted stock and RSUs | ||||
Compensation Plans [Line Items] | ||||
Restricted stock and RSUs | $ 7.1 | $ 6.5 | $ 21.1 | $ 18 |
Compensation Plans - Remaining
Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Compensation Plans [Line Items] | |
Remaining Unamortized Amounts | $ 518.6 |
Non-vested share-based awards | |
Compensation Plans [Line Items] | |
Remaining Unamortized Amounts | $ 71.7 |
Weighted Average Vesting Period (in Years) | 3 years |
Restricted cash awards | |
Compensation Plans [Line Items] | |
Remaining Unamortized Amounts | $ 446.9 |
Weighted Average Vesting Period (in Years) | 2 years |
Compensation Plans - Additional
Compensation Plans - Additional Information (Detail) | 9 Months Ended |
Aug. 31, 2018USD ($)Hour | |
Compensation Related Costs [Abstract] | |
Vesting period | 4 years |
Number of years in which restricted stock awards amortized as compensation expense | 4 years |
Minimum work hours required for part-time employees to purchase ESPP | Hour | 20 |
Annual employee contributions | $ | $ 21,250 |
Employee service share based compensation plan stock price | 95.00% |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized tax benefits | $ 131.5 | $ 131.5 | $ 129.5 | ||
Unrecognized tax benefits that would impact effective tax rate in future | 104.1 | 104.1 | 86.1 | ||
Accrued interest on unrecognized tax benefits | 52.5 | 52.5 | $ 48.3 | ||
Provisional estimate of impact of the Tax Act | $ 163.7 | 160.2 | |||
Decrease of provisional estimate of impact of the Tax Act | $ 0.3 | $ 3.2 | |||
Provisional estimate of impact of the Tax Act related to revaluation of deferred tax asset | 108.5 | ||||
Provisional estimate of impact of the Tax Act related to deemed repatriation of foreign earnings | $ 51.7 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments (Detail) $ in Millions | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Other Commitments [Line Items] | |
2,018 | $ 5,688.2 |
2,019 | 442.4 |
2020 and 2021 | 115.1 |
2022 and 2023 | 31.9 |
2024 and Later | 7.8 |
Maximum Payout | 6,285.4 |
Equity commitments | |
Other Commitments [Line Items] | |
2,018 | 0 |
2,019 | 43.7 |
2020 and 2021 | 18.4 |
2022 and 2023 | 0 |
2024 and Later | 2.9 |
Maximum Payout | 65 |
Loan commitments | |
Other Commitments [Line Items] | |
2,018 | 0 |
2,019 | 250 |
2020 and 2021 | 54.4 |
2022 and 2023 | 31.9 |
2024 and Later | 0 |
Maximum Payout | 336.3 |
Underwriting commitments | |
Other Commitments [Line Items] | |
2,018 | 411 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 411 |
Forward starting reverse repos | |
Other Commitments [Line Items] | |
2,018 | 3,159.4 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 3,159.4 |
Forward starting repos | |
Other Commitments [Line Items] | |
2,018 | 2,057.8 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 2,057.8 |
Other unfunded commitments | |
Other Commitments [Line Items] | |
2,018 | 60 |
2,019 | 148.7 |
2020 and 2021 | 42.3 |
2022 and 2023 | 0 |
2024 and Later | 4.9 |
Maximum Payout | 255.9 |
Forward starting securities purchased under agreements to resell settled within three business days | |
Other Commitments [Line Items] | |
Maximum Payout | $ 3,141.9 |
Guarantor obligation settled period (in days) | 3 days |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Detail) $ in Millions | 9 Months Ended |
Aug. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | $ 86.3 |
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee | 216.9 |
Standby Letters of Credit | |
Loss Contingencies [Line Items] | |
Letters of credit commitments | 51.8 |
Jefferies Capital Partners LLC | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | 18.1 |
Other Investments | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | $ 3.3 |
Maximum | Standby Letters of Credit | |
Loss Contingencies [Line Items] | |
Standby letters of credit expiration period | 1 year |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Guarantees (Detail) $ in Millions | Aug. 31, 2018USD ($) |
Derivative contracts—non-credit related | |
Guarantee Obligations [Line Items] | |
2,018 | $ 10,898.5 |
2,019 | 5,978.6 |
2020 and 2021 | 2,948.5 |
2022 and 2023 | 1,015 |
2024 and Later | 454.6 |
Notional/ Maximum Payout | 21,295.2 |
Written derivative contracts—credit related | |
Guarantee Obligations [Line Items] | |
2,018 | 0 |
2,019 | 0 |
2020 and 2021 | 36.4 |
2022 and 2023 | 33.8 |
2024 and Later | 0 |
Notional/ Maximum Payout | 70.2 |
Derivatives | |
Guarantee Obligations [Line Items] | |
2,018 | 10,898.5 |
2,019 | 5,978.6 |
2020 and 2021 | 2,984.9 |
2022 and 2023 | 1,048.8 |
2024 and Later | 454.6 |
Notional/ Maximum Payout | $ 21,365.4 |
Net Capital Requirements (Detai
Net Capital Requirements (Detail) - Jefferies LLC $ in Thousands | Aug. 31, 2018USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 1,917,634 |
Excess Net Capital | $ 1,806,197 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Aug. 31, 2018segment | |
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 | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | $ 777,615 | $ 800,692 | $ 2,421,418 | $ 2,375,499 | |
Non-interest expenses | 690,514 | 678,428 | 2,089,714 | 2,012,855 | |
Earnings before income taxes | 87,101 | 122,264 | 331,704 | 362,644 | |
Segment assets | 40,572,473 | 40,572,473 | $ 39,705,691 | ||
Capital Markets | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 771,100 | 788,400 | 2,388,800 | 2,349,600 | |
Non-interest expenses | 678,800 | 663,400 | 2,050,400 | 1,971,900 | |
Earnings before income taxes | 92,300 | 125,000 | 338,400 | 377,700 | |
Segment assets | 39,532,200 | 39,532,200 | 38,620,400 | ||
Asset Management | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 6,500 | 12,300 | 32,600 | 25,900 | |
Non-interest expenses | 11,700 | 15,000 | 39,300 | 41,000 | |
Earnings before income taxes | (5,200) | $ (2,700) | (6,700) | $ (15,100) | |
Segment assets | $ 1,040,300 | $ 1,040,300 | $ 1,085,300 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenues: | ||||
Net revenues | $ 777,615 | $ 800,692 | $ 2,421,418 | $ 2,375,499 |
Americas | ||||
Revenues: | ||||
Net revenues | 639,700 | 674,500 | 2,042,400 | 1,921,700 |
Europe | ||||
Revenues: | ||||
Net revenues | 115,900 | 99,100 | 313,400 | 378,400 |
Asia | ||||
Revenues: | ||||
Net revenues | $ 22,000 | $ 27,100 | $ 65,600 | $ 75,400 |
Related Party Transactions - Je
Related Party Transactions - Jefferies Capital Partners Related Funds (Detail) - Equity Method Investee - Equity Investments in Jefferies Capital Partners Related Funds - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Nov. 30, 2017 | |
Related Party Transaction [Line Items] | |||||
Equity investments loans in related funds | $ 34,100 | $ 34,100 | $ 23,700 | ||
Other revenues and investment income (loss) | 172 | $ (373) | 10,175 | $ (9,793) | |
Service charges | $ 92 | $ 200 | $ 212 | $ 523 |
Related Party Transactions - Be
Related Party Transactions - Berkadia Commercial Mortgage, LLC (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Berkadia Commercial Mortgage, LLC | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Purchase commitment amount | $ 748.8 | $ 864.1 |
Related Party Transactions - HR
Related Party Transactions - HRG Group Inc. (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Aug. 31, 2018 | Aug. 31, 2018 | |
HRG Group Inc. | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Investment banking revenue from related parties | $ 3 | $ 3 |
Related Party Transactions - Of
Related Party Transactions - Officers, Directors and Employees (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Nov. 30, 2017 |
Related Party Transaction [Line Items] | ||
Loans outstanding to certain employees | $ 41.2 | $ 45.6 |
Director | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Investment in related party | $ 4.8 | $ 4.9 |
Related Party Transactions - _2
Related Party Transactions - Jefferies (Detail) | Sep. 25, 2018USD ($) | Jun. 15, 2018USD ($) | Apr. 03, 2018USD ($) | Jan. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Feb. 28, 2017USD ($) | Aug. 31, 2018USD ($)WarrantPublic_Offering_Unitshares | Aug. 31, 2017USD ($) | Aug. 31, 2018USD ($)WarrantPublic_Offering_Unitshares | Aug. 31, 2017USD ($) | Nov. 30, 2017USD ($)WarrantPublic_Offering_Unitshares |
Related Party Transaction [Line Items] | ||||||||||||
Payments of dividends | $ 218,593,000 | $ 0 | ||||||||||
Payables-brokers, dealers and clearing organizations | $ 1,938,308,000 | 1,938,308,000 | $ 2,226,768,000 | |||||||||
Financial instruments sold, not yet purchased | 8,128,200,000 | 8,128,200,000 | 8,171,929,000 | |||||||||
Financial instruments owned, at fair value | 15,195,619,000 | 15,195,619,000 | 14,193,352,000 | |||||||||
Jefferies | Accrued expenses and other liabilities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Tax payable | 44,000,000 | 44,000,000 | 91,500,000 | |||||||||
Payment made to related party related to tax sharing agreement | $ 36,000,000 | $ 115,000,000 | ||||||||||
Jefferies | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Charges to Jefferies for services provided | 15,800,000 | $ 13,000,000 | 46,100,000 | 34,800,000 | ||||||||
Charges from Jefferies for services received | 2,200,000 | 4,900,000 | 6,900,000 | 13,800,000 | ||||||||
Receivable from Jefferies | 3,200,000 | 3,200,000 | 2,500,000 | |||||||||
Payable to Jefferies | $ 200,000,000 | 600,000 | $ 600,000 | 3,100,000 | ||||||||
Quarterly dividend as percentage of net earnings | 50.00% | |||||||||||
Payments of dividends | 18,600,000 | |||||||||||
Dividends payable | 30,100,000 | $ 30,100,000 | ||||||||||
Payments to acquire investments | $ 26,700,000 | |||||||||||
Gain (loss) on sale of securities | 0 | |||||||||||
Proceeds from sale of securities | $ 7,100,000 | $ 21,900,000 | $ 25,600,000 | |||||||||
Jefferies | Affiliated Entity | Investment banking | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Charges to Jefferies for services provided | 5,600,000 | 0 | 5,600,000 | 0 | ||||||||
Jefferies | Affiliated Entity | Commissions and other fees | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Charges to Jefferies for services provided | 100,000 | 0 | 500,000 | 0 | ||||||||
Jefferies | Affiliated Entity | Principal transactions | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Charges to Jefferies for services provided | 0 | 0 | 100,000 | 0 | ||||||||
Jefferies | Affiliated Entity | Other revenues | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Charges to Jefferies for services provided | 300,000 | 0 | 700,000 | 0 | ||||||||
Affiliate of Jefferies | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payables-brokers, dealers and clearing organizations | 12,300,000 | 12,300,000 | 17,000,000 | |||||||||
Hedge Fund Managed By Jefferies | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment in related party | 218,100,000 | 218,100,000 | $ 136,100,000 | |||||||||
Net gain on investment in hedge fund | $ 500,000 | $ 1,900,000 | $ 5,000,000 | $ 5,100,000 | ||||||||
Landcadia Holdings Inc. | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of public offering units owned | Public_Offering_Unit | 638,561 | 638,561 | 638,561 | |||||||||
Number of common stock per public offering unit (in shares) | shares | 1 | 1 | 1 | |||||||||
Number of public warrant per public offering unit | Warrant | 1 | 1 | 1 | |||||||||
Financial instruments owned, at fair value | $ 7,100,000 | $ 7,100,000 | $ 6,800,000 | |||||||||
Corporate debt securities | Jefferies | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 1,500,000 | 1,500,000 | 200,000 | |||||||||
Director | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment in related party | 4,800,000 | 4,800,000 | 4,900,000 | |||||||||
Director | Hedge Fund Managed By Jefferies | Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment in related party | $ 2,800,000 | $ 2,800,000 | 3,600,000 | |||||||||
Subsequent Event | Jefferies | Accrued expenses and other liabilities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payment made to related party related to tax sharing agreement | $ 42,000,000 | |||||||||||
Subsidiary Of Jefferies | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment in related party | $ 27,300,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Oct. 01, 2018 | Nov. 30, 2018 |
Scenario, Forecast | ||
Subsequent Event [Line Items] | ||
Additional contribution to Investment in membership interest | $ 208 | |
Affiliated Entity | Jefferies | ||
Subsequent Event [Line Items] | ||
Proceeds from contributions from parent | $ 596 | |
Payment made in related party transaction | 78.3 | |
Related party transaction, related deferred tax liabilities transferred | $ 45 | |
Berkadia Commercial Mortgage, LLC | ||
Subsequent Event [Line Items] | ||
Ownership percentage | 50.00% |