Cover
Cover | 3 Months Ended |
Feb. 29, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 29, 2020 |
Document Transition Report | false |
Entity File Number | 1-14947 |
Entity Registrant Name | JEFFERIES GROUP LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4719745 |
Entity Address, Address Line One | 520 Madison Avenue, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10022 |
City Area Code | 212 |
Local Phone Number | 284-2550 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001084580 |
Current Fiscal Year End Date | --11-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
4.850% Senior Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 4.850% Senior Notes Due 2027 |
Trading Symbol | JEF/27A |
Security Exchange Name | NYSE |
5.125% Senior Notes Due 2023 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 5.125% Senior Notes Due 2023 |
Trading Symbol | JEF/23 |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
ASSETS | ||
Cash and cash equivalents ($1,168 and $1,154 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | $ 4,900,792 | $ 5,567,903 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 742,134 | 796,797 |
Financial instruments owned, at fair value (including securities pledged of $13,446,620 and $12,058,522 at February 29, 2020 and November 30, 2019, respectively; and $3,938 and $339 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 17,897,386 | 16,363,374 |
Loans to and investments in related parties | 940,442 | 944,509 |
Securities borrowed | 6,708,788 | 7,624,642 |
Securities purchased under agreements to resell (includes $0 and $25,000 at fair value at February 29, 2020 and November 30, 2019, respectively; and $115,444 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 4,907,031 | 4,299,598 |
Securities received as collateral | 15,004 | 9,500 |
Receivables: | ||
Brokers, dealers and clearing organizations ($16,201 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 4,370,284 | 3,007,949 |
Customers | 1,538,922 | 1,490,876 |
Fees, interest and other | 340,917 | 323,067 |
Premises and equipment | 870,169 | |
Premises and equipment | 350,433 | |
Goodwill | 1,642,914 | 1,643,599 |
Other assets | 1,327,814 | 1,093,868 |
Total assets | 46,202,597 | 43,516,115 |
LIABILITIES AND EQUITY | ||
Short-term borrowings (includes $20,164 and $20,981 at fair value at February 29, 2020 and November 30, 2019, respectively) | 623,156 | 548,490 |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 9,877,182 | 10,532,460 |
Collateralized financings: | ||
Securities loaned | 1,891,912 | 1,525,140 |
Securities sold under agreements to repurchase | 8,406,022 | 7,504,670 |
Other secured financings (includes $2,165,550 and $2,465,800 at February 29, 2020 and November 30, 2018, respectively, related to consolidated VIEs) | 2,166,952 | 2,467,819 |
Obligation to return securities received as collateral | 15,004 | 9,500 |
Payables: | ||
Brokers, dealers and clearing organizations | 4,186,467 | 2,555,178 |
Customers | 3,757,447 | 3,808,609 |
Lease liabilities | 579,948 | |
Accrued expenses and other liabilities (includes $1,464 and $1,546 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 1,202,446 | 1,431,144 |
Long-term debt (includes $1,354,714 and $1,215,285 at fair value at February 29, 2020 and November 30, 2019, respectively) | 7,163,612 | 7,003,358 |
Total liabilities | 39,870,148 | 37,386,368 |
EQUITY | ||
Member’s paid-in capital | 6,503,066 | 6,329,677 |
Accumulated other comprehensive income (loss): | ||
Currency translation adjustments | (188,421) | (179,378) |
Changes in instrument specific credit risk | 4,107 | (18,889) |
Additional minimum pension liability | (6,032) | (6,079) |
Available-for-sale securities | 378 | 141 |
Total accumulated other comprehensive loss | (189,968) | (204,205) |
Total Jefferies Group LLC member’s equity | 6,313,098 | 6,125,472 |
Noncontrolling interests | 19,351 | 4,275 |
Total equity | 6,332,449 | 6,129,747 |
Total liabilities and equity | $ 46,202,597 | $ 43,516,115 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Cash and cash equivalents | $ 4,900,792 | $ 5,567,903 |
Pledged financial instruments | 13,446,620 | 12,058,522 |
Financial instruments owned, at fair value | 17,897,386 | 16,363,374 |
Securities purchased under agreements to resell, fair value | 0 | 25,000 |
Securities Purchased under Agreements to Resell | 4,907,031 | 4,299,598 |
Brokers, dealers and clearing organizations ($16,201 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 4,370,284 | 3,007,949 |
Short-term borrowings | 20,164 | 20,981 |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 9,877,182 | 10,532,460 |
Other secured financings | 2,166,952 | 2,467,819 |
Accrued expenses and other liabilities | 1,202,446 | 1,431,144 |
Long-term debt | 1,354,714 | 1,215,285 |
VIEs | ||
Cash and cash equivalents | 1,168 | 1,154 |
Financial instruments owned, at fair value | 3,938 | 339 |
Securities Purchased under Agreements to Resell | 0 | 0 |
Brokers, dealers and clearing organizations ($16,201 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 16,201 | 0 |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 4,240 | 0 |
Other secured financings | 2,165,550 | 2,465,800 |
Accrued expenses and other liabilities | $ 1,464 | $ 1,546 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues: | ||
Revenue from contracts with customers | $ 775,941 | $ 447,407 |
Principal transactions | 371,902 | 234,298 |
Asset management and revenues | 11,720 | 7,031 |
Interest | 294,668 | 360,975 |
Other | 29,729 | 11,830 |
Total revenues | 1,479,556 | 1,054,872 |
Interest expense | 308,860 | 369,154 |
Net revenues | 1,170,696 | 685,718 |
Non-interest expenses: | ||
Compensation and benefits | 635,230 | 371,685 |
Non-compensation expenses: | ||
Floor brokerage and clearing fees | 60,580 | 51,977 |
Technology and communications | 89,184 | 79,170 |
Occupancy and equipment rental | 27,503 | 28,539 |
Business development | 29,957 | 30,555 |
Professional services | 44,665 | 36,927 |
Underwriting costs | 17,529 | 8,575 |
Other | 30,670 | 15,705 |
Total non-compensation expenses | 300,088 | 251,448 |
Total non-interest expenses | 935,318 | 623,133 |
Earnings before income taxes | 235,378 | 62,585 |
Income tax expense | 64,013 | 16,220 |
Net earnings | 171,365 | 46,365 |
Net earnings (loss) attributable to noncontrolling interests | (2,024) | 384 |
Net earnings attributable to Jefferies Group LLC | 173,389 | 45,981 |
Commissions and other fees | ||
Revenues: | ||
Revenue from contracts with customers | 179,535 | 155,142 |
Investment banking | ||
Revenues: | ||
Revenue from contracts with customers | $ 592,002 | $ 285,596 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 171,365 | $ 46,365 | |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments and other | [1] | (8,996) | 30,060 |
Changes in instrument specific credit risk | [2] | 22,996 | 17,829 |
Cash flow hedges | [3] | 0 | (251) |
Unrealized gain on available-for-sale securities | [4] | 237 | 146 |
Total other comprehensive income, net of tax | [5] | 14,237 | 47,784 |
Comprehensive income | 185,602 | 94,149 | |
Net earnings (loss) attributable to noncontrolling interests | (2,024) | 384 | |
Comprehensive income attributable to Jefferies Group LLC | $ 187,626 | $ 93,765 | |
[1] | The amounts include income tax benefits (expenses) of approximately $3.1 million and $(7.4) million during the three months ended February 29, 2020 and February 28, 2019 , respectively. | ||
[2] | The amounts include income tax expenses of approximately $7.9 million and $6.0 million during the three months ended February 29, 2020 and February 28, 2019 , respectively. The amount during the three months ended February 29, 2020 includes a loss of $0.3 million , net of an income tax benefit of $0.1 million , related to changes in instrument specific risk, which was reclassified to Principal transactions revenues in our Consolidated Statements of Earnings. The amount during the three months ended February 28, 2019 includes a gain of $0.3 million , net of income tax expenses of $0.1 million , related to changes in instrument specific risk, which was reclassified to Principal transactions revenues in our Consolidated Statements of Earnings. | ||
[3] | The amount during the three months ended February 28, 2019 includes an income tax benefit of $0.1 million . | ||
[4] | The amounts include income tax expenses of $0.1 million | ||
[5] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Currency translation adjustments and other, tax benefits (expenses) | $ 3.1 | $ (7.4) |
Changes in instrument specific credit risk, tax expense | 7.9 | 6 |
Changes in instrument specific credit risk reclassified to Principal transactions revenues | (0.3) | 0.3 |
Changes in instrument specific credit risk reclassified to Principal transactions revenues, tax benefits (expenses) | 0.1 | (0.1) |
Cash flow hedges, tax benefit | 0.1 | |
Unrealized gain on available-for-sale securities, tax expense | $ 0.1 | $ 0.1 |
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), net of tax | Total Jefferies Group LLC member’s equity | Noncontrolling interests | |
Balance, beginning of period at Nov. 30, 2018 | $ 6,376,662 | $ (196,169) | $ 1,911 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | $ 46,365 | 45,981 | 384 | |||
Distributions to Jefferies Financial Group Inc. | (122,990) | |||||
Currency translation adjustments and other | 30,060 | [1] | 30,060 | |||
Changes in instrument specific credit risk | 17,829 | [2] | 17,829 | |||
Cash flow hedges | (251) | [3] | (251) | |||
Unrealized gain on available-for-sale securities | 146 | [4] | 146 | |||
Contributions | 4,600 | |||||
Distributions | (981) | |||||
Balance, end of period at Feb. 28, 2019 | 6,157,182 | 6,299,653 | (148,385) | $ 6,151,268 | 5,914 | |
Balance, beginning of period at Nov. 30, 2019 | 6,329,677 | (204,205) | 4,275 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 171,365 | 173,389 | (2,024) | |||
Distributions to Jefferies Financial Group Inc. | 0 | |||||
Currency translation adjustments and other | (8,996) | [1] | (8,996) | |||
Changes in instrument specific credit risk | 22,996 | [2] | 22,996 | |||
Cash flow hedges | 0 | [3] | 0 | |||
Unrealized gain on available-for-sale securities | 237 | [4] | 237 | |||
Contributions | 17,100 | |||||
Distributions | 0 | |||||
Balance, end of period at Feb. 29, 2020 | $ 6,332,449 | $ 6,503,066 | $ (189,968) | $ 6,313,098 | $ 19,351 | |
[1] | The amounts include income tax benefits (expenses) of approximately $3.1 million and $(7.4) million during the three months ended February 29, 2020 and February 28, 2019 , respectively. | |||||
[2] | The amounts include income tax expenses of approximately $7.9 million and $6.0 million during the three months ended February 29, 2020 and February 28, 2019 , respectively. The amount during the three months ended February 29, 2020 includes a loss of $0.3 million , net of an income tax benefit of $0.1 million , related to changes in instrument specific risk, which was reclassified to Principal transactions revenues in our Consolidated Statements of Earnings. The amount during the three months ended February 28, 2019 includes a gain of $0.3 million , net of income tax expenses of $0.1 million , related to changes in instrument specific risk, which was reclassified to Principal transactions revenues in our Consolidated Statements of Earnings. | |||||
[3] | The amount during the three months ended February 28, 2019 includes an income tax benefit of $0.1 million . | |||||
[4] | The amounts include income tax expenses of $0.1 million |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 171,365 | $ 46,365 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 14,557 | 5,367 |
Income on loans to and investments in related parties | (26,922) | (11,337) |
Distributions received on investments in related parties | 35,949 | 94,041 |
Other adjustments | 63,801 | 28,745 |
Net change in assets and liabilities: | ||
Securities deposited with clearing and depository organizations | (296,514) | 12 |
Receivables: | ||
Brokers, dealers and clearing organizations | (1,368,785) | (1,285,635) |
Customers | (48,064) | 420,048 |
Fees, interest and other | (18,295) | (18,352) |
Securities borrowed | 910,494 | (674,484) |
Financial instruments owned | (1,555,782) | (395,921) |
Securities purchased under agreements to resell | (614,635) | (660,842) |
Other assets | (246,208) | (178,830) |
Payables: | ||
Brokers, dealers and clearing organizations | 1,635,066 | 301,741 |
Customers | (51,154) | 212,895 |
Securities loaned | 371,286 | 378,261 |
Financial instruments sold, not yet purchased | (638,098) | 704,478 |
Securities sold under agreements to repurchase | 909,654 | 632,686 |
Accrued expenses and other liabilities | (140,411) | (650,084) |
Net cash used in operating activities | (892,696) | (1,050,846) |
Cash flows from investing activities: | ||
Contributions to loans to and investments in related parties | (855,609) | (10,370) |
Distributions from loans to and investments in related parties | 850,739 | 0 |
Net payments on premises and equipment | (32,071) | (19,606) |
Net cash used in investing activities | (36,941) | (29,976) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 472,000 | 405,000 |
Payments on short-term borrowings | (362,000) | (254,000) |
Proceeds from issuance of long-term debt, net of issuance costs | 170,770 | 92,375 |
Repayment of long-term debt | (35,629) | (50,695) |
Distributions to Jefferies Financial Group Inc. | (12,580) | (130,697) |
Net proceeds from (payments on) other secured financings | (300,867) | 51,697 |
Net change in bank overdrafts | (34,518) | (8,360) |
Proceeds from contributions of noncontrolling interests | 17,100 | 4,600 |
Payments on distributions to noncontrolling interests | 0 | (981) |
Net cash provided by (used in) financing activities | (85,724) | 108,939 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,927) | 13,194 |
Net decrease in cash, cash equivalents and restricted cash | (1,018,288) | (958,689) |
Cash, cash equivalents and restricted cash at beginning of period | 6,329,712 | 5,819,027 |
Cash, cash equivalents and restricted cash at end of period | 5,311,424 | 4,860,338 |
Cash paid during the period for | ||
Interest | 357,925 | 391,674 |
Income taxes, net | $ 3,524 | $ 37,168 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Cash, Cash Equivalents and Restricted Cash by Category [Abstract] | ||
Cash and cash equivalents | $ 4,900,792 | $ 5,567,903 |
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 410,632 | 761,809 |
Total cash, cash equivalents and restricted cash | $ 5,311,424 | $ 6,329,712 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Feb. 29, 2020 | |
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 investment banking and securities 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”). Jefferies does not guarantee any of our outstanding debt securities. 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. We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. For further information on our reportable business segments, refer to Note 19, 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, 2019 . Certain footnote disclosures included in our Annual Report on Form 10-K for the year ended November 30, 2019 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 our 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. During the third quarter of 2019, we reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to clients. These fees were previously presented as Other revenues in our Consolidated Statements of Earnings and are now presented within Commissions and other fees. Previously reported results are presented on a comparable basis. This change had the impact of increasing Commissions and other fees and reducing Other revenues by $7.8 million for the three months ended February 28, 2019 . There is no impact on Total revenues as a result of this change in presentation. 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) attributable 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 transactions revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Feb. 29, 2020 | |
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, 2019 . During the three months ended February 29, 2020 , 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. 2016-02, Leases (the “new lease standard”) on December 1, 2019. These lease policy updates are applied using a modified retrospective approach. 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. For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right-of-use (“ROU”) asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives. The ROU assets are included in Premises and equipment and the lease liabilities are included in Lease liabilities in our Consolidated Statement of Financial Condition. The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease’s term and currency of payment. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Lease expense is generally recognized on a straight-line basis over the lease term and included in Occupancy and equipment rental expense in our Consolidated Statement of Earnings. Refer to Note 3, Accounting Developments , and Note 13, Leases , for further information. |
Accounting Developments
Accounting Developments | 3 Months Ended |
Feb. 29, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Developments | Accounting Developments Accounting Standards to be Adopted in Future Periods Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The guidance is effective in the first quarter of fiscal 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Consolidation. In October 2018, the FASB issued ASU No. 2018-17, Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. 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. 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. Adopted Accounting Standards Leases . We adopted the new lease standard on December 1, 2019 using a modified retrospective transition approach. Accordingly, 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. We elected not to reassess whether existing contracts are or contain leases, or the lease classification and initial direct costs of existing leases upon transition. At transition on December 1, 2019 , the adoption of this standard resulted in the recognition of operating ROU assets of $519.9 million and operating lease liabilities of $586.3 million reflected in Premises and equipment and Lease liabilities in our Consolidated Statement of Financial Condition, respectively. Finance lease ROU assets and finance lease liabilities were not material and are reflected in Premises and equipment and Lease liabilities in our Consolidated Statement of Financial Condition, respectively. 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. We adopted the guidance in the first quarter of fiscal 2020 and the adoption did not have a material impact on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Feb. 29, 2020 | |
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 $890.1 million and $570.3 million at February 29, 2020 and November 30, 2019 , respectively, by level within the fair value hierarchy (in thousands): February 29, 2020 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 3,343,000 $ 157,818 $ 103,643 $ — $ 3,604,461 Corporate debt securities — 2,841,022 25,090 — 2,866,112 Collateralized debt obligations and collateralized loan obligations — 97,325 20,952 — 118,277 U.S. government and federal agency securities 1,541,590 98,176 — — 1,639,766 Municipal securities — 775,960 — — 775,960 Sovereign obligations 1,552,798 1,194,447 — — 2,747,245 Residential mortgage-backed securities — 1,080,695 16,970 — 1,097,665 Commercial mortgage-backed securities — 441,669 4,264 — 445,933 Other asset-backed securities — 260,009 41,903 — 301,912 Loans and other receivables — 2,651,109 54,321 — 2,705,430 Derivatives 864 3,290,943 23,244 (2,717,442 ) 597,609 Investments at fair value — 51,609 55,270 — 106,879 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,438,252 $ 12,940,782 $ 345,657 $ (2,717,442 ) $ 17,007,249 Securities received as collateral $ 15,004 $ — $ — $ — $ 15,004 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,124,882 $ 2,897 $ 4,275 $ — $ 2,132,054 Corporate debt securities — 1,772,490 767 — 1,773,257 U.S. government and federal agency securities 1,577,052 — — — 1,577,052 Sovereign obligations 1,070,355 808,136 — — 1,878,491 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,813,027 7,859 — 1,820,886 Derivatives 37 3,410,455 134,087 (2,849,172 ) 695,407 Total financial instruments sold, not yet purchased $ 4,772,326 $ 7,807,005 $ 147,023 $ (2,849,172 ) $ 9,877,182 Short-term borrowings $ — $ 20,164 $ — $ — $ 20,164 Obligation to return securities received as collateral $ 15,004 $ — $ — $ — $ 15,004 Long-term debt $ — $ 811,251 $ 543,463 $ — $ 1,354,714 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,325,116 $ 218,403 $ 58,301 $ — $ 2,601,820 Corporate debt securities — 2,472,213 7,490 — 2,479,703 Collateralized debt obligations and collateralized loan obligations — 124,225 20,081 — 144,306 U.S. government and federal agency securities 2,101,624 158,618 — — 2,260,242 Municipal securities — 742,326 — — 742,326 Sovereign obligations 1,330,026 1,405,827 — — 2,735,853 Residential mortgage-backed securities — 1,069,066 17,740 — 1,086,806 Commercial mortgage-backed securities — 424,060 6,110 — 430,170 Other asset-backed securities — 303,847 42,563 — 346,410 Loans and other receivables — 2,395,211 64,240 — 2,459,451 Derivatives 2,809 1,812,659 14,889 (1,432,806 ) 397,551 Investments at fair value — 32,688 75,738 — 108,426 Total financial instruments owned, excluding Investments at fair value based on NAV $ 5,759,575 $ 11,159,143 $ 307,152 $ (1,432,806 ) $ 15,793,064 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Securities received as collateral $ 9,500 $ — $ — $ — $ 9,500 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,755,601 $ 7,438 $ 4,487 $ — $ 2,767,526 Corporate debt securities — 1,471,142 340 — 1,471,482 U.S. government and federal agency securities 1,851,981 — — — 1,851,981 Sovereign obligations 1,363,475 941,065 — — 2,304,540 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,600,228 9,463 — 1,609,691 Derivatives 871 2,066,064 92,057 (1,631,787 ) 527,205 Total financial instruments sold, not yet purchased $ 5,971,928 $ 6,085,937 $ 106,382 $ (1,631,787 ) $ 10,532,460 Short-term borrowings $ — $ 20,981 $ — $ — $ 20,981 Obligation to return securities received as collateral $ 9,500 $ — $ — $ — $ 9,500 Long-term debt $ — $ 735,216 $ 480,069 $ — $ 1,215,285 (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 • Investment Grade Corporate Bonds: Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Investment grade corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Investment grade corporate bonds measured using alternative valuation techniques are categorized within Level 2 or Level 3 of the fair value hierarchy and are a limited portion of our investment grade corporate bonds. • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized debt obligations (“CDOs”) and collateralized loan obligations (“CLOs”) are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third-party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices obtained from external pricing services and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations, with consideration given to the country of issuance, are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities (“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 or Level 3 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • Non-Agency 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 Claim Receivables: Escrow and claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. Derivatives • Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, broker quotes or vanilla option valuation models, such as Black-Scholes, using observable valuation inputs from the principal market or consensus pricing services. Exchange quotes and/or valuation inputs are generally obtained from external vendors and pricing services. Broker quotes are validated directly through observable and tradeable quotes. Listed derivative contracts that use unadjusted exchange close prices are generally categorized within Level 1 of the fair value hierarchy. All other listed derivative contracts are generally categorized within Level 2 of the fair value hierarchy. • Over-the-Counter (“OTC”) Derivative Contracts: OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current transaction. Where available, valuation inputs are calibrated from observable market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy. OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as Black-Scholes, with key inputs including the underlying security price, foreign exchange spot rate, commodity price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Discounted cash flow models are utilized to measure certain OTC derivative contracts including the valuations of our interest rate swaps, which incorporate observable inputs related to interest rate curves, valuations of our foreign exchange forwards and swaps, which incorporate observable inputs related to foreign currency spot rates and forward curves and valuations of our commodity swaps and forwards, which incorporate observable inputs related to commodity spot prices and forward curves. Discounted cash flow models are also utilized to measure certain variable funding note swaps, which are backed by CLOs and incorporates constant prepayment rate, constant default rate and loss severity assumptions. Credit default swaps include both index and single-name credit default swaps. Where available, external data is used in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are generally observable for the underlying asset and used as the basis for measuring the fair value of the derivative contracts. Total return swaps executed on other underlyings are measured based on valuations received from external pricing services. Investments at Fair Value Investments at fair value 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. The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): February 29, 2020 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 303,941 $ — Equity Funds (3) 28,777 11,823 Commodity Funds (4) 14,650 — Multi-asset Funds (5) 542,609 — Other Funds (6) 160 — Total $ 890,137 $ 11,823 November 30, 2019 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 27,952 12,108 Commodity Funds (4) 16,025 — Multi-asset Funds (5) 234,583 — Other Funds (6) 157 — Total $ 570,310 $ 12,108 (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 both public and private equity securities in domestic and international markets. At both February 29, 2020 and November 30, 2019 , approximately 6% of the fair value of investments in this category are redeemable quarterly with 60 days prior written notice. (3) At February 29, 2020 and November 30, 2019 , 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 primarily expected to be liquidated in approximately one to nine years . (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At February 29, 2020 and November 30, 2019 , investments representing approximately 2% and 5% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by us and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell may include embedded call features. The valuation of these instruments is based on review of expected future cash flows, interest rates, funding spreads and the fair value of the underlying collateral. Securities purchased under agreements to resell are categorized within Level 3 of the fair value hierarchy due to limited observability of the embedded derivative and unobservable credit spreads. Securities Received as Collateral / Obligations to Return Securities Received 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. Valuation is based on the price of the underlying security and is categorized within Level 1 of the fair value hierarchy. 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, 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 February 29, 2020 (in thousands): Three Months Ended February 29, 2020 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at February 29, 2020, changes in unrealized gains/(losses) included in: Balance at November 30, 2019 Purchases Sales Settlements Issuances Balance at February 29, 2020 Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 58,301 $ (8,195 ) $ 2,792 $ (1,934 ) $ — $ — $ 52,679 $ 103,643 $ (8,206 ) $ — Corporate debt securities 7,490 1,269 1,478 (503 ) (601 ) — 15,957 25,090 879 — CDOs and CLOs 20,081 (2,069 ) 17,594 (17,833 ) — — 3,179 20,952 (1,823 ) — RMBS 17,740 (280 ) — — (3 ) — (487 ) 16,970 (250 ) — CMBS 6,110 (306 ) — — (1,401 ) — (139 ) 4,264 571 — Other ABS 42,563 (4,159 ) 81,323 (72,032 ) (1,974 ) — (3,818 ) 41,903 (3,797 ) — Loans and other receivables 64,240 (3,781 ) 12,940 (13,042 ) (7,087 ) — 1,051 54,321 (5,109 ) — Investments at fair value 75,738 (20,392 ) — (76 ) — — — 55,270 (20,392 ) — Securities purchased under agreements to resell 25,000 — — — (25,000 ) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 291 $ (513 ) $ — $ — $ — $ 10 $ 4,275 $ 65 $ — Corporate debt securities 340 (189 ) (13,832 ) 14,079 369 — — 767 (35 ) — CMBS 35 — — — — — — 35 — — Loans 9,463 1 (9,872 ) 2,781 — — 5,486 7,859 (1 ) — Net derivatives (2) 77,168 (17,528 ) (278 ) 5,627 192 — 45,662 110,843 17,460 — Long-term debt 480,069 (9,016 ) — — — 128,475 (56,065 ) 543,463 (5,590 ) 14,606 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions 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 February 29, 2020 During the three months ended February 29, 2020 , transfers of assets of $85.3 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Corporate equity securities of $55.4 million , Corporate debt securities of $16.5 million and Loans and other receivables of $6.0 million due to reduced pricing transparency. During the three months ended February 29, 2020 , transfers of assets of $16.8 million from Level 3 to Level 2 are primarily attributed to: • Other ABS of $6.3 million , Loans and other receivables of $4.9 million and Corporate equity securities of $2.7 million due to greater pricing transparency supporting classification into Level 2. During the three months ended February 29, 2020 , transfers of liabilities of $102.5 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Net derivatives of $83.0 million and structured notes of $13.1 million due to reduced market and pricing transparency. During the three months ended February 29, 2020 , transfers of liabilities of $107.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes of $69.1 million and net derivatives of $37.3 million due to greater market and pricing transparency. Net losses on Level 3 assets were $37.9 million and net gains on Level 3 liabilities were $26.4 million for the three months ended February 29, 2020 . Net losses on Level 3 assets were primarily due to decreased market values across Investments at fair value, Corporate equity securities, other ABS and Loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased market values across derivatives and 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 February 28, 2019 (in thousands): Three Months Ended February 28, 2019 Balance at Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at February 28, 2019 For instruments still held at February 28, 2019, changes in unrealized gains/(losses) included in: earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 51,040 $ 4,830 $ 1,410 $ (2,411 ) $ (66 ) $ — $ (37 ) $ 54,766 $ 4,945 $ — Corporate debt securities 9,484 466 3,568 (3,233 ) (834 ) — 1,479 10,930 498 — CDOs and CLOs 25,815 (8,153 ) 49,201 (32,759 ) — — (1,538 ) 32,566 (3,814 ) — RMBS 19,603 462 975 — (27 ) — (50 ) 20,963 494 — CMBS 10,886 136 12 — (41 ) — 1,827 12,820 96 — Other ABS 53,175 (2,290 ) 29,195 (30,060 ) (12,320 ) — (1,814 ) 35,886 (1,763 ) — Loans and other receivables 46,985 814 40,061 (27,142 ) (1,990 ) — 19,323 78,051 130 — Investments at fair value 113,831 (786 ) 27,767 — — — — 140,812 (786 ) — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ — $ (2 ) $ — $ 80 $ — $ — $ — $ 78 $ 2 $ — Corporate debt securities 522 (241 ) — — — — 449 730 241 — CMBS — 70 — — — — — 70 (70 ) — Loans 6,376 (229 ) (1,411 ) 504 — — (1,820 ) 3,420 338 — Net derivatives (2) 21,614 (5,348 ) (2,804 ) 3,084 169 — 12,260 28,975 3,333 — Long-term debt 200,745 (16,701 ) — — (5,665 ) 92,016 12,744 283,139 4,045 12,656 (1) Realized and unrealized gains/losses are reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statement 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 February 28, 2019 During the three months ended February 28, 2019 , transfers of assets of $60.4 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $25.8 million , CDOs and CLOs of $14.1 million and other ABS of $10.8 million due to reduced pricing transparency. During the three months ended February 28, 2019 , transfers of assets of |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Feb. 29, 2020 | |
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 17, 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. 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, 2019 for additional information regarding the offsetting of derivative contracts. The following tables present the fair value and related number of derivative contracts at February 29, 2020 and November 30, 2019 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). February 29, 2020 (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 $ 49,445 1 $ — — Total derivatives designated as accounting hedges 49,445 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 578 57,570 33 51,180 Cleared OTC 951,325 3,785 1,058,707 4,150 Bilateral OTC 596,520 1,770 280,336 460 Foreign exchange contracts: Exchange-traded — 619 — 1,205 Bilateral OTC 389,074 17,047 389,737 16,211 Equity contracts: Exchange-traded 861,786 1,441,642 1,091,912 1,181,907 Bilateral OTC 449,287 3,716 706,813 3,740 Commodity contracts: Exchange-traded — 10,866 — 10,134 Credit contracts: Cleared OTC 4,220 39 3,566 23 Bilateral OTC 12,816 14 13,475 12 Total derivatives not designated as accounting hedges 3,265,606 3,544,579 Total gross derivative assets/ liabilities: Exchange-traded 862,364 1,091,945 Cleared OTC 1,004,990 1,062,273 Bilateral OTC 1,447,697 1,390,361 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (802,389 ) (802,389 ) Cleared OTC (967,250 ) (982,561 ) Bilateral OTC (947,803 ) (1,064,222 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 597,609 $ 695,407 (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, 2019 (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 $ 28,663 1 $ — — Total derivatives designated as accounting hedges 28,663 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,191 65,226 103 38,464 Cleared OTC 213,224 3,329 284,433 3,443 Bilateral OTC 421,700 1,325 258,857 738 Foreign exchange contracts: Exchange-traded — 256 — 199 Bilateral OTC 190,570 9,255 187,836 9,187 Equity contracts: Exchange-traded 717,494 1,714,538 962,535 1,481,388 Bilateral OTC 248,720 4,731 445,241 4,271 Commodity contracts: Exchange-traded — 5,524 — 4,646 Credit contracts: Cleared OTC 2,514 13 5,768 12 Bilateral OTC 6,281 25 14,219 28 Total derivatives not designated as accounting hedges 1,801,694 2,158,992 Total gross derivative assets/liabilities: Exchange-traded 718,685 962,638 Cleared OTC 244,401 290,201 Bilateral OTC 867,271 906,153 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (688,871 ) (688,871 ) Cleared OTC (222,869 ) (266,900 ) Bilateral OTC (521,066 ) (676,016 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 397,551 $ 527,205 (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. 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 Gains (Losses) February 29, 2020 February 28, 2019 Interest rate swaps $ 24,465 $ 14,587 Long-term debt (24,867 ) (15,556 ) Total $ (402 ) $ (969 ) The following table presents unrealized and realized gains (losses) on derivative contracts recognized in Principal transactions revenues 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 Gains (Losses) February 29, 2020 February 28, 2019 Interest rate contracts $ (1,089 ) $ (69,831 ) Foreign exchange contracts (2,900 ) (176 ) Equity contracts 136,888 (28,481 ) Commodity contracts (6,072 ) 2,492 Credit contracts 1,830 4,095 Total $ 128,657 $ (91,901 ) 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 February 29, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity forwards, swaps and options $ 28,521 $ 7,516 $ 6,959 $ (12,901 ) $ 30,095 Credit default swaps 31 4,079 — (38 ) 4,072 Total return swaps 160,829 37,825 — (11,543 ) 187,111 Foreign currency forwards, swaps and options 66,282 3,757 3 (3,005 ) 67,037 Fixed income forwards 8,847 — — — 8,847 Interest rate swaps, options and forwards 80,128 205,846 236,857 (41,190 ) 481,641 Total $ 344,638 $ 259,023 $ 243,819 $ (68,677 ) 778,803 Cross product counterparty netting (15,399 ) Total OTC derivative assets included in Financial instruments owned $ 763,404 (1) At February 29, 2020 , we held net exchange-traded derivative assets and other credit agreements with a fair value of $74.5 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 February 29, 2020 , cash collateral received was $240.3 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity, forwards, swaps and options $ 35,005 $ 193,428 $ 80,442 $ (12,901 ) $ 295,974 Credit default swaps 1,401 2,539 — (38 ) 3,902 Total return swaps 140,657 71,668 — (11,543 ) 200,782 Foreign currency forwards, swaps and options 67,858 2,861 — (3,005 ) 67,714 Fixed income forwards 581 — — — 581 Interest rate swaps, options and forwards 45,919 105,566 111,531 (41,190 ) 221,826 Total $ 291,421 $ 376,062 $ 191,973 $ (68,677 ) 790,779 Cross product counterparty netting (15,399 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 775,380 (1) At February 29, 2020 , we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $292.1 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 February 29, 2020 , cash collateral pledged was $372.1 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at February 29, 2020 (in thousands): Counterparty credit quality (1): A- or higher $ 221,812 BBB- to BBB+ 49,721 BB+ or lower 295,398 Unrated 196,473 Total $ 763,404 (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): February 29, 2020 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 2.0 $ 291.0 $ 293.0 Single name credit default swaps 17.8 7.9 25.7 November 30, 2019 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 32.0 $ — $ 35.0 Single name credit default swaps 3.4 29.0 1.5 33.9 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): February 29, 2020 November 30, 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 168.1 $ 42.9 Collateral posted (87.3 ) (3.1 ) Collateral received 162.1 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 242.9 154.0 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions
Collateralized Transactions | 3 Months Ended |
Feb. 29, 2020 | |
Banking and Thrift [Abstract] | |
Collateralized Transactions | Collateralized Transactions Our repurchase agreements and securities borrowing and lending arrangements are generally recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their short-term nature. We enter into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of our dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned, at fair value 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 our Consolidated Statements of Financial Condition. 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): February 29, 2020 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 1,682,285 $ 328,156 $ 5,096 $ 2,015,537 Corporate debt securities 203,091 2,031,185 — 2,234,276 Mortgage-backed and asset-backed securities — 1,558,094 — 1,558,094 U.S. government and federal agency securities 6,536 10,239,853 9,908 10,256,297 Municipal securities — 234,681 — 234,681 Sovereign obligations — 2,640,873 — 2,640,873 Loans and other receivables — 1,189,724 — 1,189,724 Total $ 1,891,912 $ 18,222,566 $ 15,004 $ 20,129,482 November 30, 2019 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 1,314,395 $ 129,558 $ — $ 1,443,953 Corporate debt securities 191,311 1,730,526 — 1,921,837 Mortgage-backed and asset-backed securities — 1,745,145 — 1,745,145 U.S. government and federal agency securities 19,434 10,863,997 9,500 10,892,931 Municipal securities — 498,202 — 498,202 Sovereign obligations — 3,016,563 — 3,016,563 Loans and other receivables — 772,926 — 772,926 Total $ 1,525,140 $ 18,756,917 $ 9,500 $ 20,291,557 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): February 29, 2020 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 629,013 $ 83,922 $ 1,019,736 $ 159,241 $ 1,891,912 Repurchase agreements 8,025,139 2,123,300 5,978,361 2,095,766 18,222,566 Obligation to return securities received as collateral 5,096 — 9,908 — 15,004 Total $ 8,659,248 $ 2,207,222 $ 7,008,005 $ 2,255,007 $ 20,129,482 November 30, 2019 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 694,821 $ — $ 672,969 $ 157,350 $ 1,525,140 Repurchase agreements 6,614,026 1,556,260 8,988,528 1,598,103 18,756,917 Obligation to return securities received as collateral — — 9,500 — 9,500 Total $ 7,308,847 $ 1,556,260 $ 9,670,997 $ 1,755,453 $ 20,291,557 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 February 29, 2020 and November 30, 2019 , the approximate fair value of securities received as collateral by us that may be sold or repledged was $27.6 billion and $28.7 billion , respectively. At February 29, 2020 and November 30, 2019 , 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, 2019 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). February 29, 2020 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 $ 6,708,788 $ — $ 6,708,788 $ (418,602 ) $ (1,250,215 ) $ 5,039,971 Reverse repurchase agreements 14,723,575 (9,816,544 ) 4,907,031 (617,398 ) (4,260,370 ) 29,263 Securities received as collateral 15,004 — 15,004 — — 15,004 Liabilities: Securities lending arrangements $ 1,891,912 $ — $ 1,891,912 $ (418,602 ) $ (1,437,709 ) $ 35,601 Repurchase agreements 18,222,566 (9,816,544 ) 8,406,022 (617,398 ) (7,192,406 ) 596,218 Obligation to return securities received as collateral 15,004 — 15,004 — — 15,004 November 30, 2019 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 $ 7,624,642 $ — $ 7,624,642 $ (361,394 ) $ (1,479,433 ) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247 ) 4,299,598 (291,316 ) (3,929,977 ) 78,305 Securities received as collateral 9,500 — 9,500 — — 9,500 Liabilities: Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394 ) $ (970,799 ) $ 192,947 Repurchase agreements 18,756,917 (11,252,247 ) 7,504,670 (291,316 ) (6,663,807 ) 549,547 Obligation to return securities received as collateral 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of 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 $4,981.1 million of securities borrowing arrangements, for which we have received securities collateral of $4,841.0 million , and $551.1 million of repurchase agreements, for which we have pledged securities collateral of $563.4 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million , and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. 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 $742.1 million and $796.8 million at February 29, 2020 and November 30, 2019 , 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 | 3 Months Ended |
Feb. 29, 2020 | |
Transfers and Servicing [Abstract] | |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, 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-backed and other-asset backed securities or CLOs). These securities are included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition and are generally initially categorized as Level 2 within the fair value hierarchy. 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, 2019 . 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 February 29, 2020 February 28, 2019 Transferred assets $ 2,334.6 $ 1,260.6 Proceeds on new securitizations 2,334.7 1,331.2 Cash flows received on retained interests 7.0 14.8 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 February 29, 2020 and November 30, 2019 . The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): February 29, 2020 November 30, 2019 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 6,213.7 $ 46.0 $ 10,671.7 $ 103.3 U.S. government agency CMBS 2,934.9 65.5 1,374.8 45.8 CLOs 2,871.2 48.8 3,006.7 58.4 Consumer and other loans 1,108.4 70.8 1,149.3 71.8 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-backed and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 8, Variable Interest Entities . |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 29, 2020 | |
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-backed and other asset-backed securities and the securitization of 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-backed and other asset-backed securities; • Warehouse funding arrangements for client-sponsored consumer and mortgage loan vehicles and CLOs through participation agreements, forward sale agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the “power” criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the “power” criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about our consolidated VIEs at February 29, 2020 and November 30, 2019 (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. February 29, 2020 November 30, 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash $ — $ 1.2 $ — $ 1.2 Financial instruments owned — 3.9 — 0.3 Securities purchased under agreements to resell (1) 2,166.9 — 2,467.3 — Receivable from brokers — 16.2 — — Total assets $ 2,166.9 $ 21.3 $ 2,467.3 $ 1.5 Financial instruments sold, not yet purchased $ — $ 4.2 $ — $ — Other secured financings 2,165.5 — 2,465.8 — Other liabilities (2) 1.4 0.3 1.5 0.2 Total liabilities $ 2,166.9 $ 4.5 $ 2,467.3 $ 0.2 (1) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. At February 29, 2020 , approximately $115.4 million of the Securities purchased under agreements to resell was not eliminated in consolidation. (2) Approximately $0.2 million of the other liabilities amounts represent intercompany payables and are eliminated in consolidation at both February 29, 2020 and November 30, 2019 . Secured Funding Vehicles . We are the primary beneficiary of asset-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans, and asset-backed securities pursuant to the terms of a master repurchase agreement. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement, which we manage, 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. 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): February 29, 2020 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 70.2 $ 0.6 $ 117.5 $ 6,631.0 Consumer loan and other asset-backed vehicles 279.8 — 407.8 2,596.7 Related party private equity vehicles 23.8 — 34.9 67.0 Other investment vehicles 730.7 — 737.9 7,840.3 Total $ 1,104.5 $ 0.6 $ 1,298.1 $ 17,135.0 November 30, 2019 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 152.6 $ 0.6 $ 505.3 $ 7,845.0 Consumer loan and other asset-backed vehicles 358.3 — 490.6 2,354.8 Related party private equity vehicles 23.0 — 34.3 71.4 Other investment vehicles 404.1 — 411.9 6,102.7 Total $ 938.0 $ 0.6 $ 1,442.1 $ 16,373.9 Our maximum exposure to loss often differs from the carrying value of the variable interests. The maximum exposure to loss is dependent on the nature of 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. Asset-Backed Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities, forward purchase agreements and reverse repurchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer loans, mortgage loans, and trade claims. 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 in private equity funds, (the “JCP Funds”, including JCP Fund V (see Note 9, Investments )) managed by Jefferies Capital Partners, LLC (the “JCP Manager”). Additionally, we committed to invest 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 both February 29, 2020 and November 30, 2019 , our total equity commitment in the JCP Entities was $133.0 million , of which $121.9 million and $121.7 million had been funded, respectively. The carrying value of our equity investments in the JCP Entities was $23.8 million and $23.0 million at February 29, 2020 and November 30, 2019 , 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 Investment Vehicles. At February 29, 2020 and November 30, 2019 , we had equity commitments to invest $698.5 million and $398.6 million , respectively, in various other investment vehicles, of which $691.1 million and $390.8 million was funded, respectively. The carrying value of our equity investments was $730.7 million and $404.1 million at February 29, 2020 and November 30, 2019 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These investment vehicles have assets primarily consisting of private and public equity investments, debt instruments, trade and insurance claims and various oil and gas assets. Mortgage-Backed and Other Asset-Backed Secured Funding 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. At February 29, 2020 and November 30, 2019 , we held $1,487.0 million and $1,453.5 million of agency mortgage-backed securities, respectively, and $130.3 million and $134.8 million of non-agency mortgage-backed and other asset-backed securities, respectively, as a result of our secondary trading and market-making activities, and underwriting, placement and structuring activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. These mortgage-backed and other asset-backed secured funding vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs. |
Investments
Investments | 3 Months Ended |
Feb. 29, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments At February 29, 2020 , we had investments in Jefferies Finance LLC (“Jefferies Finance”) and Berkadia. In addition, we had an investment in Epic Gas, which was sold on March 19, 2019. Our investments in Jefferies Finance, Berkadia 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 49% in Jefferies Capital Partners V L.P. and the Jefferies SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by one of our directors and our Chairman of the Executive Committee. Jefferies Finance Jefferies Finance, a joint venture entity pursuant to an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”), is a commercial finance company that structures, underwrites and syndicates primarily senior secured loans to corporate borrowers. 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 February 29, 2020 , we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million , for a combined total commitment of $1.5 billion . At February 29, 2020 , we had funded $652.4 million of our $750.0 million commitment, leaving $97.6 million unfunded. The investment commitment is scheduled to expire on March 1, 2021 with automatic one year extensions absent a 60 days 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 February 29, 2020 . Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2021 with automatic one year extensions absent a 60 days termination notice by either party. At February 29, 2020 , 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 February 29, 2020 February 28, 2019 Interest income $ 0.8 $ — Unfunded commitment fees 0.3 0.3 The following is a summary of selected financial information for Jefferies Finance (in millions): February 29, 2020 November 30, 2019 Our total equity balance $ 652.4 $ 642.0 Three Months Ended February 29, 2020 February 28, 2019 Net earnings (loss) $ 20.7 $ (2.4 ) The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Three Months Ended February 29, 2020 February 28, 2019 Origination and syndication fee revenues (1) $ 37.7 $ 21.9 Origination fee expenses (1) 5.6 5.4 CLO placement fee revenues (2) 0.4 1.3 Underwriting fees (3) 0.3 — Service fees (4) 25.2 27.1 (1) We engage in debt underwriting 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 February 29, 2020 and November 30, 2019 , we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) We acted as underwriter in connection with term loans issued by Jefferies Finance. (4) 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 $18.3 million and $17.2 million at February 29, 2020 and November 30, 2019 , respectively. At February 29, 2020 , payables to Jefferies Finance, related to cash deposited with us and included in Accrued expenses and other liabilities and Payables to customers in our Consolidated Statements of Financial Condition, were $13.7 million and $8.5 million , respectively. At November 30, 2019 , payables to Jefferies Finance, related to cash deposited with us and included in Accrued expenses and other liabilities and Payables to customers in our Consolidated Statements of Financial Condition, were $13.7 million and $17.6 million , respectively. We enter into OTC foreign exchange contracts with Jefferies Finance. In connection with these contracts we had $0.4 million recorded in Financial instruments owned, at fair value, in our Consolidated Statements of Financial Condition at February 29, 2020 . We recorded $4.7 million in Payables—brokers, dealers and clearing organizations and $0.2 million in Financial instruments sold, not yet purchased, at fair value, in our Consolidated Statements of Financial Condition at November 30, 2019 . Net gain on these contracts was $1.4 million for the three months ended February 29, 2020 . Berkadia Berkadia is a commercial mortgage banking and servicing joint venture that was formed in 2009 by Jefferies and Berkshire Hathaway Inc. On October 1, 2018, Jefferies transferred its 50% voting equity interest in Berkadia and related arrangements to us. As a result, we are entitled to receive 45% of the profits of Berkadia. Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies, and originates and brokers commercial/multifamily mortgage loans which are not part of government agency programs. Berkadia is an investment sales advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. The following is a summary of selected financial information for Berkadia (in millions): February 29, 2020 November 30, 2019 Our total equity balance $ 255.0 $ 268.9 Three Months Ended February 29, 2020 February 28, 2019 Net earnings $ 48.7 $ 50.3 At February 29, 2020 and November 30, 2019 , we had commitments to purchase $328.3 million and $360.4 million , respectively, in agency CMBS from Berkadia. During the three months ended February 29, 2020 and February 28, 2019 , we received $36.2 million and $17.3 million , respectively, in distributions from Berkadia on our equity interest. 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 $21.8 million and $20.6 million at February 29, 2020 and November 30, 2019 , 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, 2019 ). 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 February 29, 2020 February 28, 2019 Net gains (losses) from our investments in JCP Fund V $ 1.5 $ (3.2 ) At both February 29, 2020 and November 30, 2019 , we were committed to invest equity of up to $85.0 million in JCP Fund V. At February 29, 2020 and November 30, 2019 , our unfunded commitment relating to JCP Fund V was $9.2 million and $9.4 million , respectively. The following is a summary of the Net change in net assets resulting from operations for 100.0% of JCP Fund V, in which we owned effectively 34.5% of the combined equity interests (in thousands): Three Months Ended December 31, 2019 (1) 2018 (1) Net decrease in net assets resulting from operations $ (1,397 ) $ (8,412 ) (1) Financial information for JCP Fund V within our results of operations for the three months ended February 29, 2020 and February 28, 2019 is included based on the presented periods. Epic Gas On July 14, 2015, Jefferies LLC purchased common shares of Epic Gas. At February 28, 2019 , we owned approximately 21.1% of the outstanding common stock of Epic Gas and one of our directors served on the Board of Directors of Epic Gas and owned common shares of Epic Gas. During the three months ended May 31, 2019, we sold all of our common shares of Epic Gas, at fair value, for a total of $24.6 million . At February 28, 2019 , our investment in Epic Gas of $22.1 million was included in Loans to and investments in related parties in our Consolidated Statements of Financial Condition. For the three months ended December 31, 2018, Epic Gas reported net earnings of $0.9 million , which was included in our results of operations for the three months ended February 28, 2019 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill attributed to our reportable business segments are as follows (in thousands): February 29, 2020 November 30, 2019 Investment Banking and Capital Markets $ 1,639,521 $ 1,640,201 Asset Management 3,393 3,398 Total goodwill $ 1,642,914 $ 1,643,599 The following table is a summary of the changes to goodwill for the three months ended February 29, 2020 (in thousands): Balance at November 30, 2019 $ 1,643,599 Translation adjustments (685 ) Balance at February 29, 2020 $ 1,642,914 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 February 29, 2020 and November 30, 2019 (dollars in thousands): February 29, 2020 Weighted average remaining lives (years) Gross cost Accumulated amortization Net carrying amount Customer relationships $ 125,604 $ (69,246 ) $ 56,358 9.8 Trade name 128,411 (25,682 ) 102,729 28.0 Exchange and clearing organization membership interests and registrations 8,269 — 8,269 N/A Total $ 262,284 $ (94,928 ) $ 167,356 November 30, 2019 Weighted average remaining lives (years) Gross cost Accumulated amortization Net carrying amount Customer relationships $ 125,736 $ (67,257 ) $ 58,479 9.9 Trade name 128,590 (24,800 ) 103,790 28.3 Exchange and clearing organization membership interests and registrations 8,273 — 8,273 N/A Total $ 262,599 $ (92,057 ) $ 170,542 Amortization Expense For finite life intangible assets, aggregate amortization expense amounted to $3.0 million for both the three months ended February 29, 2020 and February 28, 2019. 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 2020 $ 9,148 Year ending November 30, 2021 12,198 Year ending November 30, 2022 9,256 Year ending November 30, 2023 8,268 Year ending November 30, 2024 8,266 |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings at February 29, 2020 and November 30, 2019 include the following and mature in one year or less (in thousands): February 29, 2020 November 30, 2019 Bank loans (1) $ 602,992 $ 527,509 Equity-linked notes (2) 20,164 20,981 Total short-term borrowings $ 623,156 $ 548,490 (1) These Short-term borrowings are recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. (2) See Note 4, Fair Value Disclosures , for further information on these notes. At February 29, 2020 , the weighted average interest rate on short-term borrowings outstanding is 3.23% per annum. One of our subsidiaries has a credit facility agreement (“Credit Facility”) with JPMorgan Chase Bank, N.A. for a committed amount of $296.0 million , which is included in bank loans. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate (“LIBOR”), as defined in the Credit Facility. The Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also require the borrower to maintain specified leverage amounts and impose certain restrictions on the borrower’s future indebtedness. During the three months ended February 29, 2020 , we were in compliance with all debt covenants under the Credit Facility. 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 is structured so that advances are generally repaid before the end of each business day. However, if an advance is not repaid by the end of any business day, the advance is converted to an overnight loan. Intraday loans accrue interest at a rate of 0.12% . Interest is charged based on the number of minutes in a day the advance is outstanding. Overnight loans are charged interest at the base rate plus 3% on a daily basis. The base rate is the higher of the federal funds rate plus 0.50% or the prime rate in effect at that time. The Intraday Credit Facility contains financial covenants, which include a minimum regulatory net capital requirement for Jefferies LLC. At February 29, 2020 , we were in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, November 30, 2019 Unsecured long-term debt: 2.375% Euro Medium Term Notes May 20, 2020 2.42% $ 551,306 $ 550,622 6.875% Senior Notes April 15, 2021 4.40% 770,351 774,738 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,226 4,204 5.125% Senior Notes January 20, 2023 4.55% 609,276 610,023 1.000% Euro Medium Term Notes July 19, 2024 1.00% 549,534 548,880 4.850% Senior Notes (1) January 15, 2027 4.93% 793,931 768,931 6.450% Senior Debentures June 8, 2027 5.46% 370,846 371,426 4.150% Senior Notes January 23, 2030 4.26% 988,886 988,662 6.250% Senior Debentures January 15, 2036 6.03% 511,156 511,260 6.500% Senior Notes January 20, 2043 6.09% 420,137 420,239 Structured notes (2) Various Various 1,354,714 1,215,285 Total unsecured long-term debt 6,924,363 6,764,270 Secured long-term debt: Revolving Credit Facility 189,249 189,088 Secured Bank Loan September 27, 2021 50,000 50,000 Total long-term debt (3) $ 7,163,612 $ 7,003,358 (1) The carrying value of these senior notes includes losses of $24.9 million and $15.6 million in the three months ended February 29, 2020 and February 28, 2019 , 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) 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 transactions revenues. A weighted average coupon rate is not meaningful, as all of the structured notes are carried at fair value. (3) The Total Long-term debt has a fair value of $7,615.5 million and $7,280.4 million at February 29, 2020 and November 30, 2019 , respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. During the three months ended February 29, 2020 , long-term debt increased $160.3 million . This increase is primarily due to structured notes issuances with a total principal amount of approximately $136.2 million , net of retirements. We have a senior secured revolving credit facility (“Revolving Credit Facility”) with a group of commercial banks for an aggregate principal amount of $190.0 million . The Revolving Credit Facility contains certain covenants that, among other things, requires Jefferies Group LLC to maintain specified level of tangible net worth and liquidity amounts, and imposes certain restrictions on future indebtedness of and requires specified levels of regulated capital for certain of our subsidiaries. Interest is based on an annual alternative base rate or an adjusted LIBOR, 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 February 29, 2020 , we were in compliance with the debt covenants under the Revolving Credit Facility. On September 27, 2019, one of our subsidiaries entered into a Loan and Security Agreement with a bank for a term loan with a principal amount of $50.0 million (“Secured Bank Loan”). This Secured Bank Loan matures on September 27, 2021 and is collateralized by certain trading securities. Interest on the Secured Bank Loan is 1.25% plus LIBOR. The agreement contains certain covenants that, among other things, restrict lien or encumbrance upon any of the pledged collateral. At February 29, 2020 , we were in compliance with all covenants under the Loan and Security Agreement. |
Leases
Leases | 3 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Leases | Leases We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in our Consolidated Statement of Financial Condition was as follows (in thousands, except lease term and discount rate): Three Months Ended February 29, 2020 Premises and equipment - ROU assets $ 511,770 Weighted average: Remaining lease term (in years) 11.4 Discount rate 2.9 % The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at February 29, 2020 (in thousands): Fiscal Year Lease Liabilities Remainder of 2020 $ 41,865 2021 69,268 2022 67,390 2023 60,364 2024 59,051 2025 and thereafter 391,864 Total undiscounted cash flows 689,802 Less: Difference between undiscounted and discounted cash flows (110,232 ) Operating leases amount in our Consolidated Statement of Financial Condition 579,570 Finance leases amount in our Consolidated Statement of Financial Condition 378 Total amount in our Consolidated Statement of Financial Condition $ 579,948 In addition to the table above, at February 29, 2020 , we entered into a lease agreement that was signed but had not yet commenced. This operating lease will commence in 2020 with a lease term of seven years . Lease payments for this lease agreement will be $0.8 million for the period from lease commencement to the end of the lease term. The following table presents our lease costs (in thousands): Three Months Ended February 29, 2020 Operating lease costs (1) $ 17,627 Variable lease costs (2) 3,467 Less: Sublease income (1,500 ) Total lease cost, net $ 19,594 (1) Includes short-term leases, which are not material. (2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews. Consolidated Statement of Cash Flows supplemental information was as follows (in thousands): Three Months Ended February 29, 2020 Cash outflows - lease liabilities $ 16,680 Non-cash - ROU assets recorded for new and modified leases 11,143 Minimum Future Lease Commitments (under Previous GAAP). As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2019 , future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2020 through 2024 and the aggregate amount thereafter, were as follows (in thousands): Fiscal Year Operating Leases 2020 $ 57,952 2021 60,395 2022 62,916 2023 57,574 2024 56,878 Thereafter 389,245 Total $ 684,960 The total minimum payments to be received in the future under non-cancelable subleases at November 30, 2019 was $16.2 million . Rental expense, net of subleases, amounted to $61.2 million , $52.3 million , and $56.1 million for the years ended November 30, 2019 , 2018 and 2017 , respectively. |
Leases | Leases We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in our Consolidated Statement of Financial Condition was as follows (in thousands, except lease term and discount rate): Three Months Ended February 29, 2020 Premises and equipment - ROU assets $ 511,770 Weighted average: Remaining lease term (in years) 11.4 Discount rate 2.9 % The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at February 29, 2020 (in thousands): Fiscal Year Lease Liabilities Remainder of 2020 $ 41,865 2021 69,268 2022 67,390 2023 60,364 2024 59,051 2025 and thereafter 391,864 Total undiscounted cash flows 689,802 Less: Difference between undiscounted and discounted cash flows (110,232 ) Operating leases amount in our Consolidated Statement of Financial Condition 579,570 Finance leases amount in our Consolidated Statement of Financial Condition 378 Total amount in our Consolidated Statement of Financial Condition $ 579,948 In addition to the table above, at February 29, 2020 , we entered into a lease agreement that was signed but had not yet commenced. This operating lease will commence in 2020 with a lease term of seven years . Lease payments for this lease agreement will be $0.8 million for the period from lease commencement to the end of the lease term. The following table presents our lease costs (in thousands): Three Months Ended February 29, 2020 Operating lease costs (1) $ 17,627 Variable lease costs (2) 3,467 Less: Sublease income (1,500 ) Total lease cost, net $ 19,594 (1) Includes short-term leases, which are not material. (2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews. Consolidated Statement of Cash Flows supplemental information was as follows (in thousands): Three Months Ended February 29, 2020 Cash outflows - lease liabilities $ 16,680 Non-cash - ROU assets recorded for new and modified leases 11,143 Minimum Future Lease Commitments (under Previous GAAP). As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2019 , future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2020 through 2024 and the aggregate amount thereafter, were as follows (in thousands): Fiscal Year Operating Leases 2020 $ 57,952 2021 60,395 2022 62,916 2023 57,574 2024 56,878 Thereafter 389,245 Total $ 684,960 The total minimum payments to be received in the future under non-cancelable subleases at November 30, 2019 was $16.2 million . Rental expense, net of subleases, amounted to $61.2 million , $52.3 million , and $56.1 million for the years ended November 30, 2019 , 2018 and 2017 , respectively. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, 2020 February 28, 2019 Revenues from contracts with customers: Commissions and other fees (1) $ 179,535 $ 155,142 Investment banking 592,002 285,596 Asset management fees 4,404 6,669 Total revenue from contracts with customers 775,941 447,407 Other sources of revenue: Principal transactions 371,902 234,298 Revenues from arrangements with strategic partners 7,316 362 Interest 294,668 360,975 Other 29,729 11,830 Total revenues $ 1,479,556 $ 1,054,872 (1) During the third quarter of 2019, we have reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to clients. These fees were previously presented as Other revenues in our Consolidated Statements of Earnings and are now presented within Commissions and other fees. There is no impact on Total revenues as a result of this change in presentation. Previously reported results are presented on a comparable basis. 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 and other fee 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 our 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 financial advisory and underwriting services. 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 our 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 our Consolidated Statements of Earnings and any expenses reimbursed by our clients are recognized as Investment banking revenues. Underwriting 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-backed 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 underwriting offering at that point. Costs associated with underwriting 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 our 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. 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 (in thousands): Three Months Ended February 29, 2020 February 28, 2019 Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Equities (1) $ 176,249 $ — $ 176,249 $ 152,074 $ — $ 152,074 Fixed income (1) 3,286 — 3,286 3,068 — 3,068 Investment banking - Advisory 343,158 — 343,158 180,482 — 180,482 Investment banking - Underwriting 248,844 — 248,844 105,114 — 105,114 Asset management — 4,404 4,404 — 6,669 6,669 Total $ 771,537 $ 4,404 $ 775,941 $ 440,738 $ 6,669 $ 447,407 Primary geographic region: Americas $ 649,069 $ 980 $ 650,049 $ 323,389 $ 3,381 $ 326,770 Europe 79,438 3,424 82,862 100,205 3,288 103,493 Asia 43,030 — 43,030 17,144 — 17,144 Total $ 771,537 $ 4,404 $ 775,941 $ 440,738 $ 6,669 $ 447,407 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Refer to Note 19, 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 February 29, 2020 . 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 February 29, 2020 . During the three months ended February 29, 2020 and February 28, 2019 , we recognized $6.4 million and $14.7 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 $5.6 million , and $4.9 million of revenues primarily associated with distribution services during the three months ended February 29, 2020 and February 28, 2019 , respectively, 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 $212.0 million and $209.3 million at February 29, 2020 and November 30, 2019 , respectively. We had no significant impairments related to these receivables during the three months ended February 29, 2020 and February 28, 2019 . 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 revenues at February 29, 2020 and November 30, 2019 were $10.8 million and $9.0 million , respectively, which are recorded in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. During the three months ended February 29, 2020 and February 28, 2019 , we recognized revenues of $2.6 million and $4.3 million , respectively, that were 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 costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At February 29, 2020 and November 30, 2019 , capitalized costs to fulfill a contract were $3.9 million and $4.8 million , respectively, which are recorded in Receivables – Fees, interest and other in our Consolidated Statements of Financial Condition. For the three months ended February 29, 2020 and February 28, 2019 , we recognized expenses of $1.9 million and $2.1 million , respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the three months ended February 29, 2020 and February 28, 2019 . |
Compensation Plans
Compensation Plans | 3 Months Ended |
Feb. 29, 2020 | |
Compensation Related Costs [Abstract] | |
Compensation Plans | Compensation Plans Jefferies sponsors our following share-based compensation plans: Incentive Compensation Plan, Employee Stock Purchase Plan 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 February 29, 2020 February 28, 2019 Components of compensation cost: Restricted cash awards $ 77.3 $ 66.2 Restricted stock and RSUs (1) 6.5 6.5 Profit sharing plan 4.1 3.9 Total compensation cost $ 87.9 $ 76.6 (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 February 29, 2020 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 47.4 2 Restricted cash awards 681.0 3 Total $ 728.4 For detailed descriptions on the Company’s compensation plans, see Note 15, Compensation Plans, 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, 2019 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At February 29, 2020 and November 30, 2019 , we had approximately $149.5 million and $125.6 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 $118.2 million and $99.5 million (net of Federal benefit) at February 29, 2020 and November 30, 2019 , 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 February 29, 2020 and November 30, 2019 , we had interest accrued of approximately $58.5 million and $55.6 million , respectively, included in Accrued expenses and other liabilities. No penalties were accrued for the three months ended February 29, 2020 and the year ended November 30, 2019 . We are currently under examination in a number of major tax jurisdictions. Though we do not expect that 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 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 2016 California 2009 New Jersey 2010 New York State 2001 New York City 2006 United Kingdom 2018 Hong Kong 2014 India 2010 Italy 2012 For the three months ended February 29, 2020 , the provision for income taxes was $64.0 million , equating to an effective tax rate of 27.2% . For the three months ended February 28, 2019 , the provision for income taxes was $16.2 million , equating to an effective tax rate of 25.9% |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes our commitments at February 29, 2020 (in millions): Expected Maturity Date (fiscal years) 2020 2021 2022 2024 2026 Maximum Payout Equity commitments (1) $ 9.4 $ 99.0 $ — $ — $ 7.8 $ 116.2 Loan commitments (1) — 295.0 10.0 15.0 — 320.0 Underwriting commitments 292.0 — — — — 292.0 Forward starting reverse repos (2) 4,131.5 — — — — 4,131.5 Forward starting repos (2) 1,962.3 — — — — 1,962.3 Other unfunded commitments (1) — 128.0 — 4.9 — 132.9 Total commitments $ 6,395.2 $ 522.0 $ 10.0 $ 19.9 $ 7.8 $ 6,954.9 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At February 29, 2020 , $4,124.2 million within forward starting securities purchased under agreements to resell and $1,953.1 million within forward starting 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 one of our directors and Chairman of the Executive Committee. At February 29, 2020 , our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $11.3 million . See Note 9, Investments , for additional information regarding our investments in Jefferies Finance. Additionally, at February 29, 2020 , we had other outstanding equity commitments to invest up to $7.3 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 February 29, 2020 , we had $70.0 million of outstanding loan commitments to clients. Loan commitments outstanding at February 29, 2020 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, warehouse financings and debt securities to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. 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 February 29, 2020 (in millions): Expected Maturity Date (Fiscal Years) 2020 2021 2022 2024 2026 Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 9,031.5 $ 3,777.4 $ 5,502.0 $ 1,704.4 $ 50.1 $ 20,065.4 Written derivative contracts—credit related 1.5 — 1.0 23.2 — 25.7 Total derivative contracts $ 9,033.0 $ 3,777.4 $ 5,503.0 $ 1,727.6 $ 50.1 $ 20,091.1 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 February 29, 2020 , the fair value of derivative contracts meeting the definition of a guarantee is approximately $690.8 million . Standby Letters of Credit. At February 29, 2020 , we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $36.9 million , all of 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 | 3 Months Ended |
Feb. 29, 2020 | |
Brokers and Dealers [Abstract] | |
Net Capital Requirements | Net Capital Requirements As a broker-dealer registered with the SEC and a member firm 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 February 29, 2020 , Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 1,302,711 $ 1,204,059 FINRA is the designated examining authority for Jefferies LLC 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 | 3 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate in two reportable business segments – (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange capital markets activities and investment banking business, which is composed of financial advisory and underwriting activities. The Investment Banking and 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 and invests capital in hedge funds, separately managed accounts and third-party asset managers. 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 February 29, 2020 February 28, 2019 Investment Banking and Capital Markets: Net revenues $ 1,148.8 $ 658.2 Non-interest expenses 898.9 603.1 Earnings before income taxes $ 249.9 $ 55.1 Asset Management: Net revenues $ 21.9 $ 27.5 Non-interest expenses 36.4 20.0 Earnings (loss) before income taxes $ (14.5 ) $ 7.5 Total: Net revenues $ 1,170.7 $ 685.7 Non-interest expenses 935.3 623.1 Earnings before income taxes $ 235.4 $ 62.6 The following table summarizes our total assets by reportable business segment (in millions): February 29, 2020 November 30, 2019 Investment Banking and Capital Markets $ 43,026.7 $ 40,565.8 Asset Management 3,175.9 2,950.3 Total assets $ 46,202.6 $ 43,516.1 Net Revenues by Geographic Region Net revenues for the Investment Banking and Capital Markets 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 February 29, 2020 February 28, 2019 Americas (1) $ 950.1 $ 508.6 Europe (2) 159.3 151.5 Asia 61.3 25.6 Net revenues $ 1,170.7 $ 685.7 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Feb. 29, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Officers, Directors and Employees. The following sets forth information regarding related party transactions with our officers, directors and employees: • At February 29, 2020 and November 30, 2019 , we had $33.3 million and $34.8 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 $3.5 million and $3.6 million at February 29, 2020 and November 30, 2019 , respectively. See Note 8, Variable Interest Entities , and Note 17, Commitments, Contingencies and Guarantees , for further information regarding related party transactions with our officers, directors and employees. Jefferies . The following is a description of our related party transactions with Jefferies and its affiliates: • We provide services to and receive services from Jefferies under service agreements (in millions): Three Months Ended February 29, 2020 February 28, 2019 Charges to Jefferies for services provided $ 10.4 $ 16.5 Charges from Jefferies for services received 8.0 0.7 • We also provide investment banking and 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 February 29, 2020 February 28, 2019 Commissions and other fees $ 0.3 $ 0.6 Other revenues — 0.1 • Receivables from and payables to Jefferies, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition: February 29, November 30, 2019 Receivable from Jefferies $ 0.7 $ 0.9 Payable to Jefferies 5.4 4.3 • During the three months ended February 29, 2020 , we paid distributions of $12.6 million to Jefferies, based on our results for the three months ended November 30, 2019 . Our distribution to Jefferies based on results for the three months ended February 29, 2020 was deferred to maximize our liquidity and capital. • 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 February 29, 2020 , a net current tax payable to Jefferies of $46.4 million is included in Accrued expenses and other liabilities, in our Consolidated Statements of Financial Condition. At November 30, 2019 , a net current tax receivable from Jefferies of $24.4 million is included in Other assets, in our Consolidated Statements of Financial Condition. No tax payments were made during the three months ended February 29, 2020 . • During the three months ended February 29, 2020 and February 28, 2019 , we purchased securities totaling $26.1 million and $885.6 million , respectively, from Jefferies, at fair value. There were no gains or losses on these transactions. • In connection with foreign exchange contracts entered into under a prime brokerage agreement with an affiliate of Jefferies, we have $12.7 million and $9.9 million at February 29, 2020 and November 30, 2019 , respectively, included in Payables — brokers, dealers and clearing organizations, and $0.7 million at February 29, 2020 in Financial instruments sold, not yet purchased, at fair value, in our Consolidated Statements of Financial Condition. • We enter into OTC foreign exchange contracts with a subsidiary of Jefferies. In connection with these contracts, we had $2.2 million included in Financial instruments owned, at fair value and $0.6 million included in Financial instruments sold, not yet purchased, at fair value, in our Consolidated Statements of Financial Condition at February 29, 2020 and November 30, 2019 , respectively. For the three months ended February 29, 2020 , we recorded a net loss of $0.6 million relating to these contracts, which were included in Principal transactions revenues in our Consolidated Statements of Earnings. • Two of our directors had investments totaling $0.4 million at November 30, 2019 in a hedge fund managed by Jefferies. In December 2019, both directors fully redeemed their interests in this fund. • We have investments in hedge funds managed by Jefferies of $227.0 million and $223.5 million at February 29, 2020 and November 30, 2019 , respectively, included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition. Net gains on our investments in these hedge funds, which are included in Principal transactions revenues in our Consolidated Statements of Earnings are as follows (in millions): Three Months Ended February 29, 2020 February 28, 2019 Net gains from our investments $ 3.8 $ 1.0 • In connection with our capital markets 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 February 29, 2020 and November 30, 2019 , approximately $3.3 million and $0.1 million , respectively, of debt issued by Jefferies are included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition. • We have entered into a sublease agreement with an affiliate of Jefferies for office space. For the three months ended February 29, 2020 , we received payments for rent and other expenses of $0.2 million from this affiliate. For information on transactions with our equity method investees, see Note 9, Investments . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Feb. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 30, 2020, the spread of novel coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern by the World Health Organization (“WHO”). Subsequently, on March 11, 2020, WHO characterized the COVID-19 outbreak as a pandemic. We will continue to monitor the impact of COVID-19, but at the date of this report it is too early to determine the full impact this virus may have on the global financial markets and the overall economy. Should this emerging macro-economic risk continue for an extended period, there could be an adverse material financial impact to our businesses, including a material reduction in our results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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, 2019 . Certain footnote disclosures included in our Annual Report on Form 10-K for the year ended November 30, 2019 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 our 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 | 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) attributable 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 transactions 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. |
Accounting Standards to be Adopted in Future Periods and Adopted Accounting Standards | Accounting Standards to be Adopted in Future Periods Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The guidance is effective in the first quarter of fiscal 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Consolidation. In October 2018, the FASB issued ASU No. 2018-17, Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. 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. 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. Adopted Accounting Standards Leases . We adopted the new lease standard on December 1, 2019 using a modified retrospective transition approach. Accordingly, 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. We elected not to reassess whether existing contracts are or contain leases, or the lease classification and initial direct costs of existing leases upon transition. At transition on December 1, 2019 , the adoption of this standard resulted in the recognition of operating ROU assets of $519.9 million and operating lease liabilities of $586.3 million reflected in Premises and equipment and Lease liabilities in our Consolidated Statement of Financial Condition, respectively. Finance lease ROU assets and finance lease liabilities were not material and are reflected in Premises and equipment and Lease liabilities in our Consolidated Statement of Financial Condition, respectively. 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. We adopted the guidance in the first quarter of fiscal 2020 and the adoption did not have a material impact on our consolidated financial statements. |
Revenues from Contracts with Customers | 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 and other fee 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 our 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 financial advisory and underwriting services. 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 our 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 our Consolidated Statements of Earnings and any expenses reimbursed by our clients are recognized as Investment banking revenues. Underwriting 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-backed 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 underwriting offering at that point. Costs associated with underwriting 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 our 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. 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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 $890.1 million and $570.3 million at February 29, 2020 and November 30, 2019 , respectively, by level within the fair value hierarchy (in thousands): February 29, 2020 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 3,343,000 $ 157,818 $ 103,643 $ — $ 3,604,461 Corporate debt securities — 2,841,022 25,090 — 2,866,112 Collateralized debt obligations and collateralized loan obligations — 97,325 20,952 — 118,277 U.S. government and federal agency securities 1,541,590 98,176 — — 1,639,766 Municipal securities — 775,960 — — 775,960 Sovereign obligations 1,552,798 1,194,447 — — 2,747,245 Residential mortgage-backed securities — 1,080,695 16,970 — 1,097,665 Commercial mortgage-backed securities — 441,669 4,264 — 445,933 Other asset-backed securities — 260,009 41,903 — 301,912 Loans and other receivables — 2,651,109 54,321 — 2,705,430 Derivatives 864 3,290,943 23,244 (2,717,442 ) 597,609 Investments at fair value — 51,609 55,270 — 106,879 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,438,252 $ 12,940,782 $ 345,657 $ (2,717,442 ) $ 17,007,249 Securities received as collateral $ 15,004 $ — $ — $ — $ 15,004 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,124,882 $ 2,897 $ 4,275 $ — $ 2,132,054 Corporate debt securities — 1,772,490 767 — 1,773,257 U.S. government and federal agency securities 1,577,052 — — — 1,577,052 Sovereign obligations 1,070,355 808,136 — — 1,878,491 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,813,027 7,859 — 1,820,886 Derivatives 37 3,410,455 134,087 (2,849,172 ) 695,407 Total financial instruments sold, not yet purchased $ 4,772,326 $ 7,807,005 $ 147,023 $ (2,849,172 ) $ 9,877,182 Short-term borrowings $ — $ 20,164 $ — $ — $ 20,164 Obligation to return securities received as collateral $ 15,004 $ — $ — $ — $ 15,004 Long-term debt $ — $ 811,251 $ 543,463 $ — $ 1,354,714 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,325,116 $ 218,403 $ 58,301 $ — $ 2,601,820 Corporate debt securities — 2,472,213 7,490 — 2,479,703 Collateralized debt obligations and collateralized loan obligations — 124,225 20,081 — 144,306 U.S. government and federal agency securities 2,101,624 158,618 — — 2,260,242 Municipal securities — 742,326 — — 742,326 Sovereign obligations 1,330,026 1,405,827 — — 2,735,853 Residential mortgage-backed securities — 1,069,066 17,740 — 1,086,806 Commercial mortgage-backed securities — 424,060 6,110 — 430,170 Other asset-backed securities — 303,847 42,563 — 346,410 Loans and other receivables — 2,395,211 64,240 — 2,459,451 Derivatives 2,809 1,812,659 14,889 (1,432,806 ) 397,551 Investments at fair value — 32,688 75,738 — 108,426 Total financial instruments owned, excluding Investments at fair value based on NAV $ 5,759,575 $ 11,159,143 $ 307,152 $ (1,432,806 ) $ 15,793,064 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Securities received as collateral $ 9,500 $ — $ — $ — $ 9,500 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,755,601 $ 7,438 $ 4,487 $ — $ 2,767,526 Corporate debt securities — 1,471,142 340 — 1,471,482 U.S. government and federal agency securities 1,851,981 — — — 1,851,981 Sovereign obligations 1,363,475 941,065 — — 2,304,540 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,600,228 9,463 — 1,609,691 Derivatives 871 2,066,064 92,057 (1,631,787 ) 527,205 Total financial instruments sold, not yet purchased $ 5,971,928 $ 6,085,937 $ 106,382 $ (1,631,787 ) $ 10,532,460 Short-term borrowings $ — $ 20,981 $ — $ — $ 20,981 Obligation to return securities received as collateral $ 9,500 $ — $ — $ — $ 9,500 Long-term debt $ — $ 735,216 $ 480,069 $ — $ 1,215,285 (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): February 29, 2020 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 303,941 $ — Equity Funds (3) 28,777 11,823 Commodity Funds (4) 14,650 — Multi-asset Funds (5) 542,609 — Other Funds (6) 160 — Total $ 890,137 $ 11,823 November 30, 2019 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 27,952 12,108 Commodity Funds (4) 16,025 — Multi-asset Funds (5) 234,583 — Other Funds (6) 157 — Total $ 570,310 $ 12,108 (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 both public and private equity securities in domestic and international markets. At both February 29, 2020 and November 30, 2019 , approximately 6% of the fair value of investments in this category are redeemable quarterly with 60 days prior written notice. (3) At February 29, 2020 and November 30, 2019 , 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 primarily expected to be liquidated in approximately one to nine years . (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At February 29, 2020 and November 30, 2019 , investments representing approximately 2% and 5% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by us and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. |
Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended February 28, 2019 (in thousands): Three Months Ended February 28, 2019 Balance at Total gains/losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ (out of) Level 3 Balance at February 28, 2019 For instruments still held at February 28, 2019, changes in unrealized gains/(losses) included in: earnings (1) other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 51,040 $ 4,830 $ 1,410 $ (2,411 ) $ (66 ) $ — $ (37 ) $ 54,766 $ 4,945 $ — Corporate debt securities 9,484 466 3,568 (3,233 ) (834 ) — 1,479 10,930 498 — CDOs and CLOs 25,815 (8,153 ) 49,201 (32,759 ) — — (1,538 ) 32,566 (3,814 ) — RMBS 19,603 462 975 — (27 ) — (50 ) 20,963 494 — CMBS 10,886 136 12 — (41 ) — 1,827 12,820 96 — Other ABS 53,175 (2,290 ) 29,195 (30,060 ) (12,320 ) — (1,814 ) 35,886 (1,763 ) — Loans and other receivables 46,985 814 40,061 (27,142 ) (1,990 ) — 19,323 78,051 130 — Investments at fair value 113,831 (786 ) 27,767 — — — — 140,812 (786 ) — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ — $ (2 ) $ — $ 80 $ — $ — $ — $ 78 $ 2 $ — Corporate debt securities 522 (241 ) — — — — 449 730 241 — CMBS — 70 — — — — — 70 (70 ) — Loans 6,376 (229 ) (1,411 ) 504 — — (1,820 ) 3,420 338 — Net derivatives (2) 21,614 (5,348 ) (2,804 ) 3,084 169 — 12,260 28,975 3,333 — Long-term debt 200,745 (16,701 ) — — (5,665 ) 92,016 12,744 283,139 4,045 12,656 (1) Realized and unrealized gains/losses are reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statement 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 February 29, 2020 (in thousands): Three Months Ended February 29, 2020 Total gains/losses (realized and unrealized) (1) Net transfers into/ (out of) Level 3 For instruments still held at February 29, 2020, changes in unrealized gains/(losses) included in: Balance at November 30, 2019 Purchases Sales Settlements Issuances Balance at February 29, 2020 Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 58,301 $ (8,195 ) $ 2,792 $ (1,934 ) $ — $ — $ 52,679 $ 103,643 $ (8,206 ) $ — Corporate debt securities 7,490 1,269 1,478 (503 ) (601 ) — 15,957 25,090 879 — CDOs and CLOs 20,081 (2,069 ) 17,594 (17,833 ) — — 3,179 20,952 (1,823 ) — RMBS 17,740 (280 ) — — (3 ) — (487 ) 16,970 (250 ) — CMBS 6,110 (306 ) — — (1,401 ) — (139 ) 4,264 571 — Other ABS 42,563 (4,159 ) 81,323 (72,032 ) (1,974 ) — (3,818 ) 41,903 (3,797 ) — Loans and other receivables 64,240 (3,781 ) 12,940 (13,042 ) (7,087 ) — 1,051 54,321 (5,109 ) — Investments at fair value 75,738 (20,392 ) — (76 ) — — — 55,270 (20,392 ) — Securities purchased under agreements to resell 25,000 — — — (25,000 ) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 291 $ (513 ) $ — $ — $ — $ 10 $ 4,275 $ 65 $ — Corporate debt securities 340 (189 ) (13,832 ) 14,079 369 — — 767 (35 ) — CMBS 35 — — — — — — 35 — — Loans 9,463 1 (9,872 ) 2,781 — — 5,486 7,859 (1 ) — Net derivatives (2) 77,168 (17,528 ) (278 ) 5,627 192 — 45,662 110,843 17,460 — Long-term debt 480,069 (9,016 ) — — — 128,475 (56,065 ) 543,463 (5,590 ) 14,606 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions 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. February 29, 2020 Financial Instruments Owned: Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Average Corporate equity securities $ 78,543 Non-exchange traded securities Market approach Price $1 - $213 $ 105 Underlying stock price $3 - $5 $ 4 Corporate debt securities $ 25,090 Market approach Price $69 - $78 $69 Scenario Analysis Estimated recovery percentage 22 % - 85% 41 % CDOs and CLOs $ 20,952 Discounted cash flows Constant prepayment rate 20% — Constant default rate 1 % - 2% 2 % Loss severity 25 % - 70% 28 % Discount rate/yield 13 % - 30% 17 % RMBS $ 16,970 Discounted cash flows Cumulative loss rate 2% — Duration (years) 6 — Discount rate/yield 3% — CMBS $ 4,264 Scenario analysis Estimated recovery percentage 44% — Other ABS $ 41,903 Discounted cash flows Cumulative loss rate 7 % - 31% 14 % Duration (years) 0.5 - 2.8 1.6 Discount rate/yield 7 % - 14% 11 % Market approach Price $100 — Loans and other receivables $ 52,815 Market approach Price $29 - $101 $89 Scenario analysis Estimated recovery percentage 63 % - 100% 79 % Derivatives $ 22,216 Interest rate swaps Market approach Basis points upfront 0 - 12 6 Investments at fair value $ 28,927 Private equity securities Market approach Price $8 - $168 $ 132 Financial Instruments Sold, Not Yet Purchased: Corporate equity securities $ 4,275 Market approach Transaction level $1 — Loans $ 5,074 Market approach Price $50 — Scenario analysis Estimated recovery percentage 63% — Derivatives $ 134,087 Equity options Volatility benchmarking Volatility 21 % - 60% 42 % Interest rate swaps Market approach Basis points upfront 0 - 18 9 Cross currency swaps Basis points upfront 2 — Unfunded commitments Price $83 — Long-term debt Structured notes $ 543,463 Market approach Price $90 - $102 $ 94 Price €72 - €105 € 91 November 30, 2019 Financial Instruments Owned Fair Value Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Corporate equity securities $ 29,017 Non-exchange-traded securities Market approach Price $1 - $140 $ 55 Underlying stock price $3 - $5 $ 4 Corporate debt securities $ 7,490 Scenario Analysis Estimated recovery percentage 23 % - 85% 46 % Volatility 44% — Credit Spread 750 — Underlying stock price £0.4 — CDOs and CLOs $ 20,081 Discounted cash flows Constant prepayment rate 20% — Constant default rate 1 % - 2% 2 % Loss severity 25 % - 37% 29 % Discount rate/yield 12 % - 21% 15 % RMBS $ 17,740 Discounted cash flows Cumulative loss rate 2% — Duration (years) 6.3 — Discount rate/yield 3% — CMBS $ 6,110 Discounted cash flows Cumulative loss rate 7.3% — Duration (years) 0.2 — Discount rate/yield 85% — Scenario analysis Estimated recovery percentage 44% — Other ABS $ 42,563 Discounted cash flows Cumulative loss rate 7 % - 31% 16 % Duration (years) 0.5 - 3.0 1.5 Discount rate/yield 7 % - 15% 11 % Loans and other receivables $ 62,734 Market approach Price $36 - $100 $ 90 Scenario analysis Estimated recovery percentage 87 % - 104% 99 % Derivatives $ 13,826 Interest rate swaps Market approach Basis points upfront 0 - 16 6 Unfunded commitments Price $88 — Equity options Volatility benchmarking Volatility 45% — Investments at fair value $ 75,736 Private equity securities Market approach Price $8 - $250 $ 125 Securities purchased under agreements to resell $ 25,000 Market Approach Spread to 6 month LIBOR 500 — Duration (years) 1.5 — Financial Instruments Sold, Not Yet Purchased: Corporate equity securities $ 4,487 Market approach Transaction level $1 — Loans $ 9,463 Market approach Price $50 - $100 $ 88 Scenario analysis Estimated recovery percentage 1% — Derivatives $ 92,057 Equity options Volatility benchmarking Volatility 21 % - 61% 43 % Interest rate swaps Market approach Basis points upfront 0 - 22 13 Cross currency swaps Basis points upfront 2 — Unfunded commitments Price $88 — Long-term debt Structured notes $ 480,069 Market approach Price $84 - $108 $ 96 Price €74 - €103 €91 |
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 February 29, 2020 February 28, 2019 Financial instruments owned: Loans and other receivables $ 1,739 $ (7,335 ) Financial instruments sold, not yet purchased: Loans $ (610 ) $ — Loan commitments (661 ) 79 Long-term debt: Changes in instrument specific credit risk (1) $ 29,432 $ 23,483 Other changes in fair value (2) (37,642 ) (10,643 ) Short-term borrowings: Changes in instrument specific credit risk (1) $ 57 $ — Other changes in fair value (2) 12 — (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): February 29, 2020 November 30, 2019 Financial instruments owned: Loans and other receivables (1) $ 1,551,028 $ 1,546,516 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) 267,678 197,215 Long-term debt and short-term borrowings 72,301 74,408 (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 $29.1 million and $22.2 million at February 29, 2020 and November 30, 2019 , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, 2020 and November 30, 2019 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). February 29, 2020 (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 $ 49,445 1 $ — — Total derivatives designated as accounting hedges 49,445 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 578 57,570 33 51,180 Cleared OTC 951,325 3,785 1,058,707 4,150 Bilateral OTC 596,520 1,770 280,336 460 Foreign exchange contracts: Exchange-traded — 619 — 1,205 Bilateral OTC 389,074 17,047 389,737 16,211 Equity contracts: Exchange-traded 861,786 1,441,642 1,091,912 1,181,907 Bilateral OTC 449,287 3,716 706,813 3,740 Commodity contracts: Exchange-traded — 10,866 — 10,134 Credit contracts: Cleared OTC 4,220 39 3,566 23 Bilateral OTC 12,816 14 13,475 12 Total derivatives not designated as accounting hedges 3,265,606 3,544,579 Total gross derivative assets/ liabilities: Exchange-traded 862,364 1,091,945 Cleared OTC 1,004,990 1,062,273 Bilateral OTC 1,447,697 1,390,361 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (802,389 ) (802,389 ) Cleared OTC (967,250 ) (982,561 ) Bilateral OTC (947,803 ) (1,064,222 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 597,609 $ 695,407 (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, 2019 (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 $ 28,663 1 $ — — Total derivatives designated as accounting hedges 28,663 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,191 65,226 103 38,464 Cleared OTC 213,224 3,329 284,433 3,443 Bilateral OTC 421,700 1,325 258,857 738 Foreign exchange contracts: Exchange-traded — 256 — 199 Bilateral OTC 190,570 9,255 187,836 9,187 Equity contracts: Exchange-traded 717,494 1,714,538 962,535 1,481,388 Bilateral OTC 248,720 4,731 445,241 4,271 Commodity contracts: Exchange-traded — 5,524 — 4,646 Credit contracts: Cleared OTC 2,514 13 5,768 12 Bilateral OTC 6,281 25 14,219 28 Total derivatives not designated as accounting hedges 1,801,694 2,158,992 Total gross derivative assets/liabilities: Exchange-traded 718,685 962,638 Cleared OTC 244,401 290,201 Bilateral OTC 867,271 906,153 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (688,871 ) (688,871 ) Cleared OTC (222,869 ) (266,900 ) Bilateral OTC (521,066 ) (676,016 ) Net amounts per Consolidated Statements of Financial Condition (4) $ 397,551 $ 527,205 (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. |
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 Gains (Losses) February 29, 2020 February 28, 2019 Interest rate swaps $ 24,465 $ 14,587 Long-term debt (24,867 ) (15,556 ) Total $ (402 ) $ (969 ) The following table presents unrealized and realized gains (losses) on derivative contracts recognized in Principal transactions revenues 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 Gains (Losses) February 29, 2020 February 28, 2019 Interest rate contracts $ (1,089 ) $ (69,831 ) Foreign exchange contracts (2,900 ) (176 ) Equity contracts 136,888 (28,481 ) Commodity contracts (6,072 ) 2,492 Credit contracts 1,830 4,095 Total $ 128,657 $ (91,901 ) |
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 February 29, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity forwards, swaps and options $ 28,521 $ 7,516 $ 6,959 $ (12,901 ) $ 30,095 Credit default swaps 31 4,079 — (38 ) 4,072 Total return swaps 160,829 37,825 — (11,543 ) 187,111 Foreign currency forwards, swaps and options 66,282 3,757 3 (3,005 ) 67,037 Fixed income forwards 8,847 — — — 8,847 Interest rate swaps, options and forwards 80,128 205,846 236,857 (41,190 ) 481,641 Total $ 344,638 $ 259,023 $ 243,819 $ (68,677 ) 778,803 Cross product counterparty netting (15,399 ) Total OTC derivative assets included in Financial instruments owned $ 763,404 (1) At February 29, 2020 , we held net exchange-traded derivative assets and other credit agreements with a fair value of $74.5 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 February 29, 2020 , cash collateral received was $240.3 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Equity, forwards, swaps and options $ 35,005 $ 193,428 $ 80,442 $ (12,901 ) $ 295,974 Credit default swaps 1,401 2,539 — (38 ) 3,902 Total return swaps 140,657 71,668 — (11,543 ) 200,782 Foreign currency forwards, swaps and options 67,858 2,861 — (3,005 ) 67,714 Fixed income forwards 581 — — — 581 Interest rate swaps, options and forwards 45,919 105,566 111,531 (41,190 ) 221,826 Total $ 291,421 $ 376,062 $ 191,973 $ (68,677 ) 790,779 Cross product counterparty netting (15,399 ) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 775,380 (1) At February 29, 2020 , we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $292.1 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 February 29, 2020 , cash collateral pledged was $372.1 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
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 February 29, 2020 (in thousands): Counterparty credit quality (1): A- or higher $ 221,812 BBB- to BBB+ 49,721 BB+ or lower 295,398 Unrated 196,473 Total $ 763,404 (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): February 29, 2020 External Credit Rating Investment Grade Non-investment Grade Total Notional Credit protection sold: Index credit default swaps $ 2.0 $ 291.0 $ 293.0 Single name credit default swaps 17.8 7.9 25.7 November 30, 2019 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 3.0 $ 32.0 $ — $ 35.0 Single name credit default swaps 3.4 29.0 1.5 33.9 |
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): February 29, 2020 November 30, 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 168.1 $ 42.9 Collateral posted (87.3 ) (3.1 ) Collateral received 162.1 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 242.9 154.0 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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): February 29, 2020 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 1,682,285 $ 328,156 $ 5,096 $ 2,015,537 Corporate debt securities 203,091 2,031,185 — 2,234,276 Mortgage-backed and asset-backed securities — 1,558,094 — 1,558,094 U.S. government and federal agency securities 6,536 10,239,853 9,908 10,256,297 Municipal securities — 234,681 — 234,681 Sovereign obligations — 2,640,873 — 2,640,873 Loans and other receivables — 1,189,724 — 1,189,724 Total $ 1,891,912 $ 18,222,566 $ 15,004 $ 20,129,482 November 30, 2019 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral Total Collateral Pledged: Corporate equity securities $ 1,314,395 $ 129,558 $ — $ 1,443,953 Corporate debt securities 191,311 1,730,526 — 1,921,837 Mortgage-backed and asset-backed securities — 1,745,145 — 1,745,145 U.S. government and federal agency securities 19,434 10,863,997 9,500 10,892,931 Municipal securities — 498,202 — 498,202 Sovereign obligations — 3,016,563 — 3,016,563 Loans and other receivables — 772,926 — 772,926 Total $ 1,525,140 $ 18,756,917 $ 9,500 $ 20,291,557 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): February 29, 2020 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 629,013 $ 83,922 $ 1,019,736 $ 159,241 $ 1,891,912 Repurchase agreements 8,025,139 2,123,300 5,978,361 2,095,766 18,222,566 Obligation to return securities received as collateral 5,096 — 9,908 — 15,004 Total $ 8,659,248 $ 2,207,222 $ 7,008,005 $ 2,255,007 $ 20,129,482 November 30, 2019 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 694,821 $ — $ 672,969 $ 157,350 $ 1,525,140 Repurchase agreements 6,614,026 1,556,260 8,988,528 1,598,103 18,756,917 Obligation to return securities received as collateral — — 9,500 — 9,500 Total $ 7,308,847 $ 1,556,260 $ 9,670,997 $ 1,755,453 $ 20,291,557 |
Offsetting Assets | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral and obligation to return securities received as collateral that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). February 29, 2020 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 $ 6,708,788 $ — $ 6,708,788 $ (418,602 ) $ (1,250,215 ) $ 5,039,971 Reverse repurchase agreements 14,723,575 (9,816,544 ) 4,907,031 (617,398 ) (4,260,370 ) 29,263 Securities received as collateral 15,004 — 15,004 — — 15,004 Liabilities: Securities lending arrangements $ 1,891,912 $ — $ 1,891,912 $ (418,602 ) $ (1,437,709 ) $ 35,601 Repurchase agreements 18,222,566 (9,816,544 ) 8,406,022 (617,398 ) (7,192,406 ) 596,218 Obligation to return securities received as collateral 15,004 — 15,004 — — 15,004 November 30, 2019 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 $ 7,624,642 $ — $ 7,624,642 $ (361,394 ) $ (1,479,433 ) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247 ) 4,299,598 (291,316 ) (3,929,977 ) 78,305 Securities received as collateral 9,500 — 9,500 — — 9,500 Liabilities: Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394 ) $ (970,799 ) $ 192,947 Repurchase agreements 18,756,917 (11,252,247 ) 7,504,670 (291,316 ) (6,663,807 ) 549,547 Obligation to return securities received as collateral 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of 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 $4,981.1 million of securities borrowing arrangements, for which we have received securities collateral of $4,841.0 million , and $551.1 million of repurchase agreements, for which we have pledged securities collateral of $563.4 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million , and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. |
Offsetting Liabilities | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral and obligation to return securities received as collateral that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). February 29, 2020 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 $ 6,708,788 $ — $ 6,708,788 $ (418,602 ) $ (1,250,215 ) $ 5,039,971 Reverse repurchase agreements 14,723,575 (9,816,544 ) 4,907,031 (617,398 ) (4,260,370 ) 29,263 Securities received as collateral 15,004 — 15,004 — — 15,004 Liabilities: Securities lending arrangements $ 1,891,912 $ — $ 1,891,912 $ (418,602 ) $ (1,437,709 ) $ 35,601 Repurchase agreements 18,222,566 (9,816,544 ) 8,406,022 (617,398 ) (7,192,406 ) 596,218 Obligation to return securities received as collateral 15,004 — 15,004 — — 15,004 November 30, 2019 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 $ 7,624,642 $ — $ 7,624,642 $ (361,394 ) $ (1,479,433 ) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247 ) 4,299,598 (291,316 ) (3,929,977 ) 78,305 Securities received as collateral 9,500 — 9,500 — — 9,500 Liabilities: Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394 ) $ (970,799 ) $ 192,947 Repurchase agreements 18,756,917 (11,252,247 ) 7,504,670 (291,316 ) (6,663,807 ) 549,547 Obligation to return securities received as collateral 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of 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 $4,981.1 million of securities borrowing arrangements, for which we have received securities collateral of $4,841.0 million , and $551.1 million of repurchase agreements, for which we have pledged securities collateral of $563.4 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million , and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million , which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, 2020 February 28, 2019 Transferred assets $ 2,334.6 $ 1,260.6 Proceeds on new securitizations 2,334.7 1,331.2 Cash flows received on retained interests 7.0 14.8 |
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): February 29, 2020 November 30, 2019 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 6,213.7 $ 46.0 $ 10,671.7 $ 103.3 U.S. government agency CMBS 2,934.9 65.5 1,374.8 45.8 CLOs 2,871.2 48.8 3,006.7 58.4 Consumer and other loans 1,108.4 70.8 1,149.3 71.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of VIEs | The following tables present information about our variable interests in nonconsolidated VIEs (in millions): February 29, 2020 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 70.2 $ 0.6 $ 117.5 $ 6,631.0 Consumer loan and other asset-backed vehicles 279.8 — 407.8 2,596.7 Related party private equity vehicles 23.8 — 34.9 67.0 Other investment vehicles 730.7 — 737.9 7,840.3 Total $ 1,104.5 $ 0.6 $ 1,298.1 $ 17,135.0 November 30, 2019 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 152.6 $ 0.6 $ 505.3 $ 7,845.0 Consumer loan and other asset-backed vehicles 358.3 — 490.6 2,354.8 Related party private equity vehicles 23.0 — 34.3 71.4 Other investment vehicles 404.1 — 411.9 6,102.7 Total $ 938.0 $ 0.6 $ 1,442.1 $ 16,373.9 The following table presents information about our consolidated VIEs at February 29, 2020 and November 30, 2019 (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. February 29, 2020 November 30, 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash $ — $ 1.2 $ — $ 1.2 Financial instruments owned — 3.9 — 0.3 Securities purchased under agreements to resell (1) 2,166.9 — 2,467.3 — Receivable from brokers — 16.2 — — Total assets $ 2,166.9 $ 21.3 $ 2,467.3 $ 1.5 Financial instruments sold, not yet purchased $ — $ 4.2 $ — $ — Other secured financings 2,165.5 — 2,465.8 — Other liabilities (2) 1.4 0.3 1.5 0.2 Total liabilities $ 2,166.9 $ 4.5 $ 2,467.3 $ 0.2 (1) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. At February 29, 2020 , approximately $115.4 million of the Securities purchased under agreements to resell was not eliminated in consolidation. (2) Approximately $0.2 million of the other liabilities amounts represent intercompany payables and are eliminated in consolidation at both February 29, 2020 and November 30, 2019 . |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Selected Financial Information related to Equity Method Investment | 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 February 29, 2020 February 28, 2019 Net gains (losses) from our investments in JCP Fund V $ 1.5 $ (3.2 ) Three Months Ended February 29, 2020 February 28, 2019 Interest income $ 0.8 $ — Unfunded commitment fees 0.3 0.3 The following is a summary of selected financial information for Jefferies Finance (in millions): February 29, 2020 November 30, 2019 Our total equity balance $ 652.4 $ 642.0 Three Months Ended February 29, 2020 February 28, 2019 Net earnings (loss) $ 20.7 $ (2.4 ) The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Three Months Ended February 29, 2020 February 28, 2019 Origination and syndication fee revenues (1) $ 37.7 $ 21.9 Origination fee expenses (1) 5.6 5.4 CLO placement fee revenues (2) 0.4 1.3 Underwriting fees (3) 0.3 — Service fees (4) 25.2 27.1 (1) We engage in debt underwriting 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 February 29, 2020 and November 30, 2019 , we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) We acted as underwriter in connection with term loans issued by Jefferies Finance. (4) Under a service agreement, we charge Jefferies Finance for services provided. The following is a summary of the Net change in net assets resulting from operations for 100.0% of JCP Fund V, in which we owned effectively 34.5% of the combined equity interests (in thousands): Three Months Ended December 31, 2019 (1) 2018 (1) Net decrease in net assets resulting from operations $ (1,397 ) $ (8,412 ) (1) Financial information for JCP Fund V within our results of operations for the three months ended February 29, 2020 and February 28, 2019 is included based on the presented periods. The following is a summary of selected financial information for Berkadia (in millions): February 29, 2020 November 30, 2019 Our total equity balance $ 255.0 $ 268.9 Three Months Ended February 29, 2020 February 28, 2019 Net earnings $ 48.7 $ 50.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill attributed to our reportable business segments are as follows (in thousands): February 29, 2020 November 30, 2019 Investment Banking and Capital Markets $ 1,639,521 $ 1,640,201 Asset Management 3,393 3,398 Total goodwill $ 1,642,914 $ 1,643,599 The following table is a summary of the changes to goodwill for the three months ended February 29, 2020 (in thousands): Balance at November 30, 2019 $ 1,643,599 Translation adjustments (685 ) Balance at February 29, 2020 $ 1,642,914 |
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 February 29, 2020 and November 30, 2019 (dollars in thousands): February 29, 2020 Weighted average remaining lives (years) Gross cost Accumulated amortization Net carrying amount Customer relationships $ 125,604 $ (69,246 ) $ 56,358 9.8 Trade name 128,411 (25,682 ) 102,729 28.0 Exchange and clearing organization membership interests and registrations 8,269 — 8,269 N/A Total $ 262,284 $ (94,928 ) $ 167,356 November 30, 2019 Weighted average remaining lives (years) Gross cost Accumulated amortization Net carrying amount Customer relationships $ 125,736 $ (67,257 ) $ 58,479 9.9 Trade name 128,590 (24,800 ) 103,790 28.3 Exchange and clearing organization membership interests and registrations 8,273 — 8,273 N/A Total $ 262,599 $ (92,057 ) $ 170,542 |
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 2020 $ 9,148 Year ending November 30, 2021 12,198 Year ending November 30, 2022 9,256 Year ending November 30, 2023 8,268 Year ending November 30, 2024 8,266 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Short-term borrowings at February 29, 2020 and November 30, 2019 include the following and mature in one year or less (in thousands): February 29, 2020 November 30, 2019 Bank loans (1) $ 602,992 $ 527,509 Equity-linked notes (2) 20,164 20,981 Total short-term borrowings $ 623,156 $ 548,490 (1) These Short-term borrowings are recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. (2) See Note 4, Fair Value Disclosures |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, November 30, 2019 Unsecured long-term debt: 2.375% Euro Medium Term Notes May 20, 2020 2.42% $ 551,306 $ 550,622 6.875% Senior Notes April 15, 2021 4.40% 770,351 774,738 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,226 4,204 5.125% Senior Notes January 20, 2023 4.55% 609,276 610,023 1.000% Euro Medium Term Notes July 19, 2024 1.00% 549,534 548,880 4.850% Senior Notes (1) January 15, 2027 4.93% 793,931 768,931 6.450% Senior Debentures June 8, 2027 5.46% 370,846 371,426 4.150% Senior Notes January 23, 2030 4.26% 988,886 988,662 6.250% Senior Debentures January 15, 2036 6.03% 511,156 511,260 6.500% Senior Notes January 20, 2043 6.09% 420,137 420,239 Structured notes (2) Various Various 1,354,714 1,215,285 Total unsecured long-term debt 6,924,363 6,764,270 Secured long-term debt: Revolving Credit Facility 189,249 189,088 Secured Bank Loan September 27, 2021 50,000 50,000 Total long-term debt (3) $ 7,163,612 $ 7,003,358 (1) The carrying value of these senior notes includes losses of $24.9 million and $15.6 million in the three months ended February 29, 2020 and February 28, 2019 , 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) 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 transactions revenues. A weighted average coupon rate is not meaningful, as all of the structured notes are carried at fair value. (3) The Total Long-term debt has a fair value of $7,615.5 million and $7,280.4 million at February 29, 2020 and November 30, 2019 , respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | Information related to operating leases in our Consolidated Statement of Financial Condition was as follows (in thousands, except lease term and discount rate): Three Months Ended February 29, 2020 Premises and equipment - ROU assets $ 511,770 Weighted average: Remaining lease term (in years) 11.4 Discount rate 2.9 % The following table presents our lease costs (in thousands): Three Months Ended February 29, 2020 Operating lease costs (1) $ 17,627 Variable lease costs (2) 3,467 Less: Sublease income (1,500 ) Total lease cost, net $ 19,594 (1) Includes short-term leases, which are not material. (2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews. Consolidated Statement of Cash Flows supplemental information was as follows (in thousands): Three Months Ended February 29, 2020 Cash outflows - lease liabilities $ 16,680 Non-cash - ROU assets recorded for new and modified leases 11,143 |
Maturity of Operating Lease Liabilities | The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statement of Financial Condition at February 29, 2020 (in thousands): Fiscal Year Lease Liabilities Remainder of 2020 $ 41,865 2021 69,268 2022 67,390 2023 60,364 2024 59,051 2025 and thereafter 391,864 Total undiscounted cash flows 689,802 Less: Difference between undiscounted and discounted cash flows (110,232 ) Operating leases amount in our Consolidated Statement of Financial Condition 579,570 Finance leases amount in our Consolidated Statement of Financial Condition 378 Total amount in our Consolidated Statement of Financial Condition $ 579,948 |
Schedule of Future Minimum Rental Payments for Operating Leases | At November 30, 2019 , future minimum aggregate annual lease payments under such leases (net of subleases) for fiscal years ended November 30, 2020 through 2024 and the aggregate amount thereafter, were as follows (in thousands): Fiscal Year Operating Leases 2020 $ 57,952 2021 60,395 2022 62,916 2023 57,574 2024 56,878 Thereafter 389,245 Total $ 684,960 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 (in thousands): Three Months Ended February 29, 2020 February 28, 2019 Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Equities (1) $ 176,249 $ — $ 176,249 $ 152,074 $ — $ 152,074 Fixed income (1) 3,286 — 3,286 3,068 — 3,068 Investment banking - Advisory 343,158 — 343,158 180,482 — 180,482 Investment banking - Underwriting 248,844 — 248,844 105,114 — 105,114 Asset management — 4,404 4,404 — 6,669 6,669 Total $ 771,537 $ 4,404 $ 775,941 $ 440,738 $ 6,669 $ 447,407 Primary geographic region: Americas $ 649,069 $ 980 $ 650,049 $ 323,389 $ 3,381 $ 326,770 Europe 79,438 3,424 82,862 100,205 3,288 103,493 Asia 43,030 — 43,030 17,144 — 17,144 Total $ 771,537 $ 4,404 $ 775,941 $ 440,738 $ 6,669 $ 447,407 (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 February 29, 2020 February 28, 2019 Revenues from contracts with customers: Commissions and other fees (1) $ 179,535 $ 155,142 Investment banking 592,002 285,596 Asset management fees 4,404 6,669 Total revenue from contracts with customers 775,941 447,407 Other sources of revenue: Principal transactions 371,902 234,298 Revenues from arrangements with strategic partners 7,316 362 Interest 294,668 360,975 Other 29,729 11,830 Total revenues $ 1,479,556 $ 1,054,872 (1) During the third quarter of 2019, we have reclassified the presentation of certain other fees, primarily related to prime brokerage services offered to clients. These fees were previously presented as Other revenues in our Consolidated Statements of Earnings and are now presented within Commissions and other fees. There is no impact on Total revenues as a result of this change in presentation. Previously reported results are presented on a comparable basis. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 February 29, 2020 February 28, 2019 Components of compensation cost: Restricted cash awards $ 77.3 $ 66.2 Restricted stock and RSUs (1) 6.5 6.5 Profit sharing plan 4.1 3.9 Total compensation cost $ 87.9 $ 76.6 (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 February 29, 2020 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period (in Years) Non-vested share-based awards $ 47.4 2 Restricted cash awards 681.0 3 Total $ 728.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
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 2016 California 2009 New Jersey 2010 New York State 2001 New York City 2006 United Kingdom 2018 Hong Kong 2014 India 2010 Italy 2012 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes our commitments at February 29, 2020 (in millions): Expected Maturity Date (fiscal years) 2020 2021 2022 2024 2026 Maximum Payout Equity commitments (1) $ 9.4 $ 99.0 $ — $ — $ 7.8 $ 116.2 Loan commitments (1) — 295.0 10.0 15.0 — 320.0 Underwriting commitments 292.0 — — — — 292.0 Forward starting reverse repos (2) 4,131.5 — — — — 4,131.5 Forward starting repos (2) 1,962.3 — — — — 1,962.3 Other unfunded commitments (1) — 128.0 — 4.9 — 132.9 Total commitments $ 6,395.2 $ 522.0 $ 10.0 $ 19.9 $ 7.8 $ 6,954.9 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At February 29, 2020 , $4,124.2 million within forward starting securities purchased under agreements to resell and $1,953.1 million within forward starting securities sold under agreements to repurchase settled within three business days. |
Schedule of Guarantees | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at February 29, 2020 (in millions): Expected Maturity Date (Fiscal Years) 2020 2021 2022 2024 2026 Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 9,031.5 $ 3,777.4 $ 5,502.0 $ 1,704.4 $ 50.1 $ 20,065.4 Written derivative contracts—credit related 1.5 — 1.0 23.2 — 25.7 Total derivative contracts $ 9,033.0 $ 3,777.4 $ 5,503.0 $ 1,727.6 $ 50.1 $ 20,091.1 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Brokers and Dealers [Abstract] | |
Schedule of Net Capital, Adjusted and Excess Net Capital | At February 29, 2020 , Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 1,302,711 $ 1,204,059 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Schedule of 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 February 29, 2020 February 28, 2019 Investment Banking and Capital Markets: Net revenues $ 1,148.8 $ 658.2 Non-interest expenses 898.9 603.1 Earnings before income taxes $ 249.9 $ 55.1 Asset Management: Net revenues $ 21.9 $ 27.5 Non-interest expenses 36.4 20.0 Earnings (loss) before income taxes $ (14.5 ) $ 7.5 Total: Net revenues $ 1,170.7 $ 685.7 Non-interest expenses 935.3 623.1 Earnings before income taxes $ 235.4 $ 62.6 The following table summarizes our total assets by reportable business segment (in millions): February 29, 2020 November 30, 2019 Investment Banking and Capital Markets $ 43,026.7 $ 40,565.8 Asset Management 3,175.9 2,950.3 Total assets $ 46,202.6 $ 43,516.1 |
Summary Net Revenues by Geographic Region | Net revenues by geographic region were as follows (in millions): Three Months Ended February 29, 2020 February 28, 2019 Americas (1) $ 950.1 $ 508.6 Europe (2) 159.3 151.5 Asia 61.3 25.6 Net revenues $ 1,170.7 $ 685.7 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Feb. 29, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Net gains on our investments in these hedge funds, which are included in Principal transactions revenues in our Consolidated Statements of Earnings are as follows (in millions): Three Months Ended February 29, 2020 February 28, 2019 Net gains from our investments $ 3.8 $ 1.0 The following is a description of our related party transactions with Jefferies and its affiliates: • We provide services to and receive services from Jefferies under service agreements (in millions): Three Months Ended February 29, 2020 February 28, 2019 Charges to Jefferies for services provided $ 10.4 $ 16.5 Charges from Jefferies for services received 8.0 0.7 • We also provide investment banking and 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 February 29, 2020 February 28, 2019 Commissions and other fees $ 0.3 $ 0.6 Other revenues — 0.1 • Receivables from and payables to Jefferies, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition: February 29, November 30, 2019 Receivable from Jefferies $ 0.7 $ 0.9 Payable to Jefferies 5.4 4.3 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020USD ($)segment | Feb. 28, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Number of reportable segments | segment | 2 | |
Increase of commissions and other fees | $ 775,941 | $ 447,407 |
Decrease of other revenue | 29,729 | 11,830 |
Commissions and Other Fees | ||
Debt Instrument [Line Items] | ||
Increase of commissions and other fees | $ 179,535 | 155,142 |
Reclassified Presentation of Certain Other Fees | Commissions and Other Fees | ||
Debt Instrument [Line Items] | ||
Increase of commissions and other fees | $ 7,800 |
Accounting Developments (Detail
Accounting Developments (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Dec. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 579,570 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating ROU assets | $ 519,900 | |
Operating lease liabilities | $ 586,300 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | $ 890,137 | $ 570,310 |
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 17,007,249 | 15,793,064 |
Counterparty and Cash Collateral Netting | (2,717,442) | (1,432,806) |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral | 15,004 | 9,500 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 9,877,182 | 10,532,460 |
Counterparty and Cash Collateral Netting | (2,849,172) | (1,631,787) |
Short-term borrowings | 20,164 | 20,981 |
Obligation to return securities received as collateral | 15,004 | 9,500 |
Long-term debt | 1,354,714 | 1,215,285 |
Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,604,461 | 2,601,820 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 2,132,054 | 2,767,526 |
Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,866,112 | 2,479,703 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,773,257 | 1,471,482 |
Collateralized debt obligations and collateralized loan obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 118,277 | 144,306 |
U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,639,766 | 2,260,242 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,577,052 | 1,851,981 |
Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 775,960 | 742,326 |
Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,747,245 | 2,735,853 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,878,491 | 2,304,540 |
Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,097,665 | 1,086,806 |
Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 445,933 | 430,170 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 35 | 35 |
Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 301,912 | 346,410 |
Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,705,430 | 2,459,451 |
Derivative assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 597,609 | 397,551 |
Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 106,879 | 108,426 |
Loans | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,820,886 | 1,609,691 |
Derivative liabilities | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 695,407 | 527,205 |
Fair value based on net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | 890,100 | 570,300 |
Level 1 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 6,438,252 | 5,759,575 |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral | 15,004 | 9,500 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 4,772,326 | 5,971,928 |
Short-term borrowings | 0 | 0 |
Obligation to return securities received as collateral | 15,004 | 9,500 |
Long-term debt | 0 | 0 |
Level 1 | Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,343,000 | 2,325,116 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 2,124,882 | 2,755,601 |
Level 1 | Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 1 | Collateralized debt obligations and collateralized loan obligations | ||
Financial instruments owned: | ||
Total 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: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,541,590 | 2,101,624 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,577,052 | 1,851,981 |
Level 1 | Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,552,798 | 1,330,026 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,070,355 | 1,363,475 |
Level 1 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 1 | Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Derivative assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 864 | 2,809 |
Level 1 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 1 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 1 | Derivative liabilities | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 37 | 871 |
Level 2 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 12,940,782 | 11,159,143 |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 7,807,005 | 6,085,937 |
Short-term borrowings | 20,164 | 20,981 |
Obligation to return securities received as collateral | 0 | 0 |
Long-term debt | 811,251 | 735,216 |
Level 2 | Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 157,818 | 218,403 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 2,897 | 7,438 |
Level 2 | Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,841,022 | 2,472,213 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,772,490 | 1,471,142 |
Level 2 | Collateralized debt obligations and collateralized loan obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 97,325 | 124,225 |
Level 2 | U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 98,176 | 158,618 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 2 | Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 775,960 | 742,326 |
Level 2 | Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,194,447 | 1,405,827 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 808,136 | 941,065 |
Level 2 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,080,695 | 1,069,066 |
Level 2 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 441,669 | 424,060 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 2 | Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 260,009 | 303,847 |
Level 2 | Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,651,109 | 2,395,211 |
Level 2 | Derivative assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,290,943 | 1,812,659 |
Level 2 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 51,609 | 32,688 |
Level 2 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 1,813,027 | 1,600,228 |
Level 2 | Derivative liabilities | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 3,410,455 | 2,066,064 |
Level 3 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 345,657 | 307,152 |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 147,023 | 106,382 |
Short-term borrowings | 0 | 0 |
Obligation to return securities received as collateral | 0 | 0 |
Long-term debt | 543,463 | 480,069 |
Level 3 | Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 103,643 | 58,301 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 4,275 | 4,487 |
Level 3 | Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 25,090 | 7,490 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 767 | 340 |
Level 3 | Collateralized debt obligations and collateralized loan obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 20,952 | 20,081 |
Level 3 | U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 3 | Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 3 | Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 0 | 0 |
Level 3 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 16,970 | 17,740 |
Level 3 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 4,264 | 6,110 |
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 35 | 35 |
Level 3 | Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 41,903 | 42,563 |
Level 3 | Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 54,321 | 64,240 |
Level 3 | Derivative assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 23,244 | 14,889 |
Level 3 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 55,270 | 75,738 |
Level 3 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | 7,859 | 9,463 |
Level 3 | Derivative liabilities | ||
Financial instruments sold, not yet purchased: | ||
Total financial instruments sold, not yet purchased | $ 134,087 | $ 92,057 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 890,137 | $ 570,310 | ||
Unfunded Commitments | 11,823 | 12,108 | ||
Equity Long/Short Hedge Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 303,941 | 291,593 | ||
Unfunded Commitments | $ 0 | $ 0 | ||
Percentage of redeemable investments | 6.00% | 6.00% | ||
Notice period redemption of investment prior written notice period | 60 days | 60 days | ||
Equity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 28,777 | $ 27,952 | ||
Unfunded Commitments | $ 11,823 | 12,108 | ||
Expected period for the liquidation of the underlying assets, minimum | 1 year | |||
Expected period for the liquidation of the underlying assets, maximum | 9 years | |||
Commodity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 14,650 | 16,025 | ||
Unfunded Commitments | $ 0 | 0 | ||
Notice period redemption of investment prior written notice period | 60 days | 60 days | ||
Multi-asset Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 542,609 | 234,583 | ||
Unfunded Commitments | $ 0 | $ 0 | ||
Percentage of redeemable investments | 2.00% | 5.00% | ||
Notice period redemption of investment prior written notice period | 30 days | 30 days | ||
Other Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 160 | $ 157 | ||
Unfunded Commitments | $ 0 | $ 0 |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 Rollforwards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Assets: | ||
Total gains/losses (realized and unrealized) | $ (37,900) | $ (4,500) |
Liabilities: | ||
Total gains/losses (realized and unrealized) | (26,400) | (22,500) |
Corporate equity securities | ||
Assets: | ||
Beginning Balance | 58,301 | 51,040 |
Total gains/losses (realized and unrealized) | (8,195) | 4,830 |
Purchases | 2,792 | 1,410 |
Sales | (1,934) | (2,411) |
Settlements | 0 | (66) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 52,679 | (37) |
Ending Balance | 103,643 | 54,766 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (8,206) | 4,945 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Liabilities: | ||
Beginning Balance | 4,487 | 0 |
Total gains/losses (realized and unrealized) | 291 | (2) |
Purchases | (513) | 0 |
Sales | 0 | 80 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 10 | 0 |
Ending Balance | 4,275 | 78 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 65 | 2 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Corporate debt securities | ||
Assets: | ||
Beginning Balance | 7,490 | 9,484 |
Total gains/losses (realized and unrealized) | 1,269 | 466 |
Purchases | 1,478 | 3,568 |
Sales | (503) | (3,233) |
Settlements | (601) | (834) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 15,957 | 1,479 |
Ending Balance | 25,090 | 10,930 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 879 | 498 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Liabilities: | ||
Beginning Balance | 340 | 522 |
Total gains/losses (realized and unrealized) | (189) | (241) |
Purchases | (13,832) | 0 |
Sales | 14,079 | 0 |
Settlements | 369 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 449 |
Ending Balance | 767 | 730 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (35) | 241 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
CDOs and CLOs | ||
Assets: | ||
Beginning Balance | 20,081 | 25,815 |
Total gains/losses (realized and unrealized) | (2,069) | (8,153) |
Purchases | 17,594 | 49,201 |
Sales | (17,833) | (32,759) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 3,179 | (1,538) |
Ending Balance | 20,952 | 32,566 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (1,823) | (3,814) |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
RMBS | ||
Assets: | ||
Beginning Balance | 17,740 | 19,603 |
Total gains/losses (realized and unrealized) | (280) | 462 |
Purchases | 0 | 975 |
Sales | 0 | 0 |
Settlements | (3) | (27) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | (487) | (50) |
Ending Balance | 16,970 | 20,963 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (250) | 494 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
CMBS | ||
Assets: | ||
Beginning Balance | 6,110 | 10,886 |
Total gains/losses (realized and unrealized) | (306) | 136 |
Purchases | 0 | 12 |
Sales | 0 | 0 |
Settlements | (1,401) | (41) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | (139) | 1,827 |
Ending Balance | 4,264 | 12,820 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 571 | 96 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Liabilities: | ||
Beginning Balance | 35 | 0 |
Total gains/losses (realized and unrealized) | 0 | 70 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 |
Ending Balance | 35 | 70 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 0 | (70) |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Other ABS | ||
Assets: | ||
Beginning Balance | 42,563 | 53,175 |
Total gains/losses (realized and unrealized) | (4,159) | (2,290) |
Purchases | 81,323 | 29,195 |
Sales | (72,032) | (30,060) |
Settlements | (1,974) | (12,320) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | (3,818) | (1,814) |
Ending Balance | 41,903 | 35,886 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (3,797) | (1,763) |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Loans and other receivables | ||
Assets: | ||
Beginning Balance | 64,240 | 46,985 |
Total gains/losses (realized and unrealized) | (3,781) | 814 |
Purchases | 12,940 | 40,061 |
Sales | (13,042) | (27,142) |
Settlements | (7,087) | (1,990) |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 1,051 | 19,323 |
Ending Balance | 54,321 | 78,051 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (5,109) | 130 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Investments at fair value | ||
Assets: | ||
Beginning Balance | 75,738 | 113,831 |
Total gains/losses (realized and unrealized) | (20,392) | (786) |
Purchases | 0 | 27,767 |
Sales | (76) | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 |
Ending Balance | 55,270 | 140,812 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (20,392) | (786) |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Securities purchased under agreements to resell | ||
Assets: | ||
Beginning Balance | 25,000 | |
Total gains/losses (realized and unrealized) | 0 | |
Purchases | 0 | |
Sales | 0 | |
Settlements | (25,000) | |
Issuances | 0 | |
Net transfers into/ (out of) Level 3 | 0 | |
Ending Balance | 0 | |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 0 | |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | |
Loans | ||
Liabilities: | ||
Beginning Balance | 9,463 | 6,376 |
Total gains/losses (realized and unrealized) | 1 | (229) |
Purchases | (9,872) | (1,411) |
Sales | 2,781 | 504 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 5,486 | (1,820) |
Ending Balance | 7,859 | 3,420 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (1) | 338 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Net derivatives | ||
Liabilities: | ||
Beginning Balance | 77,168 | 21,614 |
Total gains/losses (realized and unrealized) | (17,528) | (5,348) |
Purchases | (278) | (2,804) |
Sales | 5,627 | 3,084 |
Settlements | 192 | 169 |
Issuances | 0 | 0 |
Net transfers into/ (out of) Level 3 | 45,662 | 12,260 |
Ending Balance | 110,843 | 28,975 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | 17,460 | 3,333 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | 0 | 0 |
Long-term debt | ||
Liabilities: | ||
Beginning Balance | 480,069 | 200,745 |
Total gains/losses (realized and unrealized) | (9,016) | (16,701) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (5,665) |
Issuances | 128,475 | 92,016 |
Net transfers into/ (out of) Level 3 | (56,065) | |
Ending Balance | 543,463 | 283,139 |
For instruments still held, changes in unrealized gains/(losses) included in Earnings | (5,590) | 4,045 |
For instruments still held, changes in unrealized gains/(losses) included in Other comprehensive income | $ 14,606 | $ 12,656 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | $ 85,300 | $ 60,400 | |
Transfers of assets from Level 3 to Level 2 | 16,800 | 41,200 | |
Transfers of liabilities from Level 2 to Level 3 | 102,500 | 36,600 | |
Transfers of liabilities from Level 3 to Level 2 | 107,400 | 12,900 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (37,900) | (4,500) | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 26,400 | 22,500 | |
Aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due | 230,200 | $ 127,000 | |
Loans and other receivables greater than 90 days past due | 35,400 | 24,800 | |
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 742,134 | 796,797 | |
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) | (20,392) | (786) | |
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 | 6,000 | 25,800 | |
Transfers of assets from Level 3 to Level 2 | 4,900 | 6,500 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (3,781) | 814 | |
Corporate equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 55,400 | ||
Transfers of assets from Level 3 to Level 2 | 2,700 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (8,195) | 4,830 | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | (291) | 2 | |
Corporate debt securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 16,500 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | 1,269 | 466 | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 189 | 241 | |
Net derivatives | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 83,000 | 13,900 | |
Transfers of liabilities from Level 3 to Level 2 | 37,300 | ||
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 17,528 | 5,348 | |
Structured Notes | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 13,100 | 22,200 | |
Transfers of liabilities from Level 3 to Level 2 | 69,100 | 9,400 | |
CMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (306) | 136 | |
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 0 | (70) | |
CDOs and CLOs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 14,100 | ||
Transfers of assets from Level 3 to Level 2 | 15,700 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (2,069) | (8,153) | |
Other ABS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 10,800 | ||
Transfers of assets from Level 3 to Level 2 | 6,300 | 12,600 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (4,159) | (2,290) | |
RMBS | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (280) | 462 | |
Long-term debt | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 12,744 | ||
Net gains/(losses) on Level 3 liabilities (realized and unrealized) | 9,016 | $ 16,701 | |
US Treasury Securities | |||
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 | $ 331,500 | $ 35,000 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2020$ / shares | Nov. 30, 2019$ / shares | Feb. 29, 2020€ / shares | Feb. 29, 2020 | Feb. 29, 2020USD ($) | Nov. 30, 2019€ / shares | Nov. 30, 2019 | Nov. 30, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | $ 17,007,249 | $ 15,793,064 | ||||||
Securities purchased under agreements to resell | 25,000 | |||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 9,877,182 | 10,532,460 | ||||||
Long-term debt | 1,354,714 | 1,215,285 | ||||||
Value of asset excluded from significant unobservable inputs | 54,000 | 31,900 | ||||||
Value of liability excluded from significant unobservable inputs | 3,600 | 400 | ||||||
Corporate debt securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,866,112 | 2,479,703 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 1,773,257 | 1,471,482 | ||||||
Corporate debt securities | Scenario analysis | Volatility | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.44 | |||||||
CDOs and CLOs | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 118,277 | 144,306 | ||||||
RMBS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 1,097,665 | 1,086,806 | ||||||
CMBS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 445,933 | 430,170 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 35 | 35 | ||||||
Other ABS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 301,912 | 346,410 | ||||||
Loans and other receivables | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 2,705,430 | 2,459,451 | ||||||
Corporate equity securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 3,604,461 | 2,601,820 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 2,132,054 | 2,767,526 | ||||||
Loans | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 1,820,886 | 1,609,691 | ||||||
Level 3 | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 345,657 | 307,152 | ||||||
Derivative assets | 13,826 | |||||||
Securities purchased under agreements to resell | 25,000 | |||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 147,023 | 106,382 | ||||||
Derivative liability | 134,087 | 92,057 | ||||||
Long-term debt | 543,463 | 480,069 | ||||||
Level 3 | Non-exchange-traded securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 78,543 | 29,017 | ||||||
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 | $ / shares | 1 | 1 | ||||||
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 | $ / shares | 213 | 140 | ||||||
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 | $ / shares | 105 | 55 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | Underlying stock price | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 3 | 3 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | Underlying stock price | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 5 | 5 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | Underlying stock price | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 4 | 4 | ||||||
Level 3 | Corporate debt securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 25,090 | 7,490 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 767 | 340 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | Underlying stock price | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 0.4 | |||||||
Level 3 | Corporate debt securities | Scenario analysis | Estimated recovery percentage | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.22 | 0.23 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | Estimated recovery percentage | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.85 | 0.85 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | Estimated recovery percentage | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.41 | 0.46 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | Credit Spread | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 750 | |||||||
Level 3 | Corporate debt securities | Market approach | Price | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | € / shares | 69 | |||||||
Level 3 | Corporate debt securities | Market approach | Price | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | € / shares | 78 | |||||||
Level 3 | Corporate debt securities | Market approach | Price | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 69 | |||||||
Level 3 | CDOs and CLOs | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 20,952 | 20,081 | ||||||
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 | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.01 | 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 | 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 | 0.02 | ||||||
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 | 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 | 0.70 | 0.37 | ||||||
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 | 0.28 | 0.29 | ||||||
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 | 0.13 | 0.12 | ||||||
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 | 0.30 | 0.21 | ||||||
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 | 0.17 | 0.15 | ||||||
Level 3 | RMBS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 16,970 | 17,740 | ||||||
Level 3 | RMBS | Discounted cash flows | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.03 | |||||||
Financial instruments owned, measurement input, term | 6 years | 6 years 3 months 18 days | ||||||
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 | 0.03 | |||||||
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 | 0.02 | 0.02 | ||||||
Level 3 | CMBS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 4,264 | 6,110 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 35 | 35 | ||||||
Level 3 | CMBS | Discounted cash flows | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.85 | |||||||
Financial instruments owned, measurement input, term | 2 months 12 days | |||||||
Level 3 | CMBS | Discounted cash flows | Cumulative loss rate | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | 0.073 | |||||||
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 | 0.44 | 0.44 | ||||||
Level 3 | Other ABS | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 41,903 | 42,563 | ||||||
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 | 6 months | 6 months | ||||||
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 | 2 years 9 months 18 days | 3 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, term | 1 year 7 months 6 days | 1 year 6 months | ||||||
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 | 0.07 | 0.07 | ||||||
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 | 0.14 | 0.15 | ||||||
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 | 0.11 | 0.11 | ||||||
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 | 0.07 | 0.07 | ||||||
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 | 0.31 | 0.31 | ||||||
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 | 0.14 | 0.16 | ||||||
Level 3 | Other ABS | Market approach | Price | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 100 | |||||||
Level 3 | Loans and other receivables | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 54,321 | 64,240 | ||||||
Level 3 | Loans and other receivables | Market Approach and Scenario Analysis | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 52,815 | 62,734 | ||||||
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 | 0.63 | 0.87 | ||||||
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 | 1.04 | ||||||
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 | 0.79 | 0.99 | ||||||
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 | $ / shares | 29 | 36 | ||||||
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 | $ / shares | 101 | 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 | $ / shares | 89 | 90 | ||||||
Level 3 | Interest rate swaps | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative assets | 22,216 | |||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative asset, measurement input | 0 | |||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative asset, measurement input | 0 | |||||||
Derivative liability, measurement input | 0 | 0 | ||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative asset, measurement input | 12 | 16 | ||||||
Derivative liability, measurement input | 18 | 22 | ||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative asset, measurement input | 6 | 6 | ||||||
Derivative liability, measurement input | 9 | 13 | ||||||
Level 3 | Equity options | Volatility benchmarking | Volatility | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative liability, measurement input | 0.45 | |||||||
Level 3 | Equity options | Volatility benchmarking | Volatility | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative liability, measurement input | 0.21 | 0.21 | ||||||
Level 3 | Equity options | Volatility benchmarking | Volatility | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative liability, measurement input | 0.60 | 0.61 | ||||||
Level 3 | Equity options | Volatility benchmarking | Volatility | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative liability, measurement input | 0.42 | 0.43 | ||||||
Level 3 | Cross currency swaps | Market approach | Basis points upfront | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Derivative liability, measurement input | 2 | 2 | ||||||
Level 3 | Unfunded commitments | Market approach | Price | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 88 | |||||||
Derivative liability, measurement input | $ / shares | 83 | 88 | ||||||
Level 3 | Private equity securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 28,927 | 75,736 | ||||||
Level 3 | Private equity securities | Market approach | Price | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 8 | 8 | ||||||
Level 3 | Private equity securities | Market approach | Price | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 168 | 250 | ||||||
Level 3 | Private equity securities | Market approach | Price | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, measurement input | $ / shares | 132 | 125 | ||||||
Level 3 | Securities purchased under agreements to resell | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Securities purchased under agreements to resell | 25,000 | |||||||
Level 3 | Securities purchased under agreements to resell | Market approach | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Securities purchased under agreements to resell, measurement input, term | 1 year 6 months | |||||||
Level 3 | Securities purchased under agreements to resell | Market approach | Spread to 6 month LIBOR | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Securities purchased under agreements to resell, measurement input | 500 | |||||||
Level 3 | Corporate equity securities | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments owned, excluding Investments at fair value based on NAV | 103,643 | 58,301 | ||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 4,275 | 4,487 | ||||||
Level 3 | Corporate equity securities | Market approach | Transaction level | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | $ / shares | 1 | |||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 1 | |||||||
Level 3 | Loans | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 7,859 | 9,463 | ||||||
Level 3 | Loans | Market Approach and Scenario Analysis | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 5,074 | |||||||
Level 3 | Loans | Scenario analysis | Estimated recovery percentage | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | 0.63 | 0.01 | ||||||
Level 3 | Loans | Market approach | Price | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | $ / shares | 50 | |||||||
Level 3 | Loans | Market approach | Price | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | $ / shares | 50 | |||||||
Level 3 | Loans | Market approach | Price | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | $ / shares | 100 | |||||||
Level 3 | Loans | Market approach | Price | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Debt instrument, measurement input | $ / shares | 88 | |||||||
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 ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | $ 480,069 | |||||||
Long-term debt | $ 543,463 | |||||||
Level 3 | Long-term debt | Market approach | Price | Minimum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Long-term debt, measurement input | 90 | 84 | 72 | 74 | ||||
Level 3 | Long-term debt | Market approach | Price | Maximum | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Long-term debt, measurement input | 102 | 108 | 105 | 103 | ||||
Level 3 | Long-term debt | Market approach | Price | Weighted Average | ||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||
Long-term debt, measurement input | 94 | 96 | 91 | 91 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk for Loans and Other Receivables and Loan Commitments Measured at Fair Value under Fair Value Option (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Financial instruments owned: | ||
Loans and other receivables | $ 1,739 | $ (7,335) |
Long-term debt | ||
Financial instruments sold, not yet purchased and Long-term debt | ||
Changes in instrument specific credit risk | 29,432 | 23,483 |
Other changes in fair value | (37,642) | (10,643) |
Short-term borrowings | ||
Financial instruments sold, not yet purchased and Long-term debt | ||
Changes in instrument specific credit risk | 57 | 0 |
Other changes in fair value | 12 | 0 |
Loans | ||
Financial instruments sold, not yet purchased and Long-term debt | ||
Changes in instrument specific credit risk | (610) | 0 |
Loan commitments | ||
Financial instruments sold, not yet purchased and Long-term debt | ||
Changes in instrument specific credit risk | $ (661) | $ 79 |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value under Fair Value Option (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Financial instruments owned: | ||
Loans and other receivables | $ 1,551,028 | $ 1,546,516 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 267,678 | 197,215 |
Long-term debt and short-term borrowings | 72,301 | 74,408 |
Loans and other receivables 90 days or greater past due | $ 29,100 | $ 22,200 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Details) $ in Thousands | Feb. 29, 2020USD ($)Contract | Nov. 30, 2019USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net amounts per Consolidated Statements of Financial Condition, Assets | $ 597,609 | $ 397,551 |
Net amounts per Consolidated Statements of Financial Condition, Liabilities | 695,407 | 527,205 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 862,364 | 718,685 |
Fair Value, Liabilities | 1,091,945 | 962,638 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (802,389) | (688,871) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (802,389) | (688,871) |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 1,004,990 | 244,401 |
Fair Value, Liabilities | 1,062,273 | 290,201 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (967,250) | (222,869) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (982,561) | (266,900) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 1,447,697 | 867,271 |
Fair Value, Liabilities | 1,390,361 | 906,153 |
Amounts offset in the Consolidated Statements of Financial Condition, Assets | (947,803) | (521,066) |
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities | (1,064,222) | (676,016) |
Derivatives designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | 49,445 | 28,663 |
Fair Value, Liabilities | 0 | 0 |
Derivatives designated as accounting hedges | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 49,445 | $ 28,663 |
Number of Contracts, Assets | Contract | 1 | 1 |
Fair Value, Liabilities | $ 0 | $ 0 |
Number of Contracts, Liabilities | Contract | 0 | 0 |
Derivatives not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 3,265,606 | $ 1,801,694 |
Fair Value, Liabilities | 3,544,579 | 2,158,992 |
Derivatives not designated as accounting hedges | Interest rate contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 578 | $ 1,191 |
Number of Contracts, Assets | Contract | 57,570 | 65,226 |
Fair Value, Liabilities | $ 33 | $ 103 |
Number of Contracts, Liabilities | Contract | 51,180 | 38,464 |
Derivatives not designated as accounting hedges | Interest rate contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 951,325 | $ 213,224 |
Number of Contracts, Assets | Contract | 3,785 | 3,329 |
Fair Value, Liabilities | $ 1,058,707 | $ 284,433 |
Number of Contracts, Liabilities | Contract | 4,150 | 3,443 |
Derivatives not designated as accounting hedges | Interest rate contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 596,520 | $ 421,700 |
Number of Contracts, Assets | Contract | 1,770 | 1,325 |
Fair Value, Liabilities | $ 280,336 | $ 258,857 |
Number of Contracts, Liabilities | Contract | 460 | 738 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 0 |
Number of Contracts, Assets | Contract | 619 | 256 |
Fair Value, Liabilities | $ 0 | $ 0 |
Number of Contracts, Liabilities | Contract | 1,205 | 199 |
Derivatives not designated as accounting hedges | Foreign exchange contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 389,074 | $ 190,570 |
Number of Contracts, Assets | Contract | 17,047 | 9,255 |
Fair Value, Liabilities | $ 389,737 | $ 187,836 |
Number of Contracts, Liabilities | Contract | 16,211 | 9,187 |
Derivatives not designated as accounting hedges | Equity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 861,786 | $ 717,494 |
Number of Contracts, Assets | Contract | 1,441,642 | 1,714,538 |
Fair Value, Liabilities | $ 1,091,912 | $ 962,535 |
Number of Contracts, Liabilities | Contract | 1,181,907 | 1,481,388 |
Derivatives not designated as accounting hedges | Equity contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 449,287 | $ 248,720 |
Number of Contracts, Assets | Contract | 3,716 | 4,731 |
Fair Value, Liabilities | $ 706,813 | $ 445,241 |
Number of Contracts, Liabilities | Contract | 3,740 | 4,271 |
Derivatives not designated as accounting hedges | Commodity contracts | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 0 |
Number of Contracts, Assets | Contract | 10,866 | 5,524 |
Fair Value, Liabilities | $ 0 | $ 0 |
Number of Contracts, Liabilities | Contract | 10,134 | 4,646 |
Derivatives not designated as accounting hedges | Credit contracts | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 4,220 | $ 2,514 |
Number of Contracts, Assets | Contract | 39 | 13 |
Fair Value, Liabilities | $ 3,566 | $ 5,768 |
Number of Contracts, Liabilities | Contract | 23 | 12 |
Derivatives not designated as accounting hedges | Credit contracts | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 12,816 | $ 6,281 |
Number of Contracts, Assets | Contract | 14 | 25 |
Fair Value, Liabilities | $ 13,475 | $ 14,219 |
Number of Contracts, Liabilities | Contract | 12 | 28 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in interest expense on fair value hedge | $ (402) | $ (969) |
Unrealized and realized gains (losses) | 128,657 | (91,901) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (1,089) | (69,831) |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (2,900) | (176) |
Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | 136,888 | (28,481) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (6,072) | 2,492 |
Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | 1,830 | 4,095 |
Long-term debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in interest expense on fair value hedge | (24,867) | (15,556) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in interest expense on fair value hedge | $ 24,465 | $ 14,587 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | $ 344,638 |
OTC derivative assets having maturity period of 1 to 5 years | 259,023 |
OTC derivative assets having maturity period of greater than 5 years | 243,819 |
OTC derivative assets cross-maturity netting | (68,677) |
Total OTC derivative assets, net of cross-maturity netting | 778,803 |
Cross product counterparty netting | (15,399) |
Total OTC derivative assets included in Financial instruments owned | 763,404 |
OTC derivative liabilities having maturity period of 0 to 12 months | 291,421 |
OTC derivative liabilities having maturity period of 1 to 5 years | 376,062 |
OTC derivative liabilities having maturity period of greater than 5 years | 191,973 |
OTC derivative liabilities cross-maturity netting | (68,677) |
Total OTC derivative liabilities, net of cross-maturity netting | 790,779 |
Cross product counterparty netting | (15,399) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased | 775,380 |
Exchange traded derivative assets, with fair value | 74,500 |
Cash collateral received | 240,300 |
Exchange traded derivative liabilities, with fair value | 292,100 |
Cash collateral pledged | 372,100 |
Equity forwards, swaps and options | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 28,521 |
OTC derivative assets having maturity period of 1 to 5 years | 7,516 |
OTC derivative assets having maturity period of greater than 5 years | 6,959 |
OTC derivative assets cross-maturity netting | (12,901) |
Total OTC derivative assets, net of cross-maturity netting | 30,095 |
OTC derivative liabilities having maturity period of 0 to 12 months | 35,005 |
OTC derivative liabilities having maturity period of 1 to 5 years | 193,428 |
OTC derivative liabilities having maturity period of greater than 5 years | 80,442 |
OTC derivative liabilities cross-maturity netting | (12,901) |
Total OTC derivative liabilities, net of cross-maturity netting | 295,974 |
Credit default swaps | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 31 |
OTC derivative assets having maturity period of 1 to 5 years | 4,079 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (38) |
Total OTC derivative assets, net of cross-maturity netting | 4,072 |
OTC derivative liabilities having maturity period of 0 to 12 months | 1,401 |
OTC derivative liabilities having maturity period of 1 to 5 years | 2,539 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (38) |
Total OTC derivative liabilities, net of cross-maturity netting | 3,902 |
Total return swaps | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 160,829 |
OTC derivative assets having maturity period of 1 to 5 years | 37,825 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (11,543) |
Total OTC derivative assets, net of cross-maturity netting | 187,111 |
OTC derivative liabilities having maturity period of 0 to 12 months | 140,657 |
OTC derivative liabilities having maturity period of 1 to 5 years | 71,668 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (11,543) |
Total OTC derivative liabilities, net of cross-maturity netting | 200,782 |
Foreign currency forwards, swaps and options | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 66,282 |
OTC derivative assets having maturity period of 1 to 5 years | 3,757 |
OTC derivative assets having maturity period of greater than 5 years | 3 |
OTC derivative assets cross-maturity netting | (3,005) |
Total OTC derivative assets, net of cross-maturity netting | 67,037 |
OTC derivative liabilities having maturity period of 0 to 12 months | 67,858 |
OTC derivative liabilities having maturity period of 1 to 5 years | 2,861 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (3,005) |
Total OTC derivative liabilities, net of cross-maturity netting | 67,714 |
Fixed income forwards | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 8,847 |
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 | 8,847 |
OTC derivative liabilities having maturity period of 0 to 12 months | 581 |
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 | 581 |
Interest rate swaps, options and forwards | |
Derivative [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 80,128 |
OTC derivative assets having maturity period of 1 to 5 years | 205,846 |
OTC derivative assets having maturity period of greater than 5 years | 236,857 |
OTC derivative assets cross-maturity netting | (41,190) |
Total OTC derivative assets, net of cross-maturity netting | 481,641 |
OTC derivative liabilities having maturity period of 0 to 12 months | 45,919 |
OTC derivative liabilities having maturity period of 1 to 5 years | 105,566 |
OTC derivative liabilities having maturity period of greater than 5 years | 111,531 |
OTC derivative liabilities cross-maturity netting | (41,190) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 221,826 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 221,812 |
BBB- to BBB | 49,721 |
BB or lower | 295,398 |
Unrated | 196,473 |
Total OTC derivative assets included in Financial instruments owned | $ 763,404 |
Derivative Financial Instrume_7
Derivative Financial Instruments - External Credit Ratings of Underlyings or Referenced Assets (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 293 | $ 35 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 25.7 | 33.9 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 2 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 17.8 | 3.4 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 291 | 32 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 7.9 | 29 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | 0 | |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 1.5 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Contingent Features (Detail) - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 168.1 | $ 42.9 |
Collateral posted | (87.3) | (3.1) |
Collateral received | 162.1 | 114.1 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) | $ 242.9 | $ 154 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,891,912 | $ 1,525,140 |
Repurchase Agreements | 18,222,566 | 18,756,917 |
Obligation To Return Securities Received As Collateral | 15,004 | 9,500 |
Total | 20,129,482 | 20,291,557 |
Corporate equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,682,285 | 1,314,395 |
Repurchase Agreements | 328,156 | 129,558 |
Obligation To Return Securities Received As Collateral | 5,096 | 0 |
Total | 2,015,537 | 1,443,953 |
Corporate debt securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 203,091 | 191,311 |
Repurchase Agreements | 2,031,185 | 1,730,526 |
Obligation To Return Securities Received As Collateral | 0 | 0 |
Total | 2,234,276 | 1,921,837 |
Mortgage-backed and asset-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 1,558,094 | 1,745,145 |
Obligation To Return Securities Received As Collateral | 0 | 0 |
Total | 1,558,094 | 1,745,145 |
U.S. government and federal agency securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 6,536 | 19,434 |
Repurchase Agreements | 10,239,853 | 10,863,997 |
Obligation To Return Securities Received As Collateral | 9,908 | 9,500 |
Total | 10,256,297 | 10,892,931 |
Municipal securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 234,681 | 498,202 |
Obligation To Return Securities Received As Collateral | 0 | 0 |
Total | 234,681 | 498,202 |
Sovereign obligations | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 2,640,873 | 3,016,563 |
Obligation To Return Securities Received As Collateral | 0 | 0 |
Total | 2,640,873 | 3,016,563 |
Loans and other receivables | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 1,189,724 | 772,926 |
Obligation To Return Securities Received As Collateral | 0 | 0 |
Total | $ 1,189,724 | $ 772,926 |
Collateralized Transactions -_2
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,891,912 | $ 1,525,140 |
Repurchase Agreements | 18,222,566 | 18,756,917 |
Obligation to return securities received as collateral | 15,004 | 9,500 |
Total | 20,129,482 | 20,291,557 |
Overnight and Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 629,013 | 694,821 |
Repurchase Agreements | 8,025,139 | 6,614,026 |
Obligation to return securities received as collateral | 5,096 | 0 |
Total | 8,659,248 | 7,308,847 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 83,922 | 0 |
Repurchase Agreements | 2,123,300 | 1,556,260 |
Obligation to return securities received as collateral | 0 | 0 |
Total | 2,207,222 | 1,556,260 |
31-90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,019,736 | 672,969 |
Repurchase Agreements | 5,978,361 | 8,988,528 |
Obligation to return securities received as collateral | 9,908 | 9,500 |
Total | 7,008,005 | 9,670,997 |
Greater than 90 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 159,241 | 157,350 |
Repurchase Agreements | 2,095,766 | 1,598,103 |
Obligation to return securities received as collateral | 0 | 0 |
Total | $ 2,255,007 | $ 1,755,453 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Banking and Thrift [Abstract] | ||
Fair value of securities received as collateral | $ 27,600,000 | $ 28,700,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 742,134 | $ 796,797 |
Collateralized Transactions - S
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Securities borrowing arrangements | ||
Gross Amounts | $ 6,708,788 | $ 7,624,642 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 6,708,788 | 7,624,642 |
Additional Amounts Available for Setoff | (418,602) | (361,394) |
Available Collateral | (1,250,215) | (1,479,433) |
Net Amount | 5,039,971 | 5,783,815 |
Reverse repurchase agreements | ||
Gross Amounts | 14,723,575 | 15,551,845 |
Netting in Consolidated Statement of Financial Condition | (9,816,544) | (11,252,247) |
Net Amounts in Consolidated Statement of Financial Condition | 4,907,031 | 4,299,598 |
Additional Amounts Available for Setoff | (617,398) | (291,316) |
Available Collateral | (4,260,370) | (3,929,977) |
Net Amount | 29,263 | 78,305 |
Securities received as collateral | 15,004 | 9,500 |
Securities lending arrangements | ||
Gross Amounts | 1,891,912 | 1,525,140 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 1,891,912 | 1,525,140 |
Additional Amounts Available for Setoff | (418,602) | (361,394) |
Available Collateral | (1,437,709) | (970,799) |
Net Amount | 35,601 | 192,947 |
Repurchase agreements | ||
Gross Amounts | 18,222,566 | 18,756,917 |
Netting in Consolidated Statement of Financial Condition | (9,816,544) | (11,252,247) |
Net Amounts in Consolidated Statement of Financial Condition | 8,406,022 | 7,504,670 |
Additional Amounts Available for Setoff | (617,398) | (291,316) |
Available Collateral | (7,192,406) | (6,663,807) |
Net Amount | 596,218 | 549,547 |
Obligation to return securities received as collateral | 15,004 | 9,500 |
Securities borrowing arrangements | 4,981,100 | 5,683,400 |
Securities borrowing arrangements, collateral | 4,841,000 | 5,523,600 |
Securities borrowing arrangements, repurchase agreements | 551,100 | 439,700 |
Securities borrowing arrangements, repurchase agreements, pledged securities collateral | $ 563,400 | $ 447,500 |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Transfers and Servicing [Abstract] | ||
Transferred assets | $ 2,334.6 | $ 1,260.6 |
Proceeds on new securitizations | 2,334.7 | 1,331.2 |
Cash flows received on retained interests | $ 7 | $ 14.8 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total RMBS securitization assets | $ 6,213.7 | $ 10,671.7 |
Total CMBS securitization assets | 2,934.9 | 1,374.8 |
Total Collateralized loan obligations | 2,871.2 | 3,006.7 |
Consumer and other loans | 1,108.4 | 1,149.3 |
U.S. government agency RMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 46 | 103.3 |
U.S. government agency CMBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 65.5 | 45.8 |
CLOs | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | 48.8 | 58.4 |
Consumer and other loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Retained Interests | $ 70.8 | $ 71.8 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Details) - USD ($) $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 |
Variable Interest Entity [Line Items] | ||
Assets | $ 46,202,597 | $ 43,516,115 |
Liabilities | 39,870,148 | 37,386,368 |
VIEs, primary beneficiary | Securities purchased under agreement to resell | ||
Variable Interest Entity [Line Items] | ||
VIE assets, not eliminated in consolidation | 115,400 | |
VIEs, primary beneficiary | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
VIE liabilities, eliminated in consolidation | 200 | 200 |
VIEs, primary beneficiary | Secured Funding Vehicles | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,166,900 | 2,467,300 |
Liabilities | 2,166,900 | 2,467,300 |
VIEs, primary beneficiary | Secured Funding Vehicles | Cash | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
VIEs, primary beneficiary | Secured Funding Vehicles | Financial instruments owned | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
VIEs, primary beneficiary | Secured Funding Vehicles | Securities purchased under agreement to resell | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,166,900 | 2,467,300 |
VIEs, primary beneficiary | Secured Funding Vehicles | Receivable from brokers | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
VIEs, primary beneficiary | Secured Funding Vehicles | Financial instruments sold, not yet purchased | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | |
VIEs, primary beneficiary | Secured Funding Vehicles | Other secured financings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 2,165,500 | 2,465,800 |
VIEs, primary beneficiary | Secured Funding Vehicles | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 1,400 | 1,500 |
VIEs, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Assets | 21,300 | 1,500 |
Liabilities | 4,500 | 200 |
VIEs, primary beneficiary | Other | Cash | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,200 | 1,200 |
VIEs, primary beneficiary | Other | Financial instruments owned | ||
Variable Interest Entity [Line Items] | ||
Assets | 3,900 | 300 |
VIEs, primary beneficiary | Other | Securities purchased under agreement to resell | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 0 |
VIEs, primary beneficiary | Other | Receivable from brokers | ||
Variable Interest Entity [Line Items] | ||
Assets | 16,200 | 0 |
VIEs, primary beneficiary | Other | Financial instruments sold, not yet purchased | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 4,200 | |
VIEs, primary beneficiary | Other | Other secured financings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 0 | 0 |
VIEs, primary beneficiary | Other | Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 300 | $ 200 |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Details) - Nonconsolidated VIEs - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | $ 1,104.5 | $ 938 |
Carrying Amount, Liabilities | 0.6 | 0.6 |
Maximum Exposure to Loss | 1,298.1 | 1,442.1 |
VIE Assets | 17,135 | 16,373.9 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 70.2 | 152.6 |
Carrying Amount, Liabilities | 0.6 | 0.6 |
Maximum Exposure to Loss | 117.5 | 505.3 |
VIE Assets | 6,631 | 7,845 |
Consumer loan and other asset-backed vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 279.8 | 358.3 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 407.8 | 490.6 |
VIE Assets | 2,596.7 | 2,354.8 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 23.8 | 23 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 34.9 | 34.3 |
VIE Assets | 67 | 71.4 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount, Assets | 730.7 | 404.1 |
Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 737.9 | 411.9 |
VIE Assets | $ 7,840.3 | $ 6,102.7 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Related party private equity vehicles | JCP Entities | ||
Variable Interest Entity [Line Items] | ||
Equity investments | $ 133 | $ 133 |
Funded equity commitments | 121.9 | 121.7 |
Carrying amount of equity investment | 23.8 | 23 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity investments | 698.5 | 398.6 |
Funded equity commitments | 691.1 | 390.8 |
Carrying amount of equity investment | 730.7 | 404.1 |
Agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 1,487 | 1,453.5 |
Non-agency mortgage and other asset-backed securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 130.3 | $ 134.8 |
Investments - Additional Inform
Investments - Additional Information (Details) | Feb. 29, 2020 |
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 | 49.00% |
Investments - Jefferies Finance
Investments - Jefferies Finance - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Nov. 30, 2019 | |
Guarantee Obligations [Line Items] | ||
Financial instruments owned, at fair value | $ 17,897,386 | $ 16,363,374 |
Payables-brokers, dealers and clearing organizations | 4,186,467 | 2,555,178 |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 9,877,182 | 10,532,460 |
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 | 652,400 | |
Unfunded portion of equity commitment to subsidiary | $ 97,600 | |
Extension period | 1 year | |
Termination notice period | 60 days | |
Funded portion of loan commitment | $ 0 | |
Loan commitment | 250,000 | |
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 | 18,300 | 17,200 |
Jefferies Finance, LLC | Accrued expense and other liabilities | ||
Guarantee Obligations [Line Items] | ||
Payables under service agreement | (13,700) | (13,700) |
Jefferies Finance, LLC | Payables to customers | ||
Guarantee Obligations [Line Items] | ||
Payables under service agreement | (8,500) | (17,600) |
Foreign exchange contracts | Jefferies Finance, LLC | ||
Guarantee Obligations [Line Items] | ||
Financial instruments owned, at fair value | 400 | |
Payables-brokers, dealers and clearing organizations | 4,700 | |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | $ 200 | |
Gain on derivatives | $ 1,400 |
Investments - Summary of Select
Investments - Summary of Selected Financial Information for Jefferies Finance (Details) - Jefferies Finance, LLC - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Interest income | $ 0.8 | $ 0 | |
Unfunded commitment fees | 0.3 | 0.3 | |
Our total equity balance | 652.4 | $ 642 | |
Net earnings (loss) | 20.7 | (2.4) | |
Origination and syndication fee revenues | 37.7 | 21.9 | |
Origination fee expenses | 5.6 | 5.4 | |
CLO placement fee revenues | 0.4 | 1.3 | |
Underwriting fees | 0.3 | 0 | |
Service fees | $ 25.2 | $ 27.1 |
Investments - Berkadia - Narrat
Investments - Berkadia - Narrative (Details) - Berkadia Commercial Mortgage, LLC - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | Oct. 01, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Percentage of profits received from joint venture | 45.00% | |||
Purchase commitment amount | $ 328.3 | $ 360.4 | ||
Distribution received from equity method investment | $ 36.2 | $ 17.3 |
Investments - Summary of Sele_2
Investments - Summary of Selected Financial Information for Berkadia (Details) - Berkadia Commercial Mortgage, LLC - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Our total equity balance | $ 255 | $ 268.9 | |
Net earnings | $ 48.7 | $ 50.3 |
Investments - JCP Fund V - Narr
Investments - JCP Fund V - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Financial instruments owned, at fair value | $ 17,897,386 | $ 16,363,374 |
JCP Fund V | ||
Schedule of Equity Method Investments [Line Items] | ||
Financial instruments owned, at fair value | 21,800 | 20,600 |
Equity investments | 85,000 | 85,000 |
Unfunded portion of equity commitment to subsidiary | $ 9,200 | $ 9,400 |
Percent of financial information presented | 100.00% | |
Ownership percentage | 34.50% |
Investments - Summary of Sele_3
Investments - Summary of Selected Financial Information for JCP Fund V (Details) - JCP Fund V - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 29, 2020 | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net gains (losses) from our investments in JCP Fund V | $ 1,500 | $ (3,200) | ||
Net decrease in net assets resulting from operations | $ (1,397) | $ (8,412) |
Investments - Epic Gas (Details
Investments - Epic Gas (Details) - Epic Gas - USD ($) $ in Millions | 3 Months Ended | ||
May 31, 2019 | Dec. 31, 2018 | Feb. 28, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 21.10% | ||
Proceeds from sale of Epic Gas | $ 24.6 | ||
Investment in Epic Gas | $ 22.1 | ||
Net earnings | $ 0.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Feb. 29, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 1,643,599 |
Translation adjustments | (685) |
Goodwill, Ending Balance | 1,642,914 |
Investment Banking and Capital Markets | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1,640,201 |
Goodwill, Ending Balance | 1,639,521 |
Asset Management | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 3,398 |
Goodwill, Ending Balance | $ 3,393 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Feb. 29, 2020 | Nov. 30, 2019 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Total gross costs - intangible assets | $ 262,284 | $ 262,599 | |
Accumulated amortization - finite lived intangible assets | (94,928) | (92,057) | |
Total net carrying amount - intangible assets | 167,356 | 170,542 | |
Exchange and clearing organization membership interests and registrations | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross costs - indefinite lived intangible assets | 8,269 | 8,273 | |
Net carrying amount - indefinite lived intangible assets | 8,269 | 8,273 | |
Customer relationships | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross costs - finite lived intangible assets | 125,604 | 125,736 | |
Accumulated amortization - finite lived intangible assets | (69,246) | (67,257) | |
Net carrying amount - finite lived intangible assets | 56,358 | 58,479 | |
Weighted average remaining lives (years) | 9 years 10 months 24 days | ||
Trade name | |||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross costs - finite lived intangible assets | 128,411 | 128,590 | |
Accumulated amortization - finite lived intangible assets | (25,682) | (24,800) | |
Net carrying amount - finite lived intangible assets | $ 102,729 | $ 103,790 | |
Weighted average remaining lives (years) | 28 years 3 months 18 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Aggregate amortization expense | $ 3,000 | $ 3,000 |
Estimated future amortization expense | ||
Remainder of fiscal 2020 | 9,148 | |
Year ending November 30, 2021 | 12,198 | |
Year ending November 30, 2022 | 9,256 | |
Year ending November 30, 2023 | 8,268 | |
Year ending November 30, 2024 | $ 8,266 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | 3 Months Ended | ||
Feb. 29, 2020 | Nov. 30, 2019 | Dec. 27, 2018 | |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 623,156,000 | $ 548,490,000 | |
Interest rate on short-term borrowings outstanding | 3.23% | ||
Equity-linked notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 20,164,000 | 20,981,000 | |
Intraday Credit Facility | Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Credit facility maximum borrowing capacity | $ 150,000,000 | ||
Debt instrument interest rate | 0.12% | ||
Intraday Credit Facility | Revolving Credit Facility | Base Rate | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Intraday Credit Facility | Revolving Credit Facility | Federal Funds Effective Rate | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Bank loans | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 602,992,000 | $ 527,509,000 | |
JPMORGAN CHASE BANK N.A. | Line of Credit [Member] | |||
Short-term Debt [Line Items] | |||
Credit facility maximum borrowing capacity | $ 296,000,000 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 7,163,612 | $ 7,003,358 | |
Loss associated with an interest rate swap based on its designation as a fair value hedge | 402 | $ 969 | |
Long-term debt | 1,354,714 | 1,215,285 | |
Level 2 and Level 3 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 7,615,500 | 7,280,400 | |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,924,363 | 6,764,270 | |
Unsecured Debt | 2.375% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.375% | ||
Effective Interest Rate | 2.42% | ||
Long-term debt | $ 551,306 | 550,622 | |
Unsecured Debt | 6.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.875% | ||
Effective Interest Rate | 4.40% | ||
Long-term debt | $ 770,351 | 774,738 | |
Unsecured Debt | 2.250% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.25% | ||
Effective Interest Rate | 4.08% | ||
Long-term debt | $ 4,226 | 4,204 | |
Unsecured Debt | 5.125% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.125% | ||
Effective Interest Rate | 4.55% | ||
Long-term debt | $ 609,276 | 610,023 | |
Unsecured Debt | 1.000% Euro Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 1.00% | ||
Effective Interest Rate | 1.00% | ||
Long-term debt | $ 549,534 | 548,880 | |
Unsecured Debt | 4.850% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.85% | ||
Effective Interest Rate | 4.93% | ||
Long-term debt | $ 793,931 | 768,931 | |
Unsecured Debt | 4.850% Senior Notes | Interest rate swaps | |||
Debt Instrument [Line Items] | |||
Loss associated with an interest rate swap based on its designation as a fair value hedge | $ 24,900 | $ 15,600 | |
Unsecured Debt | 6.450% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.45% | ||
Effective Interest Rate | 5.46% | ||
Long-term debt | $ 370,846 | 371,426 | |
Unsecured Debt | 4.150% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.15% | ||
Effective Interest Rate | 4.26% | ||
Long-term debt | $ 988,886 | 988,662 | |
Unsecured Debt | 6.250% Senior Debentures | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.25% | ||
Effective Interest Rate | 6.03% | ||
Long-term debt | $ 511,156 | 511,260 | |
Unsecured Debt | 6.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.50% | ||
Effective Interest Rate | 6.09% | ||
Long-term debt | $ 420,137 | 420,239 | |
Unsecured Debt | Structured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,354,714 | 1,215,285 | |
Secured Debt | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 189,249 | 189,088 | |
Secured Debt | Secured Bank Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 50,000 | $ 50,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Sep. 27, 2019 | Feb. 29, 2020 |
Debt Instrument [Line Items] | ||
Increase of long-term debt | $ 160,300,000 | |
Revolving Credit Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Revolving credit facility maximum principal amount | 190,000,000 | |
Structured Notes | ||
Debt Instrument [Line Items] | ||
Debt principal amount | $ 136,200,000 | |
Secured Bank Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Revolving credit facility maximum principal amount | $ 50,000,000 | |
Secured Bank Loan | Secured Debt | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% |
Leases - Finance lease ROU asse
Leases - Finance lease ROU assets (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Property, Plant and Equipment [Line Items] | |
Weighted-average remaining lease term in years - operating leases | 11 years 4 months 24 days |
Weighted-average discount rate - operating leases | 2.90% |
Premises and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment - ROU assets | $ 511,770 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Feb. 29, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 41,865 |
2021 | 69,268 |
2022 | 67,390 |
2023 | 60,364 |
2024 | 59,051 |
2025 and thereafter | 391,864 |
Total undiscounted cash flows | 689,802 |
Less: Difference between undiscounted and discounted cash flows | (110,232) |
Operating lease liabilities | 579,570 |
Finance leases amount in our Consolidated Statement of Financial Condition | 378 |
Total amount in our Consolidated Statement of Financial Condition | $ 579,948 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 | Feb. 29, 2020 | |
Leases [Abstract] | ||||
Operating lease not yet commenced, term | 7 years | |||
Operating lease not yet commenced, expected payment | $ 0.8 | |||
Total minimum payments to be received in the future under non-cancelable subleases | $ 16.2 | |||
Rental expense, net | $ 61.2 | $ 52.3 | $ 56.1 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Feb. 29, 2020USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 17,627 |
Variable lease costs | 3,467 |
Less: Sublease income | (1,500) |
Total lease cost, net | $ 19,594 |
Leases - Supplemental Informati
Leases - Supplemental Information of Cash Flows (Details) $ in Thousands | 3 Months Ended |
Feb. 29, 2020USD ($) | |
Leases [Abstract] | |
Cash outflows - lease liabilities | $ 16,680 |
Non-cash - ROU assets recorded for new and modified leases | $ 11,143 |
Leases - Future Minimum Lease C
Leases - Future Minimum Lease Commitments under Leases (Details) $ in Thousands | Nov. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 57,952 |
2021 | 60,395 |
2022 | 62,916 |
2023 | 57,574 |
2024 | 56,878 |
Thereafter | 389,245 |
Total | $ 684,960 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Components of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 775,941 | $ 447,407 |
Principal transactions | 371,902 | 234,298 |
Revenues from arrangements with strategic partners | 7,316 | 362 |
Interest | 294,668 | 360,975 |
Other | 29,729 | 11,830 |
Total revenues | 1,479,556 | 1,054,872 |
Commissions and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 179,535 | 155,142 |
Investment banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 592,002 | 285,596 |
Asset management and revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 4,404 | $ 6,669 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 775,941 | $ 447,407 |
Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 771,537 | 440,738 |
Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 4,404 | 6,669 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 650,049 | 326,770 |
Americas | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 649,069 | 323,389 |
Americas | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 980 | 3,381 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 82,862 | 103,493 |
Europe | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 79,438 | 100,205 |
Europe | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,424 | 3,288 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 43,030 | 17,144 |
Asia | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 43,030 | 17,144 |
Asia | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Equities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 176,249 | 152,074 |
Equities | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 176,249 | 152,074 |
Equities | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Fixed income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,286 | 3,068 |
Fixed income | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,286 | 3,068 |
Fixed income | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment banking - Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 343,158 | 180,482 |
Investment banking - Advisory | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 343,158 | 180,482 |
Investment banking - Advisory | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment banking - Underwriting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 248,844 | 105,114 |
Investment banking - Underwriting | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 248,844 | 105,114 |
Investment banking - Underwriting | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Asset management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 4,404 | 6,669 |
Asset management | Investment Banking and Capital Markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Asset management | Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 4,404 | $ 6,669 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue related to performance obligations satisfied | $ 6.4 | $ 14.7 | |
Revenue associated with distribution services, a portion of which related to prior periods | 5.6 | 4.9 | |
Receivables related to revenue from contracts with customers | 212 | $ 209.3 | |
Deferred revenue | 10.8 | 9 | |
Deferred revenue, revenue recognized | 2.6 | 4.3 | |
Capitalized contract cost | 3.9 | $ 4.8 | |
Expenses related to capitalized costs to fulfill a contract | $ 1.9 | $ 2.1 |
Compensation Plans - Compensati
Compensation Plans - Compensation Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | $ 87.9 | $ 76.6 |
Profit sharing plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | 4.1 | 3.9 |
Restricted cash awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | 77.3 | 66.2 |
Restricted stock and RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost | $ 6.5 | $ 6.5 |
Compensation Plans - Remaining
Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions | 3 Months Ended |
Feb. 29, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 728.4 |
Non-vested share-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 47.4 |
Weighted Average Vesting Period (in Years) | 2 years |
Restricted cash awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 681 |
Weighted Average Vesting Period (in Years) | 3 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 149,500,000 | $ 125,600,000 | |
Unrecognized tax benefits that would impact effective tax rate in future | 118,200,000 | 99,500,000 | |
Accrued interest on unrecognized tax benefits | 58,500,000 | 55,600,000 | |
Accrued penalties on unrecognized tax benefits | 0 | $ 0 | |
Income tax expense | $ 64,013,000 | $ 16,220,000 | |
Effective income tax rate | 27.20% | 25.90% |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments (Details) $ in Millions | Feb. 29, 2020USD ($) |
Commitments and Guarantees Obligations [Line Items] | |
2020 | $ 6,395.2 |
2021 | 522 |
2022 and 2023 | 10 |
2024 and 2025 | 19.9 |
2026 and Later | 7.8 |
Maximum Payout | 6,954.9 |
Equity commitments | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 9.4 |
2021 | 99 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 7.8 |
Maximum Payout | 116.2 |
Loan commitments | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 0 |
2021 | 295 |
2022 and 2023 | 10 |
2024 and 2025 | 15 |
2026 and Later | 0 |
Maximum Payout | 320 |
Underwriting commitments | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 292 |
2021 | 0 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 292 |
Forward starting reverse repos | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 4,131.5 |
2021 | 0 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 4,131.5 |
Forward starting repos | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 1,962.3 |
2021 | 0 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 1,962.3 |
Other unfunded commitments | |
Commitments and Guarantees Obligations [Line Items] | |
2020 | 0 |
2021 | 128 |
2022 and 2023 | 0 |
2024 and 2025 | 4.9 |
2026 and Later | 0 |
Maximum Payout | 132.9 |
Forward starting securities purchased under agreements to resell settled within three business days | |
Commitments and Guarantees Obligations [Line Items] | |
Maximum Payout | 4,124.2 |
Forward starting securities sold under agreements to repurchase settled within three business days | |
Commitments and Guarantees Obligations [Line Items] | |
Maximum Payout | $ 1,953.1 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Details) $ in Millions | 3 Months Ended |
Feb. 29, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | $ 70 |
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee | 690.8 |
Standby Letters of Credit | |
Loss Contingencies [Line Items] | |
Letters of credit commitments | 36.9 |
Jefferies Capital Partners LLC | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | 11.3 |
Other Investments | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | $ 7.3 |
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 (Details) $ in Millions | Feb. 29, 2020USD ($) |
Derivative contracts—non-credit related | |
Guarantee Obligations [Line Items] | |
2020 | $ 9,031.5 |
2021 | 3,777.4 |
2022 and 2023 | 5,502 |
2024 and 2025 | 1,704.4 |
2026 and Later | 50.1 |
Notional/ Maximum Payout | 20,065.4 |
Written derivative contracts—credit related | |
Guarantee Obligations [Line Items] | |
2020 | 1.5 |
2021 | 0 |
2022 and 2023 | 1 |
2024 and 2025 | 23.2 |
2026 and Later | 0 |
Notional/ Maximum Payout | 25.7 |
Total derivative contracts | |
Guarantee Obligations [Line Items] | |
2020 | 9,033 |
2021 | 3,777.4 |
2022 and 2023 | 5,503 |
2024 and 2025 | 1,727.6 |
2026 and Later | 50.1 |
Notional/ Maximum Payout | $ 20,091.1 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Thousands | Feb. 29, 2020USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 1,302,711 |
Excess Net Capital | $ 1,204,059 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Feb. 29, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues, Expenses and Total Assets by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 1,170,696 | $ 685,718 | |
Non-interest expenses | 935,318 | 623,133 | |
Earnings before income taxes | 235,378 | 62,585 | |
Segment assets | 46,202,597 | $ 43,516,115 | |
Investment Banking and Capital Markets: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 1,148,800 | 658,200 | |
Non-interest expenses | 898,900 | 603,100 | |
Earnings before income taxes | 249,900 | 55,100 | |
Segment assets | 43,026,700 | 40,565,800 | |
Asset Management: | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 21,900 | 27,500 | |
Non-interest expenses | 36,400 | 20,000 | |
Earnings before income taxes | (14,500) | $ 7,500 | |
Segment assets | $ 3,175,900 | $ 2,950,300 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Revenues: | ||
Net revenues | $ 1,170,696 | $ 685,718 |
Americas | ||
Revenues: | ||
Net revenues | 950,100 | 508,600 |
Europe | ||
Revenues: | ||
Net revenues | 159,300 | 151,500 |
Asia | ||
Revenues: | ||
Net revenues | $ 61,300 | $ 25,600 |
Related Party Transactions - Of
Related Party Transactions - Officers, Directors and Employees (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Nov. 30, 2019 |
Related Party Transaction [Line Items] | ||
Loans outstanding to certain employees | $ 33.3 | $ 34.8 |
Director | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Investment in related party | $ 3.5 | $ 3.6 |
Related Party Transactions - Je
Related Party Transactions - Jefferies (Details) - USD ($) | 3 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Nov. 30, 2019 | |
Related Party Transaction [Line Items] | |||
Payables-brokers, dealers and clearing organizations | $ 4,186,467,000 | $ 2,555,178,000 | |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 9,877,182,000 | 10,532,460,000 | |
Financial instruments owned, at fair value | 17,897,386,000 | 16,363,374,000 | |
Jefferies | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Charges to Jefferies for services provided | 10,400,000 | $ 16,500,000 | |
Charges from Jefferies for services received | 8,000,000 | 700,000 | |
Receivable from Jefferies | 700,000 | 900,000 | |
Payable to Jefferies | 5,400,000 | 4,300,000 | |
Payments of distributions to affiliates | 12,600,000 | ||
Net current tax payable | 46,400,000 | ||
Net current tax receivable | 24,400,000 | ||
Payments to acquire securities | 26,100,000 | 885,600,000 | |
Net gain (loss) on investments | 0 | ||
Payables-brokers, dealers and clearing organizations | 12,700,000 | 9,900,000 | |
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 700,000 | ||
Jefferies | Affiliated Entity | Commissions and other fees | |||
Related Party Transaction [Line Items] | |||
Charges to Jefferies for services provided | 300,000 | 600,000 | |
Jefferies | Affiliated Entity | Other revenues | |||
Related Party Transaction [Line Items] | |||
Charges to Jefferies for services provided | 0 | 100,000 | |
Hedge Fund Managed By Jefferies | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Net gain (loss) on investments | 3,800,000 | $ 1,000,000 | |
Investment in related party | 227,000,000 | 223,500,000 | |
Affiliate Of Jefferies Financial Group Inc. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Payables-brokers, dealers and clearing organizations | 2,200,000 | ||
Proceeds from Lease Payments | 200,000 | ||
Subsidiary Of Jefferies Financial Group Inc. | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 600,000 | ||
Net loss on derivative contracts | 600,000 | ||
Corporate debt securities | |||
Related Party Transaction [Line Items] | |||
Financial instruments sold, not yet purchased, at fair value ($4,240 and $0 at February 29, 2020 and November 30, 2019, respectively, related to consolidated VIEs) | 1,773,257,000 | 1,471,482,000 | |
Corporate debt securities | Jefferies | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Financial instruments owned, at fair value | 3,300,000 | 100,000 | |
Director | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Investment in related party | $ 3,500,000 | 3,600,000 | |
Director | Hedge Fund Managed By Jefferies | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Investment in related party | $ 400,000 |