Cover
Cover - USD ($) | 12 Months Ended | |
Nov. 30, 2020 | May 31, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Nov. 30, 2020 | |
Current Fiscal Year End Date | --11-30 | |
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 Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
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 | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 0 | |
Entity Central Index Key | 0001084580 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 | |
5.125% Senior Notes | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.125% Senior Notes Due 2023 | |
Trading Symbol | JEF/23 | |
Security Exchange Name | NYSE | |
4.850% Senior notes | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.850% Senior Notes Due 2027 | |
Trading Symbol | JEF/27A | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
ASSETS | ||
Cash and cash equivalents (includes $468 and $1,154 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | $ 7,111,929 | $ 5,567,903 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 604,321 | 796,797 |
Financial instruments owned, at fair value (includes securities pledged of $13,065,585 and $12,058,522 at November 30, 2020 and 2019, respectively; and $5,238 and $339 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 17,686,052 | 16,363,374 |
Investment in subsidiaries | 1,000,730 | 944,509 |
Securities borrowed | 6,934,762 | 7,624,642 |
Securities purchased under agreements to resell (includes $0 and $25,000 at fair value at November 30, 2020 and 2019, respectively) | 5,096,769 | 4,299,598 |
Securities received as collateral | 7,517 | 9,500 |
Receivables: | ||
Brokers, dealers and clearing organizations ($12,919 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 4,158,823 | 3,007,949 |
Customers | 1,286,925 | 1,490,876 |
Fees, interest and other | 397,630 | 323,067 |
Premises and equipment | 847,127 | 350,433 |
Goodwill | 1,646,933 | 1,643,599 |
Other assets ($131 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 972,479 | 1,093,868 |
Total assets | 47,751,997 | 43,516,115 |
LIABILITIES AND EQUITY | ||
Short-term borrowings (includes $5,067 and $20,981 at fair value at November 30, 2020 and 2019, respectively) | 764,715 | 548,490 |
Financial instruments sold, not yet purchased, at fair value | 10,017,522 | 10,532,460 |
Collateralized financings: | ||
Securities loaned | 1,810,748 | 1,525,140 |
Securities sold under agreements to repurchase | 8,316,269 | 7,504,670 |
Other secured financings (includes $1,543 at fair value at November 30, 2020; and $2,769,674 and $2,465,800 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 2,771,217 | 2,467,819 |
Obligation to return securities received as collateral, at fair value | 7,517 | 9,500 |
Payables: | ||
Brokers, dealers and clearing organizations | 3,325,753 | 2,555,178 |
Customers | 4,251,556 | 3,808,609 |
Lease liabilities | 561,249 | |
Accrued expenses and other liabilities (includes $1,202 and $1,546 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 2,663,639 | 1,431,144 |
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | 6,895,680 | 7,003,358 |
Total liabilities | 41,385,865 | 37,386,368 |
EQUITY | ||
Member’s paid-in capital | 6,569,328 | 6,329,677 |
Accumulated other comprehensive income (loss): | ||
Currency translation and other adjustments | (141,843) | (179,378) |
Changes in instrument specific credit risk | (71,151) | (18,889) |
Additional minimum pension liability | (8,104) | (6,079) |
Available-for-sale securities | 513 | 141 |
Total accumulated other comprehensive loss | (220,585) | (204,205) |
Total Jefferies Group LLC member’s equity | 6,348,743 | 6,125,472 |
Noncontrolling interests | 17,389 | 4,275 |
Total equity | 6,366,132 | 6,129,747 |
Total liabilities and equity | $ 47,751,997 | $ 43,516,115 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Cash and cash equivalents | $ 7,111,929 | $ 5,567,903 |
Pledged financial instruments, not separately reported, securities | 13,065,585 | 12,058,522 |
Financial instruments owned, at fair value | 17,686,052 | 16,363,374 |
Securities purchased under agreements to resell, fair value | 0 | 25,000 |
Brokers, dealers and clearing organizations ($12,919 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 4,158,823 | 3,007,949 |
Other assets ($131 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 972,479 | 1,093,868 |
Short-term borrowings, fair value | 5,067 | 20,981 |
Financial instruments sold, not yet purchased, at fair value | 10,017,522 | 10,532,460 |
Other secured financings | 2,771,217 | 2,467,819 |
Accrued expenses and other liabilities | 2,663,639 | 1,431,144 |
Long term debt, at fair value | 1,712,245 | 1,215,285 |
Variable interest entity, primary beneficiary | ||
Cash and cash equivalents | 468 | 1,154 |
Financial instruments owned, at fair value | 5,238 | 339 |
Brokers, dealers and clearing organizations ($12,919 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 12,919 | 0 |
Other assets ($131 and $0 at November 30, 2020 and 2019, respectively, related to consolidated VIEs) | 131 | 0 |
Financial instruments sold, not yet purchased, at fair value | 2,466 | 0 |
Other secured financings, fair value | 1,543 | |
Other secured financings | 2,769,674 | 2,465,800 |
Accrued expenses and other liabilities | $ 1,202 | $ 1,546 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Revenues: | |||
Revenues from contracts with customers: | $ 3,333,939 | $ 2,222,257 | $ 2,594,887 |
Principal transactions | 1,867,013 | 769,258 | 524,296 |
Asset management fees and revenues | 28,694 | 20,285 | 21,214 |
Interest | 894,215 | 1,496,529 | 1,207,095 |
Other | 37,632 | 93,422 | 103,359 |
Total revenues | 6,152,306 | 4,584,532 | 4,429,632 |
Interest expense | 954,829 | 1,472,002 | 1,246,256 |
Net revenues | 5,197,477 | 3,112,530 | 3,183,376 |
Non-interest expenses: | |||
Compensation and benefits | 2,792,575 | 1,684,054 | 1,736,264 |
Non-compensation expenses: | |||
Floor brokerage and clearing fees | 270,132 | 227,471 | 189,068 |
Technology and communications | 386,830 | 335,395 | 305,655 |
Occupancy and equipment rental | 107,180 | 119,472 | 100,952 |
Business development | 67,603 | 138,158 | 163,756 |
Professional services | 179,888 | 162,668 | 139,885 |
Underwriting costs | 95,636 | 50,662 | 64,317 |
Other | 120,179 | 69,981 | 73,812 |
Total non-compensation expenses | 1,227,448 | 1,103,807 | 1,037,445 |
Total non-interest expenses | 4,020,023 | 2,787,861 | 2,773,709 |
Earnings before income taxes | 1,177,454 | 324,669 | 409,667 |
Income tax expense | 302,748 | 80,284 | 250,650 |
Net earnings | 874,706 | 244,385 | 159,017 |
Net earnings (loss) attributable to noncontrolling interests | (4,597) | (1,644) | 256 |
Net earnings attributable to Jefferies Group LLC | 879,303 | 246,029 | 158,761 |
Commissions and other fees | |||
Revenues: | |||
Revenues from contracts with customers: | 823,258 | 676,309 | 663,465 |
Investment banking | |||
Revenues: | |||
Revenues from contracts with customers: | $ 2,501,494 | $ 1,528,729 | $ 1,910,203 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 874,706 | $ 244,385 | $ 159,017 | |
Other comprehensive loss, net of tax: | ||||
Currency translation adjustments | [1] | 37,535 | 6,426 | (85,554) |
Changes in instrument specific credit risk | [2] | (52,262) | (13,161) | 22,160 |
Cash flow hedges | [3] | 0 | ||
Cash flow hedges | [3] | (470) | 1,406 | |
Minimum pension liability adjustments | [4] | (2,025) | (1,318) | 4,285 |
Unrealized gain on available-for-sale securities | [5] | 372 | 487 | 311 |
Total other comprehensive loss, net of tax | [6] | (16,380) | (8,036) | (57,392) |
Comprehensive income | 858,326 | 236,349 | 101,625 | |
Net earnings (loss) attributable to noncontrolling interests | (4,597) | (1,644) | 256 | |
Comprehensive income attributable to Jefferies Group LLC | $ 862,923 | $ 237,993 | $ 101,369 | |
[1] | The amounts include income tax benefits (expenses) of approximately $(11.9) million, $(3.2) million and $8.9 million during the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2018 also includes a gain of $20.5 million related to foreign currency gains, which was reclassified to Other revenues within the Consolidated Statements of Earnings. | |||
[2] | The amounts include income tax benefits (expenses) of approximately $16.4 million, $4.5 million, and $(15.5) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amounts for the years ended November 30, 2020, 2019 and 2018 includes a net gain (loss) of $(0.4) million, $0.4 million and $0.9 million, respectively, net of tax benefits (expenses) of $0.1 million, $(0.2) million and $(0.3) million, respectively, related to changes in instrument specific risk, which were reclassified to Principal transactions revenues within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $(6.5) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital. | |||
[3] | The amounts include income tax benefits (expenses) of approximately $0.2 million, and $(0.8) million for the years ended November 30, 2019 and 2018, respectively. The cash flow hedge loss of $0.5 million during the year ended November 30, 2019 was reclassified to Other revenues within the Consolidated Statement of Earnings. The amount during the year ended November 30, 2018 also includes $(0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||
[4] | The amounts include income tax benefits (expenses) of $0.7 million, $0.5 million and $(0.7) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2020 includes pension net gains of $0.5 million, net of tax of $0.2 million, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amounts during the years ended November 30, 2019 and 2018 includes pension net gains (losses) of $0.1 million and $(0.3) million, respectively, net of negligible tax benefits (expenses), which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and $(0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||
[5] | The amounts for the years ended November 30, 2020, 2019 and 2018 include income tax expenses of approximately $0.1 million and $0.2 million and $0.1 million, respectively. | |||
[6] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Adjustment related to foreign currency gains reclassified to other revenues | $ 20,500 | |||
Changes in instrument specific credit risk, tax benefits (expenses) | $ 16,400 | $ 4,500 | (15,500) | |
Cash flow hedges, tax benefits (expenses) | 200 | (800) | ||
Cash flow hedges reclassification amount | [1] | 470 | (1,406) | |
Minimum pension liability adjustments, tax benefits (expenses) | 700 | 500 | (700) | |
Pension losses reclassification amount | 500 | 100 | (300) | |
Pension losses reclassification amount, tax | (200) | |||
Minimum pension liability adjustments, net of tax | [2] | (2,025) | (1,318) | 4,285 |
Unrealized gain on available-for-sale securities, tax expense | 100 | 200 | 100 | |
Currency translation and other adjustments | ||||
Impact of certain discrete items related to non-U.S. subsidiaries planning for the Tax Act | (11,900) | (3,200) | 8,900 | |
Changes in instrument specific credit risk | ||||
Changes in instrument specific credit risk reclassified to principal transactions revenues | (400) | 400 | 900 | |
Changes in instrument specific credit risk reclassified to principal transactions revenues, tax | $ 100 | $ (200) | (300) | |
Tax Cuts And Jobs Act of 2017 reclassification from AOCI to retained earnings tax effect | (6,500) | |||
Cash flow hedges | ||||
Tax Cuts And Jobs Act of 2017 reclassification from AOCI to retained earnings tax effect | (200) | |||
Minimum pension liability adjustments | ||||
Tax Cuts And Jobs Act of 2017 reclassification from AOCI to retained earnings tax effect | (800) | |||
German plan | ||||
Minimum pension liability adjustments, net of tax | (5,300) | |||
Pension plan | German plan | ||||
Minimum pension liability adjustments, net of tax | $ (5,300) | |||
[1] | The amounts include income tax benefits (expenses) of approximately $0.2 million, and $(0.8) million for the years ended November 30, 2019 and 2018, respectively. The cash flow hedge loss of $0.5 million during the year ended November 30, 2019 was reclassified to Other revenues within the Consolidated Statement of Earnings. The amount during the year ended November 30, 2018 also includes $(0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||
[2] | The amounts include income tax benefits (expenses) of $0.7 million, $0.5 million and $(0.7) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2020 includes pension net gains of $0.5 million, net of tax of $0.2 million, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amounts during the years ended November 30, 2019 and 2018 includes pension net gains (losses) of $0.1 million and $(0.3) million, respectively, net of negligible tax benefits (expenses), which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and $(0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Member’s paid-in capital | Member’s paid-in capitalCumulative effect, period of adoption, adjustment | Accumulated other comprehensive income (loss), net of tax | Total Jefferies Group LLC member’s equity | Noncontrolling interests | |
Balance, beginning of period at Nov. 30, 2017 | $ 5,895,601 | $ (6,121) | $ (136,779) | $ 737 | |||
Stockholders' Equity | |||||||
Net earnings (loss) | $ 159,017 | 158,761 | 256 | ||||
Contribution from Jefferies Financial Group Inc. | 600,247 | (1,998) | |||||
Distribution to Jefferies Financial Group Inc. | (279,381) | ||||||
Tax Act adjustment | 7,555 | ||||||
Currency translation and other adjustments | (85,554) | [1] | (85,554) | ||||
Changes in instrument specific credit risk | 22,160 | [2] | 22,160 | ||||
Cash flow hedges | 1,406 | [3] | 1,406 | ||||
Pension adjustments | 4,285 | [4] | 4,285 | ||||
Unrealized gain on available-for-sale securities | 311 | [5] | 311 | ||||
Contributions | 10 | ||||||
Distributions | (7,408) | ||||||
Consolidation of asset management entity | 8,316 | ||||||
Balance, end of period at Nov. 30, 2018 | 6,182,404 | 6,376,662 | 0 | (196,169) | $ 6,180,493 | 1,911 | |
Stockholders' Equity | |||||||
Net earnings (loss) | 244,385 | 246,029 | (1,644) | ||||
Contribution from Jefferies Financial Group Inc. | 0 | 0 | |||||
Distribution to Jefferies Financial Group Inc. | (293,014) | ||||||
Tax Act adjustment | 0 | ||||||
Currency translation and other adjustments | 6,426 | [1] | 6,426 | ||||
Changes in instrument specific credit risk | (13,161) | [2] | (13,161) | ||||
Cash flow hedges | (470) | [3] | (470) | ||||
Pension adjustments | (1,318) | [4] | (1,318) | ||||
Unrealized gain on available-for-sale securities | 487 | [5] | 487 | ||||
Contributions | 6,600 | ||||||
Distributions | (2,592) | ||||||
Consolidation of asset management entity | 0 | ||||||
Balance, end of period at Nov. 30, 2019 | 6,129,747 | 6,329,677 | $ 0 | (204,205) | 6,125,472 | 4,275 | |
Stockholders' Equity | |||||||
Net earnings (loss) | 874,706 | 879,303 | (4,597) | ||||
Contribution from Jefferies Financial Group Inc. | 0 | 0 | |||||
Distribution to Jefferies Financial Group Inc. | (639,652) | ||||||
Tax Act adjustment | 0 | ||||||
Currency translation and other adjustments | 37,535 | [1] | 37,535 | ||||
Changes in instrument specific credit risk | (52,262) | [2] | (52,262) | ||||
Cash flow hedges | 0 | ||||||
Pension adjustments | (2,025) | [4] | (2,025) | ||||
Unrealized gain on available-for-sale securities | 372 | [5] | 372 | ||||
Contributions | 19,405 | ||||||
Distributions | (1,694) | ||||||
Consolidation of asset management entity | 0 | ||||||
Balance, end of period at Nov. 30, 2020 | $ 6,366,132 | $ 6,569,328 | $ (220,585) | $ 6,348,743 | $ 17,389 | ||
[1] | The amounts include income tax benefits (expenses) of approximately $(11.9) million, $(3.2) million and $8.9 million during the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2018 also includes a gain of $20.5 million related to foreign currency gains, which was reclassified to Other revenues within the Consolidated Statements of Earnings. | ||||||
[2] | The amounts include income tax benefits (expenses) of approximately $16.4 million, $4.5 million, and $(15.5) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amounts for the years ended November 30, 2020, 2019 and 2018 includes a net gain (loss) of $(0.4) million, $0.4 million and $0.9 million, respectively, net of tax benefits (expenses) of $0.1 million, $(0.2) million and $(0.3) million, respectively, related to changes in instrument specific risk, which were reclassified to Principal transactions revenues within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $(6.5) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital. | ||||||
[3] | The amounts include income tax benefits (expenses) of approximately $0.2 million, and $(0.8) million for the years ended November 30, 2019 and 2018, respectively. The cash flow hedge loss of $0.5 million during the year ended November 30, 2019 was reclassified to Other revenues within the Consolidated Statement of Earnings. The amount during the year ended November 30, 2018 also includes $(0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | ||||||
[4] | The amounts include income tax benefits (expenses) of $0.7 million, $0.5 million and $(0.7) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2020 includes pension net gains of $0.5 million, net of tax of $0.2 million, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amounts during the years ended November 30, 2019 and 2018 includes pension net gains (losses) of $0.1 million and $(0.3) million, respectively, net of negligible tax benefits (expenses), which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and $(0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | ||||||
[5] | The amounts for the years ended November 30, 2020, 2019 and 2018 include income tax expenses of approximately $0.1 million and $0.2 million and $0.1 million, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 874,706 | $ 244,385 | $ 159,017 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 51,346 | 40,942 | 15,250 |
Goodwill impairment | 3,000 | 0 | 0 |
Deferred income taxes | (17,741) | 22,032 | 126,265 |
Income on loans to and investments in related parties | (14,329) | (85,169) | (73,662) |
Distributions received on investments in related parties | 35,949 | 144,320 | 62,949 |
Other adjustments | 245,005 | 61,915 | (127,698) |
Net change in assets and liabilities: | |||
Securities deposited with clearing and depository organizations | 751 | (169) | 64,911 |
Receivables: | |||
Brokers, dealers and clearing organizations | (1,146,197) | 211,065 | (406,509) |
Customers | 203,952 | 526,238 | (453,360) |
Fees, interest and other | (73,161) | 3,340 | 51,122 |
Securities borrowed | 714,664 | (1,103,708) | 1,137,134 |
Financial instruments owned | (1,253,249) | 35,908 | (1,194,791) |
Securities purchased under agreements to resell | (752,171) | (1,523,222) | 807,619 |
Other assets | 148,369 | (41,844) | 31,699 |
Payables: | |||
Brokers, dealers and clearing organizations | 764,213 | 111,757 | 252,698 |
Customers | 442,913 | 631,854 | 512,760 |
Securities loaned | 270,261 | (301,727) | (964,137) |
Financial instruments sold, not yet purchased | (604,669) | 1,051,600 | 311,998 |
Securities sold under agreements to repurchase | 799,794 | (1,122,982) | 36,956 |
Lease liabilities | (46,482) | ||
Accrued expenses and other liabilities | 1,150,134 | (126,684) | (224,157) |
Net cash provided by (used in) operating activities | 1,797,058 | (1,220,149) | 126,064 |
Cash flows from investing activities: | |||
Contributions to loans to and investments in related parties | (1,569,671) | (32,669) | (1,929,603) |
Capital distributions from investments and repayments of loans from related parties | 1,491,081 | 24,629 | 1,876,164 |
Net payments on premises and equipment | (101,311) | (116,330) | (71,445) |
Purchase of Leucadia Investment Management Limited, net of cash paid | 0 | 0 | 3,125 |
Consolidation of asset management entity | 0 | 0 | 130 |
Net cash used in investing activities | (179,901) | (124,370) | (121,629) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 1,619,820 | 1,732,232 | 1,083,416 |
Payments on short-term borrowings | (1,368,255) | (1,597,773) | (1,137,599) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,169,722 | 1,239,891 | 1,367,243 |
Repayment of long-term debt | (1,494,696) | (823,875) | (1,035,700) |
Distributions to Jefferies Financial Group Inc. | (498,674) | (311,131) | (248,684) |
Net proceeds from other secured financings | 305,873 | 1,586,347 | 159,364 |
Net change in bank overdrafts | (34,663) | 26,568 | 10,290 |
Proceeds from contributions of noncontrolling interests | 19,405 | 6,600 | 10 |
Payments on distributions to noncontrolling interests | (1,694) | (2,592) | (7,408) |
Net cash provided by (used in) financing activities | (283,162) | 1,856,267 | 190,932 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18,306 | (1,063) | (19,116) |
Net increase in cash, cash equivalents and restricted cash | 1,352,301 | 510,685 | 176,251 |
Cash, cash equivalents and restricted cash at beginning of period | 6,329,712 | 5,819,027 | 5,642,776 |
Cash, cash equivalents and restricted cash at end of period | 7,682,013 | 6,329,712 | 5,819,027 |
Cash paid during the period for: | |||
Interest | 999,576 | 1,480,559 | 1,287,162 |
Income taxes, net | $ 115,053 | $ 84,119 | $ 196,553 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Oct. 01, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 |
Cash and cash equivalents | $ 7,111,929 | $ 5,567,903 | |||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 570,084 | 761,809 | |||
Total cash, cash equivalents and restricted cash | $ 7,682,013 | $ 6,329,712 | $ 5,819,027 | $ 5,642,776 | |
Jefferies Financial Group Inc. | Affiliated entity | |||||
Capital contribution from Jefferies | $ 598,200 | ||||
Jefferies Financial Group Inc. | Affiliated entity | Berkadia | |||||
Ownership percentage | 50.00% |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Nov. 30, 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 20, Segment Reporting. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize certain deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly-owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings (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 | 12 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third-parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking . Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis within Underwriting costs in the Consolidated Statements of Earnings. Asset Management Fees and Revenues. Asset management fees and revenues consist of asset management fees, as well as revenues from third-parties with strategic relationships pursuant to arrangements, which entitle us to portions of our partners’ management company revenues and/or partners’ profits and perpetual rights to certain defined revenues for a given revenue share period. Revenue from third-parties with strategic relationships pursuant to arrangements is recognized at the end of the defined revenue or profit share period when the revenues have been realized and all contingencies have been resolved. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. We recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis. In addition, we recognize interest income as earned on brokerage customer margin balances and interest expense as incurred on credit balances. Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day-to-day activities. Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management’s judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized within Level 3. Loans to and Investments in Related Parties Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our investment banking and capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in our Consolidated Statements of Earnings. See Note 9, Investments, and Note 21, Related Party Transactions, for additional information regarding certain of these investments. Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third-party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. Refer to Note 5, Derivative Financial Instruments and Note 6, Collateralized Transactions, for further information. Hedge Accounting Hedge accounting is applied using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. The interest rate swaps are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. We use regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% - 125%. The impact of valuation adjustments related to our own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. We seek to reduce the impact of fluctuations in foreign exchange rates on our net investments in certain non-U.S. operations through the use of foreign exchange contracts. The foreign exchange contracts are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. For foreign exchange contracts designated as hedges, the effectiveness of the hedge is assessed based on the overall changes in the fair value of the forward contracts ( i.e. , based on changes in forward rates). For qualifying net investment hedges, all gains or losses on the hedging instruments are included in Currency translation adjustments and other. Refer to Note 5, Derivative Financial Instruments, for further information. Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three At November 30, 2020 and 2019, furniture, fixtures and equipment, including amounts under capital leases at November 30, 2019, amounted to $527.9 million and $500.3 million, respectively, and leasehold improvements amounted to $259.7 million and $262.1 million, respectively. Accumulated depreciation and amortization was $427.2 million and $411.9 million at November 30, 2020 and 2019, respectively. Depreciation and amortization expense amounted to $74.7 million, $67.0 million and $56.2 million for the years ended November 30, 2020, 2019 and 2018, respectively. Leases We adopted 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. Goodwill and Intangible Assets Goodwill . Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 st or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than the carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. Our annual indefinite-lived intangible asset impairment testing date is August 1 st . To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Refer to Note 10, Goodwill and Intangible Assets, for further information. Income Taxes Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Jefferies. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Jefferies, payments are made between us and Jefferies to settle current tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Legal Reserves In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a contingency in Accrued expenses and other liabilities when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the reasonable estimate of a probable loss is a range, we accrue the most likely amount of such loss, and if such amount is not determinable, then we accrue the minimum in the range as the loss accrual. The determination of the outcome and loss estimates requires significant judgment on the part of management. We believe that any other matters for which we have determined a loss to be probable and reasonably estimable are not material to our consolidated financial statements. In many instances, it is not possible to determine whether any loss is probable or even possible or to estimate the amount of any loss or the size of any range of loss. We believe that, in the aggregate, the pending legal actions or regulatory proceedings and any other exams, investigations or similar reviews (both formal and informal) should not have a material adverse effect on our consolidated results of operations, cash flows or financial condition. In addition, we believe that any amount of potential loss or range of potential loss in excess of what has been provided in our consolidated financial statements that could be reasonably estimated is not material. Share-based Compensation Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. We account for forfeitures as they occur. Foreign Currency Translation Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the end of a period. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, if any, are included in Other comprehensive income. Gains or losses resulting from foreign currency transactions are included in Principal transactions revenues in our Consolidated Statements of Earnings. Securitization Activities We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Transfers of financial assets to secured funding vehicles are accounted for as sales when we have relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. We may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Financial instruments owned within our Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. When a transfer of assets does not meet the criteria of a sale, we account for the transfer as a secured borrowing and continue to recognize the assets of a secured borrowing in Financial instruments owned and recognize the associated financing in Other secured financings in our Consolidated Statements of Financial Condition. |
Accounting Developments
Accounting Developments | 12 Months Ended |
Nov. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact 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. We adopted the guidance in the first quarter of fiscal 2021 and elected to apply the guidance prospectively to implementation costs incurred after the adoption date. The adoption did not have an impact on our consolidated financial statements on the adoption date. 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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not 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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses. In June 2016, the FASB issued ASU No. 2016-13 We have determined expected credit losses to be immaterial upon adoption for our other financial instruments within the scope of the guidance. A significant portion of our financial instruments within the scope of the guidance represent secured financing receivables (reverse repurchase, secured borrowing, and margin loan agreements) that are substantially collateralized. For our secured financing receivables, we have concluded that the impact upon adoption was immaterial because the contractual collateral maintenance provisions require that the counterparty continually adjust the amount of collateralization securing the credit exposure on these contracts. Collateralization levels for our secured financing receivables are initially established based upon the counterparty, the type of acceptable collateral that is monitored daily and adjusted to mitigate the potential of any credit losses. For the remaining financial instruments within the guidance's scope, the expected credit losses were also determined to be immaterial considering the counterparty's credit quality, an insignificant history of credit losses, or the short-term nature of the credit exposures. Adopted Accounting Standards Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides optional exceptions for applying U.S. GAAP to contracts, hedge accounting relationships or other transactions affected by reference rate reform. We adopted the guidance on September 1, 2020 and the adoption had no impact on our consolidated financial statements. Leases . We adopted the new lease standard 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 | 12 Months Ended |
Nov. 30, 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 $956.0 million and $570.3 million at November 30, 2020 and 2019, respectively, by level within the fair value hierarchy (in thousands): November 30, 2020 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,331,440 $ 58,159 $ 75,797 $ — $ 2,465,396 Corporate debt securities — 2,954,201 23,146 — 2,977,347 Collateralized debt obligations and collateralized loan obligations — 64,155 10,513 — 74,668 U.S. government and federal agency securities 2,840,025 91,653 — — 2,931,678 Municipal securities — 453,881 — — 453,881 Sovereign obligations 1,962,346 591,342 — — 2,553,688 Residential mortgage-backed securities — 1,100,849 21,826 — 1,122,675 Commercial mortgage-backed securities — 736,291 2,003 — 738,294 Other asset-backed securities — 103,611 79,995 — 183,606 Loans and other receivables — 2,610,746 77,042 — 2,687,788 Derivatives 1,523 2,000,752 21,678 (1,556,136) 467,817 Investments at fair value — 6,122 67,108 — 73,230 Total financial instruments owned, excluding Investments at fair value based on NAV $ 7,135,334 $ 10,771,762 $ 379,108 $ (1,556,136) $ 16,730,068 Securities received as collateral $ 7,517 $ — $ — $ — $ 7,517 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,046,441 $ 9,046 $ 4,434 $ — $ 2,059,921 Corporate debt securities — 1,237,631 141 — 1,237,772 U.S. government and federal agency securities 2,609,660 — — — 2,609,660 Sovereign obligations 1,050,771 624,740 — — 1,675,511 Residential mortgage-backed securities — 477 — — 477 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,776,446 16,635 — 1,793,081 Derivatives 551 2,391,478 47,695 (1,798,659) 641,065 Total financial instruments sold, not yet purchased $ 5,707,423 $ 6,039,818 $ 68,940 $ (1,798,659) $ 10,017,522 Short-term borrowings $ — $ 5,067 $ — $ — $ 5,067 Other secured financings $ — $ — $ 1,543 $ — $ 1,543 Obligation to return securities received as collateral $ 7,517 $ — $ — $ — $ 7,517 Long-term debt $ — $ 1,036,217 $ 676,028 $ — $ 1,712,245 (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 from observed prices on 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 can be measured using third-party valuation services or 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, where available, or recently executed independent transactions of comparable size 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 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. 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, for example, derived using 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): November 30, 2020 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 328,096 $ — Equity Funds (3) 23,821 11,242 Commodity Fund (4) 17,747 — Multi-asset Funds (5) 561,236 — Other Funds (6) 25,084 5,000 Total $ 955,984 $ 16,242 November 30, 2019 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 27,952 12,108 Commodity Fund (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 November 30, 2020 and 2019, approximately 94% of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At both November 30, 2020 and 2019, approximately 6% of the fair value of investments in this category are redeemable quarterly with 60 days prior written notice. (3) At November 30, 2020 and 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 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 (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 November 30, 2020 and 2019, investments representing approximately 57% and 5%, respectively, of the fair value of investments in this category are redeemable monthly with 30 or 60 days prior written notice. (6) At November 30, 2020 this category primarily includes an investment in a fund that invests in short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days and short-term credit instruments. These investments are redeemable quarterly with 90 days prior written notice. At both November 30, 2020 and 2019, 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. Other Secured Financings Other secured financings that are accounted for at fair value are classified within Level 3 of the fair value hierarchy. Fair value is based on estimates of future cash flows incorporating assumptions regarding recovery rates. 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, equity-linked notes, 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 period or model pricing is available, otherwise the notes are categorized within Level 3. Level 3 Rollforwards The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2020 (in thousands): Balance at November 30, 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2020 For instruments still held at November 30, 2020, changes in unrealized gains/(losses) included in: Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 58,301 $ (3,961) $ 31,778 $ (37,706) $ — $ — $ 27,385 $ 75,797 $ (652) $ — Corporate debt securities 7,490 83 1,607 (391) (602) — 14,959 23,146 (270) — CDOs and CLOs 20,081 (5,703) 10,913 (14,389) (2,071) — 1,682 10,513 (15,964) — RMBS 17,740 (934) 7,887 (969) (1,053) — (845) 21,826 (599) — CMBS 6,110 (827) 393 (1,856) (1,787) — (30) 2,003 (295) — Other ABS 42,563 (3,848) 69,701 (1,638) (43,072) — 16,289 79,995 (5,945) — Loans and other receivables 64,240 (20,487) 73,485 (36,929) (7,063) — 3,796 77,042 (18,747) — Investments at fair value 75,738 (19,396) 28,132 (167) (17,199) — — 67,108 (21,244) — Securities purchased under agreements to resell 25,000 — — — (25,000) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 456 $ (513) $ — $ — $ — $ 4 $ 4,434 $ (81) $ — Corporate debt securities 340 (268) (325) 394 — — — 141 27 — CMBS 35 — — 35 — — (35) 35 — — Loans 9,463 (520) (6,061) 13,851 — — (98) 16,635 360 — Net derivatives (2) 77,168 (40) (7,446) 19,376 (2,216) — (60,825) 26,017 (1,805) — Other secured financings — (2,475) — — — 4,018 — 1,543 2,475 Long-term debt 480,069 84,930 — — (57,088) 248,718 (80,601) 676,028 (51,567) (33,363) (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 within long-term debt 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 Year Ended November 30, 2020 During the year ended November 30, 2020, transfers of assets of $88.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Corporate equity securities of $32.5 million, other ABS of $23.0 million, corporate debt securities of $18.0 million and loans and other receivables of $10.9 million due to reduced pricing transparency. During the year ended November 30, 2020, transfers of assets of $24.7 million from Level 3 to Level 2 are primarily attributed to: • Loans and other receivables of $7.1 million, other ABS of $6.8 million, corporate equity securities of $5.1 million and corporate debt securities of $3.0 million due to greater pricing transparency supporting classification into Level 2. During the year ended November 30, 2020, transfers of liabilities of $1.9 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Loans of $1.8 million due to reduced pricing transparency. During the year ended November 30, 2020, transfers of liabilities of $143.4 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes within long-term debt of $80.6 million and net derivatives of $60.8 million due to greater market and pricing transparency. Net losses on Level 3 assets were $55.1 million and net losses on Level 3 liabilities were $82.1 million for the year ended November 30, 2020. Net losses on Level 3 assets were primarily due to decreased market values in loans and other receivables, investments at fair value and CDOs and CLOs. Net losses on Level 3 liabilities were primarily due to increased market valuations of certain structured notes within long-term debt, partially offset by decreased values of other secured financings. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2019 (in thousands): Balance at November 30, 2018 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2019 For instruments still held at November 30, 2019, changes in unrealized gains/(losses) included in: Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 51,040 $ (10,380) $ 69,065 $ (28,159) $ (18,208) $ — $ (5,057) $ 58,301 $ (12,821) $ — Corporate debt securities 9,484 (4,860) 8,900 (13,854) (379) — 8,199 7,490 (6,176) — CDOs and CLOs 25,815 (2,342) 49,658 (38,147) (9,083) — (5,820) 20,081 (974) — RMBS 19,603 (1,669) 1,954 (2,472) (152) — 476 17,740 (530) — CMBS 10,886 (2,888) 206 (2,346) (5,317) — 5,569 6,110 (2,366) — Other ABS 53,175 433 104,097 (73,335) (51,374) — 9,567 42,563 (98) — Loans and other receivables 46,985 (5,505) 57,403 (48,350) (5,068) — 18,775 64,240 (3,319) — Investments at fair value 113,831 113 240 (38,446) — — — 75,738 2,964 — Securities purchased under — — — — — 25,000 — 25,000 — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ — $ (2,649) $ (4,322) $ 11,458 $ — $ — $ — $ 4,487 $ 1,928 $ — Corporate debt securities 522 (381) (457) — (524) — 1,180 340 383 — CMBS — 35 — — — — — 35 (35) — Loans 6,376 (1,382) (2,573) 6,494 — — 548 9,463 1,382 — Net derivatives (2) 21,614 (21,452) (4,323) 36,144 2,227 — 42,958 77,168 12,098 — Long-term debt 200,745 (18,662) — — (11,250) 348,275 (39,039) 480,069 29,656 (10,993) (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 within lon |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Nov. 30, 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: (1) interest rate swaps that have been designated as fair value hedges of the changes in fair value due to the benchmark interest rate for certain fixed rate senior long-term debt, and (2) forward foreign exchange contracts designated as hedges to offset the change in the value of certain net investments in foreign operations. See Note 4, Fair Value Disclosures, and Note 18, 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 ISDA master netting agreements or similar agreements with counterparties. See Note 2, Summary of Significant Accounting Policies, for additional information regarding the offsetting of derivative contracts. The following tables present the fair value and related number of derivative contracts at November 30, 2020 and 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). November 30, 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 $ 67,381 1 $ 6,891 1 Foreign exchange contracts: Bilateral OTC — — 3,306 11 Total derivatives designated as accounting hedges 67,381 10,197 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 2,442 52,620 439 42,611 Cleared OTC 17,379 3,785 114,524 4,307 Bilateral OTC 626,210 1,493 317,534 466 Foreign exchange contracts: Exchange-traded — — — 180 Bilateral OTC 297,165 15,005 277,628 15,049 Equity contracts: Exchange-traded 558,304 1,147,486 564,951 971,938 Bilateral OTC 429,304 2,374 1,125,944 2,421 Commodity contracts: Exchange-traded 64 3,207 — 2,654 Credit contracts: Cleared OTC 24,696 39 26,298 31 Bilateral OTC 1,008 11 2,209 11 Total derivatives not designated as accounting hedges 1,956,572 2,429,527 Total gross derivative assets/ liabilities: Exchange-traded 560,810 565,390 Cleared OTC 109,456 147,713 Bilateral OTC 1,353,687 1,726,621 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (546,989) (546,989) Cleared OTC (109,228) (111,654) Bilateral OTC (899,919) (1,140,016) Net amounts per Consolidated Statements of Financial Condition (4) $ 467,817 $ 641,065 (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 related to fair value hedges (in thousands): Year Ended November 30, Gains (Losses) 2020 2019 2018 Interest rate swaps $ 41,524 $ 56,385 $ (25,539) Long-term debt (36,668) (58,931) 27,363 Total $ 4,856 $ (2,546) $ 1,824 The following table provides information related to gains (losses) on our net investment hedges recognized in Currency translation adjustments and other, a component of Other comprehensive income (loss), in our Consolidated Statements of Comprehensive Income (in thousands): Year Ended November 30, Gains (Losses) 2020 2019 2018 Foreign exchange contracts $ (3,306) $ — $ — Total $ (3,306) $ — $ — 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): Year Ended November 30, Gains (Losses) 2020 2019 2018 Interest rate contracts $ (52,331) $ (188,605) $ 67,291 Foreign exchange contracts 3,851 (4,016) (304) Equity contracts 47,631 (108,961) (232,873) Commodity contracts (189) (681) 1,112 Credit contracts 15,218 9,147 2,715 Total $ 14,180 $ (293,116) $ (162,059) The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at November 30, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than Cross-Maturity Total Equity options and forwards $ 32,766 $ 951 $ 16,650 $ (24,685) $ 25,682 Credit default swaps — 750 11 — 761 Total return swaps 140,394 25,110 1,321 (2,975) 163,850 Foreign currency forwards, swaps and options 62,249 18,460 517 (5,746) 75,480 Interest rate swaps, options and forwards 80,949 168,430 204,467 (40,131) 413,715 Total $ 316,358 $ 213,701 $ 222,966 $ (73,537) 679,488 Cross product counterparty netting (24,723) Total OTC derivative assets included in Financial instruments owned $ 654,765 (1) At November 30, 2020, we held net exchange-traded derivative assets and other credit agreements with a fair value of $29.8 million, which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At November 30, 2020, cash collateral received was $216.8 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 options and forwards $ 23,278 $ 491,595 $ 119,988 $ (24,685) $ 610,176 Credit default swaps — 596 1,615 — 2,211 Total return swaps 88,130 190,616 22 (2,975) 275,793 Foreign currency forwards, swaps and options 50,949 13,376 — (5,746) 58,579 Fixed income forwards 213 — — — 213 Interest rate swaps, options and forwards 61,558 65,934 68,252 (40,131) 155,613 Total $ 224,128 $ 762,117 $ 189,877 $ (73,537) 1,102,585 Cross product counterparty netting (24,723) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 1,077,862 (1) At November 30, 2020, we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $22.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2020, cash collateral pledged was $459.3 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. The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2020 (in thousands): Counterparty credit quality (1): A- or higher $ 164,718 BBB- to BBB+ 19,628 BB+ or lower 316,361 Unrated 154,058 Total $ 654,765 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. Credit Related Derivative Contracts The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2020 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 62.0 $ 262.8 $ — $ 324.8 Single name credit default swaps — 6.2 0.2 6.4 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): November 30, 2020 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 284.6 $ 42.9 Collateral posted (129.8) (3.1) Collateral received 141.4 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 296.2 154.0 (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 | 12 Months Ended |
Nov. 30, 2020 | |
Investments, Debt and Equity Securities [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 the 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, at fair value, by class of collateral pledged (in thousands): November 30, 2020 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral, at fair value Total Collateral Pledged: Corporate equity securities $ 1,371,978 $ 157,912 $ 7,517 $ 1,537,407 Corporate debt securities 369,218 1,869,844 — 2,239,062 Mortgage-backed and asset-backed securities — 1,547,140 — 1,547,140 U.S. government and federal agency securities 14,789 7,149,992 — 7,164,781 Municipal securities — 278,470 — 278,470 Sovereign obligations 54,763 2,763,032 — 2,817,795 Loans and other receivables — 1,392,883 — 1,392,883 Total $ 1,810,748 $ 15,159,273 $ 7,517 $ 16,977,538 November 30, 2019 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral, at fair value 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, at fair value, by remaining contractual maturity (in thousands): November 30, 2020 Overnight and Continuous Up to 30 Days 31-90 Days Greater Than 90 Days Total Securities lending arrangements $ 636,256 $ 59,735 $ 459,455 $ 655,302 $ 1,810,748 Repurchase agreements 5,510,476 1,747,526 5,019,885 2,881,386 15,159,273 Obligation to return securities received as collateral, at fair value 7,517 — — — 7,517 Total $ 6,154,249 $ 1,807,261 $ 5,479,340 $ 3,536,688 $ 16,977,538 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, at fair value — — 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 November 30, 2020 and 2019, the approximate fair value of securities received as collateral by us that may be sold or repledged was $25.9 billion and $28.7 billion, respectively. At November 30, 2020 and 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, 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, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 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 $ 6,934,762 $ — $ 6,934,762 $ (395,342) $ (1,706,046) $ 4,833,374 Reverse repurchase agreements 11,939,773 (6,843,004) 5,096,769 (412,327) (4,578,560) 105,882 Securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 Liabilities Securities lending arrangements $ 1,810,748 $ — $ 1,810,748 $ (395,342) $ (1,397,550) $ 17,856 Repurchase agreements 15,159,273 (6,843,004) 8,316,269 (412,327) (7,122,422) 781,520 Obligation to return securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 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, at fair value 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, at fair value 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 $4,757.8 million of securities borrowing arrangements, for which we have received securities collateral of $4,617.0 million, and $720.0 million of repurchase agreements, for which we have pledged securities collateral of $733.9 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 segregated in accordance with regulatory regulations and deposited with clearing and depository organizations totaled $604.3 million and $796.8 million at November 30, 2020 and 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 | 12 Months Ended |
Nov. 30, 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, and Note 2, Summary of Significant Accounting Policies, herein. The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Year Ended November 30, 2020 2019 2018 Transferred assets $ 6,556.2 $ 4,780.9 $ 7,159.3 Proceeds on new securitizations 6,556.2 4,852.2 7,165.3 Cash flows received on retained interests 26.8 48.3 48.5 We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at November 30, 2020 and 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): November 30, 2020 2019 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 562.5 $ 7.8 $ 10,671.7 $ 103.3 U.S. government agency CMBS 2,461.2 205.2 1,374.8 45.8 CLOs 3,345.5 39.5 3,006.7 58.4 Consumer and other loans 1,290.6 56.6 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 | 12 Months Ended |
Nov. 30, 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; • 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 November 30, 2020 and 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. November 30, 2020 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash (1) $ — $ 1.2 $ — $ 1.2 Financial instruments owned — 5.2 — 0.3 Securities purchased under agreements to resell (2) 2,908.9 — 2,467.3 — Receivable from brokers — 12.9 — — Other assets — 0.1 — — Total assets $ 2,908.9 $ 19.4 $ 2,467.3 $ 1.5 Financial instruments sold, not yet purchased $ — $ 2.5 $ — $ — Other secured financings (3) 2,907.8 — 2,465.8 — Other liabilities (4) 1.1 0.4 1.5 0.2 Total liabilities $ 2,908.9 $ 2.9 $ 2,467.3 $ 0.2 (1) Approximately $0.7 million of the cash amount at November 30, 2020 represents cash on deposit with related consolidated entities and is eliminated in consolidation. (2) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (3) Approximately $138.2 million of the other secured financings amount at November 30, 2020 is with related consolidated entities, which is eliminated in consolidation. (4) Approximately $0.3 million and $0.2 million of the other liabilities amounts at November 30, 2020 and 2019, respectively, represent intercompany payables with related consolidated entities, which are eliminated in consolidation. 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): November 30, 2020 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 60.7 $ 0.2 $ 642.7 $ 6,849.1 Consumer loan and other asset-backed vehicles 251.6 — 377.2 2,462.7 Related party private equity vehicles 19.0 — 30.0 53.0 Other investment vehicles 739.7 — 740.9 12,570.2 Total $ 1,071.0 $ 0.2 $ 1,790.8 $ 21,935.0 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 CLO transactions; 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 November 30, 2020 and 2019, our total equity commitment in the JCP Entities was $133.0 million, of which $122.0 million and $121.7 million had been funded, respectively. The carrying value of our equity investments in the JCP Entities was $19.0 million and $23.0 million at November 30, 2020 and 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 November 30, 2020 and 2019, we had equity commitments to invest $749.3 million and $398.6 million, respectively, in various other investment vehicles, of which $748.1 million and $390.8 million was funded, respectively. The carrying value of our equity investments was $739.7 million and $404.1 million at November 30, 2020 and 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 November 30, 2020 and 2019, we held $1,571.6 million and $1,453.5 million of agency mortgage-backed securities, respectively, and $252.0 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 | 12 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments At November 30, 2020, we had investments in Jefferies Finance LLC (“Jefferies Finance”) and Berkadia. In addition, we had an investment in Epic Gas Ltd. (“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 50% 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 arranges primarily senior secured loans to corporate borrowers. Loans are originated primarily through the investment banking efforts of Jefferies LLC. Jefferies Finance may also underwrite and arrange other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. In addition, Jefferies Finance is a registered investment advisor under the Investment Advisers Act of 1940 and, through two of its wholly-owned subsidiaries, Apex Credit Partners LLC and JFIN Asset Management LLC, acts as an investment advisor for various loan funds and CLOs managing direct lending and broadly syndicated loan products. At November 30, 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 November 30, 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 November 30, 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 November 30, 2020, we had funded $50.0 million of our $250.0 million commitment. The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions): Year Ended November 30, 2020 2019 2018 Interest income $ 2.4 $ — $ 1.2 Unfunded commitment fees 1.1 1.3 1.2 The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2020 2019 Total assets $ 7,199.5 $ 7,112.4 Total liabilities 5,990.4 5,828.3 Total equity 1,209.1 1,284.1 Our total equity balance 604.6 642.0 Year Ended November 30, 2020 2019 2018 Net earnings (loss) $ (74.9) $ 44.5 $ 197.2 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2020 2019 2018 Origination and syndication fee revenues (1) $ 198.1 $ 176.3 $ 377.7 Origination fee expenses (1) 27.3 27.6 56.6 CLO placement fee revenues (2) 1.7 6.0 3.7 Derivative losses (3) — — (1.6) Underwriting fees (4) 1.7 3.9 — Service fees (5) 65.1 60.8 61.7 (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 November 30, 2020 and 2019, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) We have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by CLOs and we have recognized gains (losses) relating to the derivative contracts. (4) We acted as underwriter in connection with term loans issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. In connection with non-U.S. dollar loans originated by Jefferies Finance to borrowers who are investment banking clients of ours, we have entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure. Receivables from Jefferies Finance, included in Other assets in our Consolidated Statements of Financial Condition, were $24.2 million and $17.2 million at November 30, 2020 and 2019, respectively. Payables to Jefferies Finance, related to cash deposited with us and included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition, were $13.7 million at both November 30, 2020 and 2019. At November 30, 2019, a payable to Jefferies Finance of $17.6 million related to its lending transactions is included in Payables to customers in our Consolidated Statements of Financial Condition. On March 28, 2019, we entered into a promissory note with Jefferies Finance with a principal amount of $1.0 billion, the proceeds of which were used in connection with our investment banking loan syndication activities. We repaid Jefferies Finance the entire outstanding principal amount of this note on May 15, 2019. Interest paid on the note of $3.8 million is included in Interest expense within our Consolidated Statements of Earnings for the year ended November 20, 2019. 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 or other investors. Berkadia also 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): November 30, 2020 2019 Total assets $ 4,294.0 $ 2,809.8 Total liabilities 3,626.3 2,213.2 Total equity 667.7 596.6 Our total equity balance 301.2 268.9 November 30, Two Months Ended November 30, 2018 2020 2019 Net earnings $ 153.1 $ 195.9 $ 44.4 We received distributions from Berkadia on our equity interest as follows (in millions): Year Ended November 30, Two Months Ended November 30, 2018 2020 2019 Distributions $ 37.1 $ 65.0 $ 23.1 At November 30, 2020 and 2019, in the normal course of our securities markets group business, we had commitments to purchase $401.0 million and $360.4 million, respectively, in agency CMBS from Berkadia. 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 $17.4 million and $20.6 million at November 30, 2020 and 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, herein). The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2020 2019 2018 Net gains (losses) from our investments in JCP Fund V $ (3.0) $ (5.7) $ 12.1 At both November 30, 2020 and 2019, we were committed to invest equity of up to $85.0 million in JCP Fund V. At November 30, 2020 and 2019, our unfunded commitment relating to JCP Fund V was $9.1 million and $9.4 million, respectively. The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we owned effectively 35.2% of the combined equity interests (in thousands): September 30, 2020 (1) 2019 (1) Total assets $ 49,404 $ 63,248 Total liabilities 84 76 Total partners’ capital 49,319 63,172 Nine Months Ended September 30, 2020 (1) Three Months Ended December 31, 2019 (1) Nine Months Ended September 30, 2019 (1) Three Months Ended December 31, 2018 (1) Nine Months Ended September 30, 2018 (1) Three Months Ended December 31, 2017 (1) Net increase (decrease) in net assets resulting from operations $ (12,456) $ (1,397) $ (19,070) $ (8,412) $ 15,252 $ 19,712 (1) Financial information for JCP Fund V in financial position and results of operations at November 30, 2020 and 2019 and for the years ended November 30, 2020, 2019 and 2018 is included based on the presented periods. Epic Gas We had an investment in Epic Gas and during the year ended November 30, 2019, we sold all of our common shares of Epic Gas, at fair value, for a total of $24.6 million. There was a gain of $2.8 million on this transaction, which is included in Other revenue in our Consolidated Statements of Earnings for the year ended November 30, 2019. Epic Gas reported net gains of $0.9 million and net losses of $20.1 million in the period we held the investment during the year ended November 30, 2019 and for the year ended November 30, 2018, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Nov. 30, 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): November 30, 2020 2019 Investment Banking and Capital Markets (1) $ 1,646,523 $ 1,640,201 Asset Management (1) 410 3,398 Total goodwill $ 1,646,933 $ 1,643,599 (1) Accumulated goodwill impairments related to the Investment Banking and Capital Markets business segment were $51.9 million at both December 1, 2019 and 2018, and goodwill prior to these impairments was $1,692.1 million and $1,690.7 million at December 1, 2019 and 2018, respectively. Accumulated goodwill impairments related to the Asset Management business segment were $2.1 million at both December 1, 2019 and 2018 and goodwill prior to these impairments was $5.5 million at both December 1, 2019 and 2018. The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2020 2019 Balance, at beginning of period $ 1,643,599 $ 1,642,170 Currency translation and other adjustments 6,334 1,325 Goodwill acquired during the period (1) — 104 Impairment losses (2) $ (3,000) $ — Balance, at end of period $ 1,646,933 $ 1,643,599 (1) Goodwill acquired was in connection with our purchase of an entity in Australia and relates to our Investment Banking and Capital Markets business segment. (2) Impairment losses are related to our wind down of our quantPORT asset management platform. Goodwill Impairment Testing A reporting unit is an operating segment or one level below an operating segment. The quantitative goodwill impairment test is performed at the level of the reporting unit and consists of two steps. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit. The amount of tangible equity allocated to a reporting unit is based on our cash capital model deployed in managing our businesses, which seeks to approximate the capital a business would require if it were operating independently. Intangible assets are allocated to a reporting unit based on either specifically identifying a particular intangible asset as pertaining to a reporting unit or, if shared among reporting units, based on an assessment of the reporting unit’s benefit from the intangible asset in order to generate results. Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using a market valuation method that incorporates price-to-earnings and price-to-book multiples of comparable public companies. Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit. In addition, as the fair values determined under the market valuation approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2020. Our annual goodwill impairment testing at August 1, 2020 did not indicate any goodwill impairment in any of our reporting units. Substantially all of our goodwill is allocated to our Investment Banking, Equities and Fixed Income reporting units, which are part of our Investment Banking and Capital Markets reportable business segment, for which the results of our assessment indicated that these reporting units had a fair value in excess of their carrying amounts based on current projections. At November 30, 2020, goodwill allocated to these reporting units is $1,646.5 million of total goodwill of $1,646.9 million. Intangible Assets Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2020 and 2019 (dollars in thousands): November 30, 2020 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships (1) $ 126,106 $ (26) $ (75,776) $ 50,304 9.4 Trade name (1) 129,114 (274) (28,585) 100,255 27.3 Exchange and clearing organization membership interests and registrations 8,352 (468) — 7,884 N/A Total $ 263,572 $ (768) $ (104,361) $ 158,443 (1) Impairment losses are related to our wind down of our quantPORT asset management platform. November 30, 2019 Weighted average remaining lives (years) Gross cost Impairment losses 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 8,564 (291) — 8,273 N/A Total $ 262,890 $ (291) $ (92,057) $ 170,542 We performed our annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2020. We utilized quantitative assessments of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization and qualitative assessments were performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessments, we recognized impairment losses on certain exchange membership interests and registrations. With regard to our qualitative assessments of the remaining indefinite life intangible assets, based on our assessments of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired. Amortization Expense For finite life intangible assets, aggregate amortization expense amounted to $12.2 million, $11.9 million and $12.1 million for the years ended November 30, 2020, 2019 and 2018, respectively. These expenses are included in Other expenses in our Consolidated Statements of Earnings. The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Year ending November 30, 2021 $ 12,181 Year ending November 30, 2022 9,239 Year ending November 30, 2023 8,258 Year ending November 30, 2024 8,258 Year ending November 30, 2025 8,258 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings at November 30, 2020 and 2019 mature in one year or less and include the following (in thousands): November 30, 2020 2019 Bank loans (1) $ 752,848 $ 527,509 Floating rate puttable notes (1) 6,800 — Equity-linked notes (2) 5,067 20,981 Total short-term borrowings $ 764,715 $ 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 November 30, 2020, the weighted average interest rate on short-term borrowings outstanding is 1.87% per annum. Our bank loans include facilities that contain certain covenants that, among other things, require us to maintain a specified level of tangible net worth and impose certain restrictions on the future indebtedness of certain of our subsidiaries that are borrowers. At November 30, 2020, we were in compliance with all covenants under these facilities. Our facilities included within bank loans at November 30, 2020 and 2019 were as follows (in thousands): November 30, 2020 2019 Bank of New York Mellon Master Loan Agreement (1) $ 300,000 $ 351,000 JPMorgan Chase Bank, N.A. Credit Facility (2) 246,000 135,000 Royal Bank of Canada Credit Facility (3) 200,000 — Bank of New York Mellon Credit Facility (4) — — Total $ 746,000 $ 486,000 (1) Interest is generally based at spreads over the Federal Funds Rate as defined in this master loan agreement. (2) Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate (“LIBOR”), as defined in this credit facility agreement. (3) Interest is based on a rate per annum equal to LIBOR plus an applicable margin of 2.05%. (4) During 2020, Jefferies LLC entered into a revolving credit facility with the Bank of New York Mellon for a committed amount of $100.0 million, maturing on September 13, 2021. Interest is based on a rate per annum equal to the Federal Funds Rate plus 2%. At November 30, 2020, there were no borrowings outstanding under this agreement. In addition, 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 our U.S. broker-dealer, Jefferies LLC. At November 30, 2020, we were in compliance with all debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Nov. 30, 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): Effective Interest Rate November 30, Maturity 2020 2019 Unsecured long-term debt 2.375% Euro Medium Term Notes May 20, 2020 —% $ — $ 550,622 6.875% Senior Notes April 15, 2021 —% — 774,738 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,638 4,204 5.125% Senior Notes January 20, 2023 4.47% 759,901 610,023 1.000% Euro Medium Term Notes July 19, 2024 1.00% 595,700 548,880 4.850% Senior Notes (1) January 15, 2027 4.93% 809,039 768,931 6.450% Senior Debentures June 8, 2027 5.46% 369,057 371,426 4.150% Senior Notes January 23, 2030 4.26% 989,574 988,662 2.750% Senior Notes (1) October 15, 2032 2.85% 485,134 — 6.250% Senior Debentures January 15, 2036 6.03% 510,834 511,260 6.500% Senior Notes January 20, 2043 6.09% 419,826 420,239 Structured notes (2)(3) Various Various 1,712,245 1,215,285 Total unsecured long-term debt 6,655,948 6,764,270 Secured long-term debt Revolving Credit Facility 189,732 189,088 Secured Bank Loan September 27, 2021 50,000 50,000 Total long-term debt (4) $ 6,895,680 $ 7,003,358 (1) The carrying values of these senior notes include net losses of $36.7 million and $58.9 million during 2020 and 2019, respectively, associated with interest rate swaps based on designation as fair value hedges. See Note 2, Summary of Significant Accounting Policies, and 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) Of the $1,712.2 million of structured notes at November 30, 2020, $3.1 million matures in 2024, $25.4 million matures in 2025, and the remaining $1,683.7 million matures in 2026 or thereafter. (4) The Total Long-term debt has a fair value of $7,575.2 million and $7,280.4 million at November 30, 2020 and 2019, respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. During 2020, long-term debt decreased $107.7 million. This decrease is primarily due to the maturity and repayment of our 2.375% Euro Medium Term Notes and the early retirement of our 6.875% Senior Notes, partially offset by a $500.0 million principal amount issuance of 2.75% Senior Notes due 2032, a $150.0 million principal amount issuance of additional 5.125% Senior Notes due 2023 and approximately $325.5 million of structured notes issuances, net of retirements. At November 30, 2020, all of our 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. Gains and losses in the fair value of structured notes resulting from non-credit components are recognized within Other adjustments on the Consolidated Statements of Cash Flow. During 2019, long-term debt increased $457.1 million. This increase is primarily due to structured notes issuances with a total principal amount of approximately $498.9 million, net of retirements. In addition, on July 19, 2019, under our $2.5 billion Euro Medium Term Note Program, we issued 1.000% senior unsecured notes with a principal amount of $553.6 million, due 2024. Proceeds amounted to $551.4 million. The decrease in long-term debt was partially offset by repayments of $680.8 million of our 8.500% senior notes. We have a Revolving Credit Facility with a group of commercial banks for an aggregate principal amount of $190.0 million. At November 30, 2020, borrowings under the Revolving Credit Facility amounted to $189.7 million. Interest is based on an annual alternative base rate or an adjusted LIBOR, as defined in the Revolving Credit Facility agreement. 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. Throughout the year and at November 30, 2020, no instances of noncompliance with the Revolving Credit Facility covenants occurred and we expect to remain in compliance given our current liquidity, and anticipated funding requirements given our business plan and profitability expectations. One of our subsidiaries has 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 November 30, 2020, we were in compliance with all covenants under the Loan and Security Agreement. |
Leases
Leases | 12 Months Ended |
Nov. 30, 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 at November 30, 2020 was as follows (in thousands, except lease term and discount rate): Premises and equipment - ROU assets $ 486,614 Weighted average: Remaining lease term (in years) 10.9 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 November 30, 2020 (in thousands): Fiscal Year Lease Liabilities 2021 $ 65,442 2022 70,200 2023 62,641 2024 61,106 2025 63,158 2026 and thereafter 338,742 Total undiscounted cash flows 661,289 Less: Difference between undiscounted and discounted cash flows (100,402) Operating leases amount in our Consolidated Statement of Financial Condition 560,887 Finance leases amount in our Consolidated Statement of Financial Condition 362 Total amount in our Consolidated Statement of Financial Condition $ 561,249 The following table presents our lease costs (in thousands): Year Ended Operating lease costs (1) $ 71,140 Variable lease costs (2) 13,332 Less: Sublease income (5,974) Total lease cost, net $ 78,498 (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): Year Ended Cash outflows - lease liabilities $ 66,248 Non-cash - ROU assets recorded for new and modified leases 21,389 In addition, the amortization of the ROU assets is included within Other adjustments on the Consolidated Statements of Cash Flows. 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 and $52.3 million for the years ended November 30, 2019 and 2018, 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 at November 30, 2020 was as follows (in thousands, except lease term and discount rate): Premises and equipment - ROU assets $ 486,614 Weighted average: Remaining lease term (in years) 10.9 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 November 30, 2020 (in thousands): Fiscal Year Lease Liabilities 2021 $ 65,442 2022 70,200 2023 62,641 2024 61,106 2025 63,158 2026 and thereafter 338,742 Total undiscounted cash flows 661,289 Less: Difference between undiscounted and discounted cash flows (100,402) Operating leases amount in our Consolidated Statement of Financial Condition 560,887 Finance leases amount in our Consolidated Statement of Financial Condition 362 Total amount in our Consolidated Statement of Financial Condition $ 561,249 The following table presents our lease costs (in thousands): Year Ended Operating lease costs (1) $ 71,140 Variable lease costs (2) 13,332 Less: Sublease income (5,974) Total lease cost, net $ 78,498 (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): Year Ended Cash outflows - lease liabilities $ 66,248 Non-cash - ROU assets recorded for new and modified leases 21,389 In addition, the amortization of the ROU assets is included within Other adjustments on the Consolidated Statements of Cash Flows. 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 and $52.3 million for the years ended November 30, 2019 and 2018, respectively. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Nov. 30, 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): Year Ended November 30, 2020 2019 2018 Revenues from contracts with customers: Commissions and other fees $ 823,258 $ 676,309 $ 663,470 Investment banking 2,501,494 1,528,729 1,910,203 Asset management fees 9,187 17,219 21,214 Total revenue from contracts with customers 3,333,939 2,222,257 2,594,887 Other sources of revenue: Principal transactions 1,867,013 769,258 524,296 Revenues from third-parties with strategic relationships pursuant to arrangements 19,507 3,066 — Interest 894,215 1,496,529 1,207,095 Other 37,632 93,422 103,354 Total revenues $ 6,152,306 $ 4,584,532 $ 4,429,632 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 also earn investment research fees for the sales of our proprietary investment research when a contract with a client has been identified. The delivery of investment research services represents a distinct performance obligation that is satisfied over time when the performance obligation is to provide ongoing access to a research platform or research analysts, with fees recognized on a straight-line basis over the period in which the performance obligation is satisfied. The performance obligation is satisfied at a point in time when the performance obligation is to provide individual interactions with research analysts or research events, with fees recognized on the interaction date. 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): Year Ended November 30, 2020 2019 2018 Reportable Segment Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - $ 1,053,500 $ — $ 1,053,500 $ 767,421 $ — $ 767,421 $ 820,042 $ — $ 820,042 Investment banking - 1,447,994 — 1,447,994 761,308 — 761,308 1,090,161 — 1,090,161 Equities (1) 807,350 — 807,350 662,804 — 662,804 649,631 — 649,631 Fixed income (1) 15,908 — 15,908 13,505 — 13,505 13,839 — 13,839 Asset management — 9,187 9,187 — 17,219 17,219 — 21,214 21,214 Total $ 3,324,752 $ 9,187 $ 3,333,939 $ 2,205,038 $ 17,219 $ 2,222,257 $ 2,573,673 $ 21,214 $ 2,594,887 Primary geographic region: Americas $ 2,742,298 $ 4,239 $ 2,746,537 $ 1,751,568 $ 10,472 $ 1,762,040 $ 2,186,955 $ 20,871 $ 2,207,826 Europe 401,853 4,948 406,801 374,411 6,747 381,158 304,027 343 304,370 Asia Pacific 180,601 — 180,601 79,059 — 79,059 82,691 — 82,691 Total $ 3,324,752 $ 9,187 $ 3,333,939 $ 2,205,038 $ 17,219 $ 2,222,257 $ 2,573,673 $ 21,214 $ 2,594,887 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Refer to Note 20, 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 November 30, 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 November 30, 2020. During the years ended November 30, 2020, 2019 and 2018, we recognized $11.1 million, $27.6 million and $26.6 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 $17.6 million, $21.7 million and $18.1 million of revenues primarily associated with distribution services during the years ended November 30, 2020, 2019 and 2018, 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 $278.5 million and $209.3 million at November 30, 2020 and 2019, respectively. We had no significant impairments related to these receivables during the years ended November 30, 2020 and 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 revenue at November 30, 2020 and 2019 was $10.0 million and $9.0 million, respectively, which are recorded in Accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. During the years ended November 30, 2020, 2019 and 2018, we recognized revenue of $7.9 million, $9.5 million and $5.4 million, respectively, that were recorded as deferred revenue at the beginning of the year. 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 November 30, 2020 and 2019, capitalized costs to fulfill a contract were $1.8 million and $4.8 million, respectively, which are recorded in Receivables – Fees, interest and other in the Consolidated Statement of Financial Condition. For the years ended November 30, 2020, 2019 and 2018, we recognized expenses of $5.1 million, $4.0 million and $2.3 million, respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the year. There were no significant impairment charges recognized in relation to these capitalized costs during the years ended November 30, 2020, 2019 and 2018. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans U.S. Pension Plan We maintain a defined benefit pension plan, Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”), which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and covers certain of our employees. Under the U.S. Pension Plan, benefits to participants are based on years of service and the employee’s career average pay. Effective December 31, 2005, benefits under the U.S. Pension Plan were frozen with no further benefit accruing to participants for future service after December 31, 2005. Employer Contributions - Our funding policy is to contribute to the U.S. Pension Plan at least the minimum amount required for funding purposes under applicable employee benefit and tax laws. We did not contribute to the U.S. Pension Plan during the year ended November 30, 2020 and we do not anticipate making a contribution to the plan for the year ending November 30, 2021. The following tables summarize the changes in the projected benefit obligation, the fair value of the assets and the funded status of the plan (in thousands): Year Ended November 30, 2020 2019 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 63,222 $ 54,724 Interest cost 1,801 2,303 Actuarial losses 9,874 9,606 Administrative expenses paid (346) (467) Benefits paid (1,003) (3,444) Settlements (2,477) — Other costs 470 500 Projected benefit obligation, end of period $ 71,541 $ 63,222 Change in plan assets: Fair value of assets, beginning of period $ 56,980 $ 48,176 Benefits paid (1,003) (3,444) Administrative expenses paid (346) (467) Actual return on plan assets 10,007 10,715 Contributions — 2,000 Settlements (2,477) — Fair value of assets, end of period $ 63,161 $ 56,980 Funded status at end of period $ (8,380) $ (6,242) The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2020 2019 Consolidated statements of financial condition: Accrued expenses and other liabilities $ 8,380 $ 6,242 Accumulated other comprehensive income, before taxes: Net losses $ (10,875) $ (8,159) The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2020 2019 2018 Components of net periodic pension cost: Interest cost on projected benefit obligation $ 1,801 $ 2,303 $ 2,129 Expected return on plan assets (3,477) (3,008) (3,247) Net amortization 252 122 — Settlement losses 376 — 365 Other costs 470 500 400 Net periodic pension cost $ (578) $ (83) $ (353) Year Ended November 30, 2020 2019 2018 Amounts recognized in Other comprehensive income: Net losses arising during the period $ 3,344 $ 1,899 $ 655 Amortization of net loss (252) (122) — Settlements during the period (376) — (365) Total losses recognized in Other comprehensive income $ 2,716 $ 1,777 $ 290 Net losses/(gains) recognized in net periodic benefit cost and Other comprehensive income $ 2,138 $ 1,694 $ (63) The assumptions used to determine the actuarial present value of the projected obligation and net periodic pension benefit cost are as follows: Year Ended November 30, 2020 2019 2018 Discount rate used to determine benefit obligation 2.00 % 2.90 % 4.30 % Weighted average assumptions used to determine net pension cost: Discount rate 2.90 % 4.30 % 3.60 % Expected long-term rate of return on plan assets 6.25 % 6.25 % 6.25 % Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2021 $ 2,207 2022 3,048 2023 4,176 2024 4,758 2025 4,422 2026 through 2030 24,755 Plan Assets - We have an agreement with an external investment manager to invest and manage the plan’s assets under a strategy using a combination of two portfolios. The investment manager allocates the plan’s assets between a growth portfolio and a liability-driven portfolio according to certain target allocations and tolerance bands that are agreed to by the Administrative Committee of the U.S. Pension Plan. Such target allocations will take into consideration the plan’s funded ratio. The manager will also monitor the strategy and, as the plan’s funded ratio changes over time, will rebalance the strategy, if necessary, to be within the agreed tolerance bands and target allocations. The portfolios are comprised of certain common collective investment trusts that are established and maintained by the investment manager. The common collective trusts are valued at their NAV as a practical expedient for fair value. German Pension Plan |
Compensation Plans
Compensation Plans | 12 Months Ended |
Nov. 30, 2020 | |
Compensation Related Costs [Abstract] | |
Compensation Plans | Compensation Plans Jefferies sponsors our following share-based compensation plans: Incentive Compensation Plan, Employee Stock Purchase Plan (“ESPP”) and the Deferred Compensation Plan. The outstanding and future share-based awards relating to these plans relate to Jefferies common shares. The fair value of share-based awards is estimated on the date of grant based on the market price of the underlying common stock less the impact of market conditions and selling restrictions subsequent to vesting, if any, and is amortized as compensation expense over the related requisite service periods. We are allocated costs associated with awards granted to our employees under such plans. In addition, we sponsor non-share-based compensation plans. Non-share-based compensation plans sponsored by us include a profit sharing plan and other forms of restricted cash awards. The components of total compensation cost associated with certain of our compensation plans are as follows (in millions): Year Ended November 30, 2020 2019 2018 Components of compensation cost: Restricted cash awards (1) $ 474.3 $ 314.7 $ 274.4 Restricted stock and RSUs (2) 25.2 26.7 27.6 Profit sharing plan 7.8 7.2 6.5 Total compensation cost $ 507.3 $ 348.6 $ 308.5 (1) During the fourth quarter of 2020, we amended certain provisions of a set of cash awards that had been granted as part of compensation at previous year-ends to remove any service requirements for vesting in the awards. Compensation expense of $179.6 million was recorded during the year ended November 30, 2020 as a result of these amendments. (2) 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. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan. This compensation cost was approximately $0.3 million, $0.4 million and $0.3 million for the years ended November 30, 2020, 2019 and 2018, respectively. Remaining unamortized amounts related to certain compensation plans at November 30, 2020 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period Non-vested share-based awards $ 28.2 2 Restricted cash awards 363.5 3 Total $ 391.7 The following are descriptions of the compensation plans: Incentive Compensation Plan. The Incentive Compensation Plan (“Incentive Plan”) allows for awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, RSUs, dividend equivalents or other share-based awards. RSUs give a participant the right to receive fully vested common shares at the end of a specified deferral period, allowing a participant to hold an interest tied to common stock on a tax deferred basis. Prior to settlement, RSUs carry no voting or dividend rights associated with the stock ownership, but dividend equivalents are accrued to the extent there are dividends declared on the underlying common shares as cash amounts or as deemed reinvestments in additional RSUs. Awards issued and outstanding related to the Incentive Plan relate to shares of Jefferies. Restricted stock and RSUs may be granted to new employees as sign-on awards, to existing employees as “retention” awards and to certain executive officers as awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four Employee Stock Purchase Plan. There is also an ESPP which we consider noncompensatory effective January 1, 2007. The ESPP permits all regular full-time employees and employees who work part time over 20 hours per week to purchase, at a discount, Jefferies common shares. Annual employee contributions are limited to $21,250, are voluntary and made through payroll deduction. The stock purchase price is equal to 95% of the closing price of common stock on the last day of the applicable session (monthly). Deferred Compensation Plan. There is also a Deferred Compensation Plan (“Deferred Compensation Plan”), which was established in 2001. Eligible employees are able to defer compensation on a pre-tax basis, with deferred amounts deemed invested at a discount in Jefferies common shares, or by allocating among any combination of other investment funds available under the Deferred Compensation Plan. We often invest directly, as a principal, in investments corresponding to the other investment funds, relating to our obligations to perform under the Deferred Compensation Plan. The compensation deferred by our employees is expensed in the period earned. The change in fair value of our investments in assets corresponding to the specified other investment funds are recognized in Principal transactions revenues and changes in the corresponding deferred compensation liability are reflected as Compensation and benefits expense in our Consolidated Statements of Earnings. Profit Sharing Plan . We have a profit sharing plan, covering substantially all employees, which includes a salary reduction feature designed to qualify under Section 401(k) of the Internal Revenue Code. Restricted Cash Awards. We provide compensation to new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements. We amortize these awards to compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Total income taxes were allocated as follows (in thousands): Year Ended November 30, 2020 2019 2018 Income tax expense $ 302,748 $ 80,284 $ 250,650 The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2020 2019 2018 Current: U.S. Federal $ 213,274 $ 50,970 $ 106,761 U.S. state and local 35,317 (3,641) 7,485 Foreign 71,898 10,923 10,139 Total current 320,489 58,252 124,385 Deferred: U.S. Federal (30,190) 19,973 131,233 U.S. state and local (96) 5,768 975 Foreign 12,545 (3,709) (5,943) Total deferred (17,741) 22,032 126,265 Total income tax expense $ 302,748 $ 80,284 $ 250,650 The following table presents the U.S. and non-U.S. components of income before income tax expense (in thousands): Year Ended November 30, 2020 2019 2018 U.S. $ 888,639 $ 313,349 $ 370,600 Non-U.S. (1) 288,815 11,320 39,067 Income before income tax expense $ 1,177,454 $ 324,669 $ 409,667 (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rates of 21.0% for the years ended November 30, 2020 and 2019 and 22.2% for the year ended November 30, 2018 to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2020 2019 2018 Amount Percent Amount Percent Amount Percent Computed expected income taxes $ 247,265 21.0 % $ 68,181 21.0 % $ 90,945 22.2 % (1) Increase (decrease) in income taxes resulting from: State and local income taxes, net of Federal income tax benefit 50,923 4.3 11,638 3.6 20,419 5.0 International operations (including foreign rate differential) 13,168 1.1 4,518 1.4 2,258 0.6 Tax exempt income (227) — (634) (0.2) (2,202) (0.5) Foreign tax credits, net (8,654) (0.7) (1,664) (0.5) (8,006) (2.0) Meals and entertainment 1,822 0.2 3,641 1.1 4,528 1.1 Non-deductible executive compensation 8,407 0.7 3,720 1.1 3,011 0.7 Change in unrecognized tax benefits related to prior years (9,314) (0.8) (7,690) (2.4) (18,497) (4.5) Deferred tax asset remeasurement related to the Tax Act — — — — 112,733 27.5 Transition tax on foreign earnings related to the Tax Act — — 139 0.1 52,417 12.8 Other, net (642) (0.1) (1,565) (0.5) (6,956) (1.7) Total income tax expense $ 302,748 25.7 % $ 80,284 24.7 % $ 250,650 61.2 % (1) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act, which reduced the U.S. federal corporate tax rate from 35.0% to 21.0%, as well as other changes. The statutory U.S. federal corporate tax rate for companies with a fiscal year end of November 30, 2018 is a blended rate of 22.2%, which was reduced to 21.0% in fiscal 2019 and thereafter. The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2020 2019 2018 Balance at beginning of period $ 125,607 $ 125,626 $ 129,544 Increases based on tax positions related to the current period 40,209 8,142 19,840 Increases based on tax positions related to prior periods 5,275 1,399 5,002 Decreases based on tax positions related to prior periods (2,444) (9,560) (28,760) Balance at end of period $ 168,647 $ 125,607 $ 125,626 The total amount of unrecognized tax benefit that, if recognized, would favorably affect the effective tax rate was $133.9 million and $99.5 million (net of benefits of taxes) at November 30, 2020 and 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. Net interest expense related to unrecognized tax benefits was $9.8 million, $6.3 million and $1.0 million for the years ended November 30, 2020, 2019 and 2018, respectively. At November 30, 2020 and 2019, we had interest accrued of approximately $65.4 million and $55.6 million, respectively, included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. No material penalties were accrued for the years ended November 30, 2020 and 2019. The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2020 2019 Deferred tax assets: Compensation and benefits $ 238,154 $ 223,357 Operating lease liabilities 140,742 — Long-term debt 41,934 33,097 Accrued expenses and other 61,247 71,993 Net operating losses 2,534 5,634 Sub-total 484,611 334,081 Valuation allowance (3,201) (3,228) Total deferred tax assets 481,410 330,853 Deferred tax liabilities: Operating lease right-of-use assets 134,638 — Amortization of intangibles 67,663 70,373 Partnerships 28,249 49,853 Other 15,167 12,580 Total deferred tax liabilities 245,717 132,806 Net deferred tax asset, included in Other assets $ 235,693 $ 198,047 The valuation allowance represents the portion of our deferred tax assets for which it is more likely than not that the benefit of such items will not be realized. We believe that the realization of the net deferred tax asset of $235.7 million at November 30, 2020 is more likely than not based on expectations of future taxable income in the jurisdictions in which we operate. At November 30, 2020, we had gross net operating loss carryforwards of $2.5 million, primarily related to various European jurisdictions. A deferred tax asset of $1.8 million related to net operating losses in Europe has been partially offset by a valuation allowance of $1.4 million, while $0.6 million of a deferred tax asset related to net operating losses in Asia has been partially offset by a valuation allowance of allowance of $0.3 million. The remaining valuation allowance is attributable to deferred tax assets related to compensation and benefits in the U.K. We have a tax sharing agreement between us and Jefferies. Refer to Note 21, Related Party Transactions, herein, for further information. We are currently under examination by a number of taxing jurisdictions. We do not expect that resolution of these examinations will have a material effect on our consolidated financial position, but could have a material impact on the consolidated results of operations for the period in which resolution occurs. It is reasonably possible that, within the next twelve months, statutes of limitation will expire which would have the effect of reducing the balance of unrecognized tax benefits by $6.2 million. The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate: Jurisdiction Tax Year United States 2017 New Jersey 2010 New York State 2001 New York City 2006 United Kingdom 2019 Italy 2012 Hong Kong 2014 India 2010 The new tax on global intangible low-taxed income (“GILTI”), became applicable in fiscal 2019. As a result, we made an accounting policy election in the first quarter of 2019 to treat GILTI as a period cost if and when incurred. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes our commitments at November 30, 2020 (in millions): Expected Maturity Date (fiscal years) 2021 2022 2023 and 2024 2025 and 2026 2027 and Later Maximum Payout Equity commitments (1) $ 306.7 $ 1.3 $ — $ — $ 6.8 $ 314.8 Loan commitments (1) 249.5 10.0 25.0 1.4 — 285.9 Underwriting commitments 243.3 — — — — 243.3 Forward starting reverse repos (2) 6,048.0 — — — — 6,048.0 Forward starting repos (2) 3,488.7 — — — — 3,488.7 Other unfunded commitments (1) 156.6 25.0 5.2 — — 186.8 Total commitments $ 10,492.8 $ 36.3 $ 30.2 $ 1.4 $ 6.8 $ 10,567.5 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At November 30, 2020, $5,919.9 million within forward starting securities purchased under agreements to resell and $3,480.4 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 November 30, 2020, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $11.0 million. See Note 9, Investments, for additional information regarding our investments in Jefferies Finance. Additionally, at November 30, 2020, we had other outstanding equity commitments to invest up to $200.0 million to third-parties with strategic relationships and up to $6.2 million to 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, SPE sponsors in connection with the funding of CLO and other asset-backed transactions, and third-parties with strategic relationships. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At November 30, 2020, we had $80.0 million of outstanding loan commitments to clients and $5.9 million to third-parties with strategic relationships. Loan commitments outstanding at November 30, 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 November 30, 2020 (in millions): Expected Maturity Date (Fiscal Years) 2021 2022 2023 and 2024 2025 and 2026 2027 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 12,607.6 $ 2,475.8 $ 5,760.8 $ 390.4 $ 11.9 $ 21,246.5 Written derivative contracts—credit related — — 6.4 — — 6.4 Total derivative contracts $ 12,607.6 $ 2,475.8 $ 5,767.2 $ 390.4 $ 11.9 $ 21,252.9 The derivative contracts deemed to meet the definition of a guarantee under U.S. GAAP are before consideration of hedging transactions and only reflect a partial or “one-sided” component of any risk exposure. Written equity options and written credit default swaps are often executed in a strategy that is in tandem with long cash instruments ( e.g. , equity and debt securities). We substantially mitigate our exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and we manage the risk associated with these contracts in the context of our overall risk management framework. We believe notional amounts overstate our expected payout and that fair value of these contracts is a more relevant measure of our obligations. At November 30, 2020, the fair value of derivative contracts meeting the definition of a guarantee is approximately $181.3 million. Standby Letters of Credit. At November 30, 2020, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $20.4 million, all of which expire within approximately 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. Additionally, we provide certain indemnifications in connection with third-party clearing and execution arrangements whereby a third-party may clear and settle transactions on behalf of our clients. These indemnifications generally have standard contractual terms and are entered into in the ordinary course of business. Our obligations in respect of such transactions are secured by the assets in our client’s account, as well as any proceeds received from the transactions cleared and settled on behalf of our client. However, we believe that it is unlikely we would have to make any material payments under these arrangements and no material liabilities related to these indemnifications have been recognized. |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Nov. 30, 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 November 30, 2020, Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 2,161,289 $ 2,060,537 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 United Kingdom (“U.K.”). The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries. At November 30, 2020 and 2019, $5,666.6 million and $4,934.2 million, respectively, of net assets of our consolidated subsidiaries are restricted, as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the parent company. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingWe 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): Year Ended November 30, 2020 2019 2018 Investment Banking and Capital Markets: Net revenues $ 4,989.2 $ 3,036.0 $ 3,184.4 Non-interest expenses 3,869.3 2,688.9 2,719.5 Earnings before income taxes $ 1,119.9 $ 347.1 $ 464.9 Asset Management: Net revenues $ 208.3 $ 76.5 $ (1.0) Non-interest expenses 150.7 98.9 54.2 Earnings (loss) before income taxes $ 57.6 $ (22.4) $ (55.2) Total: Net revenues $ 5,197.5 $ 3,112.5 $ 3,183.4 Non-interest expenses 4,020.0 2,787.8 2,773.7 Earnings before income taxes $ 1,177.5 $ 324.7 $ 409.7 The following table summarizes our total assets by reportable business segment (in millions): November 30, 2020 2019 Investment Banking and Capital Markets $ 44,488.1 $ 40,565.8 Asset Management 3,263.9 2,950.3 Total assets $ 47,752.0 $ 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): Year Ended November 30, 2020 2019 2018 Americas (1) $ 4,060.0 $ 2,407.6 $ 2,652.9 Europe (2) 852.0 592.8 434.9 Asia Pacific 285.5 112.1 95.6 Net revenues $ 5,197.5 $ 3,112.5 $ 3,183.4 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Nov. 30, 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 November 30, 2020 and 2019, we had $28.9 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. • In June 2020, we sold an investment in a limited partnership to one of our employees for $0.5 million. • 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 had an investment in a hedge fund managed by us of approximately $0.8 million at November 30, 2020. One of our directors also had an investment in a hedge fund managed by us of approximately $3.6 million at November 30, 2019, which was fully redeemed in May 2020 due to the wind down of an asset management platform. See Note 8, Variable Interest Entities, and Note 18, 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): Year Ended November 30, 2020 2019 2018 Charges to Jefferies for services provided $ 47.2 $ 52.7 $ 61.2 Charges from Jefferies for services received 32.2 9.5 9.1 • We 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): Year Ended November 30, 2020 2019 2018 Investment banking $ 10.5 $ 10.6 $ 15.7 Commissions and other fees 1.5 1.2 1.8 Principal transactions — — 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: Year Ended November 30, 2020 2019 Receivable from Jefferies $ 1.3 $ 0.9 Payable to Jefferies 7.1 4.3 • During the years ended November 30, 2020 and 2019, we paid distributions of $498.7 million and $311.1 million, respectively, to Jefferies. At November 30, 2020 and 2019, we accrued distributions payable in the amount of $153.6 million and $12.6 million, respectively, which are included in Accrued expenses and other liabilities, in our Consolidated Statements of Financial Condition, based on our results for the three months ended November 30, 2020 and 2019. • 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 November 30, 2020, a net current tax payable from Jefferies of $111.1 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. During the years ended November 30, 2020 and 2019, we made payments to Jefferies of $83.0 million and $71.4 million, respectively. • We purchase securities from and sell securities to Jefferies, at fair value (in millions). There were no gains or losses on these transactions. Year Ended November 30, 2020 2019 Securities purchased from Jefferies $ 64.8 $ 917.2 Securities sold to Jefferies (1) 0.1 110.9 (1) During the year ended November 30, 2019, we also transferred to Jefferies a related deferred tax liability of $3.1 million. • On November 3, 2020, Jefferies sold a wholly-owned subsidiary primarily invested in short-dated receivables that related to an asset management strategy to an investment fund managed by us for approximately $180.7 million. • At November 30, 2020, we have customer account payables to entities of Jefferies totaling $2.2 million, included in Payables—customers, in our Consolidated Statements of Financial Condition. • On November 27, 2019, we transferred our investment in CoreCommodity Capital, LLC, an asset manager, along with a related accrued receivable and deferred tax asset, to Jefferies, in return for a total cash payment of $31.0 million. • On October 1, 2018, Jefferies transferred its 50% interest in Berkadia and capital investments in certain separately managed accounts and funds to us. On November 1, 2018, we purchased LIML, an investment advisory company, from Jefferies. These transfers were accomplished as a capital contribution from Jefferies of approximately $598.2 million and cash payments of $70.5 million to Jefferies during the fourth quarter of 2018. In addition, we paid cash of approximately $5.5 million, representing LIML’s net book value as at October 31, 2018, including goodwill of $0.4 million and intangible assets of $0.2 million. In connection with these transfers, related deferred tax liabilities of approximately $50.9 million were transferred to us, for which Jefferies has indemnified us. These transferred deferred tax liabilities were adjusted by an additional $19.1 million during the fourth quarter of 2019. See Note 9, Investments, for further details on our 50% interest in Berkadia. • In connection with foreign exchange contracts entered into under a prime brokerage agreement with an affiliate of Jefferies, we have $2.7 million and $9.9 million at November 30, 2020 and 2019, respectively, included in Payables—brokers, dealers and clearing organizations, 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 $0.1 million recorded in Financial instruments owned, at fair value, and $0.6 million recorded in Financial instruments sold, not yet purchased, at fair value, in our Consolidated Statements of Financial Condition at November 30, 2020 and 2019, respectively. Net gains (losses) relating to these contracts, which are included in Principal transactions revenues in our Consolidated Statements of Earnings, are as follows (in millions): Year Ended November 30, 2020 2019 2018 Net gains (losses) on foreign exchange contracts $ 1.6 $ (6.1) $ — • Two of our directors have 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 $239.0 million and $223.5 million at November 30, 2020 and 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): Year Ended November 30, 2020 2019 2018 Net gains on our investments $ 15.8 $ 4.7 $ 5.0 • 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 November 30, 2020 and 2019, approximately $2.6 million and $0.1 million, respectively, of debt issued by Jefferies is 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 year ended November 30, 2020, we received payments for rent and other expenses of $0.8 million from this affiliate. • In June 2020, Jefferies paid us $2.9 million for the transfer of one of its asset management divisions, which included a net related liability to us. HRG Group Inc. ( “ HRG ” ) . We recognized investment banking revenues of $3.0 million for the year ended November 30, 2018 in connection with the merger of HRG into Spectrum Brands Holdings, Inc., which was partially owned by Jefferies. For information on transactions with our equity method investees, see Note 9, Investments. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Nov. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of unaudited quarterly statements of earnings for the years ended November 30, 2020 and 2019 (in thousands): Three Months Ended November 30, 2020 August 31, May 31, February 28, 2020 Total revenues $ 1,810,394 $ 1,595,073 $ 1,267,283 $ 1,479,556 Net revenues 1,608,970 1,383,444 1,034,367 1,170,696 Earnings before income taxes 405,807 363,401 172,868 235,378 Net earnings attributable to Jefferies Group LLC 307,114 268,062 130,738 173,389 Three Months Ended November 30, 2019 August 31, May 31, February 28, 2019 Total revenues $ 1,073,536 $ 1,141,631 $ 1,314,493 $ 1,054,872 Net revenues 747,802 777,159 901,851 685,718 Earnings before income taxes 23,871 83,075 155,138 62,585 Net earnings attributable to Jefferies Group LLC 25,160 64,968 109,920 45,981 |
Schedule I (PARENT COMPANY ONLY
Schedule I (PARENT COMPANY ONLY) | 12 Months Ended |
Nov. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I (PARENT COMPANY ONLY) | JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF FINANCIAL CONDITION (In thousands) November 30, 2020 2019 ASSETS Cash and cash equivalents $ 1,281,786 $ 128,535 Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations 21,892 38,817 Financial instruments owned, at fair value 69,856 72,736 Loans to and investments in related parties 655,930 643,720 Investment in subsidiaries 6,411,169 5,639,208 Advances to subsidiaries 2,822,937 3,979,139 Subordinated notes receivable 2,443,383 2,442,625 Other assets 354,606 333,798 Total assets $ 14,061,559 $ 13,278,578 LIABILITIES AND EQUITY Short-term borrowings $ 11,867 $ 20,989 Financial instruments sold, not yet purchased, at fair value — 2,307 Accrued expenses and other liabilities 1,045,000 365,540 Long-term debt 6,655,949 6,764,270 Total liabilities 7,712,816 7,153,106 EQUITY Member’s paid-in capital 6,569,328 6,329,677 Accumulated other comprehensive income (loss): Currency translation adjustments (141,843) (179,378) Changes in instrument specific credit risk (71,151) (18,889) Additional minimum pension liability (8,104) (6,079) Available-for-sale securities 513 141 Total accumulated other comprehensive loss (220,585) (204,205) Total member’s equity 6,348,743 6,125,472 Total liabilities and equity $ 14,061,559 $ 13,278,578 See accompanying notes to condensed financial statements. JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands) Year Ended November 30, 2020 2019 2018 Revenues: Principal transactions $ 58,148 $ 13,746 $ 20,875 Investment banking 17 103 — Interest 214,833 271,369 262,042 Other (38,874) 19,346 101,284 Total revenues 234,124 304,564 384,201 Interest expense 285,090 297,927 316,050 Net revenues (50,966) 6,637 68,151 Non-interest expenses: Total non-interest expenses 14,854 6,482 5,016 Earnings (loss) before income taxes (65,820) 155 63,135 Income tax expense (benefit) (19,480) (3,316) 104,649 Net earnings (loss) before undistributed earnings of subsidiaries (46,340) 3,471 (41,514) Undistributed earnings of subsidiaries 925,643 242,558 200,275 Net earnings 879,303 246,029 158,761 Other comprehensive income (loss), net of tax: Currency translation and other adjustments 37,535 6,426 (85,554) Change in instrument specific credit risk (52,262) (13,161) 22,160 Cash flow hedges — (470) 1,406 Minimum pension liability adjustments, net of tax (2,025) (1,318) 4,285 Unrealized gain on available-for-sale securities 372 487 311 Total other comprehensive loss, net of tax (16,380) (8,036) (57,392) Comprehensive income $ 862,923 $ 237,993 $ 101,369 See accompanying notes to condensed financial statements. JEFFERIES GROUP LLC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended November 30, 2020 2019 2018 Cash flows from operating activities: Net earnings $ 879,303 $ 246,029 $ 158,761 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Amortization (36,708) (38,812) (53,296) Undistributed earnings of subsidiaries (925,643) (242,558) (200,275) (Income) loss on loans to and investments in related parties 37,790 (21,946) (98,223) Distributions received on investments in related parties — 75,000 40,000 Other adjustments 183,241 60,106 (116,307) Net change in assets and liabilities: Financial instruments owned 2,880 26,755 (25,604) Other assets (3,741) 154,940 119,293 Financial instruments sold, not yet purchased (2,307) 1,510 (17,264) Accrued expenses and other liabilities 526,571 (51,821) (200,970) Net cash provided by (used in) operating activities 661,386 209,203 (393,885) Cash flows from investing activities: Investments in, advances to and subordinated notes receivable from subsidiaries 1,357,031 (1,035,619) (473,436) Loans to and investments in related parties (50,000) — — Net cash provided by (used in) investing activities 1,307,031 (1,035,619) (473,436) Cash flows from financing activities: Proceeds from short-term borrowings 11,820 20,236 70,482 Payments on short-term borrowings (20,263) (55,773) (140,664) Proceeds from issuance of long-term debt, net of issuance costs 1,169,722 1,184,891 1,183,954 Repayment of long-term debt (1,494,696) (823,875) (1,035,700) Distribution to Jefferies Financial Group Inc. (498,674) (311,131) (248,684) Net cash provided by (used in) financing activities (832,091) 14,348 (170,612) Net increase (decrease) in cash and cash equivalents 1,136,326 (812,068) (1,037,933) Cash, cash equivalents and restricted cash at beginning of period 167,352 979,420 2,017,353 Cash, cash equivalents and restricted cash at end of period $ 1,303,678 $ 167,352 $ 979,420 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 272,670 $ 291,298 $ 385,410 Income taxes, net 84,098 73,151 186,236 Noncash financing activities: On October 1, 2018, Jefferies Financial Group Inc. (“Jefferies”) transferred to the Parent Company its 50% interest in Berkadia Commercial Mortgage Holding LLC (“Berkadia”) and its capital investments in certain separately managed accounts and funds. The transfer of its interest in Berkadia and a portion of the transfer of its capital investments in certain separately managed accounts and funds were recorded as a capital contribution and increased member’s equity by $598.2 million. Refer to Note 21, Related Party Transactions, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2020 for further details. The following presents the Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition (in thousands): November 30, 2020 2019 Cash and cash equivalents $ 1,281,786 $ 128,535 Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations 21,892 38,817 Total cash, cash equivalents and restricted cash $ 1,303,678 $ 167,352 See accompanying notes to condensed financial statements. Note 1. Introduction and Basis of Presentation The accompanying condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Jefferies Group LLC (the “Company”) and the notes thereto found in the Company’s Annual Report on Form 10-K for the year ended November 30, 2020. For purposes of these condensed non-consolidated financial statements, the Company’s wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting (“equity method subsidiaries”). The Parent Company is an indirect wholly-owned subsidiary of Jefferies. Jefferies does not guarantee any of our outstanding debt securities. The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Summary of Significant Accounting Policies, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2020. The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Note 2. Transactions with Subsidiaries The Parent Company has transactions with its consolidated subsidiaries, Jefferies and certain other affiliated entities determined on an agreed upon basis and has guaranteed certain unsecured lines of credit and contractual obligations of certain equity method subsidiaries. Note 3. Guarantees In the normal course of its business, the Parent Company issues guarantees in respect of obligations of certain of its wholly- owned subsidiaries under trading and other financial arrangements, including guarantees to various trading counterparties and banks. The Parent Company records all derivative contracts and Financial instruments owned and Financial instruments sold, not yet purchased at fair value in its Consolidated Statements of Financial Condition. Certain of the Parent Company’s equity method subsidiaries are members of various exchanges and clearing houses. In the normal course of business, the Parent Company provides guarantees to securities clearinghouses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. The Parent Company’s obligations under such guarantees could exceed the collateral amounts posted. The maximum potential liability under these arrangements cannot be quantified; however, the potential for the Parent Company to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. The Parent Company has provided a guarantee in respect of an obligation of an SPE sponsored by one of its subsidiaries, whereby the Parent Company is required to make payments to a certain auction house in the event that the SPE is unable to meet its obligation to the auction house. At November 30, 2020, the maximum amount payable under this guarantee is $3.4 million. The Parent Company guarantees certain financing arrangements of subsidiaries. The maximum amount payable under these guarantees is $687.5 million at November 30, 2020. For further information, refer to Note 11, Short-Term Borrowings, and Note 12, Long-Term Debt, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 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”) for financial information. |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize certain deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Consolidation | Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly-owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings (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. |
Revenue Recognition Policies | Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third-parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking . Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis within Underwriting costs in the Consolidated Statements of Earnings. Asset Management Fees and Revenues. Asset management fees and revenues consist of asset management fees, as well as revenues from third-parties with strategic relationships pursuant to arrangements, which entitle us to portions of our partners’ management company revenues and/or partners’ profits and perpetual rights to certain defined revenues for a given revenue share period. Revenue from third-parties with strategic relationships pursuant to arrangements is recognized at the end of the defined revenue or profit share period when the revenues have been realized and all contingencies have been resolved. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis, except for those for which we have elected the fair value option, with related interest recorded as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. We recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis. In addition, we recognize interest income as earned on brokerage customer margin balances and interest expense as incurred on credit balances. |
Cash Equivalents | Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. |
Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations | Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day-to-day activities. |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Fair Value Hierarchy In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management’s judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized within Level 3. |
Loans to and Investments in Related Parties | Loans to and Investments in Related Parties Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our investment banking and capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in our Consolidated Statements of Earnings. See Note 9, Investments, and Note 21, Related Party Transactions, for additional information regarding certain of these investments. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. |
Offsetting of Derivative Financial Instruments and Securities Financing Agreements | Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third-party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. |
Hedge Accounting | Hedge Accounting Hedge accounting is applied using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. The interest rate swaps are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. We use regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% - 125%. The impact of valuation adjustments related to our own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. We seek to reduce the impact of fluctuations in foreign exchange rates on our net investments in certain non-U.S. operations through the use of foreign exchange contracts. The foreign exchange contracts are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. For foreign exchange contracts designated as hedges, the effectiveness of the hedge is assessed based on the overall changes in the fair value of the forward contracts ( i.e. , based on changes in forward rates). For qualifying net investment hedges, all gains or losses on the hedging instruments are included in Currency translation adjustments and other. |
Premises and Equipment | Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three |
Leases | Leases We adopted 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. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill . Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 st or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the estimated fair value is less than the carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. Our annual indefinite-lived intangible asset impairment testing date is August 1 st . To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. |
Income Taxes | Income Taxes Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Jefferies. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Jefferies, payments are made between us and Jefferies to settle current tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. |
Legal Reserves | Legal Reserves In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a contingency in Accrued expenses and other liabilities when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the reasonable estimate of a probable loss is a range, we accrue the most likely amount of such loss, and if such amount is not determinable, then we accrue the minimum in the range as the loss accrual. The determination of the outcome and loss estimates requires significant judgment on the part of management. We believe that any other matters for which we have determined a loss to be probable and reasonably estimable are not material to our consolidated financial statements. In many instances, it is not possible to determine whether any loss is probable or even possible or to estimate the amount of any loss or the size of any range of loss. We believe that, in the aggregate, the pending legal actions or regulatory proceedings and any other exams, investigations or similar reviews (both formal and informal) should not have a material adverse effect on our consolidated results of operations, cash flows or financial condition. In addition, we believe that any amount of potential loss or range of potential loss in excess of what has been provided in our consolidated financial statements that could be reasonably estimated is not material. |
Share-based Compensation | Share-based CompensationShare-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. We account for forfeitures as they occur. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the end of a period. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, if any, are included in Other comprehensive income. Gains or losses resulting from foreign currency transactions are included in Principal transactions revenues in our Consolidated Statements of Earnings. |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Transfers of financial assets to secured funding vehicles are accounted for as sales when we have relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. We may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Financial instruments owned within our Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. When a transfer of assets does not meet the criteria of a sale, we account for the transfer as a secured borrowing and continue to recognize the assets of a secured borrowing in Financial instruments owned and recognize the associated financing in Other secured financings in our Consolidated Statements of Financial Condition. |
Accounting Standards to be Adopted in Future Periods | 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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact 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. We adopted the guidance in the first quarter of fiscal 2021 and elected to apply the guidance prospectively to implementation costs incurred after the adoption date. The adoption did not have an impact on our consolidated financial statements on the adoption date. 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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not 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. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses. In June 2016, the FASB issued ASU No. 2016-13 We have determined expected credit losses to be immaterial upon adoption for our other financial instruments within the scope of the guidance. A significant portion of our financial instruments within the scope of the guidance represent secured financing receivables (reverse repurchase, secured borrowing, and margin loan agreements) that are substantially collateralized. For our secured financing receivables, we have concluded that the impact upon adoption was immaterial because the contractual collateral maintenance provisions require that the counterparty continually adjust the amount of collateralization securing the credit exposure on these contracts. Collateralization levels for our secured financing receivables are initially established based upon the counterparty, the type of acceptable collateral that is monitored daily and adjusted to mitigate the potential of any credit losses. For the remaining financial instruments within the guidance's scope, the expected credit losses were also determined to be immaterial considering the counterparty's credit quality, an insignificant history of credit losses, or the short-term nature of the credit exposures. Adopted Accounting Standards Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides optional exceptions for applying U.S. GAAP to contracts, hedge accounting relationships or other transactions affected by reference rate reform. We adopted the guidance on September 1, 2020 and the adoption had no impact on our consolidated financial statements. Leases . We adopted the new lease standard 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 (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Nov. 30, 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 $956.0 million and $570.3 million at November 30, 2020 and 2019, respectively, by level within the fair value hierarchy (in thousands): November 30, 2020 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,331,440 $ 58,159 $ 75,797 $ — $ 2,465,396 Corporate debt securities — 2,954,201 23,146 — 2,977,347 Collateralized debt obligations and collateralized loan obligations — 64,155 10,513 — 74,668 U.S. government and federal agency securities 2,840,025 91,653 — — 2,931,678 Municipal securities — 453,881 — — 453,881 Sovereign obligations 1,962,346 591,342 — — 2,553,688 Residential mortgage-backed securities — 1,100,849 21,826 — 1,122,675 Commercial mortgage-backed securities — 736,291 2,003 — 738,294 Other asset-backed securities — 103,611 79,995 — 183,606 Loans and other receivables — 2,610,746 77,042 — 2,687,788 Derivatives 1,523 2,000,752 21,678 (1,556,136) 467,817 Investments at fair value — 6,122 67,108 — 73,230 Total financial instruments owned, excluding Investments at fair value based on NAV $ 7,135,334 $ 10,771,762 $ 379,108 $ (1,556,136) $ 16,730,068 Securities received as collateral $ 7,517 $ — $ — $ — $ 7,517 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,046,441 $ 9,046 $ 4,434 $ — $ 2,059,921 Corporate debt securities — 1,237,631 141 — 1,237,772 U.S. government and federal agency securities 2,609,660 — — — 2,609,660 Sovereign obligations 1,050,771 624,740 — — 1,675,511 Residential mortgage-backed securities — 477 — — 477 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,776,446 16,635 — 1,793,081 Derivatives 551 2,391,478 47,695 (1,798,659) 641,065 Total financial instruments sold, not yet purchased $ 5,707,423 $ 6,039,818 $ 68,940 $ (1,798,659) $ 10,017,522 Short-term borrowings $ — $ 5,067 $ — $ — $ 5,067 Other secured financings $ — $ — $ 1,543 $ — $ 1,543 Obligation to return securities received as collateral $ 7,517 $ — $ — $ — $ 7,517 Long-term debt $ — $ 1,036,217 $ 676,028 $ — $ 1,712,245 (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): November 30, 2020 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 328,096 $ — Equity Funds (3) 23,821 11,242 Commodity Fund (4) 17,747 — Multi-asset Funds (5) 561,236 — Other Funds (6) 25,084 5,000 Total $ 955,984 $ 16,242 November 30, 2019 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 27,952 12,108 Commodity Fund (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 November 30, 2020 and 2019, approximately 94% of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At both November 30, 2020 and 2019, approximately 6% of the fair value of investments in this category are redeemable quarterly with 60 days prior written notice. (3) At November 30, 2020 and 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 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 (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 November 30, 2020 and 2019, investments representing approximately 57% and 5%, respectively, of the fair value of investments in this category are redeemable monthly with 30 or 60 days prior written notice. (6) At November 30, 2020 this category primarily includes an investment in a fund that invests in short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days and short-term credit instruments. These investments are redeemable quarterly with 90 days prior written notice. At both November 30, 2020 and 2019, 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. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2020 (in thousands): Balance at November 30, 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2020 For instruments still held at November 30, 2020, changes in unrealized gains/(losses) included in: Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 58,301 $ (3,961) $ 31,778 $ (37,706) $ — $ — $ 27,385 $ 75,797 $ (652) $ — Corporate debt securities 7,490 83 1,607 (391) (602) — 14,959 23,146 (270) — CDOs and CLOs 20,081 (5,703) 10,913 (14,389) (2,071) — 1,682 10,513 (15,964) — RMBS 17,740 (934) 7,887 (969) (1,053) — (845) 21,826 (599) — CMBS 6,110 (827) 393 (1,856) (1,787) — (30) 2,003 (295) — Other ABS 42,563 (3,848) 69,701 (1,638) (43,072) — 16,289 79,995 (5,945) — Loans and other receivables 64,240 (20,487) 73,485 (36,929) (7,063) — 3,796 77,042 (18,747) — Investments at fair value 75,738 (19,396) 28,132 (167) (17,199) — — 67,108 (21,244) — Securities purchased under agreements to resell 25,000 — — — (25,000) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 456 $ (513) $ — $ — $ — $ 4 $ 4,434 $ (81) $ — Corporate debt securities 340 (268) (325) 394 — — — 141 27 — CMBS 35 — — 35 — — (35) 35 — — Loans 9,463 (520) (6,061) 13,851 — — (98) 16,635 360 — Net derivatives (2) 77,168 (40) (7,446) 19,376 (2,216) — (60,825) 26,017 (1,805) — Other secured financings — (2,475) — — — 4,018 — 1,543 2,475 Long-term debt 480,069 84,930 — — (57,088) 248,718 (80,601) 676,028 (51,567) (33,363) (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 within long-term debt 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 year ended November 30, 2019 (in thousands): Balance at November 30, 2018 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2019 For instruments still held at November 30, 2019, changes in unrealized gains/(losses) included in: Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 51,040 $ (10,380) $ 69,065 $ (28,159) $ (18,208) $ — $ (5,057) $ 58,301 $ (12,821) $ — Corporate debt securities 9,484 (4,860) 8,900 (13,854) (379) — 8,199 7,490 (6,176) — CDOs and CLOs 25,815 (2,342) 49,658 (38,147) (9,083) — (5,820) 20,081 (974) — RMBS 19,603 (1,669) 1,954 (2,472) (152) — 476 17,740 (530) — CMBS 10,886 (2,888) 206 (2,346) (5,317) — 5,569 6,110 (2,366) — Other ABS 53,175 433 104,097 (73,335) (51,374) — 9,567 42,563 (98) — Loans and other receivables 46,985 (5,505) 57,403 (48,350) (5,068) — 18,775 64,240 (3,319) — Investments at fair value 113,831 113 240 (38,446) — — — 75,738 2,964 — Securities purchased under — — — — — 25,000 — 25,000 — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ — $ (2,649) $ (4,322) $ 11,458 $ — $ — $ — $ 4,487 $ 1,928 $ — Corporate debt securities 522 (381) (457) — (524) — 1,180 340 383 — CMBS — 35 — — — — — 35 (35) — Loans 6,376 (1,382) (2,573) 6,494 — — 548 9,463 1,382 — Net derivatives (2) 21,614 (21,452) (4,323) 36,144 2,227 — 42,958 77,168 12,098 — Long-term debt 200,745 (18,662) — — (11,250) 348,275 (39,039) 480,069 29,656 (10,993) (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 within long-term debt 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 year ended November 30, 2018 (in thousands): Balance at November 30, 2017 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2018 For instruments still held at November 30, 2018, changes in unrealized gains/(losses) included in: Earnings (1) Other Assets: Financial instruments owned: Corporate equity $ 22,009 $ 24,023 $ 31,669 $ (22,759) $ (3,977) $ — $ 75 $ 51,040 $ 22,774 $ — Corporate debt 26,036 (439) 10,352 (23,364) (1,679) — (1,422) 9,484 (2,606) — CDOs and CLOs 30,004 (14,368) 356,650 (353,330) (10,247) — 17,106 25,815 (7,605) — RMBS 26,077 (6,970) 3,118 (12,816) (513) — 10,707 19,603 521 — CMBS 12,419 (2,186) 1,436 (471) (16,624) — 16,312 10,886 (4,000) — Other ABS 61,129 (9,934) 706,846 (677,220) (27,641) — (5) 53,175 (5,283) Loans and other 47,304 (5,137) 149,228 (130,832) (15,311) — 1,733 46,985 (8,457) — Investments, at fair 93,454 2,353 34,648 (17,570) — — 946 113,831 1,759 — Liabilities: Financial instruments sold, Corporate equity $ 48 $ — $ — $ — $ — $ — $ (48) $ — $ — $ — Corporate debt 522 — — — — — — 522 — — CMBS 105 (105) — — — — — — — — Loans 3,486 84 (4,626) 7,432 — — — 6,376 (28) — Net derivatives (2) 6,746 (3,237) (17) 14,920 (1,335) — 4,537 21,614 (646) — Long-term debt — (30,347) — — — 84,860 146,232 200,745 10,951 19,396 (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 within long-term debt 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. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2020 (in thousands): Balance at November 30, 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2020 For instruments still held at November 30, 2020, changes in unrealized gains/(losses) included in: Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 58,301 $ (3,961) $ 31,778 $ (37,706) $ — $ — $ 27,385 $ 75,797 $ (652) $ — Corporate debt securities 7,490 83 1,607 (391) (602) — 14,959 23,146 (270) — CDOs and CLOs 20,081 (5,703) 10,913 (14,389) (2,071) — 1,682 10,513 (15,964) — RMBS 17,740 (934) 7,887 (969) (1,053) — (845) 21,826 (599) — CMBS 6,110 (827) 393 (1,856) (1,787) — (30) 2,003 (295) — Other ABS 42,563 (3,848) 69,701 (1,638) (43,072) — 16,289 79,995 (5,945) — Loans and other receivables 64,240 (20,487) 73,485 (36,929) (7,063) — 3,796 77,042 (18,747) — Investments at fair value 75,738 (19,396) 28,132 (167) (17,199) — — 67,108 (21,244) — Securities purchased under agreements to resell 25,000 — — — (25,000) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 456 $ (513) $ — $ — $ — $ 4 $ 4,434 $ (81) $ — Corporate debt securities 340 (268) (325) 394 — — — 141 27 — CMBS 35 — — 35 — — (35) 35 — — Loans 9,463 (520) (6,061) 13,851 — — (98) 16,635 360 — Net derivatives (2) 77,168 (40) (7,446) 19,376 (2,216) — (60,825) 26,017 (1,805) — Other secured financings — (2,475) — — — 4,018 — 1,543 2,475 Long-term debt 480,069 84,930 — — (57,088) 248,718 (80,601) 676,028 (51,567) (33,363) (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 within long-term debt 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 year ended November 30, 2019 (in thousands): Balance at November 30, 2018 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2019 For instruments still held at November 30, 2019, changes in unrealized gains/(losses) included in: Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 51,040 $ (10,380) $ 69,065 $ (28,159) $ (18,208) $ — $ (5,057) $ 58,301 $ (12,821) $ — Corporate debt securities 9,484 (4,860) 8,900 (13,854) (379) — 8,199 7,490 (6,176) — CDOs and CLOs 25,815 (2,342) 49,658 (38,147) (9,083) — (5,820) 20,081 (974) — RMBS 19,603 (1,669) 1,954 (2,472) (152) — 476 17,740 (530) — CMBS 10,886 (2,888) 206 (2,346) (5,317) — 5,569 6,110 (2,366) — Other ABS 53,175 433 104,097 (73,335) (51,374) — 9,567 42,563 (98) — Loans and other receivables 46,985 (5,505) 57,403 (48,350) (5,068) — 18,775 64,240 (3,319) — Investments at fair value 113,831 113 240 (38,446) — — — 75,738 2,964 — Securities purchased under — — — — — 25,000 — 25,000 — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ — $ (2,649) $ (4,322) $ 11,458 $ — $ — $ — $ 4,487 $ 1,928 $ — Corporate debt securities 522 (381) (457) — (524) — 1,180 340 383 — CMBS — 35 — — — — — 35 (35) — Loans 6,376 (1,382) (2,573) 6,494 — — 548 9,463 1,382 — Net derivatives (2) 21,614 (21,452) (4,323) 36,144 2,227 — 42,958 77,168 12,098 — Long-term debt 200,745 (18,662) — — (11,250) 348,275 (39,039) 480,069 29,656 (10,993) (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 within long-term debt 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 year ended November 30, 2018 (in thousands): Balance at November 30, 2017 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2018 For instruments still held at November 30, 2018, changes in unrealized gains/(losses) included in: Earnings (1) Other Assets: Financial instruments owned: Corporate equity $ 22,009 $ 24,023 $ 31,669 $ (22,759) $ (3,977) $ — $ 75 $ 51,040 $ 22,774 $ — Corporate debt 26,036 (439) 10,352 (23,364) (1,679) — (1,422) 9,484 (2,606) — CDOs and CLOs 30,004 (14,368) 356,650 (353,330) (10,247) — 17,106 25,815 (7,605) — RMBS 26,077 (6,970) 3,118 (12,816) (513) — 10,707 19,603 521 — CMBS 12,419 (2,186) 1,436 (471) (16,624) — 16,312 10,886 (4,000) — Other ABS 61,129 (9,934) 706,846 (677,220) (27,641) — (5) 53,175 (5,283) Loans and other 47,304 (5,137) 149,228 (130,832) (15,311) — 1,733 46,985 (8,457) — Investments, at fair 93,454 2,353 34,648 (17,570) — — 946 113,831 1,759 — Liabilities: Financial instruments sold, Corporate equity $ 48 $ — $ — $ — $ — $ — $ (48) $ — $ — $ — Corporate debt 522 — — — — — — 522 — — CMBS 105 (105) — — — — — — — — Loans 3,486 84 (4,626) 7,432 — — — 6,376 (28) — Net derivatives (2) 6,746 (3,237) (17) 14,920 (1,335) — 4,537 21,614 (646) — Long-term debt — (30,347) — — — 84,860 146,232 200,745 10,951 19,396 (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 within long-term debt 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. |
Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument ( i.e. , the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. November 30, 2020 Financial Instruments Owned Fair Value Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Corporate equity securities $ 75,409 Non-exchange-traded securities Market approach Price $1 - $213 $86 EBITDA multiple 4.0 - 8.0 5.7 Corporate debt securities $ 23,146 Market approach Price $69 — Scenario analysis Estimated recovery percentage 20 % - 44% 30% CDOs and CLOs $ 10,513 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25 % - 30% 26% Discount rate/yield 14 % - 28% 20% RMBS $ 21,826 Discounted cash flows Cumulative loss rate 2 % - 3% 3% Loss severity 35 % - 50% 36% Duration (years) 2.0 - 12.9 5.1 Discount rate/yield 3 % - 12% 4% Other ABS $ 67,816 Discounted cash flows Cumulative loss rate 1 % - 28% 11% Loss severity 50 % - 85% 54% Duration (years) 0.2 - 2.1 1.3 Discount rate/yield 1 % - 16% 9% Market approach Price $100 — Loans and other receivables $ 76,049 Market approach Price $31 - $100 $84 Scenario analysis Estimated recovery percentage 19 % - 100% 52% Derivatives $ 19,951 Equity options Volatility benchmarking Volatility 47% — Interest rate swaps Market approach Basis points upfront 1.2 - 8.0 4.8 Investments at fair value $ 67,108 Private equity securities Market approach Price $1 - $169 $34 Scenario analysis Estimated recovery percentage 17% — Financial Instruments Sold, Not Yet Purchased: Corporate equity securities $ 4,434 Market approach Price $1 — Corporate debt securities $ 141 Scenario analysis Estimated recovery percentage 20% — Loans $ 16,635 Market approach Price $31 - $99 $55 Derivatives $ 46,971 Equity options Volatility benchmarking Volatility 33 % - 50% 42% Interest rate swaps Market approach Basis points upfront 1.2 - 8.0 5.4 Other secured financings $ 1,543 Scenario analysis Estimated recovery percentage 19 % - 55% 45% Long-term debt Structured notes $ 676,028 Market approach Price $100 — Price €76 - €113 €99 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 Market approach 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 Short-term borrowings, Other secured financings and Long-term debt measured at fair value under the fair value option (in thousands): Year Ended November 30, 2020 2019 2018 Financial instruments owned: Loans and other receivables $ (25,623) $ (2,072) $ (3,856) Financial instruments sold, not yet purchased: Loans $ — $ 656 $ (46) Loan commitments 464 (1,089) (739) Short-term borrowings: Changes in instrument specific credit risk (1) $ — $ 114 $ — Other changes in fair value (2) (48) (863) — Other secured financings Other changes in fair value (2) 2,475 — — Long-term debt: Changes in instrument specific credit risk (1) $ (70,201) $ (20,332) $ 38,064 Other changes in fair value (2) (84,116) (25,144) 48,748 (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 short-term borrowings, other secured financings and long-term debt measured at fair value under the fair value option (in thousands): November 30, 2020 2019 Financial instruments owned: Loans and other receivables (1) $ 1,662,647 $ 1,546,516 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) 287,889 197,215 Long-term debt and short-term borrowings (42,819) 74,408 Other secured financings 2,782 — (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 $30.0 million and $22.2 million at November 30, 2020 and 2019, respectively. |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | The following table presents those assets measured at fair value on a non-recurring basis for which we recognized a non-recurring fair value adjustment during the years ended November 30, 2020, 2019 and 2018 (in thousands): Carrying Value at November 30, 2020 Level 2 Impairment Losses for the Year Ended November 30, 2020 Exchange ownership interests and $ 1,974 $ 1,974 $ 468 Goodwill (2) — — 3,000 Intangible assets (2) — — 300 Carrying Value at November 30, 2019 Level 2 Impairment Losses for the Year Ended November 30, 2019 Exchange ownership interests and registrations (1) $ 2,443 $ 2,443 $ 291 Carrying Value at November 30, 2018 Level 2 Impairment Losses for the Year Ended November 30, 2018 Exchange ownership interests and registrations (1) $ 2,663 $ 2,663 $ 9 (1) Impairment losses for exchange memberships, which represent ownership interests in market exchanges on which trading business is conducted, and registrations, were recognized in Other expenses. The fair value of these exchange memberships is based on observed quoted sales prices for each individual membership. (See Note 10, Goodwill and Intangible Assets.) The intangible assets are recognized for the years ended November 30, 2020, 2019 and 2018, primarily in the Investment Banking and Capital Markets reportable business segment. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Nov. 30, 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 November 30, 2020 and 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). November 30, 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 $ 67,381 1 $ 6,891 1 Foreign exchange contracts: Bilateral OTC — — 3,306 11 Total derivatives designated as accounting hedges 67,381 10,197 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 2,442 52,620 439 42,611 Cleared OTC 17,379 3,785 114,524 4,307 Bilateral OTC 626,210 1,493 317,534 466 Foreign exchange contracts: Exchange-traded — — — 180 Bilateral OTC 297,165 15,005 277,628 15,049 Equity contracts: Exchange-traded 558,304 1,147,486 564,951 971,938 Bilateral OTC 429,304 2,374 1,125,944 2,421 Commodity contracts: Exchange-traded 64 3,207 — 2,654 Credit contracts: Cleared OTC 24,696 39 26,298 31 Bilateral OTC 1,008 11 2,209 11 Total derivatives not designated as accounting hedges 1,956,572 2,429,527 Total gross derivative assets/ liabilities: Exchange-traded 560,810 565,390 Cleared OTC 109,456 147,713 Bilateral OTC 1,353,687 1,726,621 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (546,989) (546,989) Cleared OTC (109,228) (111,654) Bilateral OTC (899,919) (1,140,016) Net amounts per Consolidated Statements of Financial Condition (4) $ 467,817 $ 641,065 (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 related to fair value hedges (in thousands): Year Ended November 30, Gains (Losses) 2020 2019 2018 Interest rate swaps $ 41,524 $ 56,385 $ (25,539) Long-term debt (36,668) (58,931) 27,363 Total $ 4,856 $ (2,546) $ 1,824 The following table provides information related to gains (losses) on our net investment hedges recognized in Currency translation adjustments and other, a component of Other comprehensive income (loss), in our Consolidated Statements of Comprehensive Income (in thousands): Year Ended November 30, Gains (Losses) 2020 2019 2018 Foreign exchange contracts $ (3,306) $ — $ — Total $ (3,306) $ — $ — 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): Year Ended November 30, Gains (Losses) 2020 2019 2018 Interest rate contracts $ (52,331) $ (188,605) $ 67,291 Foreign exchange contracts 3,851 (4,016) (304) Equity contracts 47,631 (108,961) (232,873) Commodity contracts (189) (681) 1,112 Credit contracts 15,218 9,147 2,715 Total $ 14,180 $ (293,116) $ (162,059) |
Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities | The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at November 30, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than Cross-Maturity Total Equity options and forwards $ 32,766 $ 951 $ 16,650 $ (24,685) $ 25,682 Credit default swaps — 750 11 — 761 Total return swaps 140,394 25,110 1,321 (2,975) 163,850 Foreign currency forwards, swaps and options 62,249 18,460 517 (5,746) 75,480 Interest rate swaps, options and forwards 80,949 168,430 204,467 (40,131) 413,715 Total $ 316,358 $ 213,701 $ 222,966 $ (73,537) 679,488 Cross product counterparty netting (24,723) Total OTC derivative assets included in Financial instruments owned $ 654,765 (1) At November 30, 2020, we held net exchange-traded derivative assets and other credit agreements with a fair value of $29.8 million, which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At November 30, 2020, cash collateral received was $216.8 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 options and forwards $ 23,278 $ 491,595 $ 119,988 $ (24,685) $ 610,176 Credit default swaps — 596 1,615 — 2,211 Total return swaps 88,130 190,616 22 (2,975) 275,793 Foreign currency forwards, swaps and options 50,949 13,376 — (5,746) 58,579 Fixed income forwards 213 — — — 213 Interest rate swaps, options and forwards 61,558 65,934 68,252 (40,131) 155,613 Total $ 224,128 $ 762,117 $ 189,877 $ (73,537) 1,102,585 Cross product counterparty netting (24,723) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 1,077,862 (1) At November 30, 2020, we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $22.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2020, cash collateral pledged was $459.3 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. |
Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets | The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2020 (in thousands): Counterparty credit quality (1): A- or higher $ 164,718 BBB- to BBB+ 19,628 BB+ or lower 316,361 Unrated 154,058 Total $ 654,765 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. |
Credit Related Derivative Contracts | The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2020 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 62.0 $ 262.8 $ — $ 324.8 Single name credit default swaps — 6.2 0.2 6.4 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): November 30, 2020 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 284.6 $ 42.9 Collateral posted (129.8) (3.1) Collateral received 141.4 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 296.2 154.0 (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) | 12 Months Ended |
Nov. 30, 2020 | |
Investments, Debt and Equity Securities [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, at fair value, by class of collateral pledged (in thousands): November 30, 2020 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral, at fair value Total Collateral Pledged: Corporate equity securities $ 1,371,978 $ 157,912 $ 7,517 $ 1,537,407 Corporate debt securities 369,218 1,869,844 — 2,239,062 Mortgage-backed and asset-backed securities — 1,547,140 — 1,547,140 U.S. government and federal agency securities 14,789 7,149,992 — 7,164,781 Municipal securities — 278,470 — 278,470 Sovereign obligations 54,763 2,763,032 — 2,817,795 Loans and other receivables — 1,392,883 — 1,392,883 Total $ 1,810,748 $ 15,159,273 $ 7,517 $ 16,977,538 November 30, 2019 Securities Lending Arrangements Repurchase Agreements Obligation To Return Securities Received As Collateral, at fair value 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, at fair value, by remaining contractual maturity (in thousands): November 30, 2020 Overnight and Continuous Up to 30 Days 31-90 Days Greater Than 90 Days Total Securities lending arrangements $ 636,256 $ 59,735 $ 459,455 $ 655,302 $ 1,810,748 Repurchase agreements 5,510,476 1,747,526 5,019,885 2,881,386 15,159,273 Obligation to return securities received as collateral, at fair value 7,517 — — — 7,517 Total $ 6,154,249 $ 1,807,261 $ 5,479,340 $ 3,536,688 $ 16,977,538 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, at fair value — — 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, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 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 $ 6,934,762 $ — $ 6,934,762 $ (395,342) $ (1,706,046) $ 4,833,374 Reverse repurchase agreements 11,939,773 (6,843,004) 5,096,769 (412,327) (4,578,560) 105,882 Securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 Liabilities Securities lending arrangements $ 1,810,748 $ — $ 1,810,748 $ (395,342) $ (1,397,550) $ 17,856 Repurchase agreements 15,159,273 (6,843,004) 8,316,269 (412,327) (7,122,422) 781,520 Obligation to return securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 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, at fair value 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, at fair value 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 $4,757.8 million of securities borrowing arrangements, for which we have received securities collateral of $4,617.0 million, and $720.0 million of repurchase agreements, for which we have pledged securities collateral of $733.9 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, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 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 $ 6,934,762 $ — $ 6,934,762 $ (395,342) $ (1,706,046) $ 4,833,374 Reverse repurchase agreements 11,939,773 (6,843,004) 5,096,769 (412,327) (4,578,560) 105,882 Securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 Liabilities Securities lending arrangements $ 1,810,748 $ — $ 1,810,748 $ (395,342) $ (1,397,550) $ 17,856 Repurchase agreements 15,159,273 (6,843,004) 8,316,269 (412,327) (7,122,422) 781,520 Obligation to return securities received as collateral, at fair value 7,517 — 7,517 — — 7,517 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, at fair value 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, at fair value 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 $4,757.8 million of securities borrowing arrangements, for which we have received securities collateral of $4,617.0 million, and $720.0 million of repurchase agreements, for which we have pledged securities collateral of $733.9 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) | 12 Months Ended |
Nov. 30, 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): Year Ended November 30, 2020 2019 2018 Transferred assets $ 6,556.2 $ 4,780.9 $ 7,159.3 Proceeds on new securitizations 6,556.2 4,852.2 7,165.3 Cash flows received on retained interests 26.8 48.3 48.5 |
Summary of Retained Interests in SPEs | The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): November 30, 2020 2019 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 562.5 $ 7.8 $ 10,671.7 $ 103.3 U.S. government agency CMBS 2,461.2 205.2 1,374.8 45.8 CLOs 3,345.5 39.5 3,006.7 58.4 Consumer and other loans 1,290.6 56.6 1,149.3 71.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | The following table presents information about our consolidated VIEs at November 30, 2020 and 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. November 30, 2020 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash (1) $ — $ 1.2 $ — $ 1.2 Financial instruments owned — 5.2 — 0.3 Securities purchased under agreements to resell (2) 2,908.9 — 2,467.3 — Receivable from brokers — 12.9 — — Other assets — 0.1 — — Total assets $ 2,908.9 $ 19.4 $ 2,467.3 $ 1.5 Financial instruments sold, not yet purchased $ — $ 2.5 $ — $ — Other secured financings (3) 2,907.8 — 2,465.8 — Other liabilities (4) 1.1 0.4 1.5 0.2 Total liabilities $ 2,908.9 $ 2.9 $ 2,467.3 $ 0.2 (1) Approximately $0.7 million of the cash amount at November 30, 2020 represents cash on deposit with related consolidated entities and is eliminated in consolidation. (2) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (3) Approximately $138.2 million of the other secured financings amount at November 30, 2020 is with related consolidated entities, which is eliminated in consolidation. (4) Approximately $0.3 million and $0.2 million of the other liabilities amounts at November 30, 2020 and 2019, respectively, represent intercompany payables with related consolidated entities, which are eliminated in consolidation. The following tables present information about our variable interests in nonconsolidated VIEs (in millions): November 30, 2020 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 60.7 $ 0.2 $ 642.7 $ 6,849.1 Consumer loan and other asset-backed vehicles 251.6 — 377.2 2,462.7 Related party private equity vehicles 19.0 — 30.0 53.0 Other investment vehicles 739.7 — 740.9 12,570.2 Total $ 1,071.0 $ 0.2 $ 1,790.8 $ 21,935.0 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 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Selected Financial Information | The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions): Year Ended November 30, 2020 2019 2018 Interest income $ 2.4 $ — $ 1.2 Unfunded commitment fees 1.1 1.3 1.2 The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2020 2019 Total assets $ 7,199.5 $ 7,112.4 Total liabilities 5,990.4 5,828.3 Total equity 1,209.1 1,284.1 Our total equity balance 604.6 642.0 Year Ended November 30, 2020 2019 2018 Net earnings (loss) $ (74.9) $ 44.5 $ 197.2 The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2020 2019 2018 Origination and syndication fee revenues (1) $ 198.1 $ 176.3 $ 377.7 Origination fee expenses (1) 27.3 27.6 56.6 CLO placement fee revenues (2) 1.7 6.0 3.7 Derivative losses (3) — — (1.6) Underwriting fees (4) 1.7 3.9 — Service fees (5) 65.1 60.8 61.7 (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 November 30, 2020 and 2019, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) We have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by CLOs and we have recognized gains (losses) relating to the derivative contracts. (4) We acted as underwriter in connection with term loans issued by Jefferies Finance. (5) Under a service agreement, we charge Jefferies Finance for services provided. The following is a summary of selected financial information for Berkadia (in millions): November 30, 2020 2019 Total assets $ 4,294.0 $ 2,809.8 Total liabilities 3,626.3 2,213.2 Total equity 667.7 596.6 Our total equity balance 301.2 268.9 November 30, Two Months Ended November 30, 2018 2020 2019 Net earnings $ 153.1 $ 195.9 $ 44.4 We received distributions from Berkadia on our equity interest as follows (in millions): Year Ended November 30, Two Months Ended November 30, 2018 2020 2019 Distributions $ 37.1 $ 65.0 $ 23.1 Year Ended November 30, 2020 2019 2018 Net gains (losses) from our investments in JCP Fund V $ (3.0) $ (5.7) $ 12.1 The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we owned effectively 35.2% of the combined equity interests (in thousands): September 30, 2020 (1) 2019 (1) Total assets $ 49,404 $ 63,248 Total liabilities 84 76 Total partners’ capital 49,319 63,172 Nine Months Ended September 30, 2020 (1) Three Months Ended December 31, 2019 (1) Nine Months Ended September 30, 2019 (1) Three Months Ended December 31, 2018 (1) Nine Months Ended September 30, 2018 (1) Three Months Ended December 31, 2017 (1) Net increase (decrease) in net assets resulting from operations $ (12,456) $ (1,397) $ (19,070) $ (8,412) $ 15,252 $ 19,712 (1) Financial information for JCP Fund V in financial position and results of operations at November 30, 2020 and 2019 and for the years ended November 30, 2020, 2019 and 2018 is included based on the presented periods. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill attributed to our reportable business segments are as follows (in thousands): November 30, 2020 2019 Investment Banking and Capital Markets (1) $ 1,646,523 $ 1,640,201 Asset Management (1) 410 3,398 Total goodwill $ 1,646,933 $ 1,643,599 (1) Accumulated goodwill impairments related to the Investment Banking and Capital Markets business segment were $51.9 million at both December 1, 2019 and 2018, and goodwill prior to these impairments was $1,692.1 million and $1,690.7 million at December 1, 2019 and 2018, respectively. Accumulated goodwill impairments related to the Asset Management business segment were $2.1 million at both December 1, 2019 and 2018 and goodwill prior to these impairments was $5.5 million at both December 1, 2019 and 2018. The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2020 2019 Balance, at beginning of period $ 1,643,599 $ 1,642,170 Currency translation and other adjustments 6,334 1,325 Goodwill acquired during the period (1) — 104 Impairment losses (2) $ (3,000) $ — Balance, at end of period $ 1,646,933 $ 1,643,599 (1) Goodwill acquired was in connection with our purchase of an entity in Australia and relates to our Investment Banking and Capital Markets business segment. |
Schedule of Finite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2020 and 2019 (dollars in thousands): November 30, 2020 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships (1) $ 126,106 $ (26) $ (75,776) $ 50,304 9.4 Trade name (1) 129,114 (274) (28,585) 100,255 27.3 Exchange and clearing organization membership interests and registrations 8,352 (468) — 7,884 N/A Total $ 263,572 $ (768) $ (104,361) $ 158,443 (1) Impairment losses are related to our wind down of our quantPORT asset management platform. November 30, 2019 Weighted average remaining lives (years) Gross cost Impairment losses 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 8,564 (291) — 8,273 N/A Total $ 262,890 $ (291) $ (92,057) $ 170,542 |
Schedule of Indefinite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2020 and 2019 (dollars in thousands): November 30, 2020 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships (1) $ 126,106 $ (26) $ (75,776) $ 50,304 9.4 Trade name (1) 129,114 (274) (28,585) 100,255 27.3 Exchange and clearing organization membership interests and registrations 8,352 (468) — 7,884 N/A Total $ 263,572 $ (768) $ (104,361) $ 158,443 (1) Impairment losses are related to our wind down of our quantPORT asset management platform. November 30, 2019 Weighted average remaining lives (years) Gross cost Impairment losses 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 8,564 (291) — 8,273 N/A Total $ 262,890 $ (291) $ (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): Year ending November 30, 2021 $ 12,181 Year ending November 30, 2022 9,239 Year ending November 30, 2023 8,258 Year ending November 30, 2024 8,258 Year ending November 30, 2025 8,258 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings at November 30, 2020 and 2019 mature in one year or less and include the following (in thousands): November 30, 2020 2019 Bank loans (1) $ 752,848 $ 527,509 Floating rate puttable notes (1) 6,800 — Equity-linked notes (2) 5,067 20,981 Total short-term borrowings $ 764,715 $ 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. |
Schedule of Line of Credit Facilities | Our facilities included within bank loans at November 30, 2020 and 2019 were as follows (in thousands): November 30, 2020 2019 Bank of New York Mellon Master Loan Agreement (1) $ 300,000 $ 351,000 JPMorgan Chase Bank, N.A. Credit Facility (2) 246,000 135,000 Royal Bank of Canada Credit Facility (3) 200,000 — Bank of New York Mellon Credit Facility (4) — — Total $ 746,000 $ 486,000 (1) Interest is generally based at spreads over the Federal Funds Rate as defined in this master loan agreement. (2) Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate (“LIBOR”), as defined in this credit facility agreement. (3) Interest is based on a rate per annum equal to LIBOR plus an applicable margin of 2.05%. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): Effective Interest Rate November 30, Maturity 2020 2019 Unsecured long-term debt 2.375% Euro Medium Term Notes May 20, 2020 —% $ — $ 550,622 6.875% Senior Notes April 15, 2021 —% — 774,738 2.250% Euro Medium Term Notes July 13, 2022 4.08% 4,638 4,204 5.125% Senior Notes January 20, 2023 4.47% 759,901 610,023 1.000% Euro Medium Term Notes July 19, 2024 1.00% 595,700 548,880 4.850% Senior Notes (1) January 15, 2027 4.93% 809,039 768,931 6.450% Senior Debentures June 8, 2027 5.46% 369,057 371,426 4.150% Senior Notes January 23, 2030 4.26% 989,574 988,662 2.750% Senior Notes (1) October 15, 2032 2.85% 485,134 — 6.250% Senior Debentures January 15, 2036 6.03% 510,834 511,260 6.500% Senior Notes January 20, 2043 6.09% 419,826 420,239 Structured notes (2)(3) Various Various 1,712,245 1,215,285 Total unsecured long-term debt 6,655,948 6,764,270 Secured long-term debt Revolving Credit Facility 189,732 189,088 Secured Bank Loan September 27, 2021 50,000 50,000 Total long-term debt (4) $ 6,895,680 $ 7,003,358 (1) The carrying values of these senior notes include net losses of $36.7 million and $58.9 million during 2020 and 2019, respectively, associated with interest rate swaps based on designation as fair value hedges. See Note 2, Summary of Significant Accounting Policies, and 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) Of the $1,712.2 million of structured notes at November 30, 2020, $3.1 million matures in 2024, $25.4 million matures in 2025, and the remaining $1,683.7 million matures in 2026 or thereafter. (4) The Total Long-term debt has a fair value of $7,575.2 million and $7,280.4 million at November 30, 2020 and 2019, respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | Information related to operating leases in our Consolidated Statement of Financial Condition at November 30, 2020 was as follows (in thousands, except lease term and discount rate): Premises and equipment - ROU assets $ 486,614 Weighted average: Remaining lease term (in years) 10.9 Discount rate 2.9 % The following table presents our lease costs (in thousands): Year Ended Operating lease costs (1) $ 71,140 Variable lease costs (2) 13,332 Less: Sublease income (5,974) Total lease cost, net $ 78,498 (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): Year Ended Cash outflows - lease liabilities $ 66,248 Non-cash - ROU assets recorded for new and modified leases 21,389 |
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 November 30, 2020 (in thousands): Fiscal Year Lease Liabilities 2021 $ 65,442 2022 70,200 2023 62,641 2024 61,106 2025 63,158 2026 and thereafter 338,742 Total undiscounted cash flows 661,289 Less: Difference between undiscounted and discounted cash flows (100,402) Operating leases amount in our Consolidated Statement of Financial Condition 560,887 Finance leases amount in our Consolidated Statement of Financial Condition 362 Total amount in our Consolidated Statement of Financial Condition $ 561,249 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) | 12 Months Ended |
Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): Year Ended November 30, 2020 2019 2018 Revenues from contracts with customers: Commissions and other fees $ 823,258 $ 676,309 $ 663,470 Investment banking 2,501,494 1,528,729 1,910,203 Asset management fees 9,187 17,219 21,214 Total revenue from contracts with customers 3,333,939 2,222,257 2,594,887 Other sources of revenue: Principal transactions 1,867,013 769,258 524,296 Revenues from third-parties with strategic relationships pursuant to arrangements 19,507 3,066 — Interest 894,215 1,496,529 1,207,095 Other 37,632 93,422 103,354 Total revenues $ 6,152,306 $ 4,584,532 $ 4,429,632 The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Year Ended November 30, 2020 2019 2018 Reportable Segment Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - $ 1,053,500 $ — $ 1,053,500 $ 767,421 $ — $ 767,421 $ 820,042 $ — $ 820,042 Investment banking - 1,447,994 — 1,447,994 761,308 — 761,308 1,090,161 — 1,090,161 Equities (1) 807,350 — 807,350 662,804 — 662,804 649,631 — 649,631 Fixed income (1) 15,908 — 15,908 13,505 — 13,505 13,839 — 13,839 Asset management — 9,187 9,187 — 17,219 17,219 — 21,214 21,214 Total $ 3,324,752 $ 9,187 $ 3,333,939 $ 2,205,038 $ 17,219 $ 2,222,257 $ 2,573,673 $ 21,214 $ 2,594,887 Primary geographic region: Americas $ 2,742,298 $ 4,239 $ 2,746,537 $ 1,751,568 $ 10,472 $ 1,762,040 $ 2,186,955 $ 20,871 $ 2,207,826 Europe 401,853 4,948 406,801 374,411 6,747 381,158 304,027 343 304,370 Asia Pacific 180,601 — 180,601 79,059 — 79,059 82,691 — 82,691 Total $ 3,324,752 $ 9,187 $ 3,333,939 $ 2,205,038 $ 17,219 $ 2,222,257 $ 2,573,673 $ 21,214 $ 2,594,887 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligation | The following tables summarize the changes in the projected benefit obligation, the fair value of the assets and the funded status of the plan (in thousands): Year Ended November 30, 2020 2019 Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 63,222 $ 54,724 Interest cost 1,801 2,303 Actuarial losses 9,874 9,606 Administrative expenses paid (346) (467) Benefits paid (1,003) (3,444) Settlements (2,477) — Other costs 470 500 Projected benefit obligation, end of period $ 71,541 $ 63,222 Change in plan assets: Fair value of assets, beginning of period $ 56,980 $ 48,176 Benefits paid (1,003) (3,444) Administrative expenses paid (346) (467) Actual return on plan assets 10,007 10,715 Contributions — 2,000 Settlements (2,477) — Fair value of assets, end of period $ 63,161 $ 56,980 Funded status at end of period $ (8,380) $ (6,242) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in our Consolidated Statements of Financial Condition are as follows (in thousands): November 30, 2020 2019 Consolidated statements of financial condition: Accrued expenses and other liabilities $ 8,380 $ 6,242 Accumulated other comprehensive income, before taxes: Net losses $ (10,875) $ (8,159) |
Components of Net Periodic Pension (Benefit) Cost | The following tables summarize the components of net periodic pension cost and other amounts recognized in Other comprehensive income, before taxes (in thousands): Year Ended November 30, 2020 2019 2018 Components of net periodic pension cost: Interest cost on projected benefit obligation $ 1,801 $ 2,303 $ 2,129 Expected return on plan assets (3,477) (3,008) (3,247) Net amortization 252 122 — Settlement losses 376 — 365 Other costs 470 500 400 Net periodic pension cost $ (578) $ (83) $ (353) |
Components of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income | Year Ended November 30, 2020 2019 2018 Amounts recognized in Other comprehensive income: Net losses arising during the period $ 3,344 $ 1,899 $ 655 Amortization of net loss (252) (122) — Settlements during the period (376) — (365) Total losses recognized in Other comprehensive income $ 2,716 $ 1,777 $ 290 Net losses/(gains) recognized in net periodic benefit cost and Other comprehensive income $ 2,138 $ 1,694 $ (63) |
Assumptions Used to Determine the Present Value of the Projected Benefit Obligations and Net Periodic Pension Costs | The assumptions used to determine the actuarial present value of the projected obligation and net periodic pension benefit cost are as follows: Year Ended November 30, 2020 2019 2018 Discount rate used to determine benefit obligation 2.00 % 2.90 % 4.30 % Weighted average assumptions used to determine net pension cost: Discount rate 2.90 % 4.30 % 3.60 % Expected long-term rate of return on plan assets 6.25 % 6.25 % 6.25 % |
Expected Benefit Payments | Expected Benefit Payments - Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands): 2021 $ 2,207 2022 3,048 2023 4,176 2024 4,758 2025 4,422 2026 through 2030 24,755 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Nov. 30, 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): Year Ended November 30, 2020 2019 2018 Components of compensation cost: Restricted cash awards (1) $ 474.3 $ 314.7 $ 274.4 Restricted stock and RSUs (2) 25.2 26.7 27.6 Profit sharing plan 7.8 7.2 6.5 Total compensation cost $ 507.3 $ 348.6 $ 308.5 (1) During the fourth quarter of 2020, we amended certain provisions of a set of cash awards that had been granted as part of compensation at previous year-ends to remove any service requirements for vesting in the awards. Compensation expense of $179.6 million was recorded during the year ended November 30, 2020 as a result of these amendments. (2) 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. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan. This compensation cost was approximately $0.3 million, $0.4 million and $0.3 million for the years ended November 30, 2020, 2019 and 2018, respectively. |
Schedule of Remaining Unamortized Amounts Related to Certain Compensation Plans | Remaining unamortized amounts related to certain compensation plans at November 30, 2020 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period Non-vested share-based awards $ 28.2 2 Restricted cash awards 363.5 3 Total $ 391.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Tax Expense | Total income taxes were allocated as follows (in thousands): Year Ended November 30, 2020 2019 2018 Income tax expense $ 302,748 $ 80,284 $ 250,650 The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2020 2019 2018 Current: U.S. Federal $ 213,274 $ 50,970 $ 106,761 U.S. state and local 35,317 (3,641) 7,485 Foreign 71,898 10,923 10,139 Total current 320,489 58,252 124,385 Deferred: U.S. Federal (30,190) 19,973 131,233 U.S. state and local (96) 5,768 975 Foreign 12,545 (3,709) (5,943) Total deferred (17,741) 22,032 126,265 Total income tax expense $ 302,748 $ 80,284 $ 250,650 |
Schedule of Components of Income before Income Tax Expense | The following table presents the U.S. and non-U.S. components of income before income tax expense (in thousands): Year Ended November 30, 2020 2019 2018 U.S. $ 888,639 $ 313,349 $ 370,600 Non-U.S. (1) 288,815 11,320 39,067 Income before income tax expense $ 1,177,454 $ 324,669 $ 409,667 (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Reconciliation of Effective Tax Rate to U.S. Federal Statutory Income Tax Rate | Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rates of 21.0% for the years ended November 30, 2020 and 2019 and 22.2% for the year ended November 30, 2018 to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2020 2019 2018 Amount Percent Amount Percent Amount Percent Computed expected income taxes $ 247,265 21.0 % $ 68,181 21.0 % $ 90,945 22.2 % (1) Increase (decrease) in income taxes resulting from: State and local income taxes, net of Federal income tax benefit 50,923 4.3 11,638 3.6 20,419 5.0 International operations (including foreign rate differential) 13,168 1.1 4,518 1.4 2,258 0.6 Tax exempt income (227) — (634) (0.2) (2,202) (0.5) Foreign tax credits, net (8,654) (0.7) (1,664) (0.5) (8,006) (2.0) Meals and entertainment 1,822 0.2 3,641 1.1 4,528 1.1 Non-deductible executive compensation 8,407 0.7 3,720 1.1 3,011 0.7 Change in unrecognized tax benefits related to prior years (9,314) (0.8) (7,690) (2.4) (18,497) (4.5) Deferred tax asset remeasurement related to the Tax Act — — — — 112,733 27.5 Transition tax on foreign earnings related to the Tax Act — — 139 0.1 52,417 12.8 Other, net (642) (0.1) (1,565) (0.5) (6,956) (1.7) Total income tax expense $ 302,748 25.7 % $ 80,284 24.7 % $ 250,650 61.2 % (1) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act, which reduced the U.S. federal corporate tax rate from 35.0% to 21.0%, as well as other changes. The statutory U.S. federal corporate tax rate for companies with a fiscal year end of November 30, 2018 is a blended rate of 22.2%, which was reduced to 21.0% in fiscal 2019 and thereafter. |
Roll Forward of Gross Unrecognized Tax Benefits | The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2020 2019 2018 Balance at beginning of period $ 125,607 $ 125,626 $ 129,544 Increases based on tax positions related to the current period 40,209 8,142 19,840 Increases based on tax positions related to prior periods 5,275 1,399 5,002 Decreases based on tax positions related to prior periods (2,444) (9,560) (28,760) Balance at end of period $ 168,647 $ 125,607 $ 125,626 |
Significant Components of Deferred Tax Assets and Liabilities | The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2020 2019 Deferred tax assets: Compensation and benefits $ 238,154 $ 223,357 Operating lease liabilities 140,742 — Long-term debt 41,934 33,097 Accrued expenses and other 61,247 71,993 Net operating losses 2,534 5,634 Sub-total 484,611 334,081 Valuation allowance (3,201) (3,228) Total deferred tax assets 481,410 330,853 Deferred tax liabilities: Operating lease right-of-use assets 134,638 — Amortization of intangibles 67,663 70,373 Partnerships 28,249 49,853 Other 15,167 12,580 Total deferred tax liabilities 245,717 132,806 Net deferred tax asset, included in Other assets $ 235,693 $ 198,047 |
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 2017 New Jersey 2010 New York State 2001 New York City 2006 United Kingdom 2019 Italy 2012 Hong Kong 2014 India 2010 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes our commitments at November 30, 2020 (in millions): Expected Maturity Date (fiscal years) 2021 2022 2023 and 2024 2025 and 2026 2027 and Later Maximum Payout Equity commitments (1) $ 306.7 $ 1.3 $ — $ — $ 6.8 $ 314.8 Loan commitments (1) 249.5 10.0 25.0 1.4 — 285.9 Underwriting commitments 243.3 — — — — 243.3 Forward starting reverse repos (2) 6,048.0 — — — — 6,048.0 Forward starting repos (2) 3,488.7 — — — — 3,488.7 Other unfunded commitments (1) 156.6 25.0 5.2 — — 186.8 Total commitments $ 10,492.8 $ 36.3 $ 30.2 $ 1.4 $ 6.8 $ 10,567.5 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) At November 30, 2020, $5,919.9 million within forward starting securities purchased under agreements to resell and $3,480.4 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 November 30, 2020 (in millions): Expected Maturity Date (Fiscal Years) 2021 2022 2023 and 2024 2025 and 2026 2027 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 12,607.6 $ 2,475.8 $ 5,760.8 $ 390.4 $ 11.9 $ 21,246.5 Written derivative contracts—credit related — — 6.4 — — 6.4 Total derivative contracts $ 12,607.6 $ 2,475.8 $ 5,767.2 $ 390.4 $ 11.9 $ 21,252.9 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Brokers and Dealers [Abstract] | |
Schedule of Net Capital, Adjusted and Excess Net Capital | At November 30, 2020, Jefferies LLC’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 2,161,289 $ 2,060,537 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Nov. 30, 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): Year Ended November 30, 2020 2019 2018 Investment Banking and Capital Markets: Net revenues $ 4,989.2 $ 3,036.0 $ 3,184.4 Non-interest expenses 3,869.3 2,688.9 2,719.5 Earnings before income taxes $ 1,119.9 $ 347.1 $ 464.9 Asset Management: Net revenues $ 208.3 $ 76.5 $ (1.0) Non-interest expenses 150.7 98.9 54.2 Earnings (loss) before income taxes $ 57.6 $ (22.4) $ (55.2) Total: Net revenues $ 5,197.5 $ 3,112.5 $ 3,183.4 Non-interest expenses 4,020.0 2,787.8 2,773.7 Earnings before income taxes $ 1,177.5 $ 324.7 $ 409.7 The following table summarizes our total assets by reportable business segment (in millions): November 30, 2020 2019 Investment Banking and Capital Markets $ 44,488.1 $ 40,565.8 Asset Management 3,263.9 2,950.3 Total assets $ 47,752.0 $ 43,516.1 |
Summary Net Revenues by Geographic Region | Net revenues by geographic region were as follows (in millions): Year Ended November 30, 2020 2019 2018 Americas (1) $ 4,060.0 $ 2,407.6 $ 2,652.9 Europe (2) 852.0 592.8 434.9 Asia Pacific 285.5 112.1 95.6 Net revenues $ 5,197.5 $ 3,112.5 $ 3,183.4 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | 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): Year Ended November 30, 2020 2019 2018 Charges to Jefferies for services provided $ 47.2 $ 52.7 $ 61.2 Charges from Jefferies for services received 32.2 9.5 9.1 • We 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): Year Ended November 30, 2020 2019 2018 Investment banking $ 10.5 $ 10.6 $ 15.7 Commissions and other fees 1.5 1.2 1.8 Principal transactions — — 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: Year Ended November 30, 2020 2019 Receivable from Jefferies $ 1.3 $ 0.9 Payable to Jefferies 7.1 4.3 Year Ended November 30, 2020 2019 Securities purchased from Jefferies $ 64.8 $ 917.2 Securities sold to Jefferies (1) 0.1 110.9 (1) During the year ended November 30, 2019, we also transferred to Jefferies a related deferred tax liability of $3.1 million. Year Ended November 30, 2020 2019 2018 Net gains (losses) on foreign exchange contracts $ 1.6 $ (6.1) $ — Year Ended November 30, 2020 2019 2018 Net gains on our investments $ 15.8 $ 4.7 $ 5.0 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Nov. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Statements of Earnings | The following is a summary of unaudited quarterly statements of earnings for the years ended November 30, 2020 and 2019 (in thousands): Three Months Ended November 30, 2020 August 31, May 31, February 28, 2020 Total revenues $ 1,810,394 $ 1,595,073 $ 1,267,283 $ 1,479,556 Net revenues 1,608,970 1,383,444 1,034,367 1,170,696 Earnings before income taxes 405,807 363,401 172,868 235,378 Net earnings attributable to Jefferies Group LLC 307,114 268,062 130,738 173,389 Three Months Ended November 30, 2019 August 31, May 31, February 28, 2019 Total revenues $ 1,073,536 $ 1,141,631 $ 1,314,493 $ 1,054,872 Net revenues 747,802 777,159 901,851 685,718 Earnings before income taxes 23,871 83,075 155,138 62,585 Net earnings attributable to Jefferies Group LLC 25,160 64,968 109,920 45,981 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 12 Months Ended |
Nov. 30, 2020segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Hedge Accounting (Details) | 12 Months Ended |
Nov. 30, 2020 | |
Minimum | |
Derivative [Line Items] | |
Hedging relationship effective percentage | 80.00% |
Maximum | |
Derivative [Line Items] | |
Hedging relationship effective percentage | 125.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease, right-of-use asset, after accumulated amortization | $ 527.9 | ||
Furniture, fixtures and equipment under capital leases | $ 500.3 | ||
Leasehold improvements | 259.7 | 262.1 | |
Accumulated depreciation and amortization | 427.2 | 411.9 | |
Depreciation and amortization | $ 74.7 | $ 67 | $ 56.2 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment | 10 years |
Accounting Developments (Detail
Accounting Developments (Details) - USD ($) $ in Thousands | Dec. 01, 2020 | Nov. 30, 2020 | Dec. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||
Operating leases amount in our Consolidated Statement of Financial Condition | $ 560,887 | ||
Subsequent event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||
Cumulative effect, period of adoption, adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Premises and equipment - ROU assets | $ 519,900 | ||
Operating leases amount in our Consolidated Statement of Financial Condition | $ 586,300 | ||
Cumulative effect, period of adoption, adjustment | Subsequent event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Provision for credit losses | $ 3,600 | ||
Retained earnings (accumulated deficit) | $ 2,700 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | $ 955,984 | $ 570,310 |
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 16,730,068 | 15,793,064 |
Counterparty and cash collateral netting | (1,556,136) | (1,432,806) |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral | 7,517 | 9,500 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 10,017,522 | 10,532,460 |
Counterparty and Cash Collateral Netting | (1,798,659) | (1,631,787) |
Short-term borrowings | 5,067 | 20,981 |
Other secured financings | 1,543 | |
Obligation to return securities received as collateral | 7,517 | 9,500 |
Long-term debt | 1,712,245 | 1,215,285 |
Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,465,396 | 2,601,820 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,059,921 | 2,767,526 |
Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,977,347 | 2,479,703 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,237,772 | 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 | 74,668 | 144,306 |
U.S. government and federal agency securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,931,678 | 2,260,242 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,609,660 | 1,851,981 |
Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 453,881 | 742,326 |
Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,553,688 | 2,735,853 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,675,511 | 2,304,540 |
Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,122,675 | 1,086,806 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 477 | |
Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 738,294 | 430,170 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 35 | 35 |
Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 183,606 | 346,410 |
Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,687,788 | 2,459,451 |
Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,793,081 | 1,609,691 |
Derivative, assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 467,817 | 397,551 |
Derivatives, liabilities | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 641,065 | 527,205 |
Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 73,230 | 108,426 |
Fair value based on net asset value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investment | 956,000 | 570,300 |
Level 1 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 7,135,334 | 5,759,575 |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral | 7,517 | 9,500 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 5,707,423 | 5,971,928 |
Short-term borrowings | 0 | 0 |
Other secured financings | 0 | |
Obligation to return securities received as collateral | 7,517 | 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 | 2,331,440 | 2,325,116 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,046,441 | 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: | ||
Financial instruments sold, not yet purchased, at fair value | 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 | 2,840,025 | 2,101,624 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,609,660 | 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 | 1,962,346 | 1,330,026 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,050,771 | 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 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 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: | ||
Financial instruments sold, not yet purchased, at fair value | 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 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 1 | Derivative, assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,523 | 2,809 |
Level 1 | Derivatives, liabilities | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 551 | 871 |
Level 1 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 |
Level 2 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 10,771,762 | 11,159,143 |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 6,039,818 | 6,085,937 |
Short-term borrowings | 5,067 | 20,981 |
Other secured financings | 0 | |
Obligation to return securities received as collateral | 0 | 0 |
Long-term debt | 1,036,217 | 735,216 |
Level 2 | Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 58,159 | 218,403 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 9,046 | 7,438 |
Level 2 | Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,954,201 | 2,472,213 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,237,631 | 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 | 64,155 | 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 | 91,653 | 158,618 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 2 | Municipal securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 453,881 | 742,326 |
Level 2 | Sovereign obligations | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 591,342 | 1,405,827 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 624,740 | 941,065 |
Level 2 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,100,849 | 1,069,066 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 477 | |
Level 2 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 736,291 | 424,060 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 2 | Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 103,611 | 303,847 |
Level 2 | Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,610,746 | 2,395,211 |
Level 2 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 1,776,446 | 1,600,228 |
Level 2 | Derivative, assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,000,752 | 1,812,659 |
Level 2 | Derivatives, liabilities | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 2,391,478 | 2,066,064 |
Level 2 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 6,122 | 32,688 |
Level 3 | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 379,108 | 307,152 |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral | 0 | 0 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 68,940 | 106,382 |
Short-term borrowings | 0 | 0 |
Other secured financings | 1,543 | |
Obligation to return securities received as collateral | 0 | 0 |
Long-term debt | 676,028 | 480,069 |
Level 3 | Corporate equity securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 75,797 | 58,301 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 4,434 | 4,487 |
Level 3 | Corporate debt securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 23,146 | 7,490 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 141 | 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 | 10,513 | 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: | ||
Financial instruments sold, not yet purchased, at fair value | 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: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Level 3 | Residential mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 21,826 | 17,740 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 0 | |
Level 3 | Commercial mortgage-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 2,003 | 6,110 |
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 35 | 35 |
Level 3 | Other asset-backed securities | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 79,995 | 42,563 |
Level 3 | Loans and other receivables | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 77,042 | 64,240 |
Level 3 | Loans | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 16,635 | 9,463 |
Level 3 | Derivative, assets | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | 21,678 | 14,889 |
Level 3 | Derivatives, liabilities | ||
Financial instruments sold, not yet purchased: | ||
Financial instruments sold, not yet purchased, at fair value | 47,695 | 92,057 |
Level 3 | Investments at fair value | ||
Financial instruments owned: | ||
Total financial instruments owned, excluding Investments at fair value based on NAV | $ 67,108 | $ 75,738 |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 955,984 | $ 570,310 |
Unfunded Commitments | 16,242 | 12,108 |
Equity long/short hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | 328,096 | 291,593 |
Unfunded Commitments | $ 0 | $ 0 |
Fair value, investments, entities that calculate net asset value per share, redemption restriction, percentage | 94.00% | 94.00% |
Investments redemption restriction period | 36 months | 36 months |
Equity long/short hedge funds | 60 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of investments redeemable | 6.00% | 6.00% |
Notice period redemption of investment prior written notice | 60 days | 60 days |
Equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 23,821 | $ 27,952 |
Unfunded Commitments | $ 11,242 | $ 12,108 |
Estimated period for the liquidation of the underlying assets, minimum | 1 year | 1 year |
Estimated period for the liquidation of the underlying assets, maximum | 8 years | 8 years |
Commodity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 17,747 | $ 16,025 |
Unfunded Commitments | $ 0 | $ 0 |
Commodity funds | 60 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 60 days | 60 days |
Multi-asset funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 561,236 | $ 234,583 |
Unfunded Commitments | $ 0 | $ 0 |
Percentage of investments redeemable | 57.00% | 5.00% |
Multi-asset funds | 60 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 60 days | 60 days |
Multi-asset funds | 30 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 30 days | 30 days |
Other funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 25,084 | $ 157 |
Unfunded Commitments | $ 5,000 | $ 0 |
Short-term investments | 90 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 90 days | |
Short-term investments | 120 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 120 days |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 Rollforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Assets: | |||
Total gains/(losses) (realized and unrealized) | $ (55,100) | $ (27,100) | $ 12,700 |
Liabilities: | |||
Total gains/(losses) (realized and unrealized) | 82,100 | (44,500) | (33,600) |
Corporate equity securities | |||
Assets: | |||
Beginning balance | 58,301 | 51,040 | 22,009 |
Total gains/(losses) (realized and unrealized) | (3,961) | (10,380) | 24,023 |
Purchases | 31,778 | 69,065 | 31,669 |
Sales | (37,706) | (28,159) | (22,759) |
Settlements | 0 | (18,208) | (3,977) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 27,385 | (5,057) | 75 |
Ending balance | 75,797 | 58,301 | 51,040 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (652) | (12,821) | 22,774 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 4,487 | 0 | 48 |
Total gains/(losses) (realized and unrealized) | 456 | (2,649) | 0 |
Purchases | (513) | (4,322) | 0 |
Sales | 0 | 11,458 | 0 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 4 | 0 | (48) |
Ending balance | 4,434 | 4,487 | 0 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | (81) | 1,928 | 0 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Corporate debt securities | |||
Assets: | |||
Beginning balance | 7,490 | 9,484 | 26,036 |
Total gains/(losses) (realized and unrealized) | 83 | (4,860) | (439) |
Purchases | 1,607 | 8,900 | 10,352 |
Sales | (391) | (13,854) | (23,364) |
Settlements | (602) | (379) | (1,679) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 14,959 | 8,199 | (1,422) |
Ending balance | 23,146 | 7,490 | 9,484 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (270) | (6,176) | (2,606) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 340 | 522 | 522 |
Total gains/(losses) (realized and unrealized) | (268) | (381) | 0 |
Purchases | (325) | (457) | 0 |
Sales | 394 | 0 | 0 |
Settlements | 0 | (524) | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 1,180 | 0 |
Ending balance | 141 | 340 | 522 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 27 | 383 | 0 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
CDOs and CLOs | |||
Assets: | |||
Beginning balance | 20,081 | 25,815 | 30,004 |
Total gains/(losses) (realized and unrealized) | (5,703) | (2,342) | (14,368) |
Purchases | 10,913 | 49,658 | 356,650 |
Sales | (14,389) | (38,147) | (353,330) |
Settlements | (2,071) | (9,083) | (10,247) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 1,682 | (5,820) | 17,106 |
Ending balance | 10,513 | 20,081 | 25,815 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (15,964) | (974) | (7,605) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
RMBS | |||
Assets: | |||
Beginning balance | 17,740 | 19,603 | 26,077 |
Total gains/(losses) (realized and unrealized) | (934) | (1,669) | (6,970) |
Purchases | 7,887 | 1,954 | 3,118 |
Sales | (969) | (2,472) | (12,816) |
Settlements | (1,053) | (152) | (513) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (845) | 476 | 10,707 |
Ending balance | 21,826 | 17,740 | 19,603 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (599) | (530) | 521 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
CMBS | |||
Assets: | |||
Beginning balance | 6,110 | 10,886 | 12,419 |
Total gains/(losses) (realized and unrealized) | (827) | (2,888) | (2,186) |
Purchases | 393 | 206 | 1,436 |
Sales | (1,856) | (2,346) | (471) |
Settlements | (1,787) | (5,317) | (16,624) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (30) | 5,569 | 16,312 |
Ending balance | 2,003 | 6,110 | 10,886 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (295) | (2,366) | (4,000) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 35 | 0 | 105 |
Total gains/(losses) (realized and unrealized) | 0 | 35 | (105) |
Purchases | 0 | 0 | 0 |
Sales | 35 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (35) | 0 | 0 |
Ending balance | 35 | 35 | 0 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 0 | (35) | 0 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Other ABS | |||
Assets: | |||
Beginning balance | 42,563 | 53,175 | 61,129 |
Total gains/(losses) (realized and unrealized) | (3,848) | 433 | (9,934) |
Purchases | 69,701 | 104,097 | 706,846 |
Sales | (1,638) | (73,335) | (677,220) |
Settlements | (43,072) | (51,374) | (27,641) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 16,289 | 9,567 | (5) |
Ending balance | 79,995 | 42,563 | 53,175 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (5,945) | (98) | (5,283) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | |
Loans and other receivables | |||
Assets: | |||
Beginning balance | 64,240 | 46,985 | 47,304 |
Total gains/(losses) (realized and unrealized) | (20,487) | (5,505) | (5,137) |
Purchases | 73,485 | 57,403 | 149,228 |
Sales | (36,929) | (48,350) | (130,832) |
Settlements | (7,063) | (5,068) | (15,311) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 3,796 | 18,775 | 1,733 |
Ending balance | 77,042 | 64,240 | 46,985 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (18,747) | (3,319) | (8,457) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Investments at fair value | |||
Assets: | |||
Beginning balance | 75,738 | 113,831 | 93,454 |
Total gains/(losses) (realized and unrealized) | (19,396) | 113 | 2,353 |
Purchases | 28,132 | 240 | 34,648 |
Sales | (167) | (38,446) | (17,570) |
Settlements | (17,199) | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 946 |
Ending balance | 67,108 | 75,738 | 113,831 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (21,244) | 2,964 | 1,759 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Securities purchased under agreements to resell | |||
Assets: | |||
Beginning balance | 25,000 | 0 | |
Total gains/(losses) (realized and unrealized) | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | (25,000) | 0 | |
Issuances | 0 | 25,000 | |
Net transfers into/ (out of) Level 3 | 0 | 0 | |
Ending balance | 0 | 25,000 | 0 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | 0 | 0 | |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | |
Loans | |||
Liabilities: | |||
Beginning balance | 9,463 | 6,376 | 3,486 |
Total gains/(losses) (realized and unrealized) | (520) | (1,382) | 84 |
Purchases | (6,061) | (2,573) | (4,626) |
Sales | 13,851 | 6,494 | 7,432 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (98) | 548 | 0 |
Ending balance | 16,635 | 9,463 | 6,376 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 360 | 1,382 | (28) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Derivatives, liabilities | |||
Liabilities: | |||
Beginning balance | 77,168 | 21,614 | 6,746 |
Total gains/(losses) (realized and unrealized) | (40) | (21,452) | (3,237) |
Purchases | (7,446) | (4,323) | (17) |
Sales | 19,376 | 36,144 | 14,920 |
Settlements | (2,216) | 2,227 | (1,335) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (60,825) | 42,958 | 4,537 |
Ending balance | 26,017 | 77,168 | 21,614 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | (1,805) | 12,098 | (646) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Other secured financings | |||
Liabilities: | |||
Beginning balance | 0 | ||
Total gains/(losses) (realized and unrealized) | (2,475) | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Issuances | 4,018 | ||
Net transfers into/ (out of) Level 3 | 0 | ||
Ending balance | 1,543 | 0 | |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 2,475 | ||
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | |||
Long-term debt | |||
Liabilities: | |||
Beginning balance | 480,069 | 200,745 | 0 |
Total gains/(losses) (realized and unrealized) | 84,930 | (18,662) | (30,347) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (57,088) | (11,250) | 0 |
Issuances | 248,718 | 348,275 | 84,860 |
Net transfers into/ (out of) Level 3 | (80,601) | (39,039) | 146,232 |
Ending balance | 676,028 | 480,069 | 200,745 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | (51,567) | 29,656 | 10,951 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | $ (33,363) | $ (10,993) | $ 19,396 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | $ 88,000 | $ 58,400 | $ 57,800 |
Transfers of assets from Level 3 to Level 2 | 24,700 | 26,700 | 12,300 |
Transfers of liabilities from Level 2 to Level 3 | 1,900 | ||
Transfers of liabilities from Level 3 to Level 2 | 143,400 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (55,100) | (27,100) | 12,700 |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (82,100) | 44,500 | 33,600 |
Value of asset excluded from significant unobservable inputs | 17,300 | 31,900 | |
Value of liability excluded from significant unobservable inputs | (800) | 400 | |
Aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due | 69,700 | 127,000 | |
Loan and other receivables greater than 90 days past due | 3,800 | 24,800 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 604,321 | 796,797 | |
CDOs and CLOs | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 3,000 | 17,300 | |
Transfers of assets from Level 3 to Level 2 | 8,800 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (5,703) | (2,342) | (14,368) |
CMBS | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 5,600 | 16,300 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (827) | (2,888) | (2,186) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 0 | (35) | 105 |
RMBS | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 15,300 | ||
Transfers of assets from Level 3 to Level 2 | 4,600 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (934) | (1,669) | (6,970) |
Corporate debt securities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 18,000 | ||
Transfers of assets from Level 3 to Level 2 | 3,000 | 3,600 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 83 | (4,860) | (439) |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 268 | 381 | 0 |
Corporate equity securities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 32,500 | 8,900 | |
Transfers of assets from Level 3 to Level 2 | 5,100 | 6,000 | 2,900 |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (3,961) | (10,380) | 24,023 |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (456) | 2,649 | 0 |
Structured notes | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 22,600 | 146,200 | |
Transfers of liabilities from Level 3 to Level 2 | 80,600 | 61,700 | |
Loans and other receivables | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 10,900 | 27,400 | |
Transfers of assets from Level 3 to Level 2 | 7,100 | 8,600 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (20,487) | (5,505) | (5,137) |
Other ABS | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | 23,000 | 12,100 | |
Transfers of assets from Level 3 to Level 2 | 6,800 | 2,600 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | (3,848) | 433 | (9,934) |
Derivatives, liabilities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 57,200 | ||
Transfers of liabilities from Level 3 to Level 2 | 60,800 | 14,300 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 40 | 21,452 | 3,237 |
US Treasury securities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 34,200 | 35,000 | |
Loans | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 1,800 | ||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ 520 | $ 1,382 | $ (84) |
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 | Nov. 30, 2020USD ($)$ / shares€ / shares | Nov. 30, 2019USD ($) | Nov. 30, 2019$ / shares | Nov. 30, 2019 | Nov. 30, 2019€ / shares | Nov. 30, 2019gbpPerShare | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 16,730,068 | $ 15,793,064 | |||||
Derivative assets | 467,817 | 397,551 | |||||
Derivative liabilities | 641,065 | 527,205 | |||||
Financial instruments sold, not yet purchased, at fair value | 10,017,522 | 10,532,460 | |||||
Corporate equity securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 2,465,396 | 2,601,820 | |||||
Financial instruments sold, not yet purchased, at fair value | 2,059,921 | 2,767,526 | |||||
Corporate debt securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 2,977,347 | 2,479,703 | |||||
Financial instruments sold, not yet purchased, at fair value | 1,237,772 | 1,471,482 | |||||
CDOs and CLOs | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 74,668 | 144,306 | |||||
RMBS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 1,122,675 | 1,086,806 | |||||
Financial instruments sold, not yet purchased, at fair value | 477 | ||||||
CMBS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 738,294 | 430,170 | |||||
Financial instruments sold, not yet purchased, at fair value | 35 | 35 | |||||
Other ABS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 183,606 | 346,410 | |||||
Loans and other receivables | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 2,687,788 | 2,459,451 | |||||
Investments at fair value | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 73,230 | 108,426 | |||||
Loans | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, at fair value | 1,793,081 | 1,609,691 | |||||
Level 3 | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 379,108 | 307,152 | |||||
Financial instruments sold, not yet purchased, at fair value | 68,940 | 106,382 | |||||
Level 3 | Scenario analysis | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Other secured financings, fair value | 1,543 | ||||||
Level 3 | Volatility benchmarking and market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Derivative assets | 19,951 | 13,826 | |||||
Derivative liabilities | 46,971 | 92,057 | |||||
Level 3 | Corporate equity securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 75,797 | 58,301 | |||||
Financial instruments sold, not yet purchased, at fair value | 4,434 | 4,487 | |||||
Level 3 | Corporate equity securities | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, at fair value | $ 4,434 | 4,487 | |||||
Level 3 | Corporate equity securities | Market approach | Price | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 1 | ||||||
Level 3 | Corporate equity securities | Market approach | Transaction level | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 1 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 75,409 | 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 | 86 | 55 | |||||
Level 3 | Non-exchange-traded securities | Market approach | EBITDA multiple | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 4 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | EBITDA multiple | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 8 | ||||||
Level 3 | Non-exchange-traded securities | Market approach | EBITDA multiple | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 5.7 | ||||||
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 | ||||||
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 | ||||||
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 | ||||||
Level 3 | Corporate debt securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 23,146 | 7,490 | |||||
Financial instruments sold, not yet purchased, at fair value | $ 141 | 340 | |||||
Level 3 | Corporate debt securities | Market approach | Price | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | $ / shares | 69 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 7,490 | ||||||
Financial instruments sold, not yet purchased, at fair value | $ 141 | ||||||
Level 3 | Corporate debt securities | Scenario analysis | Estimated recovery percentage | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, measurement input | 0.20 | ||||||
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 | 0.20 | 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 | 0.44 | 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 | 0.30 | 0.46 | |||||
Level 3 | Corporate debt securities | Scenario analysis | Volatility | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | $ / shares | 0.44 | ||||||
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 | $ / shares | 750 | ||||||
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 | gbpPerShare | 0.4 | ||||||
Level 3 | Corporate debt securities | Market approach and scenario analysis | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 23,146 | ||||||
Level 3 | CDOs and CLOs | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 10,513 | 20,081 | |||||
Level 3 | CDOs and CLOs | Discounted cash flows | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 10,513 | 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 | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.02 | ||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.01 | ||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.02 | ||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.02 | ||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | 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 | 0.30 | 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 | 0.26 | 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 | 0.14 | 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 | 0.28 | 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 | 0.20 | 0.15 | |||||
Level 3 | RMBS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 21,826 | 17,740 | |||||
Financial instruments sold, not yet purchased, at fair value | 0 | ||||||
Level 3 | RMBS | Discounted cash flows | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 21,826 | $ 17,740 | |||||
Financial instruments owned, measurement input, term | 6 years 3 months 18 days | ||||||
Level 3 | RMBS | Discounted cash flows | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input, term | 2 years | ||||||
Level 3 | RMBS | Discounted cash flows | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input, term | 12 years 10 months 24 days | ||||||
Level 3 | RMBS | Discounted cash flows | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input, term | 5 years 1 month 6 days | ||||||
Level 3 | RMBS | Discounted cash flows | Loss severity | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.35 | ||||||
Level 3 | RMBS | Discounted cash flows | Loss severity | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.50 | ||||||
Level 3 | RMBS | Discounted cash flows | Loss severity | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.36 | ||||||
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 | Discount rate/yield | Minimum | |||||||
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 | Discount rate/yield | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.12 | ||||||
Level 3 | RMBS | 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 | 0.04 | ||||||
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 | ||||||
Level 3 | RMBS | Discounted cash flows | Cumulative loss rate | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.02 | ||||||
Level 3 | RMBS | Discounted cash flows | Cumulative loss rate | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.03 | ||||||
Level 3 | RMBS | 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 | 0.03 | ||||||
Level 3 | CMBS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 2,003 | $ 6,110 | |||||
Financial instruments sold, not yet purchased, at fair value | 35 | 35 | |||||
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 | ||||||
Level 3 | CMBS | Discounted cash flows | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input, term | 2 months 12 days | ||||||
Level 3 | CMBS | Discounted cash flows | Discount rate/yield | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.85 | ||||||
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 | Discounted cash flows and scenario analysis | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 6,110 | ||||||
Level 3 | Other ABS | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 79,995 | 42,563 | |||||
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 | Other ABS | Discounted cash flows | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 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 | 2 months 12 days | 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 1 month 6 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 3 months 18 days | 1 year 6 months | |||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.50 | ||||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.85 | ||||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.54 | ||||||
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 | 0.01 | 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 | 0.16 | 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 | 0.09 | 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 | 0.01 | 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 | 0.28 | 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 | 0.11 | 0.16 | |||||
Level 3 | Other ABS | Discounted cash flows and market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 67,816 | ||||||
Level 3 | Loans and other receivables | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 77,042 | $ 64,240 | |||||
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 | 31 | 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 | 100 | 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 | 84 | 90 | |||||
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 | 0.19 | 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 | 0.52 | 0.99 | |||||
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, at fair value | $ 76,049 | 62,734 | |||||
Level 3 | Equity options | Volatility benchmarking | Volatility | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Derivative asset, measurement input | 0.47 | ||||||
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 | 0.33 | 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 | 0.50 | 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 | 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 | 1.2 | 0 | |||||
Derivative liability, measurement input | 1.2 | 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 | 8 | 16 | |||||
Derivative liability, measurement input | 8 | 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 | 4.8 | 6 | |||||
Derivative liability, measurement input | 5.4 | 13 | |||||
Level 3 | Investments at fair value | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 67,108 | 75,738 | |||||
Level 3 | Investments at fair value | Market approach and scenario analysis | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 67,108 | ||||||
Level 3 | Private equity securities | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | 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 | 1 | 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 | 169 | 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 | 34 | 125 | |||||
Level 3 | Private equity securities | Scenario analysis | Estimated recovery percentage | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, measurement input | 0.17 | ||||||
Level 3 | Securities purchased under agreements to resell | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned, at fair value | $ 25,000 | ||||||
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 | Loans | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, at fair value | $ 16,635 | $ 9,463 | |||||
Level 3 | Loans | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, at fair value | $ 16,635 | ||||||
Level 3 | Loans | Market approach | Price | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Debt instrument, measurement input | $ / shares | 31 | 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 | 99 | 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 | 55 | 88 | |||||
Level 3 | Loans | Scenario analysis | Estimated recovery percentage | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Debt instrument, measurement input | 0.01 | ||||||
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 | 9,463 | ||||||
Level 3 | Long-term debt | Market approach | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments sold, not yet purchased, at fair value | $ 676,028 | $ 480,069 | |||||
Level 3 | Long-term debt | Market approach | Price | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Long-term debt, measurement input | $ / shares | 100 | ||||||
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 | 76 | 84 | 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 | 113 | 108 | 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 | 99 | 96 | 91 | ||||
Level 3 | Unfunded commitments | Market approach | Price | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Derivative liability, measurement input | $ / shares | 88 | ||||||
Level 3 | Other secured financings | Scenario analysis | Estimated recovery percentage | Minimum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Collateralized financings, measurement input | 0.19 | ||||||
Level 3 | Other secured financings | Scenario analysis | Estimated recovery percentage | Maximum | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Collateralized financings, measurement input | 0.55 | ||||||
Level 3 | Other secured financings | Scenario analysis | Estimated recovery percentage | Weighted Average | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Collateralized financings, measurement input | 0.45 | ||||||
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 | ||||||
Level 3 | Unfunded commitments | Market approach | Price | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Derivative liability, measurement input | $ / shares | 88 |
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 | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Financial instruments owned: | |||
Loans and other receivables | $ (25,623) | $ (2,072) | $ (3,856) |
Loans | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 0 | 656 | (46) |
Loan commitments | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 464 | (1,089) | (739) |
Short-term borrowings: | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 0 | 114 | 0 |
Other changes in fair value | (48) | (863) | 0 |
Long-term debt: | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | (70,201) | (20,332) | 38,064 |
Other changes in fair value | (84,116) | (25,144) | 48,748 |
Other secured financings | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Other changes in fair value | $ 2,475 | $ 0 | $ 0 |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value under Fair Value Option (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Financial instruments owned: | ||
Loans and other receivables | $ 1,662,647 | $ 1,546,516 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 287,889 | 197,215 |
Long-term debt and short-term borrowings | (42,819) | 74,408 |
Other secured financings | 2,782 | 0 |
Loans and other receivables 90 days or greater past due | $ 30,000 | $ 22,200 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, impairment loss | $ 768 | $ 291 | |
Goodwill | 1,646,933 | 1,643,599 | $ 1,642,170 |
Goodwill impairment | 3,000 | 0 | 0 |
Exchange and clearing organization membership interests and registrations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, impairment loss | 468 | 291 | |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 0 | ||
Goodwill impairment | 3,000 | ||
Impairment of intangible assets, finite-lived | 300 | ||
Nonrecurring | Customer relationships and trade names | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross costs - finite lived intangible assets | 0 | ||
Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill, fair value | 0 | ||
Finite-lived intangible assets, fair value disclosure | 0 | ||
Nonrecurring | Exchange and clearing organization membership interests and registrations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, carrying value | 1,974 | 2,443 | 2,663 |
Exchange ownership interest and registrations, impairment loss | 468 | 291 | 9 |
Nonrecurring | Exchange and clearing organization membership interests and registrations | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, fair value | $ 1,974 | $ 2,443 | $ 2,663 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Details) $ in Thousands | Nov. 30, 2020USD ($)Contract | Nov. 30, 2019USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net amounts per consolidated statements of financial condition, assets | $ 467,817 | $ 397,551 |
Net amounts per consolidated statements of financial condition, liabilities | 641,065 | 527,205 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 560,810 | 718,685 |
Fair value, liabilities | 565,390 | 962,638 |
Amounts offset in the consolidated statements of financial condition, assets | (546,989) | (688,871) |
Amounts offset in the consolidated statements of financial condition, liabilities | (546,989) | (688,871) |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 109,456 | 244,401 |
Fair value, liabilities | 147,713 | 290,201 |
Amounts offset in the consolidated statements of financial condition, assets | (109,228) | (222,869) |
Amounts offset in the consolidated statements of financial condition, liabilities | (111,654) | (266,900) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 1,353,687 | 867,271 |
Fair value, liabilities | 1,726,621 | 906,153 |
Amounts offset in the consolidated statements of financial condition, assets | (899,919) | (521,066) |
Amounts offset in the consolidated statements of financial condition, liabilities | (1,140,016) | (676,016) |
Derivatives designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 67,381 | 28,663 |
Fair value, liabilities | 10,197 | 0 |
Derivatives designated as accounting hedges: | Interest rate contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 67,381 | $ 28,663 |
Number of contracts, assets | Contract | 1 | 1 |
Fair value, liabilities | $ 6,891 | $ 0 |
Number of contracts, liabilities | Contract | 1 | 0 |
Derivatives designated as accounting hedges: | Foreign exchange contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | |
Number of contracts, assets | Contract | 0 | |
Fair value, liabilities | $ 3,306 | |
Number of contracts, liabilities | Contract | 11 | |
Derivatives not designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 1,956,572 | $ 1,801,694 |
Fair value, liabilities | 2,429,527 | 2,158,992 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 2,442 | $ 1,191 |
Number of contracts, assets | Contract | 52,620 | 65,226 |
Fair value, liabilities | $ 439 | $ 103 |
Number of contracts, liabilities | Contract | 42,611 | 38,464 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 17,379 | $ 213,224 |
Number of contracts, assets | Contract | 3,785 | 3,329 |
Fair value, liabilities | $ 114,524 | $ 284,433 |
Number of contracts, liabilities | Contract | 4,307 | 3,443 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 626,210 | $ 421,700 |
Number of contracts, assets | Contract | 1,493 | 1,325 |
Fair value, liabilities | $ 317,534 | $ 258,857 |
Number of contracts, liabilities | Contract | 466 | 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 | 0 | 256 |
Fair value, liabilities | $ 0 | $ 0 |
Number of contracts, liabilities | Contract | 180 | 199 |
Derivatives not designated as accounting hedges: | Foreign exchange contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 297,165 | $ 190,570 |
Number of contracts, assets | Contract | 15,005 | 9,255 |
Fair value, liabilities | $ 277,628 | $ 187,836 |
Number of contracts, liabilities | Contract | 15,049 | 9,187 |
Derivatives not designated as accounting hedges: | Equity contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 558,304 | $ 717,494 |
Number of contracts, assets | Contract | 1,147,486 | 1,714,538 |
Fair value, liabilities | $ 564,951 | $ 962,535 |
Number of contracts, liabilities | Contract | 971,938 | 1,481,388 |
Derivatives not designated as accounting hedges: | Equity contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 429,304 | $ 248,720 |
Number of contracts, assets | Contract | 2,374 | 4,731 |
Fair value, liabilities | $ 1,125,944 | $ 445,241 |
Number of contracts, liabilities | Contract | 2,421 | 4,271 |
Derivatives not designated as accounting hedges: | Commodity contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 64 | $ 0 |
Number of contracts, assets | Contract | 3,207 | 5,524 |
Fair value, liabilities | $ 0 | $ 0 |
Number of contracts, liabilities | Contract | 2,654 | 4,646 |
Derivatives not designated as accounting hedges: | Credit contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 24,696 | $ 2,514 |
Number of contracts, assets | Contract | 39 | 13 |
Fair value, liabilities | $ 26,298 | $ 5,768 |
Number of contracts, liabilities | Contract | 31 | 12 |
Derivatives not designated as accounting hedges: | Credit contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 1,008 | $ 6,281 |
Number of contracts, assets | Contract | 11 | 25 |
Fair value, liabilities | $ 2,209 | $ 14,219 |
Number of contracts, liabilities | Contract | 11 | 28 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ 4,856 | $ (2,546) | $ 1,824 |
Unrealized and realized gains (losses) | 14,180 | (293,116) | (162,059) |
Net investment hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), foreign currency transaction and translation gain (loss), before reclassification and tax | (3,306) | 0 | 0 |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 3,851 | (4,016) | (304) |
Foreign exchange contracts | Net investment hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), foreign currency transaction and translation gain (loss), before reclassification and tax | (3,306) | 0 | 0 |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (52,331) | (188,605) | 67,291 |
Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 47,631 | (108,961) | (232,873) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (189) | (681) | 1,112 |
Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 15,218 | 9,147 | 2,715 |
Derivative, assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | 41,524 | 56,385 | (25,539) |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ (36,668) | $ (58,931) | $ 27,363 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | $ 316,358 |
OTC derivative assets having maturity period of 1 to 5 years | 213,701 |
OTC derivative assets having maturity period of greater than 5 years | 222,966 |
OTC derivative assets cross-maturity netting | (73,537) |
Total OTC derivative assets, net of cross-maturity netting | 679,488 |
Cross product counterparty netting | (24,723) |
Total OTC derivative assets included in Financial instruments owned | 654,765 |
OTC derivative liabilities having maturity period of 0 to 12 months | 224,128 |
OTC derivative liabilities having maturity period of 1 to 5 years | 762,117 |
OTC derivative liabilities having maturity period of greater than 5 years | 189,877 |
OTC derivative liabilities cross-maturity netting | (73,537) |
Total OTC derivative liabilities, net of cross-maturity netting | 1,102,585 |
Cross product counterparty netting | (24,723) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased | 1,077,862 |
Exchange traded derivative assets | 29,800 |
Cash collateral received | 216,800 |
Exchange traded derivative liabilities, with fair value | 22,500 |
Cash collateral pledged | 459,300 |
Equity options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 32,766 |
OTC derivative assets having maturity period of 1 to 5 years | 951 |
OTC derivative assets having maturity period of greater than 5 years | 16,650 |
OTC derivative assets cross-maturity netting | (24,685) |
Total OTC derivative assets, net of cross-maturity netting | 25,682 |
OTC derivative liabilities having maturity period of 0 to 12 months | 23,278 |
OTC derivative liabilities having maturity period of 1 to 5 years | 491,595 |
OTC derivative liabilities having maturity period of greater than 5 years | 119,988 |
OTC derivative liabilities cross-maturity netting | (24,685) |
Total OTC derivative liabilities, net of cross-maturity netting | 610,176 |
Credit default swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 0 |
OTC derivative assets having maturity period of 1 to 5 years | 750 |
OTC derivative assets having maturity period of greater than 5 years | 11 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 761 |
OTC derivative liabilities having maturity period of 0 to 12 months | 0 |
OTC derivative liabilities having maturity period of 1 to 5 years | 596 |
OTC derivative liabilities having maturity period of greater than 5 years | 1,615 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 2,211 |
Total return swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 140,394 |
OTC derivative assets having maturity period of 1 to 5 years | 25,110 |
OTC derivative assets having maturity period of greater than 5 years | 1,321 |
OTC derivative assets cross-maturity netting | (2,975) |
Total OTC derivative assets, net of cross-maturity netting | 163,850 |
OTC derivative liabilities having maturity period of 0 to 12 months | 88,130 |
OTC derivative liabilities having maturity period of 1 to 5 years | 190,616 |
OTC derivative liabilities having maturity period of greater than 5 years | 22 |
OTC derivative liabilities cross-maturity netting | (2,975) |
Total OTC derivative liabilities, net of cross-maturity netting | 275,793 |
Foreign currency forwards, swaps and options | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 62,249 |
OTC derivative assets having maturity period of 1 to 5 years | 18,460 |
OTC derivative assets having maturity period of greater than 5 years | 517 |
OTC derivative assets cross-maturity netting | (5,746) |
Total OTC derivative assets, net of cross-maturity netting | 75,480 |
OTC derivative liabilities having maturity period of 0 to 12 months | 50,949 |
OTC derivative liabilities having maturity period of 1 to 5 years | 13,376 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (5,746) |
Total OTC derivative liabilities, net of cross-maturity netting | 58,579 |
Fixed income forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative liabilities having maturity period of 0 to 12 months | 213 |
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 | 213 |
Interest rate swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 80,949 |
OTC derivative assets having maturity period of 1 to 5 years | 168,430 |
OTC derivative assets having maturity period of greater than 5 years | 204,467 |
OTC derivative assets cross-maturity netting | (40,131) |
Total OTC derivative assets, net of cross-maturity netting | 413,715 |
OTC derivative liabilities having maturity period of 0 to 12 months | 61,558 |
OTC derivative liabilities having maturity period of 1 to 5 years | 65,934 |
OTC derivative liabilities having maturity period of greater than 5 years | 68,252 |
OTC derivative liabilities cross-maturity netting | (40,131) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 155,613 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 164,718 |
BBB- to BBB+ | 19,628 |
BB+ or lower | 316,361 |
Unrated | 154,058 |
Total OTC derivative assets included in Financial instruments owned | $ 654,765 |
Derivative Financial Instrume_7
Derivative Financial Instruments - External Credit Ratings of Underlyings or Referenced Assets (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Nov. 30, 2019 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 324.8 | $ 35 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 6.4 | 33.9 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 62 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 3.4 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 262.8 | 32 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 6.2 | 29 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 0.2 | $ 1.5 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Contingent Features (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Nov. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 284.6 | $ 42.9 |
Collateral posted | (129.8) | (3.1) |
Collateral received | 141.4 | 114.1 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 296.2 | $ 154 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,810,748 | $ 1,525,140 |
Repurchase Agreements | 15,159,273 | 18,756,917 |
Obligation To Return Securities Received As Collateral, at fair value | 7,517 | 9,500 |
Total | 16,977,538 | 20,291,557 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 1,371,978 | 1,314,395 |
Repurchase Agreements | 157,912 | 129,558 |
Obligation To Return Securities Received As Collateral, at fair value | 7,517 | 0 |
Total | 1,537,407 | 1,443,953 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 369,218 | 191,311 |
Repurchase Agreements | 1,869,844 | 1,730,526 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | 2,239,062 | 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 | 1,547,140 | 1,745,145 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | 1,547,140 | 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 | 14,789 | 19,434 |
Repurchase Agreements | 7,149,992 | 10,863,997 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 9,500 |
Total | 7,164,781 | 10,892,931 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 278,470 | 498,202 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | 278,470 | 498,202 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 54,763 | 0 |
Repurchase Agreements | 2,763,032 | 3,016,563 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | 2,817,795 | 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 | 1,392,883 | 772,926 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | $ 1,392,883 | $ 772,926 |
Collateralized Transactions -_2
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,810,748 | $ 1,525,140 |
Repurchase Agreements | 15,159,273 | 18,756,917 |
Obligation To Return Securities Received As Collateral, at fair value | 7,517 | 9,500 |
Total | 16,977,538 | 20,291,557 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 636,256 | 694,821 |
Repurchase Agreements | 5,510,476 | 6,614,026 |
Obligation To Return Securities Received As Collateral, at fair value | 7,517 | 0 |
Total | 6,154,249 | 7,308,847 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 59,735 | 0 |
Repurchase Agreements | 1,747,526 | 1,556,260 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | 1,807,261 | 1,556,260 |
31-90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 459,455 | 672,969 |
Repurchase Agreements | 5,019,885 | 8,988,528 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 9,500 |
Total | 5,479,340 | 9,670,997 |
Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 655,302 | 157,350 |
Repurchase Agreements | 2,881,386 | 1,598,103 |
Obligation To Return Securities Received As Collateral, at fair value | 0 | 0 |
Total | $ 3,536,688 | $ 1,755,453 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Fair value of securities received as collateral | $ 25,900,000 | $ 28,700,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 604,321 | $ 796,797 |
Collateralized Transactions - S
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Securities borrowing arrangements | ||
Gross Amounts | $ 6,934,762 | $ 7,624,642 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 6,934,762 | 7,624,642 |
Additional amounts available for setoff | (395,342) | (361,394) |
Available collateral | (1,706,046) | (1,479,433) |
Net amount | 4,833,374 | 5,783,815 |
Reverse repurchase agreements | ||
Gross Amounts | 11,939,773 | 15,551,845 |
Netting in Consolidated Statement of Financial Condition | (6,843,004) | (11,252,247) |
Net Amounts in Consolidated Statement of Financial Condition | 5,096,769 | 4,299,598 |
Additional amounts available for setoff | (412,327) | (291,316) |
Available collateral | (4,578,560) | (3,929,977) |
Net amount | 105,882 | 78,305 |
Securities lending arrangements | ||
Gross Amounts | 1,810,748 | 1,525,140 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 1,810,748 | 1,525,140 |
Additional amounts available for setoff | (395,342) | (361,394) |
Available collateral | (1,397,550) | (970,799) |
Net amount | 17,856 | 192,947 |
Repurchase agreements | ||
Gross Amounts | 15,159,273 | 18,756,917 |
Netting in Consolidated Statement of Financial Condition | (6,843,004) | (11,252,247) |
Net Amounts in Consolidated Statement of Financial Condition | 8,316,269 | 7,504,670 |
Additional amounts available for setoff | (412,327) | (291,316) |
Available collateral | (7,122,422) | (6,663,807) |
Net amount | 781,520 | 549,547 |
Securities borrowing arrangements | 4,757,800 | 5,683,400 |
Securities borrowing arrangements, collateral | 4,617,000 | 5,523,600 |
Securities borrowing arrangements, repurchase agreements | 720,000 | 439,700 |
Securities borrowing arrangements, repurchase agreements, pledged securities collateral | 733,900 | 447,500 |
Obligation to return securities received as collateral, at fair value | ||
Securities lending arrangements | ||
Gross Amounts | 7,517 | 9,500 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 7,517 | 9,500 |
Additional amounts available for setoff | 0 | 0 |
Available collateral | 0 | 0 |
Net amount | 7,517 | 9,500 |
Securities received as collateral, at fair value | ||
Securities borrowing arrangements | ||
Gross Amounts | 7,517 | 9,500 |
Netting in Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statement of Financial Condition | 7,517 | 9,500 |
Additional amounts available for setoff | 0 | 0 |
Available collateral | 0 | 0 |
Net amount | $ 7,517 | $ 9,500 |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Transfers and Servicing [Abstract] | |||
Transferred assets | $ 6,556.2 | $ 4,780.9 | $ 7,159.3 |
Proceeds on new securitizations | 6,556.2 | 4,852.2 | 7,165.3 |
Cash flows received on retained interests | $ 26.8 | $ 48.3 | $ 48.5 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Nov. 30, 2019 |
Securitization Vehicles [Line Items] | ||
Total RMBS securitization assets | $ 562.5 | $ 10,671.7 |
Total CMBS securitization assets | 2,461.2 | 1,374.8 |
Total collateralized loan obligations | 3,345.5 | 3,006.7 |
Consumer and other loans | 1,290.6 | 1,149.3 |
U.S. government agency RMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 7.8 | 103.3 |
U.S. government agency CMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 205.2 | 45.8 |
CLOs | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 39.5 | 58.4 |
Consumer and other loans | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | $ 56.6 | $ 71.8 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 47,751,997 | $ 43,516,115 |
Total liabilities | 41,385,865 | 37,386,368 |
Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 2,908,900 | 2,467,300 |
Total liabilities | 2,908,900 | 2,467,300 |
Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 19,400 | 1,500 |
Total liabilities | 2,900 | 200 |
Cash | Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIE assets, eliminated in consolidation | 700 | |
Cash | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Cash | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,200 | 1,200 |
Financial instruments owned | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Financial instruments owned | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 5,200 | 300 |
Securities purchased under agreements to resell | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 2,908,900 | 2,467,300 |
Securities purchased under agreements to resell | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Receivable from brokers | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 0 |
Receivable from brokers | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 12,900 | 0 |
Other assets | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Other assets | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 100 | |
Other assets | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Other assets | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | |
Financial instruments sold, not yet purchased | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | 0 |
Financial instruments sold, not yet purchased | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 2,500 | 0 |
Other secured financings | Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIE liabilities, eliminated in consolidation | 138,200 | |
Other secured financings | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 2,907,800 | 2,465,800 |
Other secured financings | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | 0 |
Other liabilities | Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIE liabilities, eliminated in consolidation | 300 | 200 |
Other liabilities | Variable interest entity, primary beneficiary | Securitization activity | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 1,100 | 1,500 |
Other liabilities | Variable interest entity, primary beneficiary | Other | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 400 | $ 200 |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 47,751,997 | $ 43,516,115 |
Total liabilities | 41,385,865 | 37,386,368 |
Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,071,000 | 938,000 |
Total liabilities | 200 | 600 |
Maximum Exposure to Loss | 1,790,800 | 1,442,100 |
VIE Assets | 21,935,000 | 16,373,900 |
CLOs | Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 60,700 | 152,600 |
Total liabilities | 200 | 600 |
Maximum Exposure to Loss | 642,700 | 505,300 |
VIE Assets | 6,849,100 | 7,845,000 |
Consumer loan and other asset-backed vehicles | Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 251,600 | 358,300 |
Total liabilities | 0 | 0 |
Maximum Exposure to Loss | 377,200 | 490,600 |
VIE Assets | 2,462,700 | 2,354,800 |
Related party private equity vehicles | Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 19,000 | 23,000 |
Total liabilities | 0 | 0 |
Maximum Exposure to Loss | 30,000 | 34,300 |
VIE Assets | 53,000 | 71,400 |
Other investment vehicles | Variable interest entity, not primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total assets | 739,700 | 404,100 |
Total liabilities | 0 | 0 |
Maximum Exposure to Loss | 740,900 | 411,900 |
VIE Assets | $ 12,570,200 | $ 6,102,700 |
Variable Interest Entities - No
Variable Interest Entities - Non-consolidated VIEs - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 47,751,997 | $ 43,516,115 |
Related party private equity vehicles | JCP Entities | ||
Variable Interest Entity [Line Items] | ||
Equity commitments amount | 133,000 | |
Funded equity commitments | 122,000 | 121,700 |
Carrying amount of equity investment | 19,000 | 23,000 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity commitments amount | 749,300 | 398,600 |
Funded equity commitments | 748,100 | 390,800 |
Carrying amount of equity investment | 739,700 | 404,100 |
Variable interest entity, primary beneficiary | Agency mortgage-backed securities | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,571,600 | 1,453,500 |
Variable interest entity, primary beneficiary | Non-agency mortgage and other asset-backed securities | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 252,000 | $ 134,800 |
Investments - Additional Inform
Investments - Additional Information (Details) | Nov. 30, 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 | 50.00% |
Investments - Jefferies Finance
Investments - Jefferies Finance - Narrative (Details) - USD ($) | May 15, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Mar. 28, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||
Interest expense | $ 954,829,000 | $ 1,472,002,000 | $ 1,246,256,000 | ||
Promissory note | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Debt principal amount | $ 1,000,000,000 | ||||
Interest expense | $ 3,800,000 | ||||
Jefferies Finance | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity commitment | 750,000,000 | ||||
Total committed equity capitalization | 1,500,000,000 | ||||
Funded portion of equity commitment to subsidiary | 652,400,000 | ||||
Unfunded portion of equity commitment to subsidiary | $ 97,600,000 | ||||
Extension period | 1 year | ||||
Termination notice period | 60 days | ||||
Funded portion of loan commitment | $ 50,000,000 | ||||
Loan commitment | 250,000,000 | ||||
Jefferies Finance | Committed advances | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Committed line of credit facility amount | 500,000,000 | ||||
Jefferies Finance | Other assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Receivables under service agreement | 24,200,000 | 17,200,000 | |||
Jefferies Finance | Accounts expenses and other liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payables under service agreement | $ 13,700,000 | 13,700,000 | |||
Jefferies Finance | Payables to customers | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payables under service agreement | $ 17,600,000 |
Investments - Summary of Select
Investments - Summary of Selected Financial Information for Jefferies Finance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Total assets | $ 47,751,997 | $ 43,516,115 | |
Total liabilities | 41,385,865 | 37,386,368 | |
Net earnings (loss) | 874,706 | 244,385 | $ 159,017 |
Jefferies Finance | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest income | 2,400 | 0 | 1,200 |
Unfunded commitment fees | 1,100 | 1,300 | 1,200 |
Total assets | 7,199,500 | 7,112,400 | |
Total liabilities | 5,990,400 | 5,828,300 | |
Total equity | 1,209,100 | 1,284,100 | |
Our total equity balance | 604,600 | 642,000 | |
Net earnings (loss) | (74,900) | 44,500 | 197,200 |
Origination and syndication fee revenues | 198,100 | 176,300 | 377,700 |
Origination fee expenses | 27,300 | 27,600 | 56,600 |
CLO placement fee revenues | 1,700 | 6,000 | 3,700 |
Derivative gains (losses) | 0 | 0 | (1,600) |
Underwriting fees | 1,700 | 3,900 | 0 |
Service fees | $ 65,100 | $ 60,800 | $ 61,700 |
Investments - Berkadia - Narrat
Investments - Berkadia - Narrative (Details) - Berkadia - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Oct. 01, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of profits received from joint venture | 45.00% | |||
Purchase commitment amount | $ 401 | $ 360.4 | ||
Cash distribution from equity method investment | $ 23.1 | $ 37.1 | $ 65 | |
Jefferies Financial Group Inc. | Affiliated entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Investments - Summary of Sele_2
Investments - Summary of Selected Financial Information for Berkadia (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total assets | $ 47,751,997 | $ 43,516,115 | ||
Total liabilities | 41,385,865 | 37,386,368 | ||
Net earnings (loss) | 874,706 | 244,385 | $ 159,017 | |
Berkadia | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total assets | 4,294,000 | 2,809,800 | ||
Total liabilities | 3,626,300 | 2,213,200 | ||
Total equity | 667,700 | 596,600 | ||
Our total equity balance | 301,200 | 268,900 | ||
Net earnings (loss) | $ 44,400 | $ 153,100 | $ 195,900 |
Investments - JCP Fund V - Narr
Investments - JCP Fund V - Narrative (Details) - JCP Fund V - USD ($) $ in Millions | 12 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment amount | $ 17.4 | $ 20.6 |
Unfunded portion of equity commitment to subsidiary | $ 9.1 | 9.4 |
Percent of financial information presented | 100.00% | |
Ownership percentage | 35.20% | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Total committed equity capitalization | $ 85 | $ 85 |
Investments - Summary of Sele_3
Investments - Summary of Selected Financial Information for JCP Fund V (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Total assets | $ 47,751,997 | $ 43,516,115 | |||||||
Total liabilities | 41,385,865 | 37,386,368 | |||||||
JCP Fund V | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Net gains (losses) from our investments in JCP Fund V | $ (3,000) | $ (5,700) | $ 12,100 | ||||||
Total assets | $ 49,404 | $ 63,248 | |||||||
Total liabilities | 84 | 76 | |||||||
Total partners’ capital | 49,319 | 63,172 | |||||||
Net increase (decrease) in net assets resulting from operations | $ (1,397) | $ (8,412) | $ 19,712 | $ (12,456) | $ (19,070) | $ 15,252 |
Investments - Epic Gas - Narrat
Investments - Epic Gas - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Net earnings | $ 874,706 | $ 244,385 | $ 159,017 |
Epic Gas | |||
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from sale of Epic Gas | 24,600 | ||
Gain on sale of Epic Gas | 2,800 | ||
Epic Gas | Equity method investment, nonconsolidated investee or group of investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Net earnings | $ 900 | $ 20,100 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Dec. 01, 2019 | Dec. 01, 2018 | |
Goodwill [Roll Forward] | |||||
Balance, at beginning of period | $ 1,643,599 | $ 1,642,170 | |||
Currency translation and other adjustments | 6,334 | 1,325 | |||
Goodwill acquired during period | 0 | 104 | |||
Goodwill impairment | (3,000) | 0 | $ 0 | ||
Balance, at end of period | 1,646,933 | 1,643,599 | $ 1,642,170 | ||
Investment Banking and Capital Markets | |||||
Goodwill [Roll Forward] | |||||
Balance, at beginning of period | 1,640,201 | ||||
Balance, at end of period | 1,646,523 | 1,640,201 | |||
Accumulated goodwill impairments | $ 51,900 | $ 51,900 | |||
Goodwill, gross | 1,692,100 | 1,690,700 | |||
Asset Management | |||||
Goodwill [Roll Forward] | |||||
Balance, at beginning of period | 3,398 | ||||
Balance, at end of period | $ 410 | $ 3,398 | |||
Accumulated goodwill impairments | 2,100 | 2,100 | |||
Goodwill, gross | $ 5,500 | $ 5,500 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment losses | $ (768) | $ (291) |
Accumulated amortization - finite lived intangible assets | (104,361) | (92,057) |
Total gross costs - intangible assets | 263,572 | 262,890 |
Total net carrying amount - intangible assets | 158,443 | 170,542 |
Customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross costs - finite lived intangible assets | 126,106 | 125,736 |
Impairment losses | (26) | |
Accumulated amortization - finite lived intangible assets | (75,776) | (67,257) |
Net carrying amount - finite lived intangible assets | $ 50,304 | $ 58,479 |
Useful life - finite lived intangible assets | 9 years 4 months 24 days | 9 years 10 months 24 days |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross costs - finite lived intangible assets | $ 129,114 | $ 128,590 |
Impairment losses | (274) | |
Accumulated amortization - finite lived intangible assets | (28,585) | (24,800) |
Net carrying amount - finite lived intangible assets | $ 100,255 | $ 103,790 |
Useful life - finite lived intangible assets | 27 years 3 months 18 days | 28 years 3 months 18 days |
Exchange and clearing organization membership interests and registrations | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment losses | $ (468) | $ (291) |
Gross costs - indefinite lived intangible assets | 8,352 | 8,564 |
Net carrying amount - indefinite lived intangible assets | $ 7,884 | $ 8,273 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,646,933 | $ 1,643,599 | $ 1,642,170 |
Aggregate amortization expense | 12,200 | 11,900 | $ 12,100 |
Investment Banking and Capital Markets | |||
Goodwill [Line Items] | |||
Goodwill | $ 1,646,523 | $ 1,640,201 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year ending November 30, 2021 | $ 12,181 |
Year ending November 30, 2022 | 9,239 |
Year ending November 30, 2023 | 8,258 |
Year ending November 30, 2024 | 8,258 |
Year ending November 30, 2025 | $ 8,258 |
Short-Term Borrowings - Schedul
Short-Term Borrowings - Schedule of Short-Term Borrowings (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 764,715 | $ 548,490 |
Floating rate puttable notes | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 6,800 | 0 |
Equity-linked notes | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 5,067 | 20,981 |
Bank loans | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 752,848 | $ 527,509 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Infomation (Details) | 12 Months Ended |
Nov. 30, 2020USD ($) | |
Short-term Debt [Line Items] | |
Weighted average interest rate on short-term borrowings outstanding | 1.87% |
Revolving Credit Facility | Base rate | |
Short-term Debt [Line Items] | |
Debt basis spread on variable rate | 2.05% |
Revolving Credit Facility | Intraday credit facility | |
Short-term Debt [Line Items] | |
Revolving credit facility maximum principal amount | $ 150,000,000 |
Debt instrument, interest rate | 0.12% |
Revolving Credit Facility | Intraday credit facility | Base rate | |
Short-term Debt [Line Items] | |
Debt basis spread on variable rate | 3.00% |
Revolving Credit Facility | Intraday credit facility | Federal funds | |
Short-term Debt [Line Items] | |
Debt basis spread on variable rate | 0.50% |
Short-Term Borrowings - Sched_2
Short-Term Borrowings - Schedule of Line of Credit Facilities (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 764,715,000 | $ 548,490,000 |
Revolving Credit Facility | Base rate | ||
Short-term Debt [Line Items] | ||
Debt basis spread on variable rate | 2.05% | |
Revolving Credit Facility | Federal funds rate | ||
Short-term Debt [Line Items] | ||
Debt basis spread on variable rate | 2.00% | |
Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 746,000,000 | 486,000,000 |
Line of credit | Revolving Credit Facility | Bank of New York Mellon credit facility | ||
Short-term Debt [Line Items] | ||
Revolving credit facility maximum principal amount | 100,000,000 | |
Bank of New York Mellon master loan agreement | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 300,000,000 | 351,000,000 |
JPMorgan Chase Bank, N.A. credit facility | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 246,000,000 | 135,000,000 |
Royal Bank of Canada credit facility | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 200,000,000 | 0 |
Bank of New York Mellon credit facility | Line of credit | Revolving Credit Facility | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 0 | $ 0 |
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 | 12 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Jul. 19, 2019 | |
Debt Instrument [Line Items] | ||||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 6,895,680 | $ 7,003,358 | ||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | 4,856 | (2,546) | $ 1,824 | |
Long term debt, at fair value | 1,712,245 | 1,215,285 | ||
Unsecured long-term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 6,655,948 | 6,764,270 | ||
Unsecured long-term debt | 2.375% Euro Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.375% | |||
Effective Interest Rate | 0.00% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 0 | 550,622 | ||
Unsecured long-term debt | 6.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.875% | |||
Effective Interest Rate | 0.00% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 0 | 774,738 | ||
Unsecured long-term 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 (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 4,638 | 4,204 | ||
Unsecured long-term debt | 5.125% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.125% | |||
Effective Interest Rate | 4.47% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 759,901 | 610,023 | ||
Unsecured long-term debt | 1.000% Euro Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.00% | 1.00% | ||
Effective Interest Rate | 1.00% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 595,700 | 548,880 | ||
Unsecured long-term debt | 4.850% Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.85% | |||
Effective Interest Rate | 4.93% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 809,039 | 768,931 | ||
Unsecured long-term debt | 6.450% Senior Debentures | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.45% | |||
Effective Interest Rate | 5.46% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 369,057 | 371,426 | ||
Unsecured long-term debt | 4.150% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.15% | |||
Effective Interest Rate | 4.26% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 989,574 | 988,662 | ||
Unsecured long-term debt | 2.750% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.75% | |||
Effective Interest Rate | 2.85% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 485,134 | 0 | ||
Unsecured long-term debt | 6.250% Senior Debentures | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.25% | |||
Effective Interest Rate | 6.03% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 510,834 | 511,260 | ||
Unsecured long-term debt | 6.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.50% | |||
Effective Interest Rate | 6.09% | |||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 419,826 | 420,239 | ||
Unsecured long-term debt | Structured notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | 1,712,245 | 1,215,285 | ||
Debt matures in 2024 | 3,100 | |||
Debt matures in 2025 | 25,400 | |||
Debt matures in 2026 or thereafter | 1,683,700 | |||
Unsecured long-term debt | Interest rate swaps | 4.850% Senior notes | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | (36,700) | (58,900) | ||
Secured long-term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 50,000 | 50,000 | ||
Senior notes | 6.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.875% | |||
Senior notes | 5.125% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.125% | |||
Senior notes | 2.750% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.75% | |||
Revolving Credit Facility | Secured long-term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt (includes $1,712,245 and $1,215,285 at fair value at November 30, 2020 and 2019, respectively) | $ 189,732 | 189,088 | ||
Fair value, inputs, level 2 and level 3 | ||||
Debt Instrument [Line Items] | ||||
Long term debt, at fair value | $ 7,575,200 | $ 7,280,400 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Sep. 27, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Oct. 07, 2020 | Jul. 19, 2019 |
Debt Instrument [Line Items] | |||||
Increase of long-term debt | $ (107,700,000) | $ 457,100,000 | |||
Secured long-term debt | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum principal amount | 190,000,000 | ||||
Borrowings under the Revolving Credit Facility | 189,700,000 | ||||
Structured notes | |||||
Debt Instrument [Line Items] | |||||
Debt principal amount | $ 325,500,000 | 498,900,000 | |||
2.5 Billion Euro medium term note | Unsecured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt principal amount | $ 2,500,000,000 | ||||
1.000% Euro Medium Term Notes | Unsecured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 1.00% | 1.00% | |||
Debt principal amount | $ 553,600,000 | ||||
Proceeds from issuance of debt | $ 551,400,000 | ||||
8.500% Senior notes | Unsecured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 8.50% | ||||
Repayments of debt | $ 680,800,000 | ||||
Secured bank loan | Secured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum principal amount | $ 50,000,000 | ||||
2.375% Euro Medium Term Notes | Unsecured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 2.375% | ||||
2.375% Euro Medium Term Notes | Medium-term notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 2.375% | ||||
2.75% Senior notes | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt principal amount | $ 500,000,000 | ||||
5.125% Senior Notes | Unsecured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 5.125% | ||||
5.125% Senior Notes | Senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 5.125% | ||||
Debt principal amount | $ 150,000,000 | ||||
LIBOR | Secured bank loan | Secured long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt basis spread on variable rate | 1.25% |
Leases - Finance Lease ROU Asse
Leases - Finance Lease ROU Assets (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Property, Plant and Equipment [Line Items] | |
Remaining lease term (in years) | 10 years 10 months 24 days |
Discount rate | 2.90% |
Premises and equipment | |
Property, Plant and Equipment [Line Items] | |
Premises and equipment - ROU assets | $ 486,614 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 65,442 |
2022 | 70,200 |
2023 | 62,641 |
2024 | 61,106 |
2025 | 63,158 |
2026 and thereafter | 338,742 |
Total undiscounted cash flows | 661,289 |
Less: Difference between undiscounted and discounted cash flows | $ (100,402) |
Operating lease, liability, statement of financial position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Operating leases amount in our Consolidated Statement of Financial Condition | $ 560,887 |
Finance leases amount in our Consolidated Statement of Financial Condition | 362 |
Total amount in our Consolidated Statement of Financial Condition | $ 561,249 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 71,140 |
Variable lease costs | 13,332 |
Less: Sublease income | (5,974) |
Total lease cost, net | $ 78,498 |
Leases - Supplemental Informati
Leases - Supplemental Information of Cash Flows (Details) $ in Thousands | 12 Months Ended |
Nov. 30, 2020USD ($) | |
Leases [Abstract] | |
Cash outflows - lease liabilities | $ 66,248 |
Non-cash - ROU assets recorded for new and modified leases | $ 21,389 |
Leases - Future Minimum Lease C
Leases - Future Minimum Lease Commitments Under Leases (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 57,952 |
2021 | 60,395 |
2022 | 62,916 |
2023 | 57,574 |
2024 | 56,878 |
Thereafter | 389,245 |
Total | $ 684,960 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Total minimum payments to be received in the future under non-cancelable subleases | $ 16.2 | ||
Rental expense net of subleases | $ 61.2 | $ 52.3 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Components of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers: | $ 3,333,939 | $ 2,222,257 | $ 2,594,887 | ||||||||
Principal transactions | 1,867,013 | 769,258 | 524,296 | ||||||||
Revenues from third-parties with strategic relationships pursuant to arrangements | 19,507 | 3,066 | 0 | ||||||||
Interest | 894,215 | 1,496,529 | 1,207,095 | ||||||||
Other | 37,632 | 93,422 | 103,354 | ||||||||
Total revenues | $ 1,810,394 | $ 1,595,073 | $ 1,267,283 | $ 1,479,556 | $ 1,073,536 | $ 1,141,631 | $ 1,314,493 | $ 1,054,872 | 6,152,306 | 4,584,532 | 4,429,632 |
Commissions and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers: | 823,258 | 676,309 | 663,470 | ||||||||
Investment banking | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers: | 2,501,494 | 1,528,729 | 1,910,203 | ||||||||
Asset management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues from contracts with customers: | $ 9,187 | $ 17,219 | $ 21,214 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | $ 3,333,939 | $ 2,222,257 | $ 2,594,887 |
Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 3,324,752 | 2,205,038 | 2,573,673 |
Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 9,187 | 17,219 | 21,214 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 2,746,537 | 1,762,040 | 2,207,826 |
Americas | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 2,742,298 | 1,751,568 | 2,186,955 |
Americas | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 4,239 | 10,472 | 20,871 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 406,801 | 381,158 | 304,370 |
Europe | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 401,853 | 374,411 | 304,027 |
Europe | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 4,948 | 6,747 | 343 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 180,601 | 79,059 | 82,691 |
Asia Pacific | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 180,601 | 79,059 | 82,691 |
Asia Pacific | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Investment banking - Advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,053,500 | 767,421 | 820,042 |
Investment banking - Advisory | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,053,500 | 767,421 | 820,042 |
Investment banking - Advisory | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Investment banking - Underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,447,994 | 761,308 | 1,090,161 |
Investment banking - Underwriting | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,447,994 | 761,308 | 1,090,161 |
Investment banking - Underwriting | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Equities | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 807,350 | 662,804 | 649,631 |
Equities | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 807,350 | 662,804 | 649,631 |
Equities | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Fixed income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 15,908 | 13,505 | 13,839 |
Fixed income | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 15,908 | 13,505 | 13,839 |
Fixed income | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Asset management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 9,187 | 17,219 | 21,214 |
Asset management | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Asset management | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | $ 9,187 | $ 17,219 | $ 21,214 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue related to performance obligations satisfied | $ 11.1 | $ 27.6 | $ 26.6 |
Revenue associated with distribution services, a portion of which related to prior periods | 17.6 | 21.7 | 18.1 |
Receivables related to revenue from contracts with customers | 278.5 | 209.3 | |
Deferred revenue | 10 | 9 | |
Deferred revenue, revenue recognized | 7.9 | 9.5 | 5.4 |
Capitalized contract cost | 1.8 | 4.8 | |
Expenses related to capitalized costs to fulfill a contract | $ 5.1 | $ 4 | $ 2.3 |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation and Components of Net Periodic Pension Costs (Details) - United States - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | $ 63,222 | $ 54,724 | |
Interest cost | 1,801 | 2,303 | $ 2,129 |
Actuarial losses | 9,874 | 9,606 | |
Administrative expenses paid | (346) | (467) | |
Benefits paid | (1,003) | (3,444) | |
Settlements | (2,477) | 0 | |
Other costs | 470 | 500 | 400 |
Projected benefit obligation, end of period | 71,541 | 63,222 | 54,724 |
Change in plan assets: | |||
Fair value of assets, beginning of period | 56,980 | 48,176 | |
Benefits paid | (1,003) | (3,444) | |
Administrative expenses paid | (346) | (467) | |
Actual return on plan assets | 10,007 | 10,715 | |
Contributions | 0 | 2,000 | |
Settlements | (2,477) | 0 | |
Fair value of assets, end of period | 63,161 | 56,980 | $ 48,176 |
Funded status at end of period | $ (8,380) | $ (6,242) |
Benefit Plans - Pension Liabili
Benefit Plans - Pension Liability Recognized on Balance Sheet (Details) - United States - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Consolidated statements of financial condition: | ||
Accrued expenses and other liabilities | $ 8,380 | $ 6,242 |
Accumulated other comprehensive income, before taxes: | ||
Net losses | $ (10,875) | $ (8,159) |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Cost (Details) - United States - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Components of net periodic pension cost: | |||
Interest cost on projected benefit obligation | $ 1,801 | $ 2,303 | $ 2,129 |
Expected return on plan assets | (3,477) | (3,008) | (3,247) |
Net amortization | 252 | 122 | 0 |
Settlement losses | 376 | 0 | 365 |
Other costs | 470 | 500 | 400 |
Net periodic pension cost | $ (578) | $ (83) | $ (353) |
Benefit Plans - Components of_2
Benefit Plans - Components of Net Periodic Pension Costs and Amounts Recognized in Other Comprehensive Income (Details) - United States - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Amounts recognized in Other comprehensive income: | |||
Net losses arising during the period | $ 3,344 | $ 1,899 | $ 655 |
Amortization of net loss | (252) | (122) | 0 |
Settlements during the period | (376) | 0 | (365) |
Total losses recognized in Other comprehensive income | 2,716 | 1,777 | 290 |
Net losses/(gains) recognized in net periodic benefit cost and Other comprehensive income | $ 2,138 | $ 1,694 | $ (63) |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used to Determine Actuarial Present Value of Projected Benefit Obligation and Net Periodic Pension Benefit Cost (Details) - United States | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Components of net periodic pension cost: | |||
Discount rate used to determine benefit obligation | 2.00% | 2.90% | 4.30% |
Weighted average assumptions used to determine net pension cost: | |||
Discount rate | 2.90% | 4.30% | 3.60% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.25% |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments (Details) - United States $ in Thousands | Nov. 30, 2020USD ($) |
Components of net periodic pension cost: | |
2021 | $ 2,207 |
2022 | 3,048 |
2023 | 4,176 |
2024 | 4,758 |
2025 | 4,422 |
2026 through 2030 | $ 24,755 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) $ in Thousands, € in Millions | 12 Months Ended | |||||
Nov. 30, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Dec. 28, 2017USD ($) | Dec. 28, 2017EUR (€) | ||
Components of net periodic pension cost: | ||||||
Minimum pension liability adjustments | [1] | $ 2,025 | $ 1,318 | $ (4,285) | ||
German Plan | ||||||
Components of net periodic pension cost: | ||||||
Consideration for release of indemnity relating to pension obligations | $ 3,250 | |||||
Minimum pension liability adjustments | $ 5,300 | |||||
Jefferies Bache Limited | German Plan | ||||||
Components of net periodic pension cost: | ||||||
Defined benefit pension obligations and insurance contracts transfer amount | € | € 6.5 | |||||
[1] | The amounts include income tax benefits (expenses) of $0.7 million, $0.5 million and $(0.7) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2020 includes pension net gains of $0.5 million, net of tax of $0.2 million, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amounts during the years ended November 30, 2019 and 2018 includes pension net gains (losses) of $0.1 million and $(0.3) million, respectively, net of negligible tax benefits (expenses), which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and $(0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. |
Compensation Plans - Compensati
Compensation Plans - Compensation Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost | $ 507.3 | $ 348.6 | $ 308.5 | |
Restricted cash awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost | $ 179.6 | 474.3 | 314.7 | 274.4 |
Restricted stock and RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost | 25.2 | 26.7 | 27.6 | |
Profit sharing plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost | 7.8 | 7.2 | 6.5 | |
Deferred Compensation Plan | Restricted stock and RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted cash awards | $ 0.3 | $ 0.4 | $ 0.3 |
Compensation Plans - Remaining
Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions | 12 Months Ended |
Nov. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 391.7 |
Non-vested share-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 28.2 |
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 | $ 363.5 |
Weighted Average Vesting Period (in Years) | 3 years |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) | 12 Months Ended |
Nov. 30, 2020USD ($) | |
Compensation Related Costs [Abstract] | |
Vesting period | 4 years |
Number of years in which restricted stock awards amortized as compensation expense | 4 years |
Annual employee contributions | $ 21,250 |
Employee service share based compensation plan stock price | 95.00% |
Income Taxes - Total Income Tax
Income Taxes - Total Income Taxes Allocated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 302,748 | $ 80,284 | $ 250,650 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Current: | |||
U.S. Federal | $ 213,274 | $ 50,970 | $ 106,761 |
U.S. state and local | 35,317 | (3,641) | 7,485 |
Foreign | 71,898 | 10,923 | 10,139 |
Total current | 320,489 | 58,252 | 124,385 |
Deferred: | |||
U.S. Federal | (30,190) | 19,973 | 131,233 |
U.S. state and local | (96) | 5,768 | 975 |
Foreign | 12,545 | (3,709) | (5,943) |
Total deferred | (17,741) | 22,032 | 126,265 |
Total income tax expense | $ 302,748 | $ 80,284 | $ 250,650 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 888,639 | $ 313,349 | $ 370,600 | ||||||||
Non-U.S. | 288,815 | 11,320 | 39,067 | ||||||||
Earnings before income taxes | $ 405,807 | $ 363,401 | $ 172,868 | $ 235,378 | $ 23,871 | $ 83,075 | $ 155,138 | $ 62,585 | $ 1,177,454 | $ 324,669 | $ 409,667 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate to U.S. Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Amount | |||
Computed expected income taxes | $ 247,265 | $ 68,181 | $ 90,945 |
State and local income taxes, net of Federal income tax benefit | 50,923 | 11,638 | 20,419 |
International operations (including foreign rate differential) | 13,168 | 4,518 | 2,258 |
Tax exempt income | (227) | (634) | (2,202) |
Foreign tax credits, net | (8,654) | (1,664) | (8,006) |
Meals and entertainment | 1,822 | 3,641 | 4,528 |
Non-deductible executive compensation | 8,407 | 3,720 | 3,011 |
Change in unrecognized tax benefits related to prior years | (9,314) | (7,690) | (18,497) |
Deferred tax asset remeasurement related to the Tax Act | 0 | 0 | 112,733 |
Transition tax on foreign earnings related to the Tax Act | 0 | 139 | 52,417 |
Other, net | (642) | (1,565) | (6,956) |
Total income tax expense | $ 302,748 | $ 80,284 | $ 250,650 |
Percent | |||
Computed expected income taxes | 21.00% | 21.00% | 22.20% |
State and local income taxes, net of Federal income tax benefit | 4.30% | 3.60% | 5.00% |
International operations (including foreign rate differential) | 1.10% | 1.40% | 0.60% |
Tax exempt income | 0.00% | (0.20%) | (0.50%) |
Foreign tax credits, net | (0.70%) | (0.50%) | (2.00%) |
Meals and entertainment | 0.20% | 1.10% | 1.10% |
Non-deductible executive compensation | 0.70% | 1.10% | 0.70% |
Change in unrecognized tax benefits related to prior years | (0.80%) | (2.40%) | (4.50%) |
Deferred tax asset remeasurement related to the Tax Act | 0.00% | 0.00% | 27.50% |
Transition tax on foreign earnings related to the Tax Act | 0.00% | 0.10% | 12.80% |
Other, net | (0.10%) | (0.50%) | (1.70%) |
Total income tax expense, percent | 25.70% | 24.70% | 61.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Examination [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate in future | $ 133,900 | $ 99,500 | |
Net interest expense related to unrecognized tax benefits | 9,800 | 6,300 | $ 1,000 |
Accrued interest on unrecognized tax benefits | 65,400 | 55,600 | |
Net deferred tax asset | 235,693 | 198,047 | |
Operating loss carryforwards | 2,500 | ||
Deferred tax asset related to net operating losses | 2,534 | 5,634 | |
Valuation allowance | 3,201 | $ 3,228 | |
Decrease in unrecognized tax benefits is reasonably possible | 6,200 | ||
Europe | |||
Income Tax Examination [Line Items] | |||
Deferred tax asset related to net operating losses | 1,800 | ||
Valuation allowance | 1,400 | ||
Asia Pacific | |||
Income Tax Examination [Line Items] | |||
Deferred tax asset related to net operating losses | 600 | ||
Valuation allowance | $ 300 |
Income Taxes - Roll Forward of
Income Taxes - Roll Forward of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 125,607 | $ 125,626 | $ 129,544 |
Increases based on tax positions related to the current period | 40,209 | 8,142 | 19,840 |
Increases based on tax positions related to prior periods | 5,275 | 1,399 | 5,002 |
Decreases based on tax positions related to prior periods | (2,444) | (9,560) | (28,760) |
Balance at end of period | $ 168,647 | $ 125,607 | $ 125,626 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Deferred tax assets: | ||
Compensation and benefits | $ 238,154 | $ 223,357 |
Operating lease liabilities | 140,742 | 0 |
Long-term debt | 41,934 | 33,097 |
Accrued expenses and other | 61,247 | 71,993 |
Net operating losses | 2,534 | 5,634 |
Sub-total | 484,611 | 334,081 |
Valuation allowance | (3,201) | (3,228) |
Total deferred tax assets | 481,410 | 330,853 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | 134,638 | 0 |
Amortization of intangibles | 67,663 | 70,373 |
Partnerships | 28,249 | 49,853 |
Other | 15,167 | 12,580 |
Total deferred tax liabilities | 245,717 | 132,806 |
Net deferred tax asset, included in Other assets | $ 235,693 | $ 198,047 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments and Contingencies (Details) $ in Millions | Nov. 30, 2020USD ($) |
Commitments And Guarantee Obligations [Line Items] | |
2021 | $ 10,492.8 |
2022 | 36.3 |
2023 and 2024 | 30.2 |
2025 and 2026 | 1.4 |
2027 and Later | 6.8 |
Maximum Payout | 10,567.5 |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 306.7 |
2022 | 1.3 |
2023 and 2024 | 0 |
2025 and 2026 | 0 |
2027 and Later | 6.8 |
Maximum Payout | 314.8 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 249.5 |
2022 | 10 |
2023 and 2024 | 25 |
2025 and 2026 | 1.4 |
2027 and Later | 0 |
Maximum Payout | 285.9 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 243.3 |
2022 | 0 |
2023 and 2024 | 0 |
2025 and 2026 | 0 |
2027 and Later | 0 |
Maximum Payout | 243.3 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 6,048 |
2022 | 0 |
2023 and 2024 | 0 |
2025 and 2026 | 0 |
2027 and Later | 0 |
Maximum Payout | 6,048 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 3,488.7 |
2022 | 0 |
2023 and 2024 | 0 |
2025 and 2026 | 0 |
2027 and Later | 0 |
Maximum Payout | 3,488.7 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2021 | 156.6 |
2022 | 25 |
2023 and 2024 | 5.2 |
2025 and 2026 | 0 |
2027 and Later | 0 |
Maximum Payout | 186.8 |
Forward starting securities purchased under agreements to resell | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | 5,919.9 |
Forward starting securities sold under agreements to repurchase settled within three business days | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | $ 3,480.4 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Details) $ in Millions | 12 Months Ended |
Nov. 30, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee | $ 181.3 |
Clients | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | 80 |
Standby letters of credit | |
Loss Contingencies [Line Items] | |
Letters of credit commitments | $ 20.4 |
Letters of credit commitments expiration period | 1 year |
Jefferies Capital Partners LLC | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | $ 11 |
Third parties | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | 200 |
Loan commitments outstanding to clients | 5.9 |
Other investments | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | $ 6.2 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Future Minimum Lease Commitments under Leases (Details) $ in Thousands | Nov. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 57,952 |
2021 | 60,395 |
2022 | 62,916 |
2023 | 57,574 |
2024 | 56,878 |
Thereafter | 389,245 |
Total | $ 684,960 |
Commitments, Contingencies an_6
Commitments, Contingencies and Guarantees - Schedule of Guarantees (Details) $ in Millions | Nov. 30, 2020USD ($) |
Derivative contracts—non-credit related | |
Guarantor Obligations [Line Items] | |
2021 | $ 12,607.6 |
2022 | 2,475.8 |
2023 and 2024 | 5,760.8 |
2025 and 2026 | 390.4 |
2027 and Later | 11.9 |
Notional/ Maximum Payout | 21,246.5 |
Written derivative contracts—credit related | |
Guarantor Obligations [Line Items] | |
2021 | 0 |
2022 | 0 |
2023 and 2024 | 6.4 |
2025 and 2026 | 0 |
2027 and Later | 0 |
Notional/ Maximum Payout | 6.4 |
Total derivative contracts | |
Guarantor Obligations [Line Items] | |
2021 | 12,607.6 |
2022 | 2,475.8 |
2023 and 2024 | 5,767.2 |
2025 and 2026 | 390.4 |
2027 and Later | 11.9 |
Notional/ Maximum Payout | $ 21,252.9 |
Net Capital Requirements - Sche
Net Capital Requirements - Schedule of Net Capital and Excess Net Capital (Details) - Jefferies LLC $ in Thousands | Nov. 30, 2020USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 2,161,289 |
Excess Net Capital | $ 2,060,537 |
Net Capital Requirements Net Ca
Net Capital Requirements Net Capital Requirements - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Nov. 30, 2019 |
Brokers and Dealers [Abstract] | ||
Amount of restricted net assets | $ 5,666.6 | $ 4,934.2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Nov. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues, Expenses and Total Assets by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 1,608,970 | $ 1,383,444 | $ 1,034,367 | $ 1,170,696 | $ 747,802 | $ 777,159 | $ 901,851 | $ 685,718 | $ 5,197,477 | $ 3,112,530 | $ 3,183,376 |
Non-interest expenses | 4,020,023 | 2,787,861 | 2,773,709 | ||||||||
Earnings before income taxes | 405,807 | $ 363,401 | $ 172,868 | $ 235,378 | 23,871 | $ 83,075 | $ 155,138 | $ 62,585 | 1,177,454 | 324,669 | 409,667 |
Total assets | 47,751,997 | 43,516,115 | 47,751,997 | 43,516,115 | |||||||
Investment Banking and Capital Markets | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 4,989,200 | 3,036,000 | 3,184,400 | ||||||||
Non-interest expenses | 3,869,300 | 2,688,900 | 2,719,500 | ||||||||
Earnings before income taxes | 1,119,900 | 347,100 | 464,900 | ||||||||
Total assets | 44,488,100 | 40,565,800 | 44,488,100 | 40,565,800 | |||||||
Asset Management | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 208,300 | 76,500 | (1,000) | ||||||||
Non-interest expenses | 150,700 | 98,900 | 54,200 | ||||||||
Earnings before income taxes | 57,600 | (22,400) | $ (55,200) | ||||||||
Total assets | $ 3,263,900 | $ 2,950,300 | $ 3,263,900 | $ 2,950,300 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Revenues: | |||||||||||
Net revenues | $ 1,608,970 | $ 1,383,444 | $ 1,034,367 | $ 1,170,696 | $ 747,802 | $ 777,159 | $ 901,851 | $ 685,718 | $ 5,197,477 | $ 3,112,530 | $ 3,183,376 |
Americas | |||||||||||
Revenues: | |||||||||||
Net revenues | 4,060,000 | 2,407,600 | 2,652,900 | ||||||||
Europe | |||||||||||
Revenues: | |||||||||||
Net revenues | 852,000 | 592,800 | 434,900 | ||||||||
Asia Pacific | |||||||||||
Revenues: | |||||||||||
Net revenues | $ 285,500 | $ 112,100 | $ 95,600 |
Related Party Transactions - Of
Related Party Transactions - Officers, Directors and Employees (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | |
Employees | |||
Related Party Transaction [Line Items] | |||
Proceeds from limited partnership investments | $ 0.5 | ||
Affiliated entity | |||
Related Party Transaction [Line Items] | |||
Loans to and investments in related parties | $ 28.9 | $ 34.8 | |
Affiliated entity | Director | |||
Related Party Transaction [Line Items] | |||
Investment in related party | $ 0.8 | $ 3.6 |
Related Party Transactions - Je
Related Party Transactions - Jefferies (Details) - USD ($) | Nov. 27, 2019 | Oct. 01, 2018 | Jun. 30, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 03, 2020 | Oct. 31, 2018 |
Related Party Transaction [Line Items] | |||||||||||
Related deferred tax liability | $ 245,717,000 | $ 132,806,000 | $ 245,717,000 | $ 132,806,000 | |||||||
Goodwill | 1,646,933,000 | 1,643,599,000 | $ 1,642,170,000 | 1,646,933,000 | 1,643,599,000 | $ 1,642,170,000 | |||||
Intangible assets | 158,443,000 | 170,542,000 | 158,443,000 | 170,542,000 | |||||||
Payables to brokers, dealers and clearing organizations | 3,325,753,000 | 2,555,178,000 | 3,325,753,000 | 2,555,178,000 | |||||||
Financial instruments owned, at fair value | 17,686,052,000 | 16,363,374,000 | 17,686,052,000 | 16,363,374,000 | |||||||
Financial instruments sold, not yet purchased, at fair value | 10,017,522,000 | 10,532,460,000 | 10,017,522,000 | 10,532,460,000 | |||||||
Disposal group, disposed of by sale, not discontinued operations | Sale of subsidiary | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sale of subsidiary | $ 180,700,000 | ||||||||||
Jefferies | Broker-dealer payable to customer | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Customer accounts payables | 2,200,000 | 2,200,000 | |||||||||
Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Charges to Jefferies for services provided | 47,200,000 | 52,700,000 | 61,200,000 | ||||||||
Charges from Jefferies for services received | 32,200,000 | 9,500,000 | 9,100,000 | ||||||||
Receivable from Jefferies | 1,300,000 | 900,000 | 1,300,000 | 900,000 | |||||||
Payable to Jefferies | 7,100,000 | 4,300,000 | 7,100,000 | 4,300,000 | |||||||
Payments of distributions | 498,700,000 | 311,100,000 | |||||||||
Accrued distributions payable | 153,600,000 | 12,600,000 | |||||||||
Tax payable | 111,100,000 | 111,100,000 | |||||||||
Tax receivable | 24,400,000 | 24,400,000 | |||||||||
Payment made to related party related to tax sharing agreement | $ 70,500,000 | 83,000,000 | 71,400,000 | ||||||||
Net gains on our investments | 0 | ||||||||||
Securities purchased from Jefferies | 64,800,000 | 917,200,000 | |||||||||
Securities sold to Jefferies | 100,000 | 110,900,000 | |||||||||
Related deferred tax liability | 3,100,000 | 3,100,000 | |||||||||
Payment received for transferred investment | $ 31,000,000 | ||||||||||
Capital contribution from Jefferies | $ 598,200,000 | ||||||||||
Entity net book value | $ 5,500,000 | ||||||||||
Goodwill | 400,000 | ||||||||||
Intangible assets | $ 200,000 | ||||||||||
Related party transaction, related deferred tax liabilities transferred | $ 50,900,000 | ||||||||||
Increase (decrease) due from affiliates | $ 2,900,000 | ||||||||||
Jefferies | Affiliated entity | Investment banking | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Charges to Jefferies for services provided | 10,500,000 | 10,600,000 | 15,700,000 | ||||||||
Jefferies | Affiliated entity | Commissions and other fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Charges to Jefferies for services provided | 1,500,000 | 1,200,000 | 1,800,000 | ||||||||
Jefferies | Affiliated entity | Principal transactions | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Charges to Jefferies for services provided | 0 | 0 | $ 100,000 | ||||||||
Affiliate of Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Payables to brokers, dealers and clearing organizations | 2,700,000 | 9,900,000 | 2,700,000 | 9,900,000 | |||||||
Financial instruments owned, at fair value | 100,000 | 100,000 | |||||||||
Payments for rent and other expenses | 800,000 | ||||||||||
Subsidiary of Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Financial instruments sold, not yet purchased, at fair value | 600,000 | 600,000 | |||||||||
Net gains (losses) on foreign exchange contracts | (1,600,000) | 6,100,000 | 0 | ||||||||
Hedge fund managed by Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Net gains on our investments | 15,800,000 | 4,700,000 | 5,000,000 | ||||||||
Investment in related party | 239,000,000 | 223,500,000 | 239,000,000 | 223,500,000 | |||||||
Corporate debt securities | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Financial instruments sold, not yet purchased, at fair value | 1,237,772,000 | 1,471,482,000 | 1,237,772,000 | 1,471,482,000 | |||||||
Corporate debt securities | Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Financial instruments owned, at fair value | 2,600,000 | 100,000 | 2,600,000 | 100,000 | |||||||
Director | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Investment in related party | $ 800,000 | 3,600,000 | $ 800,000 | 3,600,000 | |||||||
Director | Hedge fund managed by Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Investment in related party | 400,000 | $ 400,000 | |||||||||
Berkadia | Jefferies | Affiliated entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 50.00% | ||||||||||
Related party transaction, related deferred tax liabilities transferred, adjustment | $ 19,100,000 |
Related Party Transactions - HR
Related Party Transactions - HRG Group Inc. (Details) $ in Millions | 12 Months Ended |
Nov. 30, 2018USD ($) | |
HRG Group Inc. | Affiliated entity | |
Related Party Transaction [Line Items] | |
Investment banking revenue from related parties | $ 3 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 1,810,394 | $ 1,595,073 | $ 1,267,283 | $ 1,479,556 | $ 1,073,536 | $ 1,141,631 | $ 1,314,493 | $ 1,054,872 | $ 6,152,306 | $ 4,584,532 | $ 4,429,632 |
Net revenues | 1,608,970 | 1,383,444 | 1,034,367 | 1,170,696 | 747,802 | 777,159 | 901,851 | 685,718 | 5,197,477 | 3,112,530 | 3,183,376 |
Earnings before income taxes | 405,807 | 363,401 | 172,868 | 235,378 | 23,871 | 83,075 | 155,138 | 62,585 | $ 1,177,454 | $ 324,669 | $ 409,667 |
Net earnings attributable to Jefferies Group LLC | $ 307,114 | $ 268,062 | $ 130,738 | $ 173,389 | $ 25,160 | $ 64,968 | $ 109,920 | $ 45,981 |
Schedule I (PARENT COMPANY ON_2
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
ASSETS | ||
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations | $ 604,321 | $ 796,797 |
Financial instruments owned, at fair value | 17,686,052 | 16,363,374 |
Investment in subsidiaries | 1,000,730 | 944,509 |
Other assets | 972,479 | 1,093,868 |
Total assets | 47,751,997 | 43,516,115 |
LIABILITIES AND EQUITY | ||
Short-term borrowings | 764,715 | 548,490 |
Financial instruments sold, not yet purchased, at fair value | 10,017,522 | 10,532,460 |
Accrued expenses and other liabilities | 2,663,639 | 1,431,144 |
Long-term debt | 6,895,680 | 7,003,358 |
Total liabilities | 41,385,865 | 37,386,368 |
EQUITY | ||
Member’s paid-in capital | 6,569,328 | 6,329,677 |
Accumulated other comprehensive income (loss): | ||
Currency translation and other adjustments | (141,843) | (179,378) |
Changes in instrument specific credit risk | (71,151) | (18,889) |
Additional minimum pension liability | (8,104) | (6,079) |
Available-for-sale securities | 513 | 141 |
Total accumulated other comprehensive loss | (220,585) | (204,205) |
Total Jefferies Group LLC member’s equity | 6,348,743 | 6,125,472 |
Total liabilities and equity | 47,751,997 | 43,516,115 |
Parent company | ||
ASSETS | ||
Cash and cash equivalents | 1,281,786 | 128,535 |
Cash and securities segregated and on deposited for regulatory purposes or deposited with clearing and depository organizations | 21,892 | 38,817 |
Financial instruments owned, at fair value | 69,856 | 72,736 |
Loans to and investments in related parties | 655,930 | 643,720 |
Investment in subsidiaries | 6,411,169 | 5,639,208 |
Advances to subsidiaries | 2,822,937 | 3,979,139 |
Subordinated notes receivable | 2,443,383 | 2,442,625 |
Other assets | 354,606 | 333,798 |
Total assets | 14,061,559 | 13,278,578 |
LIABILITIES AND EQUITY | ||
Short-term borrowings | 11,867 | 20,989 |
Financial instruments sold, not yet purchased, at fair value | 0 | 2,307 |
Accrued expenses and other liabilities | 1,045,000 | 365,540 |
Long-term debt | 6,655,949 | 6,764,270 |
Total liabilities | 7,712,816 | 7,153,106 |
EQUITY | ||
Member’s paid-in capital | 6,569,328 | 6,329,677 |
Accumulated other comprehensive income (loss): | ||
Currency translation and other adjustments | (141,843) | (179,378) |
Changes in instrument specific credit risk | (71,151) | (18,889) |
Additional minimum pension liability | (8,104) | (6,079) |
Available-for-sale securities | 513 | 141 |
Total accumulated other comprehensive loss | (220,585) | (204,205) |
Total Jefferies Group LLC member’s equity | 6,348,743 | 6,125,472 |
Total liabilities and equity | $ 14,061,559 | $ 13,278,578 |
Schedule I (PARENT COMPANY ON_3
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | ||
Revenues: | ||||||||||||
Principal transactions | $ 1,867,013 | $ 769,258 | $ 524,296 | |||||||||
Revenues from contracts with customers: | 3,333,939 | 2,222,257 | 2,594,887 | |||||||||
Interest | 894,215 | 1,496,529 | 1,207,095 | |||||||||
Other | 37,632 | 93,422 | 103,359 | |||||||||
Total revenues | $ 1,810,394 | $ 1,595,073 | $ 1,267,283 | $ 1,479,556 | $ 1,073,536 | $ 1,141,631 | $ 1,314,493 | $ 1,054,872 | 6,152,306 | 4,584,532 | 4,429,632 | |
Interest expense | 954,829 | 1,472,002 | 1,246,256 | |||||||||
Net revenues | 1,608,970 | 1,383,444 | 1,034,367 | 1,170,696 | 747,802 | 777,159 | 901,851 | 685,718 | 5,197,477 | 3,112,530 | 3,183,376 | |
Non-interest expenses: | ||||||||||||
Total non-interest expenses | 4,020,023 | 2,787,861 | 2,773,709 | |||||||||
Earnings before income taxes | $ 405,807 | $ 363,401 | $ 172,868 | $ 235,378 | $ 23,871 | $ 83,075 | $ 155,138 | $ 62,585 | 1,177,454 | 324,669 | 409,667 | |
Income tax expense (benefit) | 302,748 | 80,284 | 250,650 | |||||||||
Net earnings | 874,706 | 244,385 | 159,017 | |||||||||
Net earnings attributable to Jefferies Group LLC | 879,303 | 246,029 | 158,761 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Currency translation and other adjustments | [1] | 37,535 | 6,426 | (85,554) | ||||||||
Change in instrument specific credit risk | [2] | (52,262) | (13,161) | 22,160 | ||||||||
Cash flow hedges | [3] | (470) | 1,406 | |||||||||
Minimum pension liability adjustments, net of tax | [4] | (2,025) | (1,318) | 4,285 | ||||||||
Unrealized gain on available-for-sale securities | [5] | 372 | 487 | 311 | ||||||||
Total other comprehensive loss, net of tax | [6] | (16,380) | (8,036) | (57,392) | ||||||||
Comprehensive income attributable to Jefferies Group LLC | 862,923 | 237,993 | 101,369 | |||||||||
Parent company | ||||||||||||
Revenues: | ||||||||||||
Principal transactions | 58,148 | 13,746 | 20,875 | |||||||||
Interest | 214,833 | 271,369 | 262,042 | |||||||||
Other | (38,874) | 19,346 | 101,284 | |||||||||
Total revenues | 234,124 | 304,564 | 384,201 | |||||||||
Interest expense | 285,090 | 297,927 | 316,050 | |||||||||
Net revenues | (50,966) | 6,637 | 68,151 | |||||||||
Non-interest expenses: | ||||||||||||
Total non-interest expenses | 14,854 | 6,482 | 5,016 | |||||||||
Earnings before income taxes | (65,820) | 155 | 63,135 | |||||||||
Income tax expense (benefit) | (19,480) | (3,316) | 104,649 | |||||||||
Net earnings | (46,340) | 3,471 | (41,514) | |||||||||
Undistributed earnings of subsidiaries | 925,643 | 242,558 | 200,275 | |||||||||
Net earnings attributable to Jefferies Group LLC | 879,303 | 246,029 | 158,761 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Currency translation and other adjustments | 37,535 | 6,426 | (85,554) | |||||||||
Change in instrument specific credit risk | (52,262) | (13,161) | 22,160 | |||||||||
Cash flow hedges | 0 | (470) | 1,406 | |||||||||
Minimum pension liability adjustments, net of tax | (2,025) | (1,318) | 4,285 | |||||||||
Unrealized gain on available-for-sale securities | 372 | 487 | 311 | |||||||||
Total other comprehensive loss, net of tax | (16,380) | (8,036) | (57,392) | |||||||||
Comprehensive income attributable to Jefferies Group LLC | 862,923 | 237,993 | 101,369 | |||||||||
Investment banking | ||||||||||||
Revenues: | ||||||||||||
Revenues from contracts with customers: | 2,501,494 | 1,528,729 | 1,910,203 | |||||||||
Investment banking | Parent company | ||||||||||||
Revenues: | ||||||||||||
Revenues from contracts with customers: | $ 17 | $ 103 | $ 0 | |||||||||
[1] | The amounts include income tax benefits (expenses) of approximately $(11.9) million, $(3.2) million and $8.9 million during the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2018 also includes a gain of $20.5 million related to foreign currency gains, which was reclassified to Other revenues within the Consolidated Statements of Earnings. | |||||||||||
[2] | The amounts include income tax benefits (expenses) of approximately $16.4 million, $4.5 million, and $(15.5) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amounts for the years ended November 30, 2020, 2019 and 2018 includes a net gain (loss) of $(0.4) million, $0.4 million and $0.9 million, respectively, net of tax benefits (expenses) of $0.1 million, $(0.2) million and $(0.3) million, respectively, related to changes in instrument specific risk, which were reclassified to Principal transactions revenues within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $(6.5) million related to the Tax Cuts and Jobs Act (the “Tax Act”), which was reclassified to Member’s paid-in capital. | |||||||||||
[3] | The amounts include income tax benefits (expenses) of approximately $0.2 million, and $(0.8) million for the years ended November 30, 2019 and 2018, respectively. The cash flow hedge loss of $0.5 million during the year ended November 30, 2019 was reclassified to Other revenues within the Consolidated Statement of Earnings. The amount during the year ended November 30, 2018 also includes $(0.2) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||||||
[4] | The amounts include income tax benefits (expenses) of $0.7 million, $0.5 million and $(0.7) million for the years ended November 30, 2020, 2019 and 2018, respectively. The amount during the year ended November 30, 2020 includes pension net gains of $0.5 million, net of tax of $0.2 million, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amounts during the years ended November 30, 2019 and 2018 includes pension net gains (losses) of $0.1 million and $(0.3) million, respectively, net of negligible tax benefits (expenses), which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings. The amount during the year ended November 30, 2018 also includes $5.3 million related to the transfer of the German Pension Plan, which was reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings and $(0.8) million related to the Tax Act, which was reclassified to Member’s paid-in capital. | |||||||||||
[5] | The amounts for the years ended November 30, 2020, 2019 and 2018 include income tax expenses of approximately $0.1 million and $0.2 million and $0.1 million, respectively. | |||||||||||
[6] | None of the components of other comprehensive income (loss) are attributable to noncontrolling interests. |
Schedule I (PARENT COMPANY ON_4
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 879,303 | $ 246,029 | $ 158,761 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Amortization | 51,346 | 40,942 | 15,250 |
(Income) loss on loans to and investments in related parties | (14,329) | (85,169) | (73,662) |
Distributions received on investments in related parties | 35,949 | 144,320 | 62,949 |
Other adjustments | 245,005 | 61,915 | (127,698) |
Net change in assets and liabilities: | |||
Financial instruments owned | (1,253,249) | 35,908 | (1,194,791) |
Other assets | 148,369 | (41,844) | 31,699 |
Financial instruments sold, not yet purchased | (604,669) | 1,051,600 | 311,998 |
Accrued expenses and other liabilities | 1,150,134 | (126,684) | (224,157) |
Net cash provided by (used in) operating activities | 1,797,058 | (1,220,149) | 126,064 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (179,901) | (124,370) | (121,629) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 1,619,820 | 1,732,232 | 1,083,416 |
Payments on short-term borrowings | (1,368,255) | (1,597,773) | (1,137,599) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,169,722 | 1,239,891 | 1,367,243 |
Repayment of long-term debt | (1,494,696) | (823,875) | (1,035,700) |
Distributions to Jefferies Financial Group Inc. | (498,674) | (311,131) | (248,684) |
Net cash provided by (used in) financing activities | (283,162) | 1,856,267 | 190,932 |
Net increase in cash, cash equivalents and restricted cash | 1,352,301 | 510,685 | 176,251 |
Cash, cash equivalents and restricted cash at beginning of period | 6,329,712 | 5,819,027 | 5,642,776 |
Cash, cash equivalents and restricted cash at end of period | 7,682,013 | 6,329,712 | 5,819,027 |
Cash paid during the period for: | |||
Interest | 999,576 | 1,480,559 | 1,287,162 |
Income taxes, net | 115,053 | 84,119 | 196,553 |
Parent company | |||
Cash flows from operating activities: | |||
Net earnings | 879,303 | 246,029 | 158,761 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||
Amortization | (36,708) | (38,812) | (53,296) |
Undistributed earnings of subsidiaries | (925,643) | (242,558) | (200,275) |
(Income) loss on loans to and investments in related parties | 37,790 | (21,946) | (98,223) |
Distributions received on investments in related parties | 0 | 75,000 | 40,000 |
Other adjustments | 183,241 | 60,106 | (116,307) |
Net change in assets and liabilities: | |||
Financial instruments owned | 2,880 | 26,755 | (25,604) |
Other assets | (3,741) | 154,940 | 119,293 |
Financial instruments sold, not yet purchased | (2,307) | 1,510 | (17,264) |
Accrued expenses and other liabilities | 526,571 | (51,821) | (200,970) |
Net cash provided by (used in) operating activities | 661,386 | 209,203 | (393,885) |
Cash flows from investing activities: | |||
Investments in, advances to and subordinated notes receivable from subsidiaries | 1,357,031 | (1,035,619) | (473,436) |
Loans to and investments in related parties | (50,000) | 0 | 0 |
Net cash used in investing activities | 1,307,031 | (1,035,619) | (473,436) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 11,820 | 20,236 | 70,482 |
Payments on short-term borrowings | (20,263) | (55,773) | (140,664) |
Proceeds from issuance of long-term debt, net of issuance costs | 1,169,722 | 1,184,891 | 1,183,954 |
Repayment of long-term debt | (1,494,696) | (823,875) | (1,035,700) |
Distributions to Jefferies Financial Group Inc. | (498,674) | (311,131) | (248,684) |
Net cash provided by (used in) financing activities | (832,091) | 14,348 | (170,612) |
Net increase in cash, cash equivalents and restricted cash | 1,136,326 | (812,068) | (1,037,933) |
Cash, cash equivalents and restricted cash at beginning of period | 167,352 | 979,420 | 2,017,353 |
Cash, cash equivalents and restricted cash at end of period | 1,303,678 | 167,352 | 979,420 |
Cash paid during the period for: | |||
Interest | 272,670 | 291,298 | 385,410 |
Income taxes, net | $ 84,098 | $ 73,151 | $ 186,236 |
Schedule I (PARENT COMPANY ON_5
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF CASH FLOWS Parenthetical (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2017 |
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 7,111,929 | $ 5,567,903 | |||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 570,084 | 761,809 | |||
Total cash, cash equivalents and restricted cash | 7,682,013 | 6,329,712 | $ 5,819,027 | $ 5,642,776 | |
Parent company | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 1,281,786 | 128,535 | |||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 21,892 | 38,817 | |||
Total cash, cash equivalents and restricted cash | $ 1,303,678 | $ 167,352 | $ 979,420 | $ 2,017,353 | |
Berkadia | Parent company | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Affiliated entity | Jefferies Financial Group Inc. | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Capital contribution from Jefferies | $ 598,200 | ||||
Affiliated entity | Jefferies Financial Group Inc. | Parent company | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Capital contribution from Jefferies | $ 598,200 | ||||
Affiliated entity | Jefferies Financial Group Inc. | Berkadia | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Ownership percentage | 50.00% |
Schedule I (PARENT COMPANY ON_6
Schedule I (PARENT COMPANY ONLY) - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Nov. 30, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,895,680 | $ 7,003,358 |
Unsecured long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,655,948 | 6,764,270 |
Unsecured long-term debt | Structured notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,712,245 | 1,215,285 |
Unsecured long-term debt | Structured notes | Jefferies Group Capital Finance Inc | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,017,500 | |
Guarantor subsidiaries | ||
Debt Instrument [Line Items] | ||
Maximum amount payable under guarantees | 3,400 | |
Parent company | ||
Debt Instrument [Line Items] | ||
Maximum amount payable under guarantees | 687,500 | |
Long-term debt | $ 6,655,949 | $ 6,764,270 |