Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | JEFFERIES FINANCIAL GROUP INC. | |
Entity Central Index Key | 96,223 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 323,072,855 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and cash equivalents | $ 4,895,788 | $ 5,275,480 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 913,456 | 578,014 | |
Financial instruments owned, including securities pledged of $12,868,364 and $10,842,051: | |||
Trading assets, at fair value | 17,709,245 | 16,082,676 | |
Debt securities, available for sale securities | 1,868,420 | 628,075 | |
Available for sale securities | 716,561 | ||
Total financial instruments owned | 19,577,665 | 16,799,237 | |
Loans to and investments in associated companies | 2,450,901 | 2,066,829 | |
Securities borrowed | 7,369,908 | 7,721,803 | |
Securities purchased under agreements to resell | 3,659,059 | 3,689,559 | |
Receivables | 5,864,815 | 5,419,015 | |
Property, equipment and leasehold improvements, net | 346,896 | 750,403 | |
Intangible assets, net and goodwill | 1,894,898 | 2,463,180 | |
Deferred tax asset, net | 468,297 | 743,811 | |
Other assets | 1,506,986 | 1,661,777 | |
Total assets | [1] | 48,948,669 | 47,169,108 |
LIABILITIES | |||
Short-term borrowings | 382,006 | 436,215 | |
Trading liabilities, at fair value | 9,479,213 | 8,454,965 | |
Securities loaned | 2,531,504 | 2,843,911 | |
Securities sold under agreements to repurchase | 9,864,483 | 8,660,511 | |
Other secured financings | 1,440,678 | 1,029,485 | |
Payables, expense accruals and other liabilities | 6,680,224 | 7,167,666 | |
Long-term debt | 7,777,425 | 7,885,783 | |
Total liabilities | [1] | 38,155,533 | 36,478,536 |
Commitments and contingencies | |||
MEZZANINE EQUITY | |||
Redeemable noncontrolling interests | 21,385 | 426,593 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 331,415,732 and 356,227,038 shares issued and outstanding, after deducting 85,560,514 and 60,165,980 shares held in treasury | 331,416 | 356,227 | |
Additional paid-in capital | 4,329,661 | 4,676,038 | |
Accumulated other comprehensive income | 287,745 | 372,724 | |
Retained earnings | 5,672,363 | 4,700,968 | |
Total Jefferies Financial Group Inc. shareholders’ equity | 10,621,185 | 10,105,957 | |
Noncontrolling interests | 25,566 | 33,022 | |
Total equity | 10,646,751 | 10,138,979 | |
Total | $ 48,948,669 | $ 47,169,108 | |
[1] | Total assets include assets related to variable interest entities of $479.0 million and $382.9 million at September 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,441.9 million and $1,031.0 million at September 30, 2018 and December 31, 2017, respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Securities pledged | $ 12,868,364 | $ 10,842,051 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common shares, par value (USD per share) | $ 1 | $ 1 | |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 | |
Common shares, issued and outstanding after deducting shares held in treasury (in shares) | 331,415,732 | 356,227,038 | |
Treasury stock (in shares) | 85,560,514 | 60,165,980 | |
Assets | [1] | $ 48,948,669 | $ 47,169,108 |
Liabilities | [1] | 38,155,533 | 36,478,536 |
Variable interest entities | |||
Assets | 479,000 | 382,900 | |
Liabilities | $ 1,441,900 | $ 1,031,000 | |
[1] | Total assets include assets related to variable interest entities of $479.0 million and $382.9 million at September 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,441.9 million and $1,031.0 million at September 30, 2018 and December 31, 2017, respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenues | $ 1,458,977 | $ 1,102,593 | $ 3,863,914 | $ 3,735,702 |
Interest expense | 28,837 | 25,612 | 74,614 | 76,762 |
Net revenues | 1,150,846 | 857,223 | 2,957,440 | 3,020,610 |
Expenses: | ||||
Compensation and benefits | 461,265 | 493,471 | 1,429,439 | 1,468,373 |
Cost of sales | 84,876 | 71,596 | 257,501 | 210,834 |
Floor brokerage and clearing fees | 44,570 | 42,852 | 131,792 | 133,145 |
Depreciation and amortization | 32,295 | 28,760 | 92,360 | 82,129 |
Selling, general and other expenses | 245,178 | 199,441 | 708,084 | 552,155 |
Total expenses | 897,021 | 861,732 | 2,693,790 | 2,523,398 |
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 253,825 | (4,509) | 263,650 | 497,212 |
Income (loss) related to associated companies | 18,867 | 30,057 | 84,320 | (84,413) |
Income from continuing operations before income taxes | 272,692 | 25,548 | 347,970 | 412,799 |
Income tax provision | 90,391 | 9,770 | 51,560 | 127,198 |
Income from continuing operations | 182,301 | 15,778 | 296,410 | 285,601 |
Income from discontinued operations, net of income tax provision of $0, $53,490, $47,045 and $90,856 | 0 | 120,989 | 130,063 | 219,151 |
Gain on disposal of discontinued operations, net of income tax provision of $0, $0, $229,553 and $0 | 0 | 0 | 643,921 | 0 |
Net income | 182,301 | 136,767 | 1,070,394 | 504,752 |
Net (income) loss attributable to the noncontrolling interests | 12,000 | (28) | 13,208 | 1,941 |
Net income attributable to the redeemable noncontrolling interests | (390) | (36,216) | (37,294) | (64,538) |
Preferred stock dividends | (1,276) | (1,172) | (3,619) | (3,203) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 192,635 | $ 99,351 | $ 1,042,689 | $ 438,952 |
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations (in dollars per share) | $ 0.56 | $ 0.04 | $ 0.86 | $ 0.77 |
Income from discontinued operations (in dollars per share) | 0 | 0.23 | 0.26 | 0.42 |
Gain on disposal of discontinued operations (in dollars per share) | 0 | 0 | 1.82 | 0 |
Net income (in dollars per share) | 0.56 | 0.27 | 2.94 | 1.19 |
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations (in dollars per share) | 0.55 | 0.04 | 0.85 | 0.76 |
Income from discontinued operations (in dollars per share) | 0 | 0.23 | 0.26 | 0.41 |
Gain on disposal of discontinued operations (in dollars per share) | 0 | 0 | 1.80 | 0 |
Net income (in dollars per share) | 0.55 | 0.27 | 2.91 | 1.17 |
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.10 | $ 0.325 | $ 0.225 |
Amounts attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Income from continuing operations, net of taxes | $ 192,635 | $ 14,992 | $ 305,846 | $ 284,889 |
Income from discontinued operations, net of taxes | 0 | 84,359 | 92,922 | 154,063 |
Gain on disposal of discontinued operations, net of taxes | 0 | 0 | 643,921 | 0 |
Net income attributable to Jefferies Financial Group Inc. common shareholders | 192,635 | 99,351 | 1,042,689 | 438,952 |
Commissions and other fees | ||||
Revenues: | ||||
Total revenues | 155,417 | 139,082 | 461,023 | 437,547 |
Principal transactions | ||||
Revenues: | ||||
Total revenues | 116,204 | 84,143 | 315,622 | 725,780 |
Investment banking | ||||
Revenues: | ||||
Total revenues | 460,043 | 475,702 | 1,400,331 | 1,235,586 |
Interest income | ||||
Revenues: | ||||
Total revenues | 336,736 | 253,916 | 939,272 | 726,972 |
Manufacturing revenues | ||||
Revenues: | ||||
Total revenues | 94,029 | 81,939 | 307,129 | 243,482 |
Other | ||||
Revenues: | ||||
Total revenues | 296,548 | 67,811 | 440,537 | 366,335 |
Jefferies Group | ||||
Revenues: | ||||
Interest expense | $ 308,131 | $ 245,370 | $ 906,474 | $ 715,092 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Income tax provision | $ 0 | $ 53,490 | $ 47,045 | $ 90,856 |
Gain on disposal of discontinued operations, tax | $ 0 | $ 0 | $ 229,553 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 182,301 | $ 136,767 | $ 1,070,394 | $ 504,752 |
Other comprehensive income (loss): | ||||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(424), $(598), $(567) and $5,106 | (1,198) | (1,030) | (1,606) | 8,767 |
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $0, $(257), $37 and $14 | (2) | 443 | (105) | (24) |
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(424), $(341), $(604) and $5,092 | (1,200) | (587) | (1,711) | 8,743 |
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,367), $4,374, $(4,160) and $12,929 | (27,660) | 11,250 | (59,067) | 49,125 |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $0, $(11), $(16) and $1,086 | 0 | 20 | (20,459) | 5,310 |
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,367), $4,385, $(4,144) and $11,843 | (27,660) | 11,270 | (79,526) | 54,435 |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $355, $2,149, $4,596 and $(5,270) | 1,169 | 3,508 | 15,887 | (8,870) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $48, $0, $126 and $0 | 101 | 0 | 371 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $307, $2,149, $4,470 and $(5,270) | 1,068 | 3,508 | 15,516 | (8,870) |
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $0, $0, $513 and $0 | 85 | (1,585) | 1,584 | (1,585) |
Reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(169), $(201), $(508) and $(1,835) | 479 | 438 | 6,742 | 66 |
Other comprehensive income (loss), net of income taxes | (27,228) | 13,044 | (57,395) | 52,789 |
Comprehensive income | 155,073 | 149,811 | 1,012,999 | 557,541 |
Comprehensive (income) loss attributable to the noncontrolling interests | 12,000 | (28) | 13,208 | 1,941 |
Comprehensive income attributable to the redeemable noncontrolling interests | (390) | (36,216) | (37,294) | (64,538) |
Preferred stock dividends | (1,276) | (1,172) | (3,619) | (3,203) |
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 165,407 | $ 112,395 | $ 985,294 | $ 491,741 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ (424) | $ (598) | $ (567) | $ 5,106 |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | 0 | (257) | 37 | 14 |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | (424) | (341) | (604) | 5,092 |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | (3,367) | 4,374 | (4,160) | 12,929 |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 0 | (11) | (16) | 1,086 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | (3,367) | 4,385 | (4,144) | 11,843 |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, tax provision (benefit) | 355 | 2,149 | 4,596 | (5,270) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), tax provision (benefit) | 48 | 0 | 126 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), tax provision (benefit) | 307 | 2,149 | 4,470 | (5,270) |
Net change in unrealized cash flow hedges gains (losses), tax provision (benefit) | 0 | 0 | 513 | 0 |
Less: reclassification adjustment for pension (gains) losses included in net income (loss), tax provision (benefit) | $ (169) | $ (201) | $ (508) | $ (1,835) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net cash flows from operating activities: | ||
Net income | $ 1,070,394 | $ 504,752 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Pre-tax income from discontinued operations, including gain on disposal | (1,050,582) | (310,007) |
Deferred income tax provision | 275,307 | 185,994 |
Depreciation and amortization of property, equipment and leasehold improvements | 80,647 | 69,480 |
Other amortization | (26,796) | (21,107) |
Share-based compensation | 37,975 | 31,494 |
Provision for doubtful accounts | 26,529 | 26,764 |
Net securities (gains) losses | 1,019 | (21,278) |
(Income) loss related to associated companies | (115,007) | 19,090 |
Distributions from associated companies | 98,426 | 100,033 |
Net losses related to property and equipment, and other assets | 10,833 | 11,414 |
Gain on sale of subsidiaries and associated companies | (221,712) | (178,236) |
Net change in: | ||
Securities deposited with clearing and depository organizations | 64,890 | 119 |
Trading assets | (1,670,376) | (639,464) |
Securities borrowed | 309,722 | 0 |
Securities purchased under agreements to resell | (53,020) | 524,937 |
Receivables from brokers, dealers and clearing organizations | (261,534) | (602,761) |
Receivables from customers of securities operations | (398,154) | (458,066) |
Other receivables | (70,514) | (137,408) |
Other assets | (23,910) | (44,494) |
Trading liabilities | 1,122,273 | 327,587 |
Securities loaned | (275,629) | (68,310) |
Securities sold under agreements to repurchase | 1,250,575 | 1,668,725 |
Payables to brokers, dealers and clearing organizations | (287,288) | (652,668) |
Payables to customers of securities operations | 523,611 | 162,387 |
Trade payables, expense accruals and other liabilities | (291,973) | 134,125 |
Other | (90,448) | 73,525 |
Net cash provided by operating activities - continuing operations | 35,258 | 706,627 |
Net cash provided by operating activities - discontinued operations | 164,650 | 354,289 |
Net cash provided by operating activities | 199,908 | 1,060,916 |
Net cash flows from investing activities: | ||
Acquisitions of property, equipment and leasehold improvements, and other assets | (282,397) | (90,168) |
Proceeds from disposals of property and equipment, and other assets | 11,994 | 25,213 |
Proceeds from sale of subsidiaries, net of expenses and cash of operations sold | 100,000 | 289,767 |
Proceeds from sale of associated companies | 379,130 | 0 |
Advances on notes, loans and other receivables | (10,000) | (46,532) |
Collections on notes, loans and other receivables | 17,404 | 268,920 |
Loans to and investments in associated companies | (1,936,496) | (3,043,800) |
Capital distributions and loan repayments from associated companies | 1,970,648 | 2,765,006 |
Purchases of investments (other than short-term) | (3,242,732) | (770,687) |
Proceeds from maturities of investments | 1,000,146 | 196,493 |
Proceeds from sales of investments | 1,012,423 | 412,158 |
Other | 130 | 1,341 |
Net cash provided by (used for) investing activities - continuing operations | (979,750) | 7,711 |
Net cash provided by (used for) investing activities - discontinued operations | 861,209 | (36,465) |
Net cash used for investing activities | (118,541) | (28,754) |
Net cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 2,198,326 | 1,349,399 |
Other changes in short-term borrowings, net | 0 | 4,282 |
Repayment of debt | (2,024,680) | (652,889) |
Net change in other secured financings | 409,780 | (134,743) |
Net change in bank overdrafts | 2,369 | (5,764) |
Issuance of common shares | 3,486 | 1,288 |
Distributions to noncontrolling interests | 0 | (9,617) |
Contributions from noncontrolling interests | 113 | 25,724 |
Purchase of common shares for treasury | (635,835) | (75,930) |
Dividends paid | (111,776) | (81,445) |
Other | 456 | (185) |
Net cash provided by (used for) financing activities - continuing operations | (157,761) | 420,120 |
Net cash provided by (used for) financing activities - discontinued operations | 120,322 | (202,137) |
Net cash provided by (used for) financing activities | (37,439) | 217,983 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (16,469) | 5,550 |
Change in cash classified as assets held for sale | 0 | (3,136) |
Net increase in cash, cash equivalents and restricted cash | 27,459 | 1,252,559 |
Cash, cash equivalents and restricted cash at January 1, | 5,774,505 | 4,597,113 |
Cash, cash equivalents and restricted cash at September 30, | $ 5,801,964 | $ 5,849,672 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 4,895,788 | $ 5,016,932 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 878,616 | 803,970 |
Other assets | 27,560 | 28,770 |
Total cash, cash equivalents and restricted cash | $ 5,801,964 | $ 5,849,672 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Equity - USD ($) $ in Thousands | Total | Common Shares $1 Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Subtotal | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2016 | $ 10,303,649 | $ 359,425 | $ 4,812,587 | $ 310,697 | $ 4,645,391 | $ 10,128,100 | $ 175,549 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 437,011 | 438,952 | 438,952 | (1,941) | |||
Other comprehensive loss, net of taxes | 52,789 | 52,789 | 52,789 | ||||
Contributions from noncontrolling interests | 25,724 | 0 | 25,724 | ||||
Distributions to noncontrolling interests | (9,617) | 0 | (9,617) | ||||
Change in interest in consolidated subsidiary | 0 | 48 | 48 | (48) | |||
Share-based compensation expense | 31,494 | 31,494 | 31,494 | ||||
Change in fair value of redeemable noncontrolling interests | (24,404) | (24,404) | (24,404) | ||||
Purchase of common shares for treasury | (96,882) | (3,883) | (92,999) | (96,882) | |||
Dividends | (83,920) | (83,920) | (83,920) | ||||
Other | 5,733 | 648 | 5,085 | 5,733 | |||
Ending Balance at Sep. 30, 2017 | 10,641,577 | 356,190 | 4,731,811 | 363,486 | 5,000,423 | 10,451,910 | 189,667 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of the adoption of accounting standards | 17,812 | (27,584) | 45,396 | 17,812 | |||
Beginning Balance, Adjusted | 10,156,791 | 356,227 | 4,676,038 | 345,140 | 4,746,364 | 10,123,769 | 33,022 |
Beginning Balance at Dec. 31, 2017 | 10,138,979 | 356,227 | 4,676,038 | 372,724 | 4,700,968 | 10,105,957 | 33,022 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,029,481 | 1,042,689 | 1,042,689 | (13,208) | |||
Other comprehensive loss, net of taxes | (57,395) | (57,395) | (57,395) | ||||
Contributions from noncontrolling interests | 113 | 0 | 113 | ||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | 237,669 | 237,669 | 237,669 | ||||
Change in interest in consolidated subsidiary | 0 | 2,677 | 2,677 | (2,677) | |||
Share-based compensation expense | 37,975 | 37,975 | 37,975 | ||||
Change in fair value of redeemable noncontrolling interests | (28,136) | (28,136) | (28,136) | ||||
Consolidation of asset management entity | 8,316 | 0 | 8,316 | ||||
Exercise of options to purchase common shares | 2,485 | 109 | 2,376 | 2,485 | |||
Purchase of common shares for treasury | (635,835) | (26,316) | (609,519) | (635,835) | |||
Dividends | (116,690) | (116,690) | (116,690) | ||||
Other | 11,977 | 1,396 | 10,581 | 11,977 | |||
Ending Balance at Sep. 30, 2018 | $ 10,646,751 | $ 331,416 | $ 4,329,661 | $ 287,745 | $ 5,672,363 | $ 10,621,185 | $ 25,566 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.0625 | $ 0.325 | $ 0.225 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Jefferies Financial Group Inc. ("Jefferies" or the "Company"), formerly known as Leucadia National Corporation, operates the largest independent full-service global investment banking firm headquartered in the U.S., together with an established merchant banking business. We engage in investment banking, sales and trading and asset management through Jefferies Group LLC ("Jefferies Group"). From time to time, we evaluate the retention and disposition of businesses and investments, and changes in the mix of these holdings should be expected. We own 31% of National Beef Packing Company. National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets. On June 5, 2018, we completed the sale of 48% of National Beef to Marfrig Global Foods S.A. ("Marfrig") for $907.7 million in cash, reducing our ownership in National Beef from 79% to 31% . The pre-tax gain recognized as a result of this transaction was $873.5 million for the nine months ended September 30, 2018 . During 2018, prior to the closing, we received an additional $229.4 million in distributions of recent profits plus a true-up to the debt amount set in the enterprise valuation associated with the sale. Marfrig has also acquired a further 3% of National Beef from other equity owners and owns 51% of National Beef. We will continue to designate two board members and have a series of other rights in respect of our continuing equity interest, with a lockup period of five years and thereafter fair market value liquidity protections. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining 31% interest in National Beef under the equity method of accounting. We have classified the results of National Beef prior to June 5, 2018 as discontinued operations in the Consolidated Statements of Operations. See Note 24 for more information. During the third quarter of 2018, we sold 100% of our equity interests in Garcadia, our auto dealer group, and our associated real estate to our former partners, the Garff family, for $417.2 million in cash. The pre-tax gain recognized as a result of this transaction, $221.7 million for the three and nine months ended September 30, 2018 , is classified as Other revenue. Vitesse Energy, LLC ("Vitesse Energy Finance") is our consolidated subsidiary that acquires and invests in non-operated working and royalty oil and gas interests in the Bakken Shale oil field in North Dakota and Montana, as well as the Denver-Julesburg Basin in Wyoming. These non-operated interests represent Vitesse Energy Finance’s share of mineral rights associated with specified acreage. As operators convert undeveloped portions of this acreage into flowing horizontal wells, our interests in the mineral rights are essentially converted into interests in the cash flows associated with the wells. In April 2018, Vitesse Energy Finance acquired a package of non-operated Bakken assets from a private equity fund for $190 million in cash, of which approximately $144 million was funded as equity by Jefferies and the balance was drawn under Vitesse Energy Finance’s credit line. The assets purchased include interests in mineral rights associated with future oil and gas development, as well as interests in existing cash flows from producing wells through revenue sharing arrangements. Leucadia Asset Management ("LAM") supports and develops focused alternative asset management businesses led by distinct management teams. We are patiently developing this business over time, and changes in the platforms and structure should be expected. During the second quarter of 2018, we took steps to expand our asset management efforts including the formation of a strategic relationship with Weiss Multi-Strategy Advisers LLC and we invested $250.0 million in Weiss' strategy. We will receive a profit share in the first year, and a revenue share thereafter. In addition, we entered into an agreement with Schonfeld Strategic Advisors LLC to merge the business of Folger Hill Asset Management with Schonfeld's fundamental equities business, under the Schonfeld brand. In connection with the pending transaction, we have agreed to make a $250.0 million investment in the combined strategy and we will own a revenue share in the management company. On October 1, 2018, Jefferies transferred its membership interests in certain funds and separately managed accounts which are managed by Leucadia Asset Management, as well as its interest in Berkadia Commercial Mortgage LLC ("Berkadia"), to Jefferies Group (collectively, "the Transfer"). The Transfer was accomplished as a capital contribution to Jefferies Group of approximately $596 million and an internal transfer of cash from Jefferies Group of $78.3 million to the Jefferies parent company. On July 13, 2018, HRG Group, Inc. ("HRG") merged into its 62% owned subsidiary, Spectrum Brands Holdings, Inc. ("Spectrum Brands"). Our approximately 23% interest in HRG thereby converted into approximately 14% of the outstanding shares of Spectrum Brands, a NYSE company. On October 2, 2018, our Board of Directors and senior management approved a change of our fiscal year end from a calendar year basis to a fiscal year ending on November 30, consistent with the fiscal year of Jefferies Group. We will file a transition report on Form 10-K for the transition period from January 1, 2018 to November 30, 2018. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Our unaudited interim consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not include all information and footnotes which are normally included in our Annual Report on Form 10-K. These financial statements reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes are necessary to fairly state results for the interim periods presented. Results of operations for interim periods are not necessarily indicative of annual results of operations. For a detailed discussion about the Company’s significant accounting policies, see Note 2, Significant Accounting Policies, included in our Annual Report on Form 10-K for the year ended December 31, 2017 ("2017 10-K"). The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities. On an on-going basis, we evaluate all of these estimates and assumptions. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, asset impairment, the ability to realize deferred tax assets, the recognition and measurement of uncertain tax positions and contingencies. Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates. Jefferies Group has a November 30 year-end, which it retains for standalone reporting purposes. We reflect Jefferies Group in our consolidated financial statements utilizing a one month lag. We have reviewed Jefferies Group's business and internal operating results for the month of September 2018 for the purpose of evaluating whether financial statement disclosure or adjustments are required in this Quarterly Report on Form 10-Q, and we have concluded that no additional disclosures or adjustments are warranted. In connection with the planned change of our fiscal year-end to November 30, we also plan to eliminate the one month lag utilized to reflect Jefferies Group results in our consolidated financial statements, starting with a transition report on Form 10-K for the transition period from January 1, 2018 to November 30, 2018. During the nine months ended September 30, 2018 , other than the following, there were no significant updates made to the Company’s significant accounting policies. The accounting policy changes are attributable to the adoption of the Financial Accounting Standards Board ("FASB") guidance on Revenue from Contracts with Customers (the "new revenue standard"). These revenue recognition policy updates are applied prospectively in our financial statements from January 1, 2018 forward using the modified retrospective approach. Reported financial information for the historical comparable periods were not revised and continue to be reported under the accounting standards in effect during the historical periods. Revenue Recognition Policies Investment Banking Revenues: • Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. • Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. • All investment banking expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by clients are recognized as Investment banking revenues. Asset Management Fees: • Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. See Accounting Developments - Adopted Accounting Standards below and Note 17 for further information. Changes to the Consolidated Statements of Operations Manufacturing revenues, which were previously reported within Other revenues, are now reported separately in the Consolidated Statements of Operations. Manufacturing revenues are primarily from Idaho Timber, which manufactures and distributes an extensive range of quality wood products to markets across North America. Idaho Timber's primary business consists of the sale of lumber that is manufactured or remanufactured at one of its locations. Agreements with customers for these sales specify the type, quantity and price of products to be delivered as well as the delivery date and payment terms. The transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. We have reorganized the presentation of our gains and losses generated from our capital invested in asset management funds. This was previously presented as Other revenues and is now presented within Principal transactions revenues. For the three months ended September 30, 2017 , this resulted in a decrease to Principal transactions revenues of $11.3 million and an increase to Other revenues of $11.3 million . For the nine months ended September 30, 2017 , this resulted in a decrease to Principal transactions revenues of $12.2 million and an increase to Other revenues of $12.2 million . Receivables At September 30, 2018 and December 31, 2017 , Receivables include receivables from brokers, dealers and clearing organizations of $2,878.5 million and $2,635.2 million , respectively, and receivables from customers of securities operations of $1,951.8 million and $1,563.8 million , respectively. Payables, expense accruals and other liabilities At September 30, 2018 and December 31, 2017 , Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $1,913.3 million and $2,228.9 million , respectively, and payables to customers of securities operations of $3,187.6 million and $2,664.0 million , respectively. Supplemental Cash Flow Information For the Nine Months Ended September 30, 2018 2017 Cash paid during the year for: (In thousands) Interest $ 1,059,139 $ 837,020 Income tax payments (refunds), net $ 28,204 $ 9,183 During the nine months ended September 30, 2017 , we had $21.0 million in non-cash financing activities related to purchases of common shares for treasury which settled subsequent to quarter end. Accounting Developments - Adopted Accounting Standards Revenue Recognition. In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted the guidance as of January 1, 2018 and recognized an increase of $17.8 million after-tax to beginning retained earnings as the cumulative effect of adoption of accounting standards. The increase primarily relates to the recognition of $24.3 million of revenue previously deferred from the sale of real estate to HomeFed in 2014, offset by a decrease of $6.1 million related to Jefferies Group. For Jefferies Group, the impact of adoption primarily related to investment banking expenses that were deferred as of December 31, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and investment banking revenues that were previously recognized in prior periods, which would have been deferred as of December 31, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue standard does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Operations most closely associated with financial instruments, including Principal transactions revenues, Interest income and Interest expense. The new revenue standard primarily impacts Jefferies Group's revenue recognition and presentation accounting policies as follows: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenues from these activities are recognized within Principal transactions revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category in the Consolidated Statements of Operations and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, Jefferies Group and LAM receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. There was no significant impact as a result of applying the new revenue standard to our consolidated financial statements for the three and nine months ended September 30, 2018 , except as it relates to the presentation of Jefferies Group's investment banking expenses. The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 155,417 $ — $ 155,417 $ 461,023 $ — $ 461,023 Principal transactions 116,204 — 116,204 315,622 — 315,622 Investment banking 460,043 36,319 423,724 1,400,331 101,146 1,299,185 Interest income 336,736 — 336,736 939,272 — 939,272 Manufacturing revenues 94,029 — 94,029 307,129 — 307,129 Other 296,548 — 296,548 440,537 — 440,537 Total revenues 1,458,977 36,319 1,422,658 3,863,914 101,146 3,762,768 Interest expense of Jefferies Group 308,131 — 308,131 906,474 — 906,474 Net revenues 1,150,846 36,319 1,114,527 2,957,440 101,146 2,856,294 Expenses: Compensation and benefits 461,265 — 461,265 1,429,439 — 1,429,439 Cost of sales 84,876 — 84,876 257,501 — 257,501 Floor brokerage and clearing fees 44,570 — 44,570 131,792 — 131,792 Interest expense 28,837 — 28,837 74,614 — 74,614 Depreciation and amortization 32,295 — 32,295 92,360 — 92,360 Selling, general and other expenses 245,178 36,319 208,859 708,084 101,146 606,938 Total expenses 897,021 36,319 860,702 2,693,790 101,146 2,592,644 Income from continuing operations before income taxes and income (loss) related to associated companies $ 253,825 $ — $ 253,825 $ 263,650 $ — $ 263,650 Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017. We have adopted the new guidance as of January 1, 2018 with a cumulative effect increase to opening retained earnings of $27.6 million and a corresponding decrease to Accumulated other comprehensive income. The opening retained earnings adjustment is to recognize the unrealized gains we had for available for sale equity securities. Beginning in 2018, these available for sale equity securities are now reported as part of Trading assets, at fair value within the Consolidated Statements of Financial Condition. Early adoption was permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of 2016. The adoption of the guidance on financial liabilities under the fair value option did not have a material impact on our consolidated financial statements. Retirement Benefits. In March 2017, the FASB issued new guidance for improving the presentation of net periodic pension costs in the statement of operations. The update also allows the service cost to be eligible for capitalization, when applicable. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. The adoption of this guidance resulted in the following adjustments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2017 : a decrease of $0.9 million and $2.6 million , respectively, to Compensation and benefits expenses and an increase to Selling, general and other expenses of $0.9 million and $2.6 million , respectively. Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance in the first quarter of 2018. Prior periods were retrospectively adjusted to conform to the current period presentation. The adoption of the guidance did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption, we recorded an increase of $49.3 million in Net cash provided by operating activities and a decrease of $6.7 million in Net cash provided by investing activities for the nine months ended September 30, 2017 related to reclassifying the changes in our restricted cash balance from operating and investing activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Compensation. In May 2017, the FASB issued new guidance providing clarity and reducing diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Fair Value Measurement. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued additional guidance on leases which allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption. The guidance is effective for annual and interim periods beginning after December 15, 2018. We plan on adopting the lease standard in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening retained earnings in the period of adoption. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. Goodwill. In January 2017, the FASB issued new guidance for simplifying goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Derivatives and hedging. In August 2017, the FASB issued new guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The guidance is effective in the first quarter of fiscal 2020 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on defined benefit pension plans and other post-retirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued new guidance which amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial instruments, trading liabilities, short-term borrowings and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") (within trading assets) of $399.0 million and $590.1 million at September 30, 2018 and December 31, 2017 , respectively, by level within the fair value hierarchy (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 3,635,288 $ 72,569 $ 49,683 $ — $ 3,757,540 Corporate debt securities — 2,498,031 9,651 — 2,507,682 Collateralized debt obligations and collateralized loan obligations — 82,339 33,981 — 116,320 U.S. government and federal agency securities 3,000,805 45,889 — — 3,046,694 Municipal securities — 749,616 — — 749,616 Sovereign obligations 1,319,415 669,919 — — 1,989,334 Residential mortgage-backed securities — 1,894,533 4,954 — 1,899,487 Commercial mortgage-backed securities — 791,449 23,916 — 815,365 Other asset-backed securities — 263,967 69,305 — 333,272 Loans and other receivables — 1,455,496 48,985 — 1,504,481 Derivatives 13,117 3,507,491 3,137 (3,334,100 ) 189,645 Investments at fair value — — 326,977 — 326,977 FXCM term loan — — 73,800 — 73,800 Total trading assets, excluding investments at fair value based on NAV $ 7,968,625 $ 12,031,299 $ 644,389 $ (3,334,100 ) $ 17,310,213 Available for sale securities: U.S. government securities $ 1,607,725 $ — $ — $ — $ 1,607,725 Residential mortgage-backed securities — 146,678 — — 146,678 Commercial mortgage-backed securities — 15,719 — — 15,719 Other asset-backed securities — 98,298 — — 98,298 Total available for sale securities $ 1,607,725 $ 260,695 $ — $ — $ 1,868,420 Liabilities: Trading liabilities: Corporate equity securities $ 2,221,325 $ 1,507 $ 413 $ — $ 2,223,245 Corporate debt securities — 1,511,979 1,557 — 1,513,536 U.S. government and federal agency securities 1,398,222 — — — 1,398,222 Sovereign obligations 1,513,237 969,845 55 — 2,483,137 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,136,579 8,661 — 1,145,240 Derivatives 8,487 4,149,630 12,134 (3,454,488 ) 715,763 Total trading liabilities $ 5,141,271 $ 7,769,540 $ 22,890 $ (3,454,488 ) $ 9,479,213 Long-term debt - structured notes $ — $ 545,927 $ 163,630 $ — $ 709,557 December 31, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,975,463 $ 60,300 $ 22,270 $ — $ 3,058,033 Corporate debt securities — 3,261,300 26,036 — 3,287,336 Collateralized debt obligations and collateralized loan obligations — 139,166 42,184 — 181,350 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 165,396 3,323,278 9,295 (3,318,481 ) 179,488 Investments at fair value — 946 329,944 — 330,890 FXCM term loan — — 72,800 — 72,800 Total trading assets, excluding investments at fair value based on NAV $ 5,791,641 $ 12,369,954 $ 649,458 $ (3,318,481 ) $ 15,492,572 Available for sale securities: Corporate equity securities (2) $ 88,486 $ — $ — $ — $ 88,486 U.S. government securities 552,805 — — — 552,805 Residential mortgage-backed securities — 34,561 — — 34,561 Commercial mortgage-backed securities — 5,870 — — 5,870 Other asset-backed securities — 34,839 — — 34,839 Total available for sale securities $ 641,291 $ 75,270 $ — $ — $ 716,561 Liabilities: Trading liabilities: Corporate equity securities $ 1,721,267 $ 32,122 $ 48 $ — $ 1,753,437 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 249,361 3,480,506 16,041 (3,490,514 ) 255,394 Total trading liabilities $ 4,618,008 $ 7,307,269 $ 20,202 $ (3,490,514 ) $ 8,454,965 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt - structured notes $ — $ 606,956 $ — $ — $ 606,956 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. (2) As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At September 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 2 for additional information. The following is a description of the valuation basis, including valuation techniques and inputs, used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis: Corporate Equity Securities • Exchange Traded Equity Securities: Exchange traded equity securities are measured based on quoted closing exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy, otherwise they are categorized within Level 2 of the fair value hierarchy. To the extent these securities are actively traded, valuation adjustments are not applied. • Non-Exchange Traded Equity Securities : Non-exchange traded equity securities are measured primarily using broker quotations, pricing data from external pricing services and prices observed from recently executed market transactions and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange traded equity securities are categorized within Level 3 of the fair value hierarchy and measured using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/Earnings before interest, taxes, depreciation and amortization ("EBITDA"), price/book value), discounted cash flow analyses and transaction prices observed from subsequent financing or capital issuance by Jefferies Group. When using pricing data of comparable companies, judgment must be applied to adjust the pricing data to account for differences between the measured security and the comparable security (e.g., issuer market capitalization, yield, dividend rate, geographical concentration). • Equity Warrants: Non-exchange traded equity warrants are measured primarily using pricing data from external pricing services, prices observed from recently executed market transactions and broker quotations and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Corporate Debt Securities • Corporate Bonds: Corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds. • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized Debt Obligations ("CDOs") and Collateralized Loan Obligations ("CLOs") are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations are categorized within Level 1 or Level 2 of the fair value hierarchy, primarily based on the country of issuance. Sovereign government obligations are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability of these input parameters. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities: Agency residential mortgage-backed securities include mortgage pass-through securities (fixed and adjustable rate), collateralized mortgage obligations and principal-only and interest-only (including inverse interest-only) securities. Agency residential mortgage-backed securities are generally measured using recent transactions, pricing data from external pricing services or expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral and are categorized within Level 2 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • Non-Agency Residential Mortgage-Backed Securities: The fair value of non-agency residential mortgage-backed securities is determined primarily using discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability and significance of the pricing inputs used. Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate. Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields. In addition, broker quotes, where available, are also referenced to compare prices primarily on interest-only securities. Commercial Mortgage-Backed Securities • Agency Commercial Mortgage-Backed Securities: Government National Mortgage Association ("GNMA") project loan bonds are measured based on inputs corroborated from and benchmarked to observed prices of recent securitization transactions of similar securities with adjustments incorporating an evaluation of various factors, including prepayment speeds, default rates and cash flow structures, as well as the likelihood of pricing levels in the current market environment. Federal National Mortgage Association ("FNMA") Delegated Underwriting and Servicing ("DUS") mortgage-backed securities are generally measured by using prices observed from recently executed market transactions to estimate market-clearing spread levels for purposes of estimating fair value. GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy. • Non-Agency Commercial Mortgage-Backed Securities: Non-agency commercial mortgage-backed securities are measured using pricing data obtained from external pricing services, prices observed from recently executed market transactions or based on expected cash flow models that incorporate underlying loan collateral characteristics and performance. Non-agency commercial mortgage-backed securities are categorized within Level 2 and Level 3 of the fair value hierarchy depending on the observability of the underlying inputs. Other Asset-Backed Securities Other asset-backed securities include, but are not limited to, securities backed by auto loans, credit card receivables, student loans and other consumer loans and are categorized within Level 2 or Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services, broker quotes and prices observed from recently executed market transactions. In addition, recent transaction data from comparable deals is deployed to develop market clearing yields and cumulative loss assumptions. The cumulative loss assumptions are based on the analysis of the underlying collateral and comparisons to earlier deals from the same issuer to gauge the relative performance of the deal. Loans and Other Receivables • Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market consensus pricing service quotations. Where available, market price quotations from external pricing services are reviewed to ensure they are supported by transaction data. Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent, market prices for debt securities of the same creditor and estimates of future cash flows incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer’s capital structure. • Participation Certificates in Agency Residential Loans: Valuations of participation certificates in agency residential loans are based on observed market prices of recently executed purchases and sales of similar loans and data provider pricing. The loan participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions and availability of data provider pricing. • Project Loans and Participation Certificates in GNMA Project and Construction Loans: Valuations of participation certificates in GNMA project and construction loans are based on inputs corroborated from and benchmarked to observed prices of recent securitizations with similar underlying loan collateral to derive an implied spread. Securitization prices are adjusted to estimate the fair value of the loans to account for the arbitrage that is realized at the time of securitization. The measurements are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions. • Consumer Loans and Funding Facilities: Consumer and small business whole loans and related funding facilities are valued based on observed market transactions and incorporating valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy. • Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. Derivatives • Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, broker quotes or vanilla option valuation models, such as Black-Scholes, using observable valuation inputs from the principal market or consensus pricing services. Exchange quotes and/or valuation inputs are generally obtained from external vendors and pricing services. Broker quotes are validated directly through observable and tradeable quotes. Listed derivative contracts that use unadjusted exchange close prices are generally categorized within Level 1 of the fair value hierarchy. All other listed derivative contracts are generally categorized within Level 2 of the fair value hierarchy. • Over-the-Counter ("OTC") Derivative Contracts: OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current transaction. Inputs to valuation models are appropriately calibrated to market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy. OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as Black-Scholes, with key inputs including the underlying security price, foreign exchange spot rate, commodity price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Discounted cash flow models are utilized to measure certain OTC derivative contracts including the valuations of our interest rate swaps, which incorporate observable inputs related to interest rate curves, valuations of our foreign exchange forwards and swaps, which incorporate observable inputs related to foreign currency spot rates and forward curves and valuations of our commodity swaps and forwards, which incorporate observable inputs related to commodity spot prices and forward curves. Discounted cash flow models are also utilized to measure certain variable funding note swaps, which are backed by CLOs and incorporate constant prepayment rate, constant default rate and loss severity assumptions. Credit default swaps include both index and single-name credit default swaps. External prices are available as inputs in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are generally observable for the underlying asset and used as the basis for measuring the fair value of the derivative contracts. Total return swaps executed on other underlyings are measured based on valuations received from external pricing services. • Oil Futures Derivatives: Vitesse Energy Finance uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse Energy Finance accounts for the derivative instruments at fair value, which are classified as either Level 1 or Level 2 within the fair value hierarchy. Fair values classified as Level 1 are measured based on quoted closing exchange prices obtained from external pricing services and Level 2 are determined under the income valuation technique using an option-pricing model that is based on directly or indirectly observable inputs. Investments at Fair Value Investments at fair value based on NAV include investments in hedge funds, fund of funds and private equity funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Additionally, investments at fair value include investments in insurance contracts relating to Jefferies Group's defined benefit plan in Germany. Fair value for the insurance contracts is determined using a third party and is categorized within Level 3 of the fair value hierarchy. The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands). Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) September 30, 2018 Equity Long/Short Hedge Funds (2) $ 90,347 $ — (2) Fixed Income and High Yield Hedge Funds (3) 219 — — Fund of Funds (4) 175 — — Equity Funds (5) 36,702 20,209 — Commodity Funds (6) 10,228 — — Multi-asset Funds (7) 261,361 — — Total $ 399,032 $ 20,209 December 31, 2017 Equity Long/Short Hedge Funds (2) $ 407,895 $ — (2) Fixed Income and High Yield Hedge Funds (3) 417 — — Fund of Funds (4) 189 — — Equity Funds (5) 26,798 19,084 — Multi-asset Funds (7) 154,805 — — Total $ 590,104 $ 19,084 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At December 31, 2017 , 73% of these investments were redeemable with 10 business days or less prior written notice; these investments were primarily liquidated during 2018. At September 30, 2018 and December 31, 2017 , 18% and 15% , respectively, of these investments are redeemable with 30 to 60 days prior written notice. (3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions. (4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received. (5) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead distributions are received through the liquidation of the underlying assets of the funds, which are expected to be liquidated in one to ten years. (6) This category includes investments in hedge funds that invest, long and short, primarily in commodities. Investments in this category are redeemable with 60 days prior written notice. (7) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At September 30, 2018 and December 31, 2017 , investments representing approximately 17% and 12% , respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. Investment in FXCM FXCM Group, LLC ("FXCM") is a provider of online foreign exchange trading services. In January 2015, we entered into a credit agreement with FXCM, and provided FXCM a $300 million senior secured term loan due January 2017 (the term of which was subsequently extended to January 2019), with rights to a variable proportion of certain future distributions in connection with an FXCM sale of assets or certain other events, and to require a sale of FXCM beginning in January 2018. The loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, not to exceed 20.5% per annum. During the nine months ended September 30, 2018 , interest accrued at 20.5% per annum. During the nine months ended September 30, 2018 , we received $15.4 million of principal and interest from FXCM and $70.6 million of principal remained outstanding under the term loan as of September 30, 2018 . Through September 30, 2018 , we have received cumulatively $347.0 million of principal, interest and fees from our initial $279.0 million investment in FXCM. Our investment in the FXCM term loan is reported within Trading assets, at fair value in our Consolidated Statements of Financial Condition, and unrealized and realized changes in value, including the component related to interest income on the loan, is included within Principal transactions revenues in the Consolidated Statements of Operations. We recorded gains related to the term loan in Principal transactions revenues of $1.3 million and $16.4 million during the three and nine months ended September 30, 2018 , respectively, and $2.3 million and $17.6 million during the three and nine months ended September 30, 2017 , respectively. On September 1, 2016, we, Global Brokerage Inc. ("Global Brokerage") and Global Brokerage Holdings, LLC ("Global Brokerage Holdings") entered into an agreement that amended the terms of our loan and associated rights. On November 10, 2017, the terms of our loan and associated rights were amended further. Among other changes, the amendments extended the maturity of the term loan to January 2019; and exchanged our rights for a 50% voting interest in FXCM, and up to 75% of all distributions. Through these amendments, we also gained the right to appoint three of six board members for FXCM. We have the right, as does Global Brokerage Holdings, the owner of the remaining 50% of FXCM voting interest that is not held by Jefferies, to require a sale of FXCM beginning in January 2018. Distributions to Jefferies under the amended agreements are now: 100% until amounts due under the loan are repaid; 50% of the next $350 million ; then 90% of the next $600 million ; and 60% of all amounts thereafter. Through the amendments, we gained the ability to significantly influence FXCM through our seats on the board of directors. As a result, we classify our equity investment in FXCM in our September 30, 2018 and December 31, 2017 Consolidated Statements of Financial Condition as Loans to and investments in associated companies. We account for our equity interest on a one month lag. As the amendments only extended the maturity of the term loan, we continue to use the fair value option and classify our term loan within Trading assets, at fair value. FXCM is considered a variable interest entity ("VIE") and our term loan and equity ownership are variable interests. We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance. Therefore, we do not consolidate FXCM and we account for our equity interest as an investment in an associated company. Our maximum exposure to loss as a result of our involvement with FXCM is limited to the carrying value of the term loan ( $73.8 million ) and the investment in associated company ( $139.0 million ), which totaled $212.8 million at September 30, 2018 . We estimate the fair value of our term loan by using a valuation model with inputs including management’s assumptions concerning the amount and timing of expected cash flows, the loan’s implied credit rating and effective yield. Because of these inputs and the degree of judgment involved, we have categorized our term loan within Level 3 of the fair value hierarchy. Nonrecurring Fair Value Measurements As described further in Note 9, in the third quarter of 2018 we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in Golden Queen. Our estimate of fair value was based on a discounted cash flow analysis and is categorized within Level 3 of the fair value hierarchy. The discounted cash flow valuation model used inputs including management's projections of future Golden Queen cash flows and a discount rate of 12% . The estimated fair value of our equity investment in Golden Queen was $62.3 million , which was $47.9 million lower than our prior carrying value at the end of the second quarter 2018. As a result, an impairment charge of $47.9 million was recorded in Income (loss) related to associated companies in the three and nine months ended September 30, 2018 . Additionally, in the first quarter of 2017 we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in FXCM. Our first quarter estimate of fair value was based on a discounted cash flow and comparable public company analysis and is categorized within Level 3 of the fair value hierarchy. The discounted cash flow valuation model used inputs including management's projections of future FXCM cash flows and a discount rate of approximately 15% . The comparable public company model used market data for comparable companies including a price to EBITDA multiple of 5.4 and a price to revenue multiple of 1.5 . The estimated fair value of our equity investment in FXCM was $186.7 million , which was $130.2 million lower than the carrying value at the end of the first quarter 2017. As a result, an impairment charge of $130.2 million was recorded in Income (loss) related to associated companies in the first quarter of 2017. Other Secured Financings Other secured financings that are accounted for at fair value include notes issued by consolidated VIEs, which are categorized within Level 2 or Level 3 of the fair value hierarchy. Fair value is based on recent transaction prices for similar assets. Short-term Borrowings/Long-term Debt Short-term borrowings tha |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Financial Instruments Derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Trading assets and Trading liabilities, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. Predominantly, Jefferies Group and our Leucadia Asset Management businesses may enter into derivative transactions to satisfy the needs of its clients and to manage its own exposure to market and credit risks resulting from trading activities. In addition, Jefferies Group applies hedge accounting to an interest rate swap that has been designated as a fair value hedge of the changes in fair value due to the benchmark interest rate for certain fixed rate senior long-term debt. See Notes 3 and 20 for additional disclosures about derivative financial instruments. Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. Jefferies Group manages the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of its firm wide risk management policies. In connection with Jefferies Group's derivative activities, Jefferies Group may enter into International Swaps and Derivatives Association, Inc. ("ISDA") master netting agreements or similar agreements with counterparties. See Note 10 for additional information regarding the offsetting of derivative contracts. The following table presents the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at September 30, 2018 and December 31, 2017 . The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts): Assets Liabilities Fair Value Number of Contracts Fair Value Number of Contracts September 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 30,018 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 766,233 20,867 $ 892,562 38,331 Foreign exchange contracts 234,641 8,569 223,565 7,486 Equity contracts 2,491,005 1,892,926 2,987,654 1,836,128 Commodity contracts 4,599 6,331 16,312 3,585 Credit contracts 27,267 172 20,140 76 Total 3,523,745 4,140,233 Counterparty/cash-collateral netting (1) (3,334,100 ) (3,454,488 ) Total derivatives not designated as accounting hedges $ 189,645 $ 685,745 Total per Consolidated Statement of Financial Condition (2) $ 189,645 $ 715,763 December 31, 2017 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 2,420 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 1,717,058 38,941 $ 1,708,776 12,828 Foreign exchange contracts 366,541 6,463 349,512 4,612 Equity contracts 1,373,016 2,728,750 1,638,258 2,118,526 Commodity contracts 3,093 7,249 5,141 6,047 Credit contracts 38,261 130 41,801 191 Total 3,497,969 3,743,488 Counterparty/cash-collateral netting (1)(3) (3,318,481 ) (3,490,514 ) Total derivatives not designated as accounting hedges $ 179,488 $ 252,974 Total per Consolidated Statement of Financial Condition (2)(3) $ 179,488 $ 255,394 (1) Amounts netted include both netting by counterparty and for cash collateral paid or received. (2) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. (3) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of December 31, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . The following table provides information related to gains (losses) recognized in Interest expense of Jefferies Group in the Consolidated Statements of Operations on a fair value hedge (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate swaps $ (1,161 ) $ 6,217 $ (22,363 ) $ 13,960 Long-term debt 1,221 (4,680 ) 24,055 (9,570 ) Total $ 60 $ 1,537 $ 1,692 $ 4,390 The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues in Income (loss) from continuing operations in the Consolidated Statements of Operations, which are utilized in connection with our client activities and our economic risk management activities (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate contracts $ 13,951 $ (7,485 ) $ 36,053 $ 2,555 Foreign exchange contracts (4,781 ) 481 6,737 3,341 Equity contracts 1,019 (142,931 ) (249,546 ) (294,635 ) Commodity contracts (6,845 ) (1,422 ) (23,150 ) (3,260 ) Credit contracts 20 (7,947 ) 760 6,133 Total $ 3,364 $ (159,304 ) $ (229,146 ) $ (285,866 ) The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising Jefferies Group's business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. Jefferies Group substantially mitigates its exposure to market risk on its cash instruments through derivative contracts, which generally provide offsetting revenues, and Jefferies Group manages the risk associated with these contracts in the context of its overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at September 30, 2018 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross- Maturity Netting (4) Total Commodity swaps, options and forwards $ 738 $ 512 $ — $ — $ 1,250 Equity swaps and options 10,226 8,071 2,195 — 20,492 Credit default swaps 82 21,802 — (11 ) 21,873 Total return swaps 46,036 29,910 — (4,334 ) 71,612 Foreign currency forwards, swaps and options 42,326 22,130 — (9,550 ) 54,906 Fixed income forwards 2,113 — — — 2,113 Interest rate swaps, options and forwards 13,104 96,631 95,973 (91,673 ) 114,035 Total $ 114,625 $ 179,056 $ 98,168 $ (105,568 ) 286,281 Cross product counterparty netting (34,971 ) Total OTC derivative assets included in Trading assets $ 251,310 (1) At September 30, 2018 , we held exchange traded derivative assets, other derivative assets and other credit agreements with a fair value of $96.6 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition. At September 30, 2018 , cash collateral received was $158.2 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 12,234 $ 2,388 $ — $ — $ 14,622 Equity swaps and options 15,125 92,491 13,048 — 120,664 Credit default swaps 17 11,480 — (11 ) 11,486 Total return swaps 67,526 19,806 — (4,334 ) 82,998 Foreign currency forwards, swaps and options 36,183 17,496 — (9,550 ) 44,129 Fixed income forwards 685 — — — 685 Interest rate swaps, options and forwards 16,388 148,685 198,569 (91,673 ) 271,969 Total $ 148,158 $ 292,346 $ 211,617 $ (105,568 ) 546,553 Cross product counterparty netting (34,971 ) Total OTC derivative liabilities included in Trading liabilities $ 511,582 (1) At September 30, 2018 , we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $482.8 million , which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition. At September 30, 2018 , cash collateral pledged was $278.6 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. At September 30, 2018 , the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands): Counterparty credit quality (1): A- or higher $ 137,910 BBB- to BBB+ 20,490 BB+ or lower 74,097 Unrated 18,813 Total $ 251,310 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's 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): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional September 30, 2018 Credit protection sold: Index credit default swaps $ 3.0 $ 15.0 $ — $ 18.0 Single name credit default swaps $ 32.5 $ 39.9 $ 2.9 $ 75.3 December 31, 2017 Credit protection sold: Index credit default swaps $ 3.0 $ 126.0 $ — $ 129.0 Single name credit default swaps $ 129.1 $ 89.1 $ — $ 218.2 Contingent Features Certain of Jefferies Group's derivative instruments contain provisions that require their debt to maintain an investment grade credit rating from each of the major credit rating agencies. If Jefferies Group's debt were to fall below investment grade, it would be in violation of these provisions and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on Jefferies Group's derivative instruments in liability positions. The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts posted or received in the normal course of business and the potential collateral Jefferies Group would have been required to return and/or post additionally to its counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): September 30, 2018 December 31, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 106.3 $ 95.1 Collateral posted $ (59.3 ) $ (86.4 ) Collateral received $ 129.7 $ 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 176.6 $ 14.3 (1) These outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. Other Derivatives Vitesse Energy Finance uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse Energy Finance accounts for the derivative instruments at fair value. The gains and losses associated with the change in fair value of the derivatives are recorded in Other revenues. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Collateralized Transactions [Abstract] | |
Collateralized Transactions | Collateralized Transactions Jefferies Group enters into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of dealer operations. Jefferies Group monitors the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and requests additional collateral or return of excess collateral, as appropriate. Jefferies Group pledges financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Jefferies Group's agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned and noted parenthetically as Securities pledged in our Consolidated Statements of Financial Condition. The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Total September 30, 2018 Cash $ — $ 4,361 $ 4,361 Corporate equity securities 2,214,433 490,609 2,705,042 Corporate debt securities 315,718 1,496,127 1,811,845 Mortgage- and asset-backed securities — 2,667,439 2,667,439 U.S. government and federal agency securities 1,353 10,124,642 10,125,995 Municipal securities — 582,699 582,699 Sovereign obligations — 1,955,879 1,955,879 Loans and other receivables — 517,703 517,703 Total $ 2,531,504 $ 17,839,459 $ 20,370,963 December 31, 2017 Corporate equity securities $ 2,353,798 $ 214,413 $ 2,568,211 Corporate debt securities 470,908 2,336,702 2,807,610 Mortgage- and asset-backed securities — 2,562,268 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 11,811,739 Municipal securities — 444,861 444,861 Sovereign obligations — 2,023,530 2,023,530 Loans and other receivables — 454,941 454,941 Total $ 2,843,911 $ 19,829,249 $ 22,673,160 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total September 30, 2018 Securities lending arrangements $ 1,354,136 $ — $ 847,577 $ 329,791 $ 2,531,504 Repurchase agreements 8,122,962 2,733,400 4,342,923 2,640,174 17,839,459 Total $ 9,477,098 $ 2,733,400 $ 5,190,500 $ 2,969,965 $ 20,370,963 December 31, 2017 Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Total $ 12,457,414 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,160 Jefferies Group receives securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. Jefferies Group also receives securities as collateral in connection with securities-for-securities transactions in which it is the lender of securities. In many instances, Jefferies Group is permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At September 30, 2018 and December 31, 2017 , the approximate fair value of securities received as collateral by Jefferies Group that may be sold or repledged was $25.2 billion and $27.1 billion , respectively. A substantial portion of these securities have been sold or repledged. |
Securitization Activities
Securitization Activities | 9 Months Ended |
Sep. 30, 2018 | |
Securitization Activities [Abstract] | |
Securitization Activities | Securitization Activities Jefferies Group engages in securitization activities related to corporate loans, commercial mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In securitization transactions, Jefferies Group transfers assets to special purpose entities ("SPEs") and acts as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A significant portion of the securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of VIEs; however, the SPEs are generally not consolidated as Jefferies Group is not considered the primary beneficiary for these SPEs. Jefferies Group accounts for securitization transactions as sales, provided it has relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues in the Consolidated Statements of Operations prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. Jefferies Group generally receives cash proceeds in connection with the transfer of assets to an SPE. Jefferies Group may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage- and other asset-backed securities or CLOs), which are included in Trading assets and are generally initially categorized as Level 2 within the fair value hierarchy. Jefferies Group applies fair value accounting to the securities. The following table presents activity related to Jefferies Group's securitizations that were accounted for as sales in which it had continuing involvement (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Transferred assets $ 1,865.5 $ 1,009.1 $ 5,665.9 $ 2,677.7 Proceeds on new securitizations $ 1,866.2 $ 1,017.2 $ 5,668.6 $ 2,703.3 Cash flows received on retained interests $ 17.2 $ 8.7 $ 35.7 $ 22.7 Jefferies Group has no explicit or implicit arrangements to provide additional financial support to these SPEs, has no liabilities related to these SPEs and has no outstanding derivative contracts executed in connection with these securitization activities at September 30, 2018 and December 31, 2017 . The following table summarizes Jefferies Group's retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions): September 30, 2018 December 31, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 13,306.0 $ 192.7 $ 6,383.5 $ 28.2 U.S. government agency commercial mortgage-backed securities $ 2,101.5 $ 276.1 $ 2,075.7 $ 81.4 CLOs $ 3,442.3 $ 26.4 $ 3,957.8 $ 20.3 Consumer and other loans $ 648.9 $ 53.0 $ 247.6 $ 47.8 Total assets represent the unpaid principal amount of assets in the SPEs in which Jefferies Group has continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting its retained interests, and are not considered representative of the risk of potential loss. Assets retained in connection with a securitization transaction represent the fair value of the securities of one or more tranches issued by an SPE, including senior and subordinated tranches. Jefferies Group's risk of loss is limited to this fair value amount which is included in total Trading assets in our Consolidated Statements of Financial Condition. Although not obligated, in connection with secondary market-making activities Jefferies Group may make a market in the securities issued by these SPEs. In these market-making transactions, Jefferies Group buys these securities from and sells these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent Jefferies Group purchased securities through these market-making activities and Jefferies Group is not deemed to be the primary beneficiary of the VIE, these securities are included in agency and non-agency mortgage- and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 8. Foursight Capital also utilizes SPEs to securitize automobile loans receivable. These SPEs are VIEs and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statements of Financial Condition. These secured borrowings do not have recourse to our subsidiary’s general credit. See Note 8 for further information on securitization activities and VIEs. |
Available for Sale Securities a
Available for Sale Securities and Other Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Available for Sale Securities and Other Investments | Available for Sale Securities and Other Investments The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale are as follows (in thousands): Amortized Gross Gross Estimated September 30, 2018 Bonds and notes: U.S. government securities $ 1,608,076 $ 2 $ 353 $ 1,607,725 Residential mortgage-backed securities 147,294 138 754 146,678 Commercial mortgage-backed securities 16,049 — 330 15,719 Other asset-backed securities 98,543 9 254 98,298 Total fixed maturities 1,869,962 149 1,691 1,868,420 Total Available for sale securities $ 1,869,962 $ 149 $ 1,691 $ 1,868,420 December 31, 2017 Bonds and notes: U.S. government securities $ 552,847 $ — $ 42 $ 552,805 Residential mortgage-backed securities 34,381 272 92 34,561 Commercial mortgage-backed securities 5,857 17 4 5,870 Other asset-backed securities 34,837 46 44 34,839 Total fixed maturities 627,922 335 182 628,075 Equity securities: Common stocks: Banks, trusts and insurance companies 35,071 17,500 — 52,571 Industrial, miscellaneous and all other 17,504 18,411 — 35,915 Total equity securities 52,575 35,911 — 88,486 Total Available for sale securities $ 680,497 $ 36,246 $ 182 $ 716,561 As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At September 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 2 for additional information. At September 30, 2018 , the Company had other investments (classified as Other assets and Loans to and investments in associated companies) in which fair values are not readily determinable, aggregating $233.7 million . There were no unrealized gains, losses or impairments recognized on these investments during the three and nine months ended September 30, 2018 . The amortized cost and estimated fair value of investments classified as available for sale at September 30, 2018 , by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 1,608,076 $ 1,607,725 1,608,076 1,607,725 Mortgage-backed and asset-backed securities 261,886 260,695 $ 1,869,962 $ 1,868,420 At September 30, 2018 , the unrealized losses on investments which have been in a continuous unrealized loss position 12 months or longer were not significant. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities VIEs are entities in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. Our variable interests in VIEs include debt and equity interests, equity interests in associated companies, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from the following activities, but also includes other activities discussed below: • Purchases of securities in connection with our trading and secondary market-making activities; • Retained interests held as a result of securitization activities, including the resecuritization of mortgage- and other asset-backed securities and the securitization of commercial mortgage, corporate and consumer loans; • Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; • Financing of agency and non-agency mortgage- and other asset-backed securities; • Warehouse funding arrangements for client-sponsored consumer loan vehicles and CLOs through participation certificates, forward sales agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires significant judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the "power" criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the "power" criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires significant judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about the assets and liabilities of our consolidated securitization vehicles VIEs, which are presented in our Consolidated Statements of Financial Condition in the respective asset and liability categories (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. September 30, 2018 December 31, 2017 Cash $ — $ 11.7 Financial instruments owned — 37.6 Securities purchased under agreement to resell (1) 1,043.4 729.3 Receivables 453.2 318.1 Other 25.8 15.5 Total assets $ 1,522.4 $ 1,112.2 Other secured financings (2) $ 1,478.3 $ 1,073.5 Other (3) 44.1 38.3 Total liabilities $ 1,522.4 $ 1,111.8 (1) Securities purchased under agreements to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation. (2) Approximately $37.7 million and $44.1 million of the secured financings represent an amount held by Jefferies Group in inventory and eliminated in consolidation at September 30, 2018 and December 31, 2017 , respectively. (3) Includes $31.1 million and $32.0 million at September 30, 2018 and December 31, 2017 , respectively, of intercompany payables that are eliminated in consolidation. Securitization Vehicles. Jefferies Group is the primary beneficiary of asset-backed financing vehicles to which Jefferies Group sells agency and non-agency residential and commercial mortgage loans, mortgage-backed securities and consumer loans pursuant to the terms of a master repurchase agreement. Jefferies Group manages the assets within these vehicles. Jefferies Group's variable interests in these vehicles consist of its collateral margin maintenance obligations under the master repurchase agreement and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle’s debt holders. The creditors of these VIEs do not have recourse to Jefferies Group's general credit and each such VIE’s assets are not available to satisfy any other debt. Jefferies Group was previously the primary beneficiary of a securitization vehicle associated with their financing of small business loans. In the creation of the securitization vehicle, Jefferies Group was involved in the decisions made during the establishment and design of the entity and holds variable interests consisting of the securities retained that could potentially be significant. The assets of the VIE consisted of small business loans, which were available for the benefit of the vehicles' beneficial interest holders. The creditors of the VIE did not have recourse to Jefferies Group's general credit and the assets of the VIE were not available to satisfy any other debt. At September 30, 2018 and December 31, 2017 , Foursight Capital is the primary beneficiary of SPEs it utilized to securitize automobile loans receivable. Foursight Capital acts as the servicer for which it receives a fee, and owns an equity interest in the SPEs. The notes issued by the SPEs are secured solely by the assets of the SPEs and do not have recourse to Foursight Capital’s general credit and the assets of the VIEs are not available to satisfy any other debt. During the nine months ended September 30, 2018 , automobile loan receivables aggregating $290.9 million were securitized by Foursight Capital in connection with a secured borrowing offering. The majority of the proceeds from issuance of the secured borrowing were used to pay down Foursight Capital’s two credit facilities. Nonconsolidated VIEs The following tables present information about our variable interests in nonconsolidated VIEs (in millions): Financial Statement Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities September 30, 2018 CLOs $ 57.0 $ 0.7 $ 784.0 $ 3,348.0 Consumer loan vehicles 323.5 — 602.4 3,441.8 Related party private equity vehicles 34.1 — 52.0 107.2 Other private investment vehicles 160.4 — 170.8 5,324.2 Total $ 575.0 $ 0.7 $ 1,609.2 $ 12,221.2 December 31, 2017 CLOs $ 168.1 $ 8.9 $ 1,030.4 $ 5,364.3 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other private investment vehicles 133.0 — 142.0 4,624.9 Total $ 579.6 $ 8.9 $ 1,977.6 $ 12,386.9 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 the variable interests in the VIEs and is limited to the notional amounts of certain loan and equity commitments and guarantees. Our maximum exposure to loss does not include the offsetting benefit of any financial instruments that may be utilized to hedge the risks associated with its variable interests and is not reduced by the amount of collateral held as part of a transaction with a VIE. Collateralized Loan Obligations. Assets collateralizing the CLOs include bank loans, participation interests and sub-investment grade and senior secured U.S. loans. Jefferies Group underwrites securities issued in CLO transactions on behalf of sponsors and provides advisory services to the sponsors. Jefferies Group may also sell corporate loans to the CLOs. Jefferies Group's variable interests in connection with CLOs where it has been involved in providing underwriting and/or advisory services consist of the following: • Forward sale agreements whereby Jefferies Group commits to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs; • Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests; • Trading positions in securities issued in a CLO transaction; and • Investments in variable funding notes issued by CLOs. Consumer Loan Vehicles. Jefferies Group provides financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities and forward purchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans. In addition, Jefferies Group may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. Jefferies Group does not control the activities of these entities. Related Party Private Equity Vehicles. Jefferies Group committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, Jefferies Group committed to invest equity in the general partners of the JCP Funds (the "JCP General Partners") and the JCP Manager. Jefferies Group's variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the "JCP Entities") consist of equity interests that, in total, provide Jefferies Group with limited and general partner investment returns of the JCP Funds, a portion of the carried interest earned by the JCP General Partners and a portion of the management fees earned by the JCP Manager. At September 30, 2018 and December 31, 2017 , Jefferies Group's total equity commitment in the JCP Entities was $139.3 million and $148.1 million , respectively, of which $121.3 million and $126.3 million had been funded, respectively. The carrying value of Jefferies Group's equity investments in the JCP Entities was $34.1 million and $23.7 million at September 30, 2018 and December 31, 2017 , respectively. Jefferies Group's exposure to loss is limited to the total of its carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments. Other Private Investment Vehicles. The carrying amount of our equity investment was $160.4 million and $133.0 million at September 30, 2018 and December 31, 2017 , respectively. Our unfunded equity commitment related to these investments totaled $10.3 million and $9.1 million at September 30, 2018 and December 31, 2017 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These private investment vehicles have assets primarily consisting of private and public equity investments, debt instruments and various oil and gas assets. Mortgage- and Other Asset-Backed Securitization Vehicles. In connection with Jefferies Group's secondary trading and market-making activities, Jefferies Group buys and sells agency and non-agency mortgage-backed securities and other asset-backed securities, which are issued by third-party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, auto loans and student loans. These securities are accounted for at fair value and included in Trading assets in our Consolidated Statements of Financial Condition. Jefferies Group has no other involvement with the related SPEs and therefore does not consolidate these entities. Jefferies Group also engages in underwriting, placement and structuring activities for third-party-sponsored securitization trusts generally through agency (FNMA ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") or GNMA ("Ginnie Mae")) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and auto loans. Jefferies Group does not consolidate agency-sponsored securitizations as it does not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, Jefferies Group is not the servicer of non-agency-sponsored securitizations and therefore does not have power to direct the most significant activities of the SPEs and accordingly, does not consolidate these entities. Jefferies Group may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs. Jefferies Group transfers existing securities, typically mortgage-backed securities, into resecuritization vehicles. These transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests occur in connection with both agency and non-agency-sponsored VIEs. The consolidation analysis is largely dependent on Jefferies Group's role and interest in the resecuritization trusts. Most resecuritizations in which Jefferies Group is involved are in connection with investors seeking securities with specific risk and return characteristics. As such, Jefferies Group has concluded that the decision-making power is shared between Jefferies Group and the investor(s), considering the joint efforts involved in structuring the trust and selecting the underlying assets as well as the level of security interests the investor(s) hold in the SPE; therefore, Jefferies Group does not consolidate the resecuritization VIEs. At September 30, 2018 and December 31, 2017 , Jefferies Group held $2,622.2 million and $1,829.6 million of agency mortgage-backed securities, respectively, and $156.6 million and $253.2 million of non-agency mortgage- and other asset-backed securities, respectively, as a result of its secondary trading and market-making activities, underwriting, placement and structuring activities and resecuritization activities. Jefferies Group's maximum exposure to loss on these securities is limited to the carrying value of its investments in these securities. These mortgage- and other asset-backed securitization vehicles discussed are not included in the above table containing information about Jefferies Group's variable interests in nonconsolidated VIEs. We also have a variable interest in a nonconsolidated VIE consisting of our equity interest in an associated company, Golden Queen Mining Company, LLC ("Golden Queen"). In addition, we have a variable interest in a nonconsolidated VIE consisting of our senior secured term loan receivable and equity interest in FXCM. See Notes 3 and 9 for further discussion. |
Loans to and Investments In Ass
Loans to and Investments In Associated Companies | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Loans to and Investments in Associated Companies | Loans to and Investments in Associated Companies A summary of Loans to and investments in associated companies accounted for under the equity method of accounting during the nine months ended September 30, 2018 and 2017 is as follows (in thousands): Loans to and investments in associated companies as of January 1, Income (losses) related to associated companies Income (losses) related to Jefferies Group's associated companies (1) Contributions to (distributions from) associated companies, net Other Loans to and investments in associated companies as of September 30, 2018 Jefferies Finance $ 655,467 $ — $ 36,497 $ 43,470 $ — $ 735,434 National Beef (2) — 83,287 — (48,656 ) 592,239 626,870 Berkadia 210,594 80,092 — (42,064 ) (1,054 ) 247,568 FXCM (3) 158,856 (19,322 ) — — (513 ) 139,021 Garcadia companies (4) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (3,601 ) 168,543 HomeFed 341,874 (3,338 ) — — — 338,536 Golden Queen (5) 105,005 (52,028 ) — 8,441 — 61,418 Other 223,754 (5,483 ) (5,810 ) (69,071 ) (9,879 ) 133,511 Total $ 2,066,829 $ 84,320 $ 30,687 $ (134,300 ) $ 403,365 $ 2,450,901 2017 Jefferies Finance $ 490,464 $ — $ 63,685 $ 109,899 $ — $ 664,048 Jefferies LoanCore 154,731 — 8,030 43,714 1,095 207,570 Berkadia 184,443 67,979 — (52,300 ) (174 ) 199,948 FXCM (3) 336,258 (166,360 ) — — 731 170,629 Garcadia companies 185,815 38,536 — (40,955 ) — 183,396 Linkem 154,000 (26,557 ) — 31,996 33,979 193,418 HomeFed 302,231 9,922 — 31,918 — 344,071 Golden Queen 111,302 (3,684 ) — (59 ) — 107,559 Other 205,854 (4,249 ) (6,392 ) 79,636 5,492 280,341 Total $ 2,125,098 $ (84,413 ) $ 65,323 $ 203,849 $ 41,123 $ 2,350,980 (1) Primarily classified in Investment banking revenues and Other revenues. (2) As discussed more fully in Notes 1 and 24, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our ownership in National Beef to 31% . As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining interest under the equity method of accounting. The carrying value of our retained 31% interest was adjusted to a fair value of $592.3 million on the date of sale. (3) As further described in Note 3, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included as Loans to and investments in associated companies and our term loan is included as Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) As more fully discussed in Note 1, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family. (5) At September 30, 2018 and December 31, 2017 , the balance reflects $15.1 million and $30.5 million , respectively, related to a noncontrolling interest. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 National Beef $ 58,886 $ — $ 83,287 $ — Berkadia 28,350 34,839 80,092 67,979 FXCM (4,282 ) (4,345 ) (19,322 ) (166,360 ) Garcadia companies 691 12,565 21,646 38,536 Linkem (7,770 ) (9,533 ) (20,534 ) (26,557 ) HomeFed (7,783 ) 238 (3,338 ) 9,922 Golden Queen (48,732 ) (1,975 ) (52,028 ) (3,684 ) Other (493 ) (1,732 ) (5,483 ) (4,249 ) Total $ 18,867 $ 30,057 $ 84,320 $ (84,413 ) Income (losses) related to Jefferies Group's associated companies (primarily classified in Investment banking revenues and Other revenues) includes the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Jefferies Finance $ 5,931 $ 13,509 $ 36,497 $ 63,685 Jefferies LoanCore — 1,656 — 8,030 Other (78 ) (4,337 ) (5,810 ) (6,392 ) Total $ 5,853 $ 10,828 $ 30,687 $ 65,323 Jefferies Finance Through Jefferies Group, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), our joint venture with Massachusetts Mutual Life Insurance Company ("MassMutual"). Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies Group. Jefferies Finance may also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market and acts as an investment advisor for various loan funds. At September 30, 2018 , Jefferies Group and MassMutual each had equity commitments to Jefferies Finance of $750.0 million . At September 30, 2018 , $706.5 million of Jefferies Group's commitment was funded. The investment commitment is scheduled to expire on March 1, 2019 with automatic one year extensions absent a 60 -day termination notice by either party. Jefferies Finance has executed a Secured Revolving Credit Facility with Jefferies Group and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total Secured Revolving Credit Facility is a committed amount of $500.0 million at September 30, 2018 and December 31, 2017 . Advances are shared equally between Jefferies Group and MassMutual. The facility is scheduled to mature on March 1, 2019 with automatic one year extensions absent a 60 -day termination notice by either party. At September 30, 2018 and December 31, 2017 , none of Jefferies Group's $250.0 million commitment was funded. Jefferies Group recognized interest income and unfunded commitment fees related to the facility of $0.3 million and $0.5 million during the three months ended September 30, 2018 and 2017 , respectively, and $2.0 million and $3.3 million during the nine months ended September 30, 2018 and 2017 , respectively. Jefferies Group engages in debt capital markets transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, Jefferies Group earned fees of $71.1 million and $104.2 million during the three months ended September 30, 2018 and 2017 , respectively, and $282.1 million and $243.5 million during the nine months ended September 30, 2018 and 2017 , respectively, which are recognized in Investment banking revenues in the Consolidated Statements of Operations. In addition, Jefferies Group paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $12.1 million and $0.0 million during the three months ended September 30, 2018 and 2017 , respectively, and $45.5 million and $2.5 million during the nine months ended September 30, 2018 and 2017 , respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations. Jefferies Group acts as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees of $0.4 million and $0.8 million during the three months ended September 30, 2018 and 2017 , respectively, and $3.1 million and $4.7 million during the nine months ended September 30, 2018 and 2017 , respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations. At September 30, 2018 and December 31, 2017 , Jefferies Group held securities issued by CLOs managed by Jefferies Finance, which are included in Trading assets. Additionally, Jefferies Group has entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO. Gains (losses) related to the derivative contracts were not material. Under a service agreement, Jefferies Group charged Jefferies Finance $13.3 million and $7.9 million during the three months ended September 30, 2018 and 2017 , respectively, and $48.3 million and $37.4 million during the nine months ended September 30, 2018 and 2017 , respectively, for services provided. At September 30, 2018 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $36.3 million and a payable to Jefferies Finance, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition of $14.1 million . At December 31, 2017 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $34.6 million and a payable to Jefferies Finance, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition, of $14.1 million . Jefferies Group enters into OTC foreign exchange contracts with Jefferies Finance. In connection with these contracts Jefferies Group had $0.2 million recorded in Payables, expense accruals and other liabilities and $1.5 million included in Trading assets in our Consolidated Statements of Financial Condition at September 30, 2018 and December 31, 2017 , respectively. Jefferies LoanCore Jefferies LoanCore, a commercial real estate finance company and a joint venture with the Government of Singapore Investment Corporation, the Canada Pension Plan Investment Board and LoanCore, LLC, originates and purchases commercial real estate loans throughout the U.S. and Europe. On October 31, 2017, Jefferies Group sold all of its membership interests (which constituted a 48.5% voting interest) in Jefferies LoanCore for approximately $173.1 million , the estimated book value as of October 31, 2017. In addition, Jefferies Group may be entitled to additional cash consideration over the next five years in the event Jefferies LoanCore's yearly return on equity exceeds certain thresholds. National Beef National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets. As discussed in Notes 1 and 24, on June 5, 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our ownership in National Beef to 31% . As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining interest under the equity method of accounting. As required as a result of the deconsolidation of National Beef, we adjusted the carrying value of our retained 31% interest in National Beef to fair value. The fair value of our retained 31% interest in National Beef of $592.3 million was based on the implied equity value of 100% of National Beef from the transaction with Marfrig. The transaction with Marfrig was based on a $1.9 billion equity valuation and a $2.3 billion enterprise valuation for 100% of National Beef. The fair value was allocated to the tangible and intangible assets of National Beef and a number of assets including customer relationships, tradenames, cattle supply contracts and property, plant and equipment had fair values higher than book values. As we recognize our share of National Beef's income going forward, the difference between the estimated fair value and the underlying book value of National Beef's customer relationships, tradenames, cattle supply contracts and property, plant and equipment will be amortized over their respective useful lives (weighted average life of 15 years). Berkadia Berkadia is a commercial mortgage banking and servicing joint venture formed in 2009 with Berkshire Hathaway Inc. We and Berkshire Hathaway each contributed $217.2 million of equity capital to the joint venture and each have a 50% equity interest in Berkadia. Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies, and originates and brokers commercial/multifamily mortgage loans which are not part of government agency programs. Berkadia is an investment sales advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. Berkadia uses all of the proceeds from the commercial paper sales of an affiliate of Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements. Repayment of the commercial paper is supported by a $1.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. As of September 30, 2018 , the aggregate amount of commercial paper outstanding was $1.47 billion . As discussed further in Note 1, on October 1, 2018, the Company's interest in Berkadia was transferred to Jefferies Group. FXCM As discussed more fully in Note 3, at September 30, 2018 , Jefferies has a 50% voting interest in FXCM and a senior secured term loan to FXCM due January 2019. On September 1, 2016, we gained the ability to significantly influence FXCM through our seats on the board of directors. As a result, we classify our equity investment in FXCM in our Consolidated Statements of Financial Condition as Loans to and investments in associated companies. Our term loan remains classified within Trading assets, at fair value. We account for our equity interest in FXCM on a one month lag. We are amortizing our basis difference between the estimated fair value and the underlying book value of FXCM customer relationships, technology, tradename, leases and long-term debt over their respective useful lives. During February 2017, Global Brokerage Holdings and FXCM's U.S. subsidiary, Forex Capital Markets LLC ("FXCM U.S.") settled complaints filed by the National Futures Association and the Commodity Futures Trading Commission ("CFTC") against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. As part of the settlements, FXCM U.S. withdrew from business and sold FXCM U.S.'s customer accounts. Based on the above actions, we evaluated in the first quarter of 2017 whether our equity method investment was fully recoverable. We engaged an independent valuation firm to assist management in estimating the fair value of FXCM. Our estimate of fair value was based on a discounted cash flow and comparable public company analysis. The result of our analysis indicated that the estimated fair value of our equity interest in FXCM was lower than our carrying value by $130.2 million . We concluded based on the regulatory actions, FXCM's restructuring plan, investor perception and declines in the trading price of Global Brokerage's common shares and convertible debt, that the decline in fair value of our equity interest was other than temporary. As such, we impaired our equity investment in FXCM in the first quarter of 2017 by $130.2 million . FXCM is considered a VIE and our term loan and equity interest are variable interests. We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance. Therefore, we do not consolidate FXCM. Garcadia Garcadia was a joint venture between us and Garff Enterprises, Inc. ("Garff") that owned and operated 28 automobile dealerships comprised of domestic and foreign automobile makers. The Garcadia joint venture agreement specified that we and Garff had equal board representation and equal votes on all matters affecting Garcadia, and that all operating cash flows from Garcadia would be allocated 65% to us and 35% to Garff, with the exception of one dealership from which we received 83% of all operating cash flows and four other dealerships from which we received 71% of all operating cash flows. Garcadia’s strategy was to acquire automobile dealerships in primary or secondary market locations meeting its specified return criteria. In the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family, for $417.2 million in cash. The pre-tax gain recognized as a result of this transaction, $221.7 million for the three and nine months ended September 30, 2018 , is classified as Other revenue. Linkem We own approximately 42% of the common shares of Linkem, a fixed wireless broadband services provider in Italy. In addition, we own approximately 63% of the 5% convertible preferred stock, which is automatically convertible to common shares in 2022. If all of our convertible preferred stock was converted, it would increase our ownership to approximately 54% of Linkem’s common equity at September 30, 2018 . We have approximately 48% of the total voting securities of Linkem. HomeFed At September 30, 2018 , we own 10,852,123 shares of HomeFed’s common stock, representing approximately 70% of HomeFed’s outstanding common shares; however, we have contractually agreed to limit our voting rights such that we will not be able to vote more than 45% of HomeFed’s total voting securities voting on any matter, assuming all HomeFed shares not owned by us are voted. HomeFed develops and owns residential and mixed-use real estate properties. HomeFed is a public company traded on the NASD OTC Bulletin Board (Symbol: HOFD). As a result of a 1998 distribution to all of our shareholders, approximately 5% of HomeFed is beneficially owned by our Chairman at September 30, 2018 . Three of our executives serve on the board of directors of HomeFed, including our Chairman who serves as HomeFed’s Chairman, and our President. Since we do not control HomeFed, our investment in HomeFed is accounted for under the equity method as an investment in an associated company. Golden Queen Mining Company Since 2014, we invested $93.0 million , net in cash in a limited liability company (Gauss LLC) to partner with the Clay family and Golden Queen Mining Co. Ltd., to jointly fund, develop and operate the Soledad Mountain gold and silver mine project. Previously 100% owned by Golden Queen Mining Co. Ltd., the project is a fully-permitted, open pit, heap leach gold and silver project located in Kern County, California, which commenced gold and silver production in March 2016. In exchange for a noncontrolling ownership interest in Gauss LLC, the Clay family contributed $34.5 million , net in cash. Gauss LLC invested both our and the Clay family’s net contributions totaling $127.5 million to the joint venture, Golden Queen, in exchange for a 50% ownership interest. Golden Queen Mining Co. Ltd. contributed the Soledad Mountain project to the joint venture in exchange for the other 50% interest. As a result of our consolidating Gauss LLC, our Loans to and investments in associated companies reflects Gauss LLC’s net investment of $127.5 million in the joint venture, which includes both the amount we contributed and the amount contributed by the Clay family. The joint venture, Golden Queen, is considered a VIE and we have determined that we are not the primary beneficiary of the joint venture and are therefore not consolidating its results. Our maximum exposure to loss as a result of our involvement with the joint venture is limited to our investment. In the third quarter of 2018, Golden Queen completed an updated mine plan and financial projections reflecting lower grades of gold as well as a decrease in the market price of gold. As a result of lower projected cash flows, we engaged an independent valuation firm to assist management in estimating the fair value of our equity investment in Golden Queen. Our estimate of fair value was based on a discounted cash flow analysis. The result of our analysis indicated that the estimated fair value of our equity interest in Golden Queen was lower than our prior carrying value by $47.9 million . We concluded based on lower projected cash flows and a decline in the market price of gold that the decline in fair value of our equity interest was other than temporary. As such, an impairment charge of $47.9 million was recorded in Income (loss) related to associated companies in the three and nine months ended September 30, 2018 . Other The following table provides summarized data for certain associated companies (Jefferies Finance, National Beef for the period subsequent to the closing of the transaction with Marfrig on June 5, 2018 and Berkadia) (in thousands): For the Nine Months Ended September 30, 2018 2017 Revenues $ 3,341,369 $ 763,727 Income from continuing operations before extraordinary items $ 591,191 $ 267,796 Net income $ 591,191 $ 267,796 |
Financial Statement Offsetting
Financial Statement Offsetting | 9 Months Ended |
Sep. 30, 2018 | |
Offsetting [Abstract] | |
Financial Statement Offsetting | Financial Statement Offsetting In connection with Jefferies Group's derivative activities and securities financing activities, Jefferies Group may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to: derivative transactions – ISDA master netting agreements; master securities lending agreements (securities lending transactions); and master repurchase agreements (repurchase transactions). 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 to a counterparty against all or a portion of an amount due from the counterparty or a third party. Under Jefferies Group's derivative ISDA master netting agreements, Jefferies Group typically will 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 Jefferies Group has not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of Jefferies Group's risk management processes as part of reducing counterparty credit risk and managing liquidity risk. Jefferies Group is 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. The following table provides information regarding derivative contracts, repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at September 30, 2018 Derivative contracts $ 3,523,745 $ (3,334,100 ) $ 189,645 $ — $ — $ 189,645 Securities borrowing arrangements $ 7,369,908 $ — $ 7,369,908 $ (529,662 ) $ (1,088,612 ) $ 5,751,634 Reverse repurchase agreements $ 11,634,035 $ (7,974,976 ) $ 3,659,059 $ (187,426 ) $ (3,441,009 ) $ 30,624 Liabilities at September 30, 2018 Derivative contracts $ 4,170,251 $ (3,454,488 ) $ 715,763 $ — $ — $ 715,763 Securities lending arrangements $ 2,531,504 $ — $ 2,531,504 $ (529,662 ) $ (1,977,558 ) $ 24,284 Repurchase agreements $ 17,839,459 $ (7,974,976 ) $ 9,864,483 $ (187,426 ) $ (8,632,482 ) $ 1,044,575 Assets at December 31, 2017 Derivative contracts $ 3,497,969 $ (3,318,481 ) $ 179,488 $ — $ — $ 179,488 Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements $ 14,858,297 $ (11,168,738 ) $ 3,689,559 $ (463,973 ) $ (3,207,147 ) $ 18,439 Liabilities at December 31, 2017 Derivative contracts $ 3,745,908 $ (3,490,514 ) $ 255,394 $ — $ — $ 255,394 Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements $ 19,829,249 $ (11,168,738 ) $ 8,660,511 $ (463,973 ) $ (7,067,512 ) $ 1,129,026 (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 GAAP are not met. Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At September 30, 2018 , amounts include $5,717.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,544.1 million , and $1,019.6 million of repurchase agreements, for which we have pledged securities collateral of $1,054.1 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. At December 31, 2017 , amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net And Goodwill | Intangible Assets, Net and Goodwill A summary of Intangible assets, net and goodwill is as follows (in thousands): September 30, 2018 December 31, 2017 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,475 $ 8,551 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $100,591 and $230,074 70,071 347,767 Trademarks and tradenames, net of accumulated amortization of $20,211 and $95,627 108,406 293,851 Supply contracts, net of accumulated amortization of $0 and $57,440 — 86,160 Other, net of accumulated amortization of $4,132 and $3,885 4,818 4,701 Total intangible assets, net 191,770 741,030 Goodwill: National Beef — 14,991 Jefferies Group 1,699,269 1,703,300 Other operations 3,859 3,859 Total goodwill 1,703,128 1,722,150 Total intangible assets, net and goodwill $ 1,894,898 $ 2,463,180 Amortization expense on intangible assets included in Income (loss) from continuing operations was $3.3 million and $3.2 million for the three months ended September 30, 2018 and 2017 , respectively, and $9.9 million and $9.7 million for the nine months ended September 30, 2018 and 2017 , respectively. The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 3,359 2019 $ 13,439 2020 $ 13,439 2021 $ 13,052 2022 $ 13,052 As further discussed in Note 1, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its Intangible assets, net and goodwill. Intangible assets, net and goodwill at December 31, 2017 included $539.6 million of intangibles and $15.0 million of goodwill related to National Beef. Goodwill and Intangible Impairment Testing We performed our annual impairment testing of Jefferies Group goodwill as of August 1, 2018. The quantitative goodwill impairment test is performed at our reporting unit level and consists of two steps. In the first step, the fair value of the reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The estimated fair value of Jefferies Group is based on valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating fair value include price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. An independent valuation specialist was engaged to assist with the valuation process for Jefferies Group at August 1, 2018. The results of our annual goodwill impairment test for Jefferies Group did not indicate any goodwill impairment. Jefferies Group performed its annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2018. Jefferies Group elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. A qualitative assessment was performed on the remainder of its indefinite-life intangible assets. With regard to its qualitative assessment of the remaining indefinite-life intangible assets, based on its assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, Jefferies Group has concluded that it is not more likely than not that the intangible assets are impaired. Jefferies Group recognized an immaterial impairment loss on certain exchange membership interests and registrations during the nine months ended September 30, 2018 . |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Jefferies Group's short-term borrowings, which mature in one year or less, are as follows (in thousands): September 30, 2018 December 31, 2017 Bank loans (1) $ 324,021 $ 304,651 Floating rate puttable notes 57,985 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 382,006 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York and Jefferies Group. At September 30, 2018 and December 31, 2017 , the weighted average interest rate on short-term borrowings outstanding was 3.39% and 2.51% per annum, respectively. During the nine months ended September 30, 2018 , Jefferies Group issued equity-linked notes with a principal amount of $70.5 million , which matured on July 12, 2018. These notes were repaid with cash on hand on the maturity date. In addition, during the nine months ended September 30, 2018 , Jefferies Group's floating rate puttable notes with principal amounts of €41.0 million and Jefferies Group's equity-linked notes with a principal amount of $23.3 million matured. See Note 3 for further information. The Bank of New York Mellon has agreed to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $150.0 million . The Intraday Credit Facility contains financial covenants, which includes a minimum regulatory net capital requirement for Jefferies Group. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. During the nine months ended September 30, 2018 , Jefferies Group was in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Aggregate Indebtedness [Abstract] | |
Long-Term Debt | Long-Term Debt The principal amount (net of unamortized discounts, premiums and debt issuance costs), stated interest rate and maturity date of outstanding debt are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,203 $ 742,348 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,710 246,673 Total long-term debt – Parent Company 989,913 989,021 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 5.125% Senior Notes, due April 13, 2018, $0 and $678,300 principal (1) — 682,338 8.50% Senior Notes, due July 15, 2019, $680,800 principal 707,072 728,872 2.375% Euro Medium Term Notes, due May 20, 2020, $579,850 and $594,725 principal 578,896 593,334 6.875% Senior Notes, due April 15, 2021, $750,000 principal 795,967 808,157 2.25% Euro Medium Term Notes, due July 13, 2022, $4,639 and $4,758 principal 4,332 4,389 5.125% Senior Notes, due January 20, 2023, $600,000 principal 613,634 615,703 4.85% Senior Notes, due January 15, 2027, $750,000 principal (2) 712,667 736,357 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 374,211 375,794 3.875% Convertible Senior Debentures, due November 1, 2029, $0 and $324,779 principal — 324,779 4.15% Senior Notes, due January 23, 2030, $1,000,000 and $0 principal 987,576 — 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,758 512,040 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,718 420,990 Structured Notes (3) 709,557 614,091 Jefferies Group Revolving Credit Facility 158,478 — National Beef Reducing Revolver Loan — 120,000 National Beef Revolving Credit Facility — 76,809 Foursight Capital Credit Facilities 138,033 170,455 Other 74,613 112,654 Total long-term debt – subsidiaries 6,787,512 6,896,762 Long-term debt $ 7,777,425 $ 7,885,783 (1) On April 13, 2018, these 5.125% Senior Notes were redeemed by Jefferies Group with cash on hand. (2) Amount includes a gain of $24.1 million and a loss of $9.6 million during the nine months ended September 30, 2018 and 2017 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (3) Includes $709.6 million and $607.0 million at fair value at September 30, 2018 and December 31, 2017 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. Subsidiary Debt : In November 2017, all of Jefferies Group's 3.875% Convertible Senior Debentures due 2029 were called for optional redemption, with a redemption date of January 5, 2018, at a redemption price equal to 100% of the principal amount of the convertible debentures redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. All of these remaining convertible debentures were redeemed in January 2018. In addition, Jefferies Group's 5.125% senior notes with a principal of $668.3 million were redeemed in April 2018. In January 2018, Jefferies Group issued 4.15% senior notes with a principal amount of $1.0 billion , due 2030. Additionally, structured notes with a total principal amount of approximately $162.6 million , net of retirements were issued during the nine months ended September 30, 2018 . On May 16, 2018, Jefferies Group entered into a senior secured revolving credit facility ("Jefferies Group Revolving Credit Facility") with a group of commercial banks for an aggregate principal amount of $160.0 million . Jefferies Group Revolving Credit Facility contains certain financial covenants, including, but not limited to, restrictions on future indebtedness of certain of its subsidiaries and its minimum tangible net worth, liquidity requirements and minimum capital requirements. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate ("LIBOR"), as defined in Jefferies Group Revolving Credit Facility agreement. The obligations of certain of Jefferies Group's subsidiaries under Jefferies Group Revolving Credit Facility are secured by substantially all its assets. At September 30, 2018 , Jefferies Group was in compliance with debt covenants under Jefferies Group Revolving Credit Facility. As further discussed in Note 1, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its long-term debt. Long-term debt at December 31, 2017 included $199.2 million related to National Beef. At September 30, 2018 , Foursight Capital's credit facilities consisted of two warehouse credit commitments aggregating $225.0 million , which mature in March 2020 and July 2020. The March 2020 credit facility bears interest based on the three-month LIBOR plus a credit spread fixed through its maturity and the July 2020 credit facility bears interest based on the one-month LIBOR plus a credit spread fixed through its maturity. As a condition of the March 2020 credit facility, Foursight Capital is obligated to maintain cash reserves in an amount equal to the quoted price of an interest rate cap sufficient to meet the hedging requirements of the credit commitment. The credit facilities are secured by first priority liens on auto loan receivables owed to Foursight Capital of approximately $167.9 million at September 30, 2018 . |
Mezzanine Equity
Mezzanine Equity | 9 Months Ended |
Sep. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests At December 31, 2017 , the redeemable noncontrolling interests primarily relate to National Beef and were held by its minority owners, USPB, NBPCo Holdings and the chief executive officer of National Beef. The holders of these interests shared in the profits and losses of National Beef on a pro rata basis with us. As discussed in Note 1, we deconsolidated National Beef as a result of the 48% sale to Marfrig on June 5, 2018. Immediately prior to the deconsolidation, the cumulative increase in fair value of $237.7 million recorded to the redeemable noncontrolling interest since the initial acquisition of National Beef was reversed through Additional paid-in capital in the Consolidated Statement of Financial Condition. Redeemable noncontrolling interests in National Beef are reflected in the Consolidated Statements of Financial Condition at fair value. The following table rolls forward National Beef’s redeemable noncontrolling interests activity (in thousands): For the Nine Months Ended September 30, 2018 2017 As of January 1, $ 412,128 $ 321,962 Income allocated to redeemable noncontrolling interests 37,141 65,088 Distributions to redeemable noncontrolling interests (70,681 ) (37,029 ) Increase in fair value of redeemable noncontrolling interests 21,404 24,404 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) — Deconsolidation of National Beef (162,323 ) — Balance, September 30, $ — $ 374,425 At September 30, 2018 and December 31, 2017 , redeemable noncontrolling interests also include other redeemable noncontrolling interests of $21.4 million and $14.5 million , respectively, primarily related to our oil and gas exploration and development businesses. The majority of the increase in redeemable noncontrolling interests is due to an increase in fair value associated with Vitesse Energy Finance. We estimated the fair value of Vitesse Energy Finance based on a discounted cash flow analysis, market comparable method and market transaction method. Mandatorily Redeemable Convertible Preferred Shares In connection with our acquisition of Jefferies Group in March 2013, we issued a new series of 3.25% Cumulative Convertible Preferred Shares ("Preferred Shares") ( $125.0 million at mandatory redemption value) in exchange for Jefferies Group's outstanding 3.25% Series A-1 Cumulative Convertible Preferred Stock. The Preferred Shares have a 3.25% annual, cumulative cash dividend and are currently convertible into 4,162,200 common shares, an effective conversion price of $30.03 per share. The holders of the Preferred Shares are also entitled to an additional quarterly payment in the event we declare and pay a dividend on our common stock in an amount greater than $0.0625 per common share per quarter. The additional quarterly payment would be paid to the holders of Preferred Shares on an as converted basis and on a per share basis would equal the quarterly dividend declared and paid to a holder of a share of common stock in excess of $0.0625 per share. In the third quarter of 2017, we increased our quarterly dividend from $0.0625 to $0.10 per common share. In the third quarter of 2018, we increased our quarterly dividend from $0.10 to $0.125 per common share. These increased the preferred stock dividend from $3.2 million for the nine months ended September 30, 2017 to $3.6 million for the nine months ended September 30, 2018 . The Preferred Shares are callable beginning in 2023 at a price of $1,000 per share plus accrued interest and are mandatorily redeemable in 2038. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Compensation Plans | Compensation Plans Restricted Stock and Restricted Stock Units. Restricted stock and restricted stock units ("RSUs") may be granted to new employees as "sign-on" awards, to existing employees as "retention" awards and to certain executive officers as awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four -year service period and are amortized as compensation expense on a straight-line basis over the related four years. Restricted stock and RSUs are granted to certain senior executives with market, performance and service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. Senior Executive Compensation Plan. The Compensation Committee of the Jefferies Board of Directors approved an executive compensation plan effective January 1, 2018 that extends Jefferies prior compensation plans for our CEO and our President (together, our "Senior Executives") for compensation years 2018, 2019 and 2020. For each Senior Executive, the Compensation Committee has targeted long-term compensation of $25.0 million per year under the plan with a target of $16.0 million in long-term equity in the form of RSUs and a target of $9.0 million in long-term cash, subject to performance targets over the three -year measurement period for each compensation year. To receive targeted long-term equity, our Senior Executives will have to achieve 8% growth on an annual and multi-year compounded basis in Jefferies Total Shareholder Return ("TSR") and to receive targeted long-term cash, our Senior Executives will have to achieve 8% growth on an annual and multi-year compounded basis in Jefferies Return on Tangible Deployable Equity ("ROTDE"). If TSR and ROTDE are less than 5% , our Senior Executives will receive no long-term compensation. If TSR and ROTDE growth rates are greater than 8% , our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates. TSR is based on annualized rate of return reflecting price appreciation plus reinvestment of dividends and distributions to shareholders. ROTDE is net income adjusted for amortization of intangible assets divided by tangible book value at the beginning of year adjusted for intangible assets and deferred tax assets. Stock-Based Compensation Expense. Compensation and benefits expense included $12.8 million and $11.1 million for the three months ended September 30, 2018 and 2017 , respectively, and $38.0 million and $31.5 million for the nine months ended September 30, 2018 and 2017 , respectively, for share-based compensation expense relating to grants made under our share-based compensation plans. Total compensation cost includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. The total tax benefit recognized in results of operations related to share-based compensation expenses was $4.0 million and $4.0 million for the three months ended September 30, 2018 and 2017 , respectively, and $10.0 million and $11.2 million for the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , total unrecognized compensation cost related to nonvested share-based compensation plans was $131.5 million ; this cost is expected to be recognized over a weighted average period of 2.4 years. At September 30, 2018 , there were 1,862,000 shares of restricted stock outstanding with future service required, 9,424,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 10,262,000 RSUs outstanding with no future service required and 871,000 shares issuable under other plans. Excluding shares issuable pursuant to outstanding stock options, the maximum potential increase to common shares outstanding resulting from these outstanding awards is 20,557,000 . Restricted Cash Awards. Jefferies Group provides compensation to certain new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements. The restricted cash awards are amortized to compensation expense over the relevant service period. At September 30, 2018 , the remaining unamortized amount of the restricted cash awards was $446.9 million ; this cost is expected to be recognized over a weighted average period of two years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Activity in accumulated other comprehensive income is reflected in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity but not in the Consolidated Statements of Operations. A summary of accumulated other comprehensive income, net of taxes is as follows (in thousands): September 30, 2018 December 31, 2017 Net unrealized gains on available for sale securities $ 542,790 $ 572,085 Net unrealized foreign exchange losses (180,926 ) (101,400 ) Net unrealized losses on instrument specific credit risk (18,916 ) (34,432 ) Net unrealized gains (losses) on cash flow hedges 446 (1,138 ) Net minimum pension liability (55,649 ) (62,391 ) $ 287,745 $ 372,724 For the nine months ended September 30, 2018 and 2017 , significant amounts reclassified out of accumulated other comprehensive income to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations 2018 2017 Net unrealized gains on available for sale securities, net of income tax provision of $37 and $14 $ 105 $ 24 Other revenues Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(16) and $1,086 20,459 (5,310 ) Other income and other expenses Net unrealized gains on instrument specific credit risk, net of income tax provision of $126 and $0 371 — Principal transactions Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(508) and $(604) (1,398 ) (1,297 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $(1,231) (5,344 ) 1,231 Compensation and benefits expense and Income tax provision (benefit) Total reclassifications for the period, net of tax $ 14,193 $ (5,352 ) In connection with the acquisition of Jefferies Bache from Prudential on July 1, 2011, Jefferies Group acquired a defined benefit pension plan located in Germany (the "German Pension Plan") for the benefit of eligible employees of Jefferies Bache in that territory. On December 28, 2017, a Liquidation Insurance Contract was entered into between Jefferies Bache Limited and Generali Lebensversicherung AG ("Generali") to transfer the defined benefit pension obligations and insurance contracts to Generali, for approximately €6.5 million , which was paid in January 2018 and released Jefferies Group from any and all obligations under the German Pension Plan. This transaction was completed in the first quarter of 2018. In connection with the transfer of the German Pension Plan, $5.3 million was reclassified to Compensation and benefits expense in the Consolidated Statements of Operations from Accumulated other comprehensive income during the nine months ended September 30, 2018 . |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Revenues from contracts with customers: Commissions and other fees $ 155,417 $ 461,023 Investment banking 460,043 1,400,331 Manufacturing revenues 94,029 307,129 Other 70,590 174,565 Total revenue from contracts with customers 780,079 2,343,048 Other sources of revenue: Principal transactions 116,204 315,622 Interest income 336,736 939,272 Other 225,958 265,972 Total revenue from other sources 678,898 1,520,866 Total revenues $ 1,458,977 $ 3,863,914 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 (the "transaction price"). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. The following provides detailed information on the recognition of our revenues from contracts with customers: Commissions and Other Fees. Jefferies Group earns commission 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 Jefferies Group records a receivable between trade-date and payment on settlement date. Jefferies Group permits institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. Jefferies Group acts as an agent in the soft dollar arrangements as the customer controls the use of the soft dollars and directs Jefferies Group's payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues in our Consolidated Statements of Operations. Jefferies Group earns account advisory and distribution fees in connection with wealth management services. Account advisory fees are recognized over time using the time-elapsed method as Jefferies Group determined that the customer simultaneously receives and consumes the benefits of investment advisory services as they are provided. Account advisory fees may be paid in advance of a specified service period or in arrears at the end of the specified service period (e.g., quarterly). Account advisory fees paid in advance are initially deferred within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. Distribution fees are variable and recognized when uncertainties with respect to the amounts are resolved. Investment Banking Fees. Jefferies Group provides its clients with a full range of capital markets and financial advisory services. Capital markets services include underwriting and placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal bonds and mortgage- and asset-backed securities. Underwriting and placement agent revenues are recognized at a point in time on trade-date, as the client obtains the control and benefit of the capital markets offering at that point. Costs associated with capital markets transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis within Selling, general and other expenses in the Consolidated Statements of Operations as Jefferies Group is acting as a principal in the arrangement. Any expenses reimbursed by its clients are recognized as Investment banking revenues. Revenues from financial advisory services primarily consist of fees generated in connection with merger, acquisition and restructuring transactions. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. Fees received prior to the completion of the transaction are deferred within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress as Jefferies Group's clients simultaneously receive and consume the benefits of those services as they are provided. A significant portion of the fees Jefferies Group receives for its advisory services are considered variable as they are contingent upon a future event (e.g., completion of a transaction or third-party emergence from bankruptcy) and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Payment for advisory services are generally due promptly upon completion of a specified milestone or, for retainer fees, periodically over the course of the engagement. Jefferies Group recognizes a receivable between the date of completion of the milestone and payment by the customer. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by Jefferies Group's clients are recognized as Investment banking revenues. Asset Management Fees. Jefferies Group and LAM earn management and performance fees, recorded in Other revenues, in connection with investment advisory services provided to various funds and accounts, which are satisfied over time and measured using a time elapsed measure of progress as the customer receives the benefits of the services evenly throughout the term of the contract. Management and performance fees are considered variable as they are subject to fluctuation (e.g., changes in assets under management, market performance) and/ or are contingent on a future event during the measurement period (e.g., meeting a specified benchmark) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Management fees are generally based on month-end assets under management or an agreed upon notional amount and are included in the transaction price at the end of each month when the assets under management or notional amount is known. Performance fees are received when the return on assets under management for a specified performance period exceed certain benchmark returns, "high-water marks" or other performance targets. The performance period related to performance fees is annual, semi-annual or quarterly. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. Manufacturing Revenues. Idaho Timber's primary business consists of the sale of lumber that is manufactured or remanufactured at one of its locations. Agreements with customers for these sales specify the type, quantity and price of products to be delivered as well as the delivery date and payment terms. The transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. Disaggregation of Revenue The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the three and nine months ended September 30, 2018 (in thousands): Three months ended September 30, 2018 Reportable Segments Jefferies Group Corporate All Other Total Major Business Activity: Jefferies Group: Equities (1) $ 159,571 $ — $ — $ 159,571 Fixed Income (1) 3,007 — — 3,007 Investment Banking 460,043 — — 460,043 Asset Management 5,184 — — 5,184 Manufacturing revenues — — 94,029 94,029 Oil and gas revenues — — 46,506 46,506 Other revenues — — 11,739 11,739 Total revenues from contracts with customers $ 627,805 $ — $ 152,274 $ 780,079 Primary Geographic Region: Americas $ 545,998 $ — $ 151,687 $ 697,685 Europe, Middle East and Africa 62,914 — 514 63,428 Asia 18,893 — 73 18,966 Total revenues from contracts with customers $ 627,805 $ — $ 152,274 $ 780,079 Nine months ended September 30, 2018 Reportable Segments Jefferies Group Corporate All Other Total Major Business Activity: Jefferies Group: Equities (1) $ 471,161 $ — $ — $ 471,161 Fixed Income (1) 10,511 — — 10,511 Investment Banking 1,400,331 — — 1,400,331 Asset Management 16,130 — — 16,130 Manufacturing revenues — — 307,129 307,129 Oil and gas revenues — — 106,741 106,741 Other revenues — — 31,045 31,045 Total revenues from contracts with customers $ 1,898,133 $ — $ 444,915 $ 2,343,048 Primary Geographic Region: Americas $ 1,638,828 $ — $ 443,718 $ 2,082,546 Europe, Middle East and Africa 203,103 — 976 204,079 Asia 56,202 — 221 56,423 Total revenues from contracts with customers $ 1,898,133 $ — $ 444,915 $ 2,343,048 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Information on Remaining Performance Obligations and Revenue Recognized from Past Performance We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at September 30, 2018 . Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at September 30, 2018 . During the three and nine months ended September 30, 2018 , Jefferies Group recognized $4.4 million and $18.3 million , respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in consideration that was constrained in prior periods. In addition, Jefferies Group recognized $4.6 million and $13.5 million , respectively, of revenues primarily associated with distribution services during the three and nine months ended September 30, 2018 , a portion of which relates to prior periods. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. We record a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. Jefferies Group deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. We had receivables related to revenues from contracts with customers of $259.1 million and $469.3 million at September 30, 2018 and December 31, 2017 , respectively. As further discussed in Note 1, on June 5, 2018, we sold 48% of National Beef to Marfrig. Upon closing of the transaction with Marfrig, we deconsolidated our investment in National Beef, including its receivables related to revenues from contracts with customers. Receivables related to revenues from contracts with customers at December 31, 2017 included $183.4 million related to National Beef. We had no significant impairments related to these receivables during the three and nine months ended September 30, 2018 . Our deferred revenue, which primarily relates to Jefferies Group, was $16.3 million and $15.5 million at September 30, 2018 and December 31, 2017 , respectively, which are recorded as Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. During the three months ended September 30, 2018 , we recognized $6.3 million of deferred revenue from the balance at June 30, 2018 . During the nine months ended September 30, 2018 , we recognized $20.8 million of deferred revenue from the balance at December 31, 2017 . Contract Costs Jefferies Group capitalizes costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At September 30, 2018 , Jefferies Group's capitalized costs to fulfill a contract were $4.8 million , which are recorded in Receivables in the Consolidated Statement of Financial Condition. For the three and nine months ended September 30, 2018 , Jefferies Group recognized $1.5 million and $1.5 million , respectively, of expenses related to costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the three and nine months ended September 30, 2018 . At September 30, 2018 , capitalized costs related to our other subsidiaries were not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions at September 30, 2018 was $237.8 million (including $63.0 million for interest), of which $184.0 million related to Jefferies Group. The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions at December 31, 2017 was $226.4 million (including $57.4 million for interest), of which $177.8 million related to Jefferies Group. If recognized, such amounts would lower our effective tax rate. Accrued interest is included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. No material penalties were accrued for the nine months ended September 30, 2018 and the year ended December 31, 2017. The statute of limitations with respect to our federal income tax returns has expired for all years through 2013. We have settled our 2013 Internal Revenue Service examination with the settlement having an immaterial impact on our effective tax rate. Our New York State and New York City income tax returns are currently being audited for the 2012 to 2014 period and 2011 to 2014 period, respectively. Prior to becoming a wholly-owned subsidiary, Jefferies Group filed a consolidated U.S. federal income tax return with its qualifying subsidiaries and was subject to income tax in various states, municipalities and foreign jurisdictions. Jefferies Group is currently under examination by various major tax jurisdictions. We do not expect that resolution of these examinations will have a significant effect on our Consolidated Statements of Financial Condition, but could have a significant impact on the Consolidated Statements of Operations for the period in which resolution occurs. Our provision for income taxes for continuing operations for the nine months ended September 30, 2018 was reduced by a $43.9 million benefit resulting from a reversal of our valuation allowance with respect to certain federal and state net operating loss carryforwards ("NOLs") which we now believe are more likely than not to be utilized before they expire. Our provision for income taxes from continuing operations for the nine months ended September 30, 2017 was reduced by a $31.9 million benefit resulting from the repatriation of Jefferies Group's earnings from certain of its foreign subsidiaries, along with their associated foreign tax credits. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the "Tax Act"). SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification 740, Income Taxes ("ASC 740"). While the initial estimated impact of the Tax Act was calculated using all available information, we anticipate modifications based on the procedures set forth under SAB 118. This process is applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) where a reasonable estimate cannot yet be made, taxes are reflected in accordance with the law prior to the enactment of the Tax Act. Due to the complex nature of the Tax Act, we have not completed our accounting for the income tax effects of certain elements of the Tax Act. If we were able to make reasonable estimates of the effects of certain elements for which our analysis is not yet complete, we recorded a provisional estimate in the financial statements. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before the Tax Act. The ultimate impact of the Tax Act may differ from this estimate, possibly materially, due to refinement of our calculations based on updated information, changes in interpretations and assumptions, and guidance that may be issued and actions we may take in response to the Tax Act. We note that the Tax Act is complex and we continue to assess the impact that various provisions will have on our business. Since the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretation are expected, we consider the accounting for the deferred tax asset remeasurements, the transition tax, and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. During the nine months ended September 30, 2018 , we revised our prior estimate and recorded a $3.8 million increase in our tax expense related to the Tax Act. |
Common Share and Earnings (Loss
Common Share and Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Common Share and Earnings (Loss) Per Common Share | Common Share and Earnings (Loss) Per Common Share Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 192,635 $ 99,351 $ 1,042,689 $ 438,952 Allocation of earnings to participating securities (1) (1,054 ) (368 ) (5,049 ) (1,692 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 191,581 98,983 1,037,640 437,260 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 3 (2 ) 34 3 Mandatorily redeemable convertible preferred share dividends 1,276 — — 3,203 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 192,860 $ 98,981 $ 1,037,674 $ 440,466 Denominator for earnings per share: Weighted average common shares outstanding 332,191 358,039 343,829 359,031 Weighted average shares of restricted stock outstanding with future service required (1,879 ) (1,320 ) (1,681 ) (1,377 ) Weighted average RSUs outstanding with no future service required 11,122 11,109 11,152 11,082 Denominator for basic earnings per share – weighted average shares 341,434 367,828 353,300 368,736 Stock options 5 23 13 22 Senior executive compensation plan awards 4,706 2,347 3,856 2,313 Mandatorily redeemable convertible preferred shares 4,162 — — 4,162 Denominator for diluted earnings per share 350,307 370,198 357,169 375,233 (1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 1,888,700 and 1,366,700 for the three months ended September 30, 2018 and 2017 , respectively, and 1,700,700 and 1,433,500 for the nine months ended September 30, 2018 and 2017 , respectively. Dividends declared on participating securities were not material during three and nine months ended September 30, 2018 and 2017 . Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. For the nine months ended September 30, 2018 and the three and nine months ended September 30, 2017 , shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price. All of these convertible debentures were redeemed in January 2018. For the nine months ended September 30, 2018 and the three months ended September 30, 2017 , shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive. The Board of Directors from time to time has authorized the repurchase of our common shares. In April 2018, the Board of Directors approved an increase to our share repurchase program to 25,000,000 common shares from the 12,500,000 million remaining under its prior authorization. In July 2018, the Board of Directors approved an increase to our share repurchase program by an additional 25,000,000 common shares. During the nine months ended September 30, 2018 , we purchased a total of 26,119,483 of our common shares under these authorizations. As of September 30, 2018 , 23,880,517 common shares remained authorized for repurchase. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies And Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes commitments associated with certain business activities (in millions): Expected Maturity Date 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Maximum Payout Equity commitments (1) $ 280.0 $ 56.9 $ 31.7 $ — $ 9.8 $ 378.4 Loan commitments (1) — 250.0 54.4 32.5 — 336.9 Underwriting commitments 411.0 — — — — 411.0 Forward starting reverse repos (2) 3,159.4 — — — — 3,159.4 Forward starting repos (2) 2,057.8 — — — — 2,057.8 Other unfunded commitments (1) 60.0 148.7 42.3 — 4.9 255.9 $ 5,968.2 $ 455.6 $ 128.4 $ 32.5 $ 14.7 $ 6,599.4 (1) Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date. The amounts are however mostly available on demand. (2) At September 30, 2018 , $3,141.9 million of the forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. Equity Commitments. Equity commitments include commitments to invest in Jefferies Group's joint venture, Jefferies Finance, and commitments to invest in private equity funds and in Jefferies Capital Partners, LLC, the manager of the private equity funds, which consist of a team led by Brian P. Friedman, our President and a Director. At September 30, 2018 , Jefferies Group's outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $18.1 million . See Note 9 for additional information regarding Jefferies Group's investment in Jefferies Finance. Additionally, as of September 30, 2018 , we had other outstanding equity commitments to invest up to $316.7 million in various other investments, which include $280.0 million as part of the further development of our alternative asset management platforms. Loan Commitments. From time to time Jefferies Group makes commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At September 30, 2018 , Jefferies Group had $86.3 million of outstanding loan commitments to clients. Loan commitments outstanding at September 30, 2018 , also include Jefferies Group's portion of the outstanding secured revolving credit facility provided to Jefferies Finance to support loan underwritings by Jefferies Finance. At September 30, 2018 , none of Jefferies Group's $250.0 million commitment was funded. Underwriting Commitments . In connection with investment banking activities, Jefferies Group may from time to time provide underwriting commitments to its clients in connection with capital raising transactions. Forward Starting Reverse Repos and Repos. Jefferies Group enters into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities. Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Contingencies We and our subsidiaries are parties to legal and regulatory proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to our consolidated financial position. We and our subsidiaries are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We do not believe that any of these actions will have a significant adverse effect on our consolidated financial position or liquidity, but any amounts paid could be significant to results of operations for the period. Guarantees Derivative Contracts. Jefferies Group dealer activities cause it to make markets and trade in a variety of derivative instruments. Certain derivative contracts that Jefferies Group has entered into meet the accounting definition of a guarantee under GAAP, including credit default swaps, written foreign currency options and written equity put options. On certain of these contracts, such as written interest rate caps and foreign currency options, the maximum payout cannot be quantified since the increase in interest or foreign exchange rates are not contractually limited by the terms of the contract. As such, we have disclosed notional values as a measure of Jefferies Group's maximum potential payout under these contracts. The following table summarizes the notional amounts associated with Jefferies Group derivative contracts meeting the definition of a guarantee under GAAP as of September 30, 2018 (in millions): Expected Maturity Date Guarantee Type 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Notional/ Maximum Payout Derivative contracts – non-credit related $ 10,898.5 $ 5,978.6 $ 2,948.5 $ 1,015.0 $ 454.6 $ 21,295.2 Written derivative contracts – credit related — — 36.4 33.8 — 70.2 Total derivative contracts $ 10,898.5 $ 5,978.6 $ 2,984.9 $ 1,048.8 $ 454.6 $ 21,365.4 The derivative contracts deemed to meet the definition of a guarantee under GAAP are before consideration of hedging transactions and only reflect a partial or "one-sided" component of any risk exposure. Written equity options and written credit default swaps are often executed in a strategy that is in tandem with long cash instruments (e.g., equity and debt securities). Jefferies Group substantially mitigates its exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments and Jefferies Group manages the risk associated with these contracts in the context of its overall risk management framework. Jefferies Group believes notional amounts overstate its expected payout and that fair value of these contracts is a more relevant measure of its obligations. The fair value of derivative contracts meeting the definition of a guarantee is approximately $216.9 million at September 30, 2018 . Berkadia. We have agreed to reimburse Berkshire Hathaway for up to one-half of any losses incurred under a $1.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia. At September 30, 2018 , the aggregate amount of commercial paper outstanding was $1.47 billion . Other Guarantees. Jefferies Group is a member of various exchanges and clearing houses. In the normal course of business, Jefferies Group provides guarantees to securities clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. Jefferies Group's obligations under such guarantees could exceed the collateral amounts posted. Jefferies Group's maximum potential liability under these arrangements cannot be quantified; however, the potential for Jefferies Group to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. Standby Letters of Credit. At September 30, 2018 , Jefferies Group provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $51.8 million . Standby letters of credit commit Jefferies Group to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary. Since commitments associated with these collateral instruments may expire unused, the amount shown does not necessarily reflect the actual future cash funding requirement. Other subsidiaries of ours have outstanding letters of credit aggregating $1.1 million at September 30, 2018 . Primarily all letters of credit expire within one year. |
Net Capital Requirements
Net Capital Requirements | 9 Months Ended |
Sep. 30, 2018 | |
Net Capital Requirements [Abstract] | |
Net Capital Requirements | Net Capital Requirements Jefferies Group operates as a broker-dealer registered with the SEC and member firms of the Financial Industry Regulatory Authority ("FINRA"). Jefferies LLC is subject to the Securities and Exchange Commission Uniform Net Capital Rule ("Rule 15c3-1"), which requires the maintenance of minimum net capital and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S. broker-dealer and futures commission merchant ("FCM"), is also subject to Rule 1.17 of the CFTC, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. Jefferies LLC’s net capital and excess net capital at September 30, 2018 were $1,917.6 million and $1,806.2 million , respectively. FINRA is the designated examining authority for Jefferies Group's U.S. broker-dealer and the National Futures Association is the designated self-regulatory organization for Jefferies LLC as an FCM. Certain other U.S. and non-U.S. subsidiaries of Jefferies Group are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions, including Jefferies International Limited which is authorized and regulated by the Financial Conduct Authority in the United Kingdom. The regulatory capital requirements referred to above may restrict our ability to withdraw capital from Jefferies Group's regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company. |
Other Fair Value Information
Other Fair Value Information | 9 Months Ended |
Sep. 30, 2018 | |
Other Fair Value Information [Abstract] | |
Other Fair Value Information | Other Fair Value Information The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 663,508 $ 644,184 $ 579,071 $ 565,285 Financial Liabilities: Short-term borrowings (2) $ 382,006 $ 382,006 $ 412,891 $ 412,891 Long-term debt (3) $ 7,067,868 $ 7,113,515 $ 7,278,827 $ 7,678,210 (1) Notes and loans receivable: The fair values are estimated principally based on a discounted future cash flows model using market interest rates for similar instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. (2) Short-term borrowings: The fair values of short-term borrowings are estimated to be the carrying amount due to their short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. (3) Long-term debt: The fair values are estimated using quoted prices, pricing information obtained from external data providers and, for certain variable rate debt, is estimated to be the carrying amount. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Jefferies Capital Partners Related Funds. Jefferies Group has equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, our President and a Director ("Private Equity Related Funds"). Reflected in our Consolidated Statements of Financial Condition at September 30, 2018 and December 31, 2017 are Jefferies Group's equity investments in Private Equity Related Funds of $34.1 million and $23.7 million , respectively. Net gains (losses) aggregating $0.2 million and $(0.4) million for the three months ended September 30, 2018 and 2017 , respectively, and $10.2 million and $(9.8) million for the nine months ended September 30, 2018 and 2017 , respectively, were recorded in Other revenues related to the Private Equity Related Funds. For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Notes 8 and 20 . Berkadia Commercial Mortgage, LLC. At September 30, 2018 and December 31, 2017 , Jefferies Group has commitments to purchase $748.8 million and $864.1 million , respectively, in agency commercial mortgage-backed securities from Berkadia. HRG. Jefferies Group recognized investment banking revenues of $3.0 million for the three and nine months ended September 30, 2018 in connection with the merger of HRG into Spectrum Brands, which is partially owned by Jefferies. FXCM . Jefferies Group entered into OTC foreign exchange contracts with FXCM. In connection with these contracts, Jefferies Group had $12.3 million and $17.0 million at September 30, 2018 and December 31, 2017 , respectively, included in Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. Officers, Directors and Employees. We have $51.2 million and $45.6 million of loans outstanding to certain officers and employees (none of whom are an executive officer or director of the Company) at September 30, 2018 and December 31, 2017 , respectively. Receivables from and payables to customers include balances arising from officers, directors and employees' individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms. See Note 9 for information on transactions with Jefferies Finance and HomeFed. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On June 5, 2018, we sold 48% of National Beef to Marfrig for $907.7 million in cash, reducing our ownership in National Beef to 31% . Marfrig has also acquired an additional 3% of National Beef from other equity owners and now owns 51% of National Beef. Jefferies will continue to designate two board members and have a series of other rights in respect of our continuing equity interest, with a lockup period of five years and thereafter fair market value liquidity protections. As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining interest under the equity method of accounting. The sale of National Beef meets the GAAP criteria to be classified as a discontinued operation as the sale represents a strategic shift that has a major effect in our operations and financial results. As such, we have classified the results of National Beef prior to June 5, 2018 as a discontinued operation and reported those results in Income from discontinued operations, net of income tax provision in the Consolidated Statements of Operations. A summary of the results of discontinued operations for National Beef is as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2018 (1) 2017 Revenues: Beef processing services $ 2,038,821 $ 3,137,611 $ 5,472,339 Interest income 58 131 230 Other 420 4,329 3,705 Total revenues 2,039,299 3,142,071 5,476,274 Expenses: Compensation and benefits 10,505 17,414 29,649 Cost of sales 1,816,480 2,884,983 5,030,887 Interest expense 1,713 4,316 5,781 Depreciation and amortization 26,664 43,959 73,522 Selling, general and other expenses 9,458 14,291 26,428 Total expenses 1,864,820 2,964,963 5,166,267 Income from discontinued operations before income taxes 174,479 177,108 310,007 Income tax provision 53,490 47,045 90,856 Income from discontinued operations, net of income tax provision $ 120,989 $ 130,063 $ 219,151 (1) Discontinued operations for the nine months ended September 30, 2018 include National Beef results through the June 5, 2018 transaction with Marfrig. Net income attributable to the redeemable noncontrolling interests in the Consolidated Statements of Operations includes $36.6 million for the three months ended September 30, 2017 and $37.1 million and $65.1 million for the nine months ended September 30, 2018 and 2017 , respectively, related to National Beef's noncontrolling interests. Pre-tax income from discontinued operations attributable to Jefferies Financial Group Inc. common shareholders was $137.8 million for the three months ended September 30, 2017 and $140.0 million and $244.9 million for the nine months ended September 30, 2018 and 2017 , respectively. As discussed above, we account for our retained 31% ownership of National Beef subsequent to the sale to Marfrig under the equity method. From June 5, 2018 through September 30, 2018 , we recorded $83.3 million in Income (loss) related to associated companies from our 31% ownership in National Beef and we received distributions from National Beef of $48.7 million . The pre-tax income of 100% National Beef from June 5, 2018 through September 30, 2018 was $276.5 million . During the nine months ended September 30, 2018 , we also recorded a pre-tax gain on the National Beef transaction of $873.5 million ( $643.9 million after-tax) which is reported in Gain on disposal of discontinued operations, net of income tax provision in the Consolidated Statements of Operations. Included in the $873.5 million pre-tax gain on the sale of National Beef was approximately $352.4 million related to the remeasurement of our retained 31% interest in National Beef to fair value. The $592.3 million fair value of our retained 31% interest in National Beef was based on the implied equity value of 100% of National Beef from the transaction with Marfrig and is considered a Level 3 input. The transaction with Marfrig was based on a $1.9 billion equity valuation and a $2.3 billion enterprise valuation. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operating segments consist of our consolidated businesses, which offer different products and services and are managed separately. Our reportable segments, based on qualitative and quantitative requirements, are Jefferies Group and Corporate. Jefferies Group is a global full-service, integrated securities and investment banking firm. Corporate assets primarily consist of financial instruments owned, the deferred tax asset (exclusive of Jefferies Group's deferred tax asset), cash and cash equivalents. Corporate revenues primarily include interest income. We do not allocate Corporate revenues or overhead expenses to the operating units. All other consists of our other financial services businesses and investments and our merchant banking businesses and investments. Our other financial services businesses and investments include the Leucadia Asset Management platform, Foursight Capital, and our investments in Berkadia, HomeFed and FXCM. Our merchant banking businesses and investments primarily include Vitesse Energy Finance, JETX Energy, Idaho Timber and our investments in Spectrum Brands, National Beef, Garcadia, Linkem and Golden Queen. As a result of the announced transactions and our current operating strategy, we have made changes to the corporate segment to reflect the way we currently manage our business, and have reclassified the prior periods to conform to current presentation. As discussed further in Notes 1 and 24, on June 5, 2018, we sold 48% of National Beef to Marfrig and deconsolidated our investment in National Beef. Results prior to June 5, 2018 are classified in discontinued operations and are not included in the table below. Our retained 31% interest in National Beef is accounted for under the equity method and results subsequent to the June 5, 2018 closing are included in All other in the table below. Certain information concerning our segments is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired. As discussed above, Jefferies Group is reflected in our consolidated financial statements utilizing a one month lag. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Net revenues: Reportable Segments: Jefferies Group $ 774,749 $ 802,909 $ 2,419,410 $ 2,381,967 Corporate 8,692 1,915 14,753 4,257 Total net revenues related to reportable segments 783,441 804,824 2,434,163 2,386,224 All other (1) 367,405 52,399 523,277 634,386 Total consolidated net revenues $ 1,150,846 $ 857,223 $ 2,957,440 $ 3,020,610 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group $ 86,154 $ 128,112 $ 336,922 $ 383,094 Corporate (14,563 ) (16,311 ) (55,708 ) (56,816 ) Income from continuing operations before income taxes related to reportable segments 71,591 111,801 281,214 326,278 All other (1) 215,856 (71,516 ) 111,007 130,722 Parent Company interest (14,755 ) (14,737 ) (44,251 ) (44,201 ) Total consolidated income from continuing operations before income taxes $ 272,692 $ 25,548 $ 347,970 $ 412,799 Depreciation and amortization expenses: Reportable Segments: Jefferies Group $ 17,175 $ 15,928 $ 50,829 $ 46,877 Corporate 852 865 2,599 2,599 Total depreciation and amortization expenses related to reportable segments 18,027 16,793 53,428 49,476 All other 14,268 11,967 38,932 32,653 Total consolidated depreciation and amortization expenses $ 32,295 $ 28,760 $ 92,360 $ 82,129 (1) All other Net revenues and Income from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $1.3 million and $(2.9) million , respectively, for the three months ended September 30, 2018 ; $16.4 million and $(2.9) million , respectively, for the nine months ended September 30, 2018 ; $2.3 million and $(2.0) million , respectively, for the three months ended September 30, 2017 ; and $17.6 million and $(148.7) million , respectively, for the nine months ended September 30, 2017 . Interest expense classified as a component of Net revenues relates to Jefferies Group. For the three months ended September 30, 2018 and 2017 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $14.8 million and $14.7 million , respectively) and all other ( $14.0 million and $10.9 million , respectively). For the nine months ended September 30, 2018 and 2017 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $44.3 million and $44.2 million , respectively) and all other ( $30.3 million and $32.6 million , respectively). As discussed above, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family and recognized a pre-tax gain of $221.7 million for the three and nine months ended September 30, 2018 in Other revenues. The gain on the sale is included within All other above. Conwed Plastics ("Conwed") was our consolidated subsidiary that manufactured and marketed lightweight plastic netting. In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE: SWM) for $295 million in cash plus potential earn-out payments in 2019, 2020 and 2021 totaling up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. We recognized a $178.2 million pre-tax gain on the sale of Conwed in Other revenues primarily during the nine months ended September 30, 2017 . The gain on the sale of Conwed is included within All other above. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition Policies | Revenue Recognition Policies Investment Banking Revenues: • Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. • Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. • All investment banking expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by clients are recognized as Investment banking revenues. Asset Management Fees: • Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. |
Receivables | Receivables At September 30, 2018 and December 31, 2017 , Receivables include receivables from brokers, dealers and clearing organizations of $2,878.5 million and $2,635.2 million , respectively, and receivables from customers of securities operations of $1,951.8 million and $1,563.8 million , respectively. |
Payables, expense accruals and other liabilities | Payables, expense accruals and other liabilities At September 30, 2018 and December 31, 2017 , Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $1,913.3 million and $2,228.9 million , respectively, and payables to customers of securities operations of $3,187.6 million and $2,664.0 million , respectively. |
Accounting Developments | Accounting Developments - Adopted Accounting Standards Revenue Recognition. In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted the guidance as of January 1, 2018 and recognized an increase of $17.8 million after-tax to beginning retained earnings as the cumulative effect of adoption of accounting standards. The increase primarily relates to the recognition of $24.3 million of revenue previously deferred from the sale of real estate to HomeFed in 2014, offset by a decrease of $6.1 million related to Jefferies Group. For Jefferies Group, the impact of adoption primarily related to investment banking expenses that were deferred as of December 31, 2017 under the previously existing accounting guidance, which would have been expensed in prior periods under the new revenue standard and investment banking revenues that were previously recognized in prior periods, which would have been deferred as of December 31, 2017 under the new revenue standard. We elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. The new revenue standard does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, and as a result, did not have an impact on the elements of our Consolidated Statements of Operations most closely associated with financial instruments, including Principal transactions revenues, Interest income and Interest expense. The new revenue standard primarily impacts Jefferies Group's revenue recognition and presentation accounting policies as follows: • Investment Banking Revenues. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. • Certain Capital Markets Revenues. Revenues associated with price stabilization activities as part of a securities underwriting were historically recognized as part of Investment banking revenues. Under the new revenue standard, revenues from these activities are recognized within Principal transactions revenues, as these revenues are not considered to be within the scope of the new standard. • Investment Banking Advisory Expenses. Historically, expenses associated with investment banking advisory assignments were deferred until reimbursed by the client, the related fee revenue is recognized or the engagement is otherwise concluded. Under the new revenue standard, expenses are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. • Investment Banking Underwriting and Advisory Expenses. Expenses have historically been recorded net of client reimbursements and/or netted against revenues. Under the new revenue standard, all investment banking expenses will be recognized within their respective expense category in the Consolidated Statements of Operations and any expense reimbursements will be recognized as Investment banking revenues (i.e., expenses are no longer recorded net of client reimbursements and are not netted against revenues). • Asset Management Fees. In certain asset management fee arrangements, Jefferies Group and LAM receive performance-based fees, which vary with performance or, in certain cases, are earned when the return on assets under management exceed certain benchmark returns or other performance targets. Historically, performance fees have been accrued (or reversed) quarterly based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Under the new revenue standard, performance fees are considered variable as they are subject to fluctuation (e.g., based on market performance) and/or are contingent on a future event during the measurement period (e.g., exceeding a specified benchmark index) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. There was no significant impact as a result of applying the new revenue standard to our consolidated financial statements for the three and nine months ended September 30, 2018 , except as it relates to the presentation of Jefferies Group's investment banking expenses. The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 155,417 $ — $ 155,417 $ 461,023 $ — $ 461,023 Principal transactions 116,204 — 116,204 315,622 — 315,622 Investment banking 460,043 36,319 423,724 1,400,331 101,146 1,299,185 Interest income 336,736 — 336,736 939,272 — 939,272 Manufacturing revenues 94,029 — 94,029 307,129 — 307,129 Other 296,548 — 296,548 440,537 — 440,537 Total revenues 1,458,977 36,319 1,422,658 3,863,914 101,146 3,762,768 Interest expense of Jefferies Group 308,131 — 308,131 906,474 — 906,474 Net revenues 1,150,846 36,319 1,114,527 2,957,440 101,146 2,856,294 Expenses: Compensation and benefits 461,265 — 461,265 1,429,439 — 1,429,439 Cost of sales 84,876 — 84,876 257,501 — 257,501 Floor brokerage and clearing fees 44,570 — 44,570 131,792 — 131,792 Interest expense 28,837 — 28,837 74,614 — 74,614 Depreciation and amortization 32,295 — 32,295 92,360 — 92,360 Selling, general and other expenses 245,178 36,319 208,859 708,084 101,146 606,938 Total expenses 897,021 36,319 860,702 2,693,790 101,146 2,592,644 Income from continuing operations before income taxes and income (loss) related to associated companies $ 253,825 $ — $ 253,825 $ 263,650 $ — $ 263,650 Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017. We have adopted the new guidance as of January 1, 2018 with a cumulative effect increase to opening retained earnings of $27.6 million and a corresponding decrease to Accumulated other comprehensive income. The opening retained earnings adjustment is to recognize the unrealized gains we had for available for sale equity securities. Beginning in 2018, these available for sale equity securities are now reported as part of Trading assets, at fair value within the Consolidated Statements of Financial Condition. Early adoption was permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of 2016. The adoption of the guidance on financial liabilities under the fair value option did not have a material impact on our consolidated financial statements. Retirement Benefits. In March 2017, the FASB issued new guidance for improving the presentation of net periodic pension costs in the statement of operations. The update also allows the service cost to be eligible for capitalization, when applicable. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. The adoption of this guidance resulted in the following adjustments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2017 : a decrease of $0.9 million and $2.6 million , respectively, to Compensation and benefits expenses and an increase to Selling, general and other expenses of $0.9 million and $2.6 million , respectively. Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance in the first quarter of 2018. Prior periods were retrospectively adjusted to conform to the current period presentation. The adoption of the guidance did not have a material impact on our Consolidated Statements of Cash Flows. Upon adoption, we recorded an increase of $49.3 million in Net cash provided by operating activities and a decrease of $6.7 million in Net cash provided by investing activities for the nine months ended September 30, 2017 related to reclassifying the changes in our restricted cash balance from operating and investing activities to the cash and cash equivalent balances within the Consolidated Statements of Cash Flows. Compensation. In May 2017, the FASB issued new guidance providing clarity and reducing diversity in practice and cost and complexity when accounting for a change to the terms or conditions of a share-based payment award. We adopted this guidance in the first quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Fair Value Measurement. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on fair value measurement by eliminating certain disclosure requirements for fair value measurements for all entities, requiring public entities to disclose certain new information and modifying some disclosure requirements. We early adopted this guidance in the third quarter of 2018 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The right of use asset and lease liability will be measured initially using the present value of the remaining rental payments. A significant portion of the population of contracts that will be subject to recognition on our Consolidated Statements of Financial Condition have been identified; however, their initial measurement still remains under evaluation. We are currently modifying our lease accounting systems to enable us to comply with the accounting requirements of this guidance. In July 2018, the FASB issued additional guidance on leases which allows an entity to recognize a cumulative-effect adjustment to the opening balance of retained earnings upon adoption. The guidance is effective for annual and interim periods beginning after December 15, 2018. We plan on adopting the lease standard in the first quarter of fiscal 2020 with a cumulative-effect adjustment to opening retained earnings in the period of adoption. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact this new guidance will have on our consolidated financial statements. Goodwill. In January 2017, the FASB issued new guidance for simplifying goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Derivatives and hedging. In August 2017, the FASB issued new guidance to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. The guidance is effective in the first quarter of fiscal 2020 and early adoption is permitted. We do not believe the new guidance will have a material impact on our consolidated financial statements. Defined Benefit Plans. In August 2018, the FASB issued new guidance to improve the effectiveness of disclosure requirements on defined benefit pension plans and other post-retirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued new guidance which amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Supplemental cash flow information | Supplemental Cash Flow Information For the Nine Months Ended September 30, 2018 2017 Cash paid during the year for: (In thousands) Interest $ 1,059,139 $ 837,020 Income tax payments (refunds), net $ 28,204 $ 9,183 |
Schedule of Impact of Applying New Revenue Recognition Standard | The table below presents the impact of applying the new revenue recognition standard to the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 as a result of the change in presentation of investment banking expenses (in thousands): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard As Reported Impact of Adoption of Revenue Recognition Standard Financial Results Prior to Adoption of Revenue Recognition Standard Revenues: Commissions and other fees $ 155,417 $ — $ 155,417 $ 461,023 $ — $ 461,023 Principal transactions 116,204 — 116,204 315,622 — 315,622 Investment banking 460,043 36,319 423,724 1,400,331 101,146 1,299,185 Interest income 336,736 — 336,736 939,272 — 939,272 Manufacturing revenues 94,029 — 94,029 307,129 — 307,129 Other 296,548 — 296,548 440,537 — 440,537 Total revenues 1,458,977 36,319 1,422,658 3,863,914 101,146 3,762,768 Interest expense of Jefferies Group 308,131 — 308,131 906,474 — 906,474 Net revenues 1,150,846 36,319 1,114,527 2,957,440 101,146 2,856,294 Expenses: Compensation and benefits 461,265 — 461,265 1,429,439 — 1,429,439 Cost of sales 84,876 — 84,876 257,501 — 257,501 Floor brokerage and clearing fees 44,570 — 44,570 131,792 — 131,792 Interest expense 28,837 — 28,837 74,614 — 74,614 Depreciation and amortization 32,295 — 32,295 92,360 — 92,360 Selling, general and other expenses 245,178 36,319 208,859 708,084 101,146 606,938 Total expenses 897,021 36,319 860,702 2,693,790 101,146 2,592,644 Income from continuing operations before income taxes and income (loss) related to associated companies $ 253,825 $ — $ 253,825 $ 263,650 $ — $ 263,650 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value | The following is a summary of our financial instruments, trading liabilities, short-term borrowings and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") (within trading assets) of $399.0 million and $590.1 million at September 30, 2018 and December 31, 2017 , respectively, by level within the fair value hierarchy (in thousands): September 30, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 3,635,288 $ 72,569 $ 49,683 $ — $ 3,757,540 Corporate debt securities — 2,498,031 9,651 — 2,507,682 Collateralized debt obligations and collateralized loan obligations — 82,339 33,981 — 116,320 U.S. government and federal agency securities 3,000,805 45,889 — — 3,046,694 Municipal securities — 749,616 — — 749,616 Sovereign obligations 1,319,415 669,919 — — 1,989,334 Residential mortgage-backed securities — 1,894,533 4,954 — 1,899,487 Commercial mortgage-backed securities — 791,449 23,916 — 815,365 Other asset-backed securities — 263,967 69,305 — 333,272 Loans and other receivables — 1,455,496 48,985 — 1,504,481 Derivatives 13,117 3,507,491 3,137 (3,334,100 ) 189,645 Investments at fair value — — 326,977 — 326,977 FXCM term loan — — 73,800 — 73,800 Total trading assets, excluding investments at fair value based on NAV $ 7,968,625 $ 12,031,299 $ 644,389 $ (3,334,100 ) $ 17,310,213 Available for sale securities: U.S. government securities $ 1,607,725 $ — $ — $ — $ 1,607,725 Residential mortgage-backed securities — 146,678 — — 146,678 Commercial mortgage-backed securities — 15,719 — — 15,719 Other asset-backed securities — 98,298 — — 98,298 Total available for sale securities $ 1,607,725 $ 260,695 $ — $ — $ 1,868,420 Liabilities: Trading liabilities: Corporate equity securities $ 2,221,325 $ 1,507 $ 413 $ — $ 2,223,245 Corporate debt securities — 1,511,979 1,557 — 1,513,536 U.S. government and federal agency securities 1,398,222 — — — 1,398,222 Sovereign obligations 1,513,237 969,845 55 — 2,483,137 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,136,579 8,661 — 1,145,240 Derivatives 8,487 4,149,630 12,134 (3,454,488 ) 715,763 Total trading liabilities $ 5,141,271 $ 7,769,540 $ 22,890 $ (3,454,488 ) $ 9,479,213 Long-term debt - structured notes $ — $ 545,927 $ 163,630 $ — $ 709,557 December 31, 2017 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,975,463 $ 60,300 $ 22,270 $ — $ 3,058,033 Corporate debt securities — 3,261,300 26,036 — 3,287,336 Collateralized debt obligations and collateralized loan obligations — 139,166 42,184 — 181,350 U.S. government and federal agency securities 1,269,230 39,443 — — 1,308,673 Municipal securities — 710,513 — — 710,513 Sovereign obligations 1,381,552 1,035,907 — — 2,417,459 Residential mortgage-backed securities — 1,453,294 26,077 — 1,479,371 Commercial mortgage-backed securities — 508,115 12,419 — 520,534 Other asset-backed securities — 217,111 61,129 — 278,240 Loans and other receivables — 1,620,581 47,304 — 1,667,885 Derivatives 165,396 3,323,278 9,295 (3,318,481 ) 179,488 Investments at fair value — 946 329,944 — 330,890 FXCM term loan — — 72,800 — 72,800 Total trading assets, excluding investments at fair value based on NAV $ 5,791,641 $ 12,369,954 $ 649,458 $ (3,318,481 ) $ 15,492,572 Available for sale securities: Corporate equity securities (2) $ 88,486 $ — $ — $ — $ 88,486 U.S. government securities 552,805 — — — 552,805 Residential mortgage-backed securities — 34,561 — — 34,561 Commercial mortgage-backed securities — 5,870 — — 5,870 Other asset-backed securities — 34,839 — — 34,839 Total available for sale securities $ 641,291 $ 75,270 $ — $ — $ 716,561 Liabilities: Trading liabilities: Corporate equity securities $ 1,721,267 $ 32,122 $ 48 $ — $ 1,753,437 Corporate debt securities — 1,688,825 522 — 1,689,347 U.S. government and federal agency securities 1,430,737 — — — 1,430,737 Sovereign obligations 1,216,643 956,992 — — 2,173,635 Commercial mortgage-backed securities — — 105 — 105 Loans — 1,148,824 3,486 — 1,152,310 Derivatives 249,361 3,480,506 16,041 (3,490,514 ) 255,394 Total trading liabilities $ 4,618,008 $ 7,307,269 $ 20,202 $ (3,490,514 ) $ 8,454,965 Short-term borrowings $ — $ 23,324 $ — $ — $ 23,324 Long-term debt - structured notes $ — $ 606,956 $ — $ — $ 606,956 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. (2) As of January 1, 2018, the Company adopted the FASB's new guidance that affects the accounting for equity investments and the presentation and disclosure requirements for financial instruments. At September 30, 2018 , equity investments are primarily classified as Trading assets, at fair value and the change in fair value of equity securities is now recognized through the Consolidated Statements of Operations. See Note 2 for additional information. |
Investments Measured At Fair Value Based On Net Asset Value | The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands). Fair Value (1) Unfunded Commitments Redemption Frequency (if currently eligible) September 30, 2018 Equity Long/Short Hedge Funds (2) $ 90,347 $ — (2) Fixed Income and High Yield Hedge Funds (3) 219 — — Fund of Funds (4) 175 — — Equity Funds (5) 36,702 20,209 — Commodity Funds (6) 10,228 — — Multi-asset Funds (7) 261,361 — — Total $ 399,032 $ 20,209 December 31, 2017 Equity Long/Short Hedge Funds (2) $ 407,895 $ — (2) Fixed Income and High Yield Hedge Funds (3) 417 — — Fund of Funds (4) 189 — — Equity Funds (5) 26,798 19,084 — Multi-asset Funds (7) 154,805 — — Total $ 590,104 $ 19,084 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in equity securities in domestic and international markets in both the public and private sectors. At December 31, 2017 , 73% of these investments were redeemable with 10 business days or less prior written notice; these investments were primarily liquidated during 2018. At September 30, 2018 and December 31, 2017 , 18% and 15% , respectively, of these investments are redeemable with 30 to 60 days prior written notice. (3) This category includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments. There are no redemption provisions. (4) This category includes investments in fund of funds that invest in various private equity funds. The investments in this category are managed by us and have no redemption provisions. These investments are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received. (5) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead distributions are received through the liquidation of the underlying assets of the funds, which are expected to be liquidated in one to ten years. (6) This category includes investments in hedge funds that invest, long and short, primarily in commodities. Investments in this category are redeemable with 60 days prior written notice. (7) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At September 30, 2018 and December 31, 2017 , investments representing approximately 17% and 12% , respectively, of the fair value of investments in this category are redeemable with 30 days prior written notice. |
Summary Of Changes In Fair Value Of Financial Assets And Liabilities Classified As Level 3 | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended September 30, 2018 (in thousands): Nine Months Ended September 30, 2018 Balance, December 31, 2017 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance at September 30, 2018 Changes in unrealized gains/losses included in earnings relating to instruments still held at September 30, 2018 (1) Assets: Trading assets: Corporate equity securities $ 22,270 $ 31,475 $ 35,993 $ (39,008 ) $ (2,082 ) $ — $ 1,035 $ 49,683 $ 26,852 Corporate debt securities 26,036 1,090 22,204 (38,553 ) (2,066 ) — 940 9,651 (1,738 ) CDOs and CLOs 42,184 (4,123 ) 242,864 (249,691 ) (5,859 ) — 8,606 33,981 (7,333 ) Residential mortgage-backed securities 26,077 (7,334 ) 2,018 (12,621 ) (6 ) — (3,180 ) 4,954 316 Commercial mortgage-backed securities 12,419 (1,236 ) 1,720 (548 ) (5,415 ) — 16,976 23,916 (2,272 ) Other asset-backed securities 61,129 (7,528 ) 523,045 (495,055 ) (12,281 ) — (5 ) 69,305 (3,307 ) Loans and other receivables 47,304 (2,812 ) 104,009 (98,733 ) (14,610 ) — 13,827 48,985 (3,769 ) Investments at fair value 329,944 3,865 9,791 (17,569 ) — — 946 326,977 3,271 FXCM term loan 72,800 16,432 — — (15,432 ) — — 73,800 5,539 Liabilities: Trading liabilities: Corporate equity securities $ 48 $ 365 $ — $ — $ — $ — $ — $ 413 $ (365 ) Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) Commercial mortgage-backed securities 105 (35 ) — — — — — 70 (70 ) Loans 3,486 (1,059 ) (15,702 ) 19,409 — — 2,527 8,661 1,059 Net derivatives (2) 6,746 (1,034 ) (6 ) — 2,984 296 11 8,997 (2,660 ) Long-term debt (1) — (25,078 ) — — — 81,284 107,424 163,630 13,235 (1) Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at September 30, 2018 were gains of $11.8 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended September 30, 2017 (in thousands): Three Months Ended September 30, 2017 Balance, June 30, 2017 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, September 30, 2017 Changes in unrealized gains/ losses relating to instruments still held at September 30, 2017 (1) Assets: Trading assets: Corporate equity securities $ 20,548 $ 4,344 $ 4 $ (645 ) $ (55 ) $ — $ (2,022 ) $ 22,174 $ 4,319 Corporate debt securities 24,727 (2,350 ) 5,901 (5,551 ) (31 ) — 2,319 25,015 (2,224 ) CDOs and CLOs 48,208 (15,205 ) 52,918 (36,564 ) 245 — 468 50,070 (12,638 ) Residential mortgage-backed securities 33,032 (263 ) 494 (732 ) (291 ) — (11,591 ) 20,649 188 Commercial mortgage-backed securities 16,263 (125 ) — (676 ) (637 ) — 2,811 17,636 (161 ) Other asset-backed securities 43,349 (6,454 ) 5,798 (3,789 ) (2,924 ) — 32,966 68,946 (3,570 ) Loans and other receivables 49,365 15,261 9,265 (5,854 ) (8,249 ) — 2,868 62,656 14,005 Investments at fair value 315,297 3,964 10,000 — (292 ) — — 328,969 3,964 FXCM term loan 129,050 2,330 — — (60,580 ) — — 70,800 (2,401 ) Liabilities: Trading liabilities: Corporate equity securities $ 354 $ 107 $ (369 ) $ 27 $ — $ — $ — $ 119 $ (92 ) Corporate debt securities 522 — — — — — — 522 — Commercial mortgage-backed securities 70 (35 ) — — — — — 35 (35 ) Loans 4,967 (3,071 ) — 333 — — 1,056 3,285 3,018 Net derivatives (2) 3,022 (2,980 ) — — 5,040 — — 5,082 (2,474 ) (1) Realized and unrealized gains (losses) are reported in Principal transactions revenues in the Consolidated Statements of Operations. (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended September 30, 2018 (in thousands): Three months ended September 30, 2018 Balance, June 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance at September 30, 2018 Changes in unrealized gains/losses included in earnings relating to instruments still held at September 30, 2018 (1) Assets: Trading assets: Corporate equity securities $ 44,871 $ 11,796 $ 17,652 $ (23,010 ) $ (302 ) $ — $ (1,324 ) $ 49,683 $ 9,136 Corporate debt securities 28,066 1,057 507 (21,403 ) (59 ) — 1,483 9,651 (165 ) CDOs and CLOs 42,517 (967 ) 238,281 (240,002 ) (2,127 ) — (3,721 ) 33,981 (3,872 ) Residential mortgage-backed securities 3,655 (66 ) 72 (1,597 ) (1 ) — 2,891 4,954 90 Commercial mortgage-backed securities 27,239 (222 ) 8 — (1,156 ) — (1,953 ) 23,916 (288 ) Other asset-backed securities 55,535 (2,269 ) 307,358 (290,838 ) (4,356 ) — 3,875 69,305 (1,124 ) Loans and other receivables 64,036 (1,353 ) 14,932 (23,700 ) (3,453 ) — (1,477 ) 48,985 1,007 Investments at fair value 318,543 2,383 6,051 — — — — 326,977 2,383 FXCM term loan 76,100 1,347 — — (3,647 ) — — 73,800 (2,300 ) Liabilities: Trading liabilities: Corporate equity securities $ 87 $ 326 $ — $ — $ — $ — $ — $ 413 $ (326 ) Corporate debt securities 522 39 — — 996 — — 1,557 (39 ) Sovereign obligations — 3 (598 ) 629 — — 21 55 (124 ) Commercial mortgage-backed securities — 70 — — — — — 70 (70 ) Loans 12,881 (148 ) (4,871 ) 1,787 — — (988 ) 8,661 149 Net derivatives (2) 5,874 1,107 — — 1,990 — 26 8,997 (2,090 ) Long-term debt (1) 160,626 3,004 — — — — — 163,630 (2,953 ) (1) Realized and unrealized gains (losses) are primarily reported in Principal transactions revenues in the Consolidated Statements of Operations. Changes in instrument-specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income (Loss), net of tax. Changes in unrealized gains (losses) included in other comprehensive income (loss) for instruments still held at September 30, 2018 were losses of $0.1 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended September 30, 2017 (in thousands): Nine Months Ended September 30, 2017 Balance, December 31, 2016 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, September 30, 2017 Changes in unrealized gains/ losses relating to instruments still held at September 30, 2017 (1) Assets: Trading assets: Corporate equity securities $ 21,739 $ 3,416 $ 945 $ (1,502 ) $ (356 ) $ — $ (2,068 ) $ 22,174 $ 2,689 Corporate debt securities 25,005 (3,280 ) 19,610 (18,364 ) (1,724 ) — 3,768 25,015 (3,424 ) CDOs and CLOs 54,354 (21,595 ) 65,523 (62,441 ) 239 — 13,990 50,070 (21,998 ) Municipal securities 27,257 (1,547 ) — (25,710 ) — — — — — Residential mortgage-backed securities 38,772 (1,446 ) 113,391 (125,731 ) (572 ) — (3,765 ) 20,649 (2,005 ) Commercial mortgage-backed securities 20,580 (1,180 ) 2,033 (5,199 ) (985 ) — 2,387 17,636 (952 ) Other asset-backed securities 40,911 (15,338 ) 67,611 (4,121 ) (16,891 ) — (3,226 ) 68,946 (8,872 ) Loans and other receivables 81,872 27,709 84,342 (83,791 ) (23,241 ) — (24,235 ) 62,656 16,294 Investments at fair value 314,359 12,760 12,800 (10,119 ) (831 ) — — 328,969 14,783 FXCM term loan 164,500 17,638 — — (111,338 ) — — 70,800 (930 ) Liabilities: Trading liabilities: Corporate equity securities $ 313 $ 134 $ (355 ) $ 27 $ — $ — $ — $ 119 $ (92 ) Corporate debt securities 523 (1 ) — — — — — 522 1 Commercial mortgage-backed securities — 35 — — — — — 35 (35 ) Loans 378 1,604 (364 ) 333 — — 1,334 3,285 (1,583 ) Net derivatives (2) 3,441 (2,854 ) — — 5,162 404 (1,071 ) 5,082 (2,333 ) Other secured financings 418 (418 ) — — — — — — — (1) Realized and unrealized gains (losses) are reported in Principal transactions revenues in the Consolidated Statements of Operations. (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements | September 30, 2018 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 41,038 Non-exchange traded securities Market approach Price $3 to $75 $25.0 Underlying stock price $1 to $11 $9.0 Corporate debt securities $ 9,651 Market approach Discount rate/yield 19% — Estimated recovery percentage 46% — Price $10 — Comparable asset price $101 — CDOs and CLOs $ 33,981 Discounted cash flows Constant prepayment rate 20% — Constant default rate 1% to 2% 2 % Loss severity 30% — Discount rate/yield 5% to 41% 16 % Scenario analysis Estimated recovery percentage 2% to 41% 23 % Residential mortgage-backed securities $ 4,954 Discounted cash flows Cumulative loss rate 23% — Duration (years) 15 years — Discount rate/yield 9% — Market approach Price $100 — Commercial mortgage-backed securities $ 23,916 Discounted cash flows Cumulative loss rate 8% to 84% 33 % Duration (years) 0 year to 3 years 1 year Discount rate/yield 3% to 38% 12 % Scenario analysis Estimated recovery percentage 26% — Price $49 — Other asset-backed securities $ 69,305 Discounted cash flows Cumulative loss rate 0% to 29% 18 % Duration (years) 1 year to 5 years 2 years Discount rate/yield 5% to 12% 7 % Market approach Price $100 — Loans and other receivables $ 48,985 Market approach Estimated recovery percentage 0% — Price $50 to $100 $95.0 Scenario analysis Estimated recovery percentage 57% to 107% 88 % Derivatives $ 3,137 Total return swaps Market approach Price $100 — Investments at fair value $ 111,899 Private equity securities Market approach Price $3 to $250 $105.0 Discount rate 20% — Investment in FXCM $ 73,800 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 0.3 years 0.3 years Trading Liabilities Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate debt securities $ 1,557 Market approach Estimated recovery percentage 53% — Loans $ 8,661 Market approach Estimated recovery percentage 0% — Price $50 — Derivatives $ 12,134 Equity options Option model/default rate Default probability 0% — Unfunded commitments Market approach Price $99 — Total return swaps Market approach Price $95 to $100 $97.0 Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 30% — Discount rate/yield 41% — Long-term debt $ 163,630 Structured notes Market approach Price $70 to $100 $80.0 Price €80 to €112 €96.0 December 31, 2017 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 18,109 Non-exchange traded securities Market approach Price $3 to $75 $33.0 Underlying stock price $6 — Comparable pricing Comparable asset price $7 — Corporate debt securities $ 26,036 Convertible bond model Discount rate/yield 8% — Volatility 40% — Market approach Estimated recovery percentage 17% — Price $10 — CDOs and CLOs $ 38,845 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% to 30% 26 % Discount rate/yield 3% to 26% 12 % Scenario analysis Estimated recovery percentage 8% to 45% 26 % Residential mortgage-backed securities $ 26,077 Discounted cash flows Cumulative loss rate 3% to 19% 10 % Duration (years) 2 years to 4 years 3 years Discount rate/yield 6% to 10% 8 % Commercial mortgage-backed securities $ 12,419 Discounted cash flows Discount rate/yield 2% to 26% 12 % Cumulative loss rate 8% to 65% 44 % Duration (years) 1 year to 3 years 2 years Scenario analysis Estimated recovery percentage 26% to 32% 28 % Price $52 to $56 $54.0 Other asset-backed securities $ 61,129 Discounted cash flows Cumulative loss rate 0% to 33% 23 % Duration (years) 1 year to 6 years 2 years Discount rate/yield 5% to 39% 9 % Market approach Price $100 — Scenario analysis Estimated recovery percentage 14% — Loans and other receivables $ 46,121 Market approach Estimated recovery percentage 76% — Price $54 to $100 $95.0 Scenario analysis Estimated recovery percentage 13% to 107% 78 % Derivatives $ 9,295 Total return swaps Market approach Price $101 to $106 $103.0 Interest rate swaps Market approach Credit spread 800 bps — Investments at fair value $ 110,010 Private equity securities Market approach Transaction level $3 to $250 $172.0 Price $7 — Discount rate 20% — Investment in FXCM $ 72,800 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 1 year 0.2 years Trading Liabilities Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Derivatives $ 16,041 Equity options Option model/default rate Default probability 0% — Unfunded commitments Market approach Price $99 — Total return swaps Market approach Price $101 to $106 $103.0 Variable funding note swaps Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25% — Discount rate/yield 26% — |
Summary Of Gains (Losses) Due To Changes In Instrument Specific Credit Risk For Loans and Other Receivables And Loan Commitments Measured At Fair Value Under Fair Value Option | The following is a summary of Jefferies Group's gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on long-term debt and short-term borrowings measured at fair value under the fair value option (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Financial Instruments Owned: Loans and other receivables $ 14,002 $ 24,846 $ 7,495 $ 27,715 Financial Instruments Sold: Loans $ (2,708 ) $ 3,436 $ (2,467 ) $ (7,286 ) Loan commitments $ (1,695 ) $ 82 $ (1,964 ) $ 229 Long-term Debt: Changes in instrument specific credit risk (1) $ 1,401 $ 5,638 $ 19,986 $ (14,141 ) Other changes in fair value (2) $ (6,842 ) $ (1,854 ) $ 33,626 $ 2,786 Short-term Borrowings: Changes in instrument specific credit risk (1) $ — $ 19 $ — $ 1 Other changes in fair value (2) $ — $ (2,570 ) $ — $ (37 ) (1) Changes in instrument specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. (2) Other changes in fair value are included in Principal transactions revenues in the Consolidated Statements of Operations. |
Summary Of Amount By Which Contractual Principal Exceeds Fair Value For Loans And Other Receivables Measured At Fair Value Under Fair Value Option | The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables, long-term debt and short-term borrowings measured at fair value under the fair value option (in thousands): September 30, 2018 December 31, 2017 Financial Instruments Owned: Loans and other receivables (1) $ 896,470 $ 752,076 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) $ 167,355 $ 159,462 Long-term debt and short-term borrowings $ 89,345 $ 32,839 (1) Interest income is recognized separately from other changes in fair value and is included in Interest income in the Consolidated Statements of Operations. (2) Amounts include all loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $33.7 million and $38.7 million at September 30, 2018 and December 31, 2017 , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure | The following table presents the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at September 30, 2018 and December 31, 2017 . The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts): Assets Liabilities Fair Value Number of Contracts Fair Value Number of Contracts September 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 30,018 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 766,233 20,867 $ 892,562 38,331 Foreign exchange contracts 234,641 8,569 223,565 7,486 Equity contracts 2,491,005 1,892,926 2,987,654 1,836,128 Commodity contracts 4,599 6,331 16,312 3,585 Credit contracts 27,267 172 20,140 76 Total 3,523,745 4,140,233 Counterparty/cash-collateral netting (1) (3,334,100 ) (3,454,488 ) Total derivatives not designated as accounting hedges $ 189,645 $ 685,745 Total per Consolidated Statement of Financial Condition (2) $ 189,645 $ 715,763 December 31, 2017 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 2,420 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 1,717,058 38,941 $ 1,708,776 12,828 Foreign exchange contracts 366,541 6,463 349,512 4,612 Equity contracts 1,373,016 2,728,750 1,638,258 2,118,526 Commodity contracts 3,093 7,249 5,141 6,047 Credit contracts 38,261 130 41,801 191 Total 3,497,969 3,743,488 Counterparty/cash-collateral netting (1)(3) (3,318,481 ) (3,490,514 ) Total derivatives not designated as accounting hedges $ 179,488 $ 252,974 Total per Consolidated Statement of Financial Condition (2)(3) $ 179,488 $ 255,394 (1) Amounts netted include both netting by counterparty and for cash collateral paid or received. (2) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition. (3) Pursuant to a rule change by the London Clearing House in the first fiscal quarter of 2018, variation margin exchanged each day with this clearing organization on certain interest rate derivatives is characterized as settlement payments as opposed to cash posted as collateral. The impact of this rule change would have been a reduction in gross interest rate derivative assets and liabilities as of December 31, 2017 of approximately $800 million , and a corresponding decrease in counterparty and cash collateral netting, with no impact to our Consolidated Statement of Financial Condition . |
Unrealized And Realized Gains (Losses) On Derivative Contracts | The following table provides information related to gains (losses) recognized in Interest expense of Jefferies Group in the Consolidated Statements of Operations on a fair value hedge (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate swaps $ (1,161 ) $ 6,217 $ (22,363 ) $ 13,960 Long-term debt 1,221 (4,680 ) 24,055 (9,570 ) Total $ 60 $ 1,537 $ 1,692 $ 4,390 The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues in Income (loss) from continuing operations in the Consolidated Statements of Operations, which are utilized in connection with our client activities and our economic risk management activities (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Interest rate contracts $ 13,951 $ (7,485 ) $ 36,053 $ 2,555 Foreign exchange contracts (4,781 ) 481 6,737 3,341 Equity contracts 1,019 (142,931 ) (249,546 ) (294,635 ) Commodity contracts (6,845 ) (1,422 ) (23,150 ) (3,260 ) Credit contracts 20 (7,947 ) 760 6,133 Total $ 3,364 $ (159,304 ) $ (229,146 ) $ (285,866 ) |
Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities | The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at September 30, 2018 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross- Maturity Netting (4) Total Commodity swaps, options and forwards $ 738 $ 512 $ — $ — $ 1,250 Equity swaps and options 10,226 8,071 2,195 — 20,492 Credit default swaps 82 21,802 — (11 ) 21,873 Total return swaps 46,036 29,910 — (4,334 ) 71,612 Foreign currency forwards, swaps and options 42,326 22,130 — (9,550 ) 54,906 Fixed income forwards 2,113 — — — 2,113 Interest rate swaps, options and forwards 13,104 96,631 95,973 (91,673 ) 114,035 Total $ 114,625 $ 179,056 $ 98,168 $ (105,568 ) 286,281 Cross product counterparty netting (34,971 ) Total OTC derivative assets included in Trading assets $ 251,310 (1) At September 30, 2018 , we held exchange traded derivative assets, other derivative assets and other credit agreements with a fair value of $96.6 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition. At September 30, 2018 , cash collateral received was $158.2 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 12,234 $ 2,388 $ — $ — $ 14,622 Equity swaps and options 15,125 92,491 13,048 — 120,664 Credit default swaps 17 11,480 — (11 ) 11,486 Total return swaps 67,526 19,806 — (4,334 ) 82,998 Foreign currency forwards, swaps and options 36,183 17,496 — (9,550 ) 44,129 Fixed income forwards 685 — — — 685 Interest rate swaps, options and forwards 16,388 148,685 198,569 (91,673 ) 271,969 Total $ 148,158 $ 292,346 $ 211,617 $ (105,568 ) 546,553 Cross product counterparty netting (34,971 ) Total OTC derivative liabilities included in Trading liabilities $ 511,582 (1) At September 30, 2018 , we held exchange traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $482.8 million , which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition. At September 30, 2018 , cash collateral pledged was $278.6 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets | At September 30, 2018 , the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands): Counterparty credit quality (1): A- or higher $ 137,910 BBB- to BBB+ 20,490 BB+ or lower 74,097 Unrated 18,813 Total $ 251,310 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's 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): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional September 30, 2018 Credit protection sold: Index credit default swaps $ 3.0 $ 15.0 $ — $ 18.0 Single name credit default swaps $ 32.5 $ 39.9 $ 2.9 $ 75.3 December 31, 2017 Credit protection sold: Index credit default swaps $ 3.0 $ 126.0 $ — $ 129.0 Single name credit default swaps $ 129.1 $ 89.1 $ — $ 218.2 |
Derivative Instruments With Contingent Features | The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts posted or received in the normal course of business and the potential collateral Jefferies Group would have been required to return and/or post additionally to its counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): September 30, 2018 December 31, 2017 Derivative instrument liabilities with credit-risk-related contingent features $ 106.3 $ 95.1 Collateral posted $ (59.3 ) $ (86.4 ) Collateral received $ 129.7 $ 5.6 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 176.6 $ 14.3 (1) These outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Collateralized Transactions [Abstract] | |
Schedule of Collateralized Financing Transactions | The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Total September 30, 2018 Cash $ — $ 4,361 $ 4,361 Corporate equity securities 2,214,433 490,609 2,705,042 Corporate debt securities 315,718 1,496,127 1,811,845 Mortgage- and asset-backed securities — 2,667,439 2,667,439 U.S. government and federal agency securities 1,353 10,124,642 10,125,995 Municipal securities — 582,699 582,699 Sovereign obligations — 1,955,879 1,955,879 Loans and other receivables — 517,703 517,703 Total $ 2,531,504 $ 17,839,459 $ 20,370,963 December 31, 2017 Corporate equity securities $ 2,353,798 $ 214,413 $ 2,568,211 Corporate debt securities 470,908 2,336,702 2,807,610 Mortgage- and asset-backed securities — 2,562,268 2,562,268 U.S. government and federal agency securities 19,205 11,792,534 11,811,739 Municipal securities — 444,861 444,861 Sovereign obligations — 2,023,530 2,023,530 Loans and other receivables — 454,941 454,941 Total $ 2,843,911 $ 19,829,249 $ 22,673,160 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total September 30, 2018 Securities lending arrangements $ 1,354,136 $ — $ 847,577 $ 329,791 $ 2,531,504 Repurchase agreements 8,122,962 2,733,400 4,342,923 2,640,174 17,839,459 Total $ 9,477,098 $ 2,733,400 $ 5,190,500 $ 2,969,965 $ 20,370,963 December 31, 2017 Securities lending arrangements $ 1,676,940 $ — $ 741,971 $ 425,000 $ 2,843,911 Repurchase agreements 10,780,474 4,058,228 3,211,464 1,779,083 19,829,249 Total $ 12,457,414 $ 4,058,228 $ 3,953,435 $ 2,204,083 $ 22,673,160 |
Securitization Activities (Tabl
Securitization Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securitization Activities [Abstract] | |
Activity Related To Securitizations Accounted For As Sales | The following table presents activity related to Jefferies Group's securitizations that were accounted for as sales in which it had continuing involvement (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Transferred assets $ 1,865.5 $ 1,009.1 $ 5,665.9 $ 2,677.7 Proceeds on new securitizations $ 1,866.2 $ 1,017.2 $ 5,668.6 $ 2,703.3 Cash flows received on retained interests $ 17.2 $ 8.7 $ 35.7 $ 22.7 |
Summary Of Retained Interests In SPEs | The following table summarizes Jefferies Group's retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions): September 30, 2018 December 31, 2017 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 13,306.0 $ 192.7 $ 6,383.5 $ 28.2 U.S. government agency commercial mortgage-backed securities $ 2,101.5 $ 276.1 $ 2,075.7 $ 81.4 CLOs $ 3,442.3 $ 26.4 $ 3,957.8 $ 20.3 Consumer and other loans $ 648.9 $ 53.0 $ 247.6 $ 47.8 |
Available for Sale Securities_2
Available for Sale Securities and Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Schedule of Available for Sale Securities | The amortized cost and estimated fair value of investments classified as available for sale at September 30, 2018 , by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 1,608,076 $ 1,607,725 1,608,076 1,607,725 Mortgage-backed and asset-backed securities 261,886 260,695 $ 1,869,962 $ 1,868,420 The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale are as follows (in thousands): Amortized Gross Gross Estimated September 30, 2018 Bonds and notes: U.S. government securities $ 1,608,076 $ 2 $ 353 $ 1,607,725 Residential mortgage-backed securities 147,294 138 754 146,678 Commercial mortgage-backed securities 16,049 — 330 15,719 Other asset-backed securities 98,543 9 254 98,298 Total fixed maturities 1,869,962 149 1,691 1,868,420 Total Available for sale securities $ 1,869,962 $ 149 $ 1,691 $ 1,868,420 December 31, 2017 Bonds and notes: U.S. government securities $ 552,847 $ — $ 42 $ 552,805 Residential mortgage-backed securities 34,381 272 92 34,561 Commercial mortgage-backed securities 5,857 17 4 5,870 Other asset-backed securities 34,837 46 44 34,839 Total fixed maturities 627,922 335 182 628,075 Equity securities: Common stocks: Banks, trusts and insurance companies 35,071 17,500 — 52,571 Industrial, miscellaneous and all other 17,504 18,411 — 35,915 Total equity securities 52,575 35,911 — 88,486 Total Available for sale securities $ 680,497 $ 36,246 $ 182 $ 716,561 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entities [Abstract] | |
Assets And Liabilities Of Consolidated VIEs | The following table presents information about the assets and liabilities of our consolidated securitization vehicles VIEs, which are presented in our Consolidated Statements of Financial Condition in the respective asset and liability categories (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. September 30, 2018 December 31, 2017 Cash $ — $ 11.7 Financial instruments owned — 37.6 Securities purchased under agreement to resell (1) 1,043.4 729.3 Receivables 453.2 318.1 Other 25.8 15.5 Total assets $ 1,522.4 $ 1,112.2 Other secured financings (2) $ 1,478.3 $ 1,073.5 Other (3) 44.1 38.3 Total liabilities $ 1,522.4 $ 1,111.8 (1) Securities purchased under agreements to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation. (2) Approximately $37.7 million and $44.1 million of the secured financings represent an amount held by Jefferies Group in inventory and eliminated in consolidation at September 30, 2018 and December 31, 2017 , respectively. (3) Includes $31.1 million and $32.0 million at September 30, 2018 and December 31, 2017 , respectively, of intercompany payables that are eliminated in consolidation. |
Non-Consolidated Variable Interest Entities | The following tables present information about our variable interests in nonconsolidated VIEs (in millions): Financial Statement Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities September 30, 2018 CLOs $ 57.0 $ 0.7 $ 784.0 $ 3,348.0 Consumer loan vehicles 323.5 — 602.4 3,441.8 Related party private equity vehicles 34.1 — 52.0 107.2 Other private investment vehicles 160.4 — 170.8 5,324.2 Total $ 575.0 $ 0.7 $ 1,609.2 $ 12,221.2 December 31, 2017 CLOs $ 168.1 $ 8.9 $ 1,030.4 $ 5,364.3 Consumer loan vehicles 254.8 — 759.8 2,322.7 Related party private equity vehicles 23.7 — 45.4 75.0 Other private investment vehicles 133.0 — 142.0 4,624.9 Total $ 579.6 $ 8.9 $ 1,977.6 $ 12,386.9 |
Loans to and Investments In A_2
Loans to and Investments In Associated Companies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Loans to and Investments in Associated Companies | A summary of Loans to and investments in associated companies accounted for under the equity method of accounting during the nine months ended September 30, 2018 and 2017 is as follows (in thousands): Loans to and investments in associated companies as of January 1, Income (losses) related to associated companies Income (losses) related to Jefferies Group's associated companies (1) Contributions to (distributions from) associated companies, net Other Loans to and investments in associated companies as of September 30, 2018 Jefferies Finance $ 655,467 $ — $ 36,497 $ 43,470 $ — $ 735,434 National Beef (2) — 83,287 — (48,656 ) 592,239 626,870 Berkadia 210,594 80,092 — (42,064 ) (1,054 ) 247,568 FXCM (3) 158,856 (19,322 ) — — (513 ) 139,021 Garcadia companies (4) 179,143 21,646 — (26,962 ) (173,827 ) — Linkem 192,136 (20,534 ) — 542 (3,601 ) 168,543 HomeFed 341,874 (3,338 ) — — — 338,536 Golden Queen (5) 105,005 (52,028 ) — 8,441 — 61,418 Other 223,754 (5,483 ) (5,810 ) (69,071 ) (9,879 ) 133,511 Total $ 2,066,829 $ 84,320 $ 30,687 $ (134,300 ) $ 403,365 $ 2,450,901 2017 Jefferies Finance $ 490,464 $ — $ 63,685 $ 109,899 $ — $ 664,048 Jefferies LoanCore 154,731 — 8,030 43,714 1,095 207,570 Berkadia 184,443 67,979 — (52,300 ) (174 ) 199,948 FXCM (3) 336,258 (166,360 ) — — 731 170,629 Garcadia companies 185,815 38,536 — (40,955 ) — 183,396 Linkem 154,000 (26,557 ) — 31,996 33,979 193,418 HomeFed 302,231 9,922 — 31,918 — 344,071 Golden Queen 111,302 (3,684 ) — (59 ) — 107,559 Other 205,854 (4,249 ) (6,392 ) 79,636 5,492 280,341 Total $ 2,125,098 $ (84,413 ) $ 65,323 $ 203,849 $ 41,123 $ 2,350,980 (1) Primarily classified in Investment banking revenues and Other revenues. (2) As discussed more fully in Notes 1 and 24, in June 2018, we completed the sale of 48% of National Beef to Marfrig, reducing our ownership in National Beef to 31% . As of the closing of the sale on June 5, 2018, we deconsolidated our investment in National Beef and account for our remaining interest under the equity method of accounting. The carrying value of our retained 31% interest was adjusted to a fair value of $592.3 million on the date of sale. (3) As further described in Note 3, our investment in FXCM includes both our equity method investment in FXCM and our term loan with FXCM. Our equity method investment is included as Loans to and investments in associated companies and our term loan is included as Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) As more fully discussed in Note 1, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family. (5) At September 30, 2018 and December 31, 2017 , the balance reflects $15.1 million and $30.5 million , respectively, related to a noncontrolling interest. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 National Beef $ 58,886 $ — $ 83,287 $ — Berkadia 28,350 34,839 80,092 67,979 FXCM (4,282 ) (4,345 ) (19,322 ) (166,360 ) Garcadia companies 691 12,565 21,646 38,536 Linkem (7,770 ) (9,533 ) (20,534 ) (26,557 ) HomeFed (7,783 ) 238 (3,338 ) 9,922 Golden Queen (48,732 ) (1,975 ) (52,028 ) (3,684 ) Other (493 ) (1,732 ) (5,483 ) (4,249 ) Total $ 18,867 $ 30,057 $ 84,320 $ (84,413 ) Income (losses) related to Jefferies Group's associated companies (primarily classified in Investment banking revenues and Other revenues) includes the following (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Jefferies Finance $ 5,931 $ 13,509 $ 36,497 $ 63,685 Jefferies LoanCore — 1,656 — 8,030 Other (78 ) (4,337 ) (5,810 ) (6,392 ) Total $ 5,853 $ 10,828 $ 30,687 $ 65,323 |
Schedule of Equity Method Investments | The following table provides summarized data for certain associated companies (Jefferies Finance, National Beef for the period subsequent to the closing of the transaction with Marfrig on June 5, 2018 and Berkadia) (in thousands): For the Nine Months Ended September 30, 2018 2017 Revenues $ 3,341,369 $ 763,727 Income from continuing operations before extraordinary items $ 591,191 $ 267,796 Net income $ 591,191 $ 267,796 |
Financial Statement Offsetting
Financial Statement Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Offsetting [Abstract] | |
Summary of Offsetting Assets | The following table provides information regarding derivative contracts, repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at September 30, 2018 Derivative contracts $ 3,523,745 $ (3,334,100 ) $ 189,645 $ — $ — $ 189,645 Securities borrowing arrangements $ 7,369,908 $ — $ 7,369,908 $ (529,662 ) $ (1,088,612 ) $ 5,751,634 Reverse repurchase agreements $ 11,634,035 $ (7,974,976 ) $ 3,659,059 $ (187,426 ) $ (3,441,009 ) $ 30,624 Liabilities at September 30, 2018 Derivative contracts $ 4,170,251 $ (3,454,488 ) $ 715,763 $ — $ — $ 715,763 Securities lending arrangements $ 2,531,504 $ — $ 2,531,504 $ (529,662 ) $ (1,977,558 ) $ 24,284 Repurchase agreements $ 17,839,459 $ (7,974,976 ) $ 9,864,483 $ (187,426 ) $ (8,632,482 ) $ 1,044,575 Assets at December 31, 2017 Derivative contracts $ 3,497,969 $ (3,318,481 ) $ 179,488 $ — $ — $ 179,488 Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements $ 14,858,297 $ (11,168,738 ) $ 3,689,559 $ (463,973 ) $ (3,207,147 ) $ 18,439 Liabilities at December 31, 2017 Derivative contracts $ 3,745,908 $ (3,490,514 ) $ 255,394 $ — $ — $ 255,394 Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements $ 19,829,249 $ (11,168,738 ) $ 8,660,511 $ (463,973 ) $ (7,067,512 ) $ 1,129,026 (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 GAAP are not met. Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At September 30, 2018 , amounts include $5,717.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,544.1 million , and $1,019.6 million of repurchase agreements, for which we have pledged securities collateral of $1,054.1 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. At December 31, 2017 , amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Summary of Offsetting Liabilities | The following table provides information regarding derivative contracts, repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position. (In thousands) Gross Amounts Netting in Consolidated Statements of Financial Condition Net Amounts in Consolidated Statements of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets at September 30, 2018 Derivative contracts $ 3,523,745 $ (3,334,100 ) $ 189,645 $ — $ — $ 189,645 Securities borrowing arrangements $ 7,369,908 $ — $ 7,369,908 $ (529,662 ) $ (1,088,612 ) $ 5,751,634 Reverse repurchase agreements $ 11,634,035 $ (7,974,976 ) $ 3,659,059 $ (187,426 ) $ (3,441,009 ) $ 30,624 Liabilities at September 30, 2018 Derivative contracts $ 4,170,251 $ (3,454,488 ) $ 715,763 $ — $ — $ 715,763 Securities lending arrangements $ 2,531,504 $ — $ 2,531,504 $ (529,662 ) $ (1,977,558 ) $ 24,284 Repurchase agreements $ 17,839,459 $ (7,974,976 ) $ 9,864,483 $ (187,426 ) $ (8,632,482 ) $ 1,044,575 Assets at December 31, 2017 Derivative contracts $ 3,497,969 $ (3,318,481 ) $ 179,488 $ — $ — $ 179,488 Securities borrowing arrangements $ 7,721,803 $ — $ 7,721,803 $ (966,712 ) $ (1,032,629 ) $ 5,722,462 Reverse repurchase agreements $ 14,858,297 $ (11,168,738 ) $ 3,689,559 $ (463,973 ) $ (3,207,147 ) $ 18,439 Liabilities at December 31, 2017 Derivative contracts $ 3,745,908 $ (3,490,514 ) $ 255,394 $ — $ — $ 255,394 Securities lending arrangements $ 2,843,911 $ — $ 2,843,911 $ (966,712 ) $ (1,795,408 ) $ 81,791 Repurchase agreements $ 19,829,249 $ (11,168,738 ) $ 8,660,511 $ (463,973 ) $ (7,067,512 ) $ 1,129,026 (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 GAAP are not met. Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At September 30, 2018 , amounts include $5,717.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,544.1 million , and $1,019.6 million of repurchase agreements, for which we have pledged securities collateral of $1,054.1 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. At December 31, 2017 , amounts include $5,678.6 million of securities borrowing arrangements, for which we have received securities collateral of $5,516.7 million , and $1,084.4 million of repurchase agreements, for which we have pledged securities collateral of $1,115.9 million , which are subject to master netting agreements but we have not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets, Net And Goodwill | A summary of Intangible assets, net and goodwill is as follows (in thousands): September 30, 2018 December 31, 2017 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,475 $ 8,551 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $100,591 and $230,074 70,071 347,767 Trademarks and tradenames, net of accumulated amortization of $20,211 and $95,627 108,406 293,851 Supply contracts, net of accumulated amortization of $0 and $57,440 — 86,160 Other, net of accumulated amortization of $4,132 and $3,885 4,818 4,701 Total intangible assets, net 191,770 741,030 Goodwill: National Beef — 14,991 Jefferies Group 1,699,269 1,703,300 Other operations 3,859 3,859 Total goodwill 1,703,128 1,722,150 Total intangible assets, net and goodwill $ 1,894,898 $ 2,463,180 |
Schedule of Estimated Aggregate Future Amortization Expense | The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 3,359 2019 $ 13,439 2020 $ 13,439 2021 $ 13,052 2022 $ 13,052 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Jefferies Group's short-term borrowings, which mature in one year or less, are as follows (in thousands): September 30, 2018 December 31, 2017 Bank loans (1) $ 324,021 $ 304,651 Floating rate puttable notes 57,985 108,240 Equity-linked notes — 23,324 Total short-term borrowings $ 382,006 $ 436,215 (1) Bank loans include loans entered into, pursuant to a Master Loan Agreement, between the Bank of New York and Jefferies Group. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Aggregate Indebtedness [Abstract] | |
Schedule Of Indebtedness | The principal amount (net of unamortized discounts, premiums and debt issuance costs), stated interest rate and maturity date of outstanding debt are as follows (dollars in thousands): September 30, 2018 December 31, 2017 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,203 $ 742,348 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,710 246,673 Total long-term debt – Parent Company 989,913 989,021 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 5.125% Senior Notes, due April 13, 2018, $0 and $678,300 principal (1) — 682,338 8.50% Senior Notes, due July 15, 2019, $680,800 principal 707,072 728,872 2.375% Euro Medium Term Notes, due May 20, 2020, $579,850 and $594,725 principal 578,896 593,334 6.875% Senior Notes, due April 15, 2021, $750,000 principal 795,967 808,157 2.25% Euro Medium Term Notes, due July 13, 2022, $4,639 and $4,758 principal 4,332 4,389 5.125% Senior Notes, due January 20, 2023, $600,000 principal 613,634 615,703 4.85% Senior Notes, due January 15, 2027, $750,000 principal (2) 712,667 736,357 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 374,211 375,794 3.875% Convertible Senior Debentures, due November 1, 2029, $0 and $324,779 principal — 324,779 4.15% Senior Notes, due January 23, 2030, $1,000,000 and $0 principal 987,576 — 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,758 512,040 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,718 420,990 Structured Notes (3) 709,557 614,091 Jefferies Group Revolving Credit Facility 158,478 — National Beef Reducing Revolver Loan — 120,000 National Beef Revolving Credit Facility — 76,809 Foursight Capital Credit Facilities 138,033 170,455 Other 74,613 112,654 Total long-term debt – subsidiaries 6,787,512 6,896,762 Long-term debt $ 7,777,425 $ 7,885,783 (1) On April 13, 2018, these 5.125% Senior Notes were redeemed by Jefferies Group with cash on hand. (2) Amount includes a gain of $24.1 million and a loss of $9.6 million during the nine months ended September 30, 2018 and 2017 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (3) Includes $709.6 million and $607.0 million at fair value at September 30, 2018 and December 31, 2017 , respectively. These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Schedule Of Redeemable Noncontrolling Interests | The following table rolls forward National Beef’s redeemable noncontrolling interests activity (in thousands): For the Nine Months Ended September 30, 2018 2017 As of January 1, $ 412,128 $ 321,962 Income allocated to redeemable noncontrolling interests 37,141 65,088 Distributions to redeemable noncontrolling interests (70,681 ) (37,029 ) Increase in fair value of redeemable noncontrolling interests 21,404 24,404 Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation (237,669 ) — Deconsolidation of National Beef (162,323 ) — Balance, September 30, $ — $ 374,425 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary Of Accumulated Other Comprehensive Income, Net Of Taxes | A summary of accumulated other comprehensive income, net of taxes is as follows (in thousands): September 30, 2018 December 31, 2017 Net unrealized gains on available for sale securities $ 542,790 $ 572,085 Net unrealized foreign exchange losses (180,926 ) (101,400 ) Net unrealized losses on instrument specific credit risk (18,916 ) (34,432 ) Net unrealized gains (losses) on cash flow hedges 446 (1,138 ) Net minimum pension liability (55,649 ) (62,391 ) $ 287,745 $ 372,724 |
Schedule Of Accumulated Other Comprehensive Income Reclassifications | For the nine months ended September 30, 2018 and 2017 , significant amounts reclassified out of accumulated other comprehensive income to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations 2018 2017 Net unrealized gains on available for sale securities, net of income tax provision of $37 and $14 $ 105 $ 24 Other revenues Net unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(16) and $1,086 20,459 (5,310 ) Other income and other expenses Net unrealized gains on instrument specific credit risk, net of income tax provision of $126 and $0 371 — Principal transactions Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(508) and $(604) (1,398 ) (1,297 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $(1,231) (5,344 ) 1,231 Compensation and benefits expense and Income tax provision (benefit) Total reclassifications for the period, net of tax $ 14,193 $ (5,352 ) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Revenues from contracts with customers: Commissions and other fees $ 155,417 $ 461,023 Investment banking 460,043 1,400,331 Manufacturing revenues 94,029 307,129 Other 70,590 174,565 Total revenue from contracts with customers 780,079 2,343,048 Other sources of revenue: Principal transactions 116,204 315,622 Interest income 336,736 939,272 Other 225,958 265,972 Total revenue from other sources 678,898 1,520,866 Total revenues $ 1,458,977 $ 3,863,914 The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions for the three and nine months ended September 30, 2018 (in thousands): Three months ended September 30, 2018 Reportable Segments Jefferies Group Corporate All Other Total Major Business Activity: Jefferies Group: Equities (1) $ 159,571 $ — $ — $ 159,571 Fixed Income (1) 3,007 — — 3,007 Investment Banking 460,043 — — 460,043 Asset Management 5,184 — — 5,184 Manufacturing revenues — — 94,029 94,029 Oil and gas revenues — — 46,506 46,506 Other revenues — — 11,739 11,739 Total revenues from contracts with customers $ 627,805 $ — $ 152,274 $ 780,079 Primary Geographic Region: Americas $ 545,998 $ — $ 151,687 $ 697,685 Europe, Middle East and Africa 62,914 — 514 63,428 Asia 18,893 — 73 18,966 Total revenues from contracts with customers $ 627,805 $ — $ 152,274 $ 780,079 Nine months ended September 30, 2018 Reportable Segments Jefferies Group Corporate All Other Total Major Business Activity: Jefferies Group: Equities (1) $ 471,161 $ — $ — $ 471,161 Fixed Income (1) 10,511 — — 10,511 Investment Banking 1,400,331 — — 1,400,331 Asset Management 16,130 — — 16,130 Manufacturing revenues — — 307,129 307,129 Oil and gas revenues — — 106,741 106,741 Other revenues — — 31,045 31,045 Total revenues from contracts with customers $ 1,898,133 $ — $ 444,915 $ 2,343,048 Primary Geographic Region: Americas $ 1,638,828 $ — $ 443,718 $ 2,082,546 Europe, Middle East and Africa 203,103 — 976 204,079 Asia 56,202 — 221 56,423 Total revenues from contracts with customers $ 1,898,133 $ — $ 444,915 $ 2,343,048 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Common Share and Earnings (Lo_2
Common Share and Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 192,635 $ 99,351 $ 1,042,689 $ 438,952 Allocation of earnings to participating securities (1) (1,054 ) (368 ) (5,049 ) (1,692 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 191,581 98,983 1,037,640 437,260 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 3 (2 ) 34 3 Mandatorily redeemable convertible preferred share dividends 1,276 — — 3,203 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 192,860 $ 98,981 $ 1,037,674 $ 440,466 Denominator for earnings per share: Weighted average common shares outstanding 332,191 358,039 343,829 359,031 Weighted average shares of restricted stock outstanding with future service required (1,879 ) (1,320 ) (1,681 ) (1,377 ) Weighted average RSUs outstanding with no future service required 11,122 11,109 11,152 11,082 Denominator for basic earnings per share – weighted average shares 341,434 367,828 353,300 368,736 Stock options 5 23 13 22 Senior executive compensation plan awards 4,706 2,347 3,856 2,313 Mandatorily redeemable convertible preferred shares 4,162 — — 4,162 Denominator for diluted earnings per share 350,307 370,198 357,169 375,233 (1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities. Net losses are not allocated to participating securities. Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted average shares of 1,888,700 and 1,366,700 for the three months ended September 30, 2018 and 2017 , respectively, and 1,700,700 and 1,433,500 for the nine months ended September 30, 2018 and 2017 , respectively. Dividends declared on participating securities were not material during three and nine months ended September 30, 2018 and 2017 . Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following table summarizes commitments associated with certain business activities (in millions): Expected Maturity Date 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Maximum Payout Equity commitments (1) $ 280.0 $ 56.9 $ 31.7 $ — $ 9.8 $ 378.4 Loan commitments (1) — 250.0 54.4 32.5 — 336.9 Underwriting commitments 411.0 — — — — 411.0 Forward starting reverse repos (2) 3,159.4 — — — — 3,159.4 Forward starting repos (2) 2,057.8 — — — — 2,057.8 Other unfunded commitments (1) 60.0 148.7 42.3 — 4.9 255.9 $ 5,968.2 $ 455.6 $ 128.4 $ 32.5 $ 14.7 $ 6,599.4 (1) Equity commitments, loan commitments and other unfunded commitments are presented by contractual maturity date. The amounts are however mostly available on demand. (2) At September 30, 2018 , $3,141.9 million of the forward starting securities purchased under agreements to resell and all of the securities sold under agreements to repurchase settled within three business days. |
Guarantees | The following table summarizes the notional amounts associated with Jefferies Group derivative contracts meeting the definition of a guarantee under GAAP as of September 30, 2018 (in millions): Expected Maturity Date Guarantee Type 2018 2019 2020 and 2021 2022 and 2023 2024 and Later Notional/ Maximum Payout Derivative contracts – non-credit related $ 10,898.5 $ 5,978.6 $ 2,948.5 $ 1,015.0 $ 454.6 $ 21,295.2 Written derivative contracts – credit related — — 36.4 33.8 — 70.2 Total derivative contracts $ 10,898.5 $ 5,978.6 $ 2,984.9 $ 1,048.8 $ 454.6 $ 21,365.4 |
Other Fair Value Information (T
Other Fair Value Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Fair Value Information [Abstract] | |
Methods And Assumptions Used To Estimate The Fair Values | The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands): September 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 663,508 $ 644,184 $ 579,071 $ 565,285 Financial Liabilities: Short-term borrowings (2) $ 382,006 $ 382,006 $ 412,891 $ 412,891 Long-term debt (3) $ 7,067,868 $ 7,113,515 $ 7,278,827 $ 7,678,210 (1) Notes and loans receivable: The fair values are estimated principally based on a discounted future cash flows model using market interest rates for similar instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. (2) Short-term borrowings: The fair values of short-term borrowings are estimated to be the carrying amount due to their short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. (3) Long-term debt: The fair values are estimated using quoted prices, pricing information obtained from external data providers and, for certain variable rate debt, is estimated to be the carrying amount. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of results of discontinued operations | A summary of the results of discontinued operations for National Beef is as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2018 (1) 2017 Revenues: Beef processing services $ 2,038,821 $ 3,137,611 $ 5,472,339 Interest income 58 131 230 Other 420 4,329 3,705 Total revenues 2,039,299 3,142,071 5,476,274 Expenses: Compensation and benefits 10,505 17,414 29,649 Cost of sales 1,816,480 2,884,983 5,030,887 Interest expense 1,713 4,316 5,781 Depreciation and amortization 26,664 43,959 73,522 Selling, general and other expenses 9,458 14,291 26,428 Total expenses 1,864,820 2,964,963 5,166,267 Income from discontinued operations before income taxes 174,479 177,108 310,007 Income tax provision 53,490 47,045 90,856 Income from discontinued operations, net of income tax provision $ 120,989 $ 130,063 $ 219,151 (1) Discontinued operations for the nine months ended September 30, 2018 include National Beef results through the June 5, 2018 transaction with Marfrig. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | Certain information concerning our segments is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired. As discussed above, Jefferies Group is reflected in our consolidated financial statements utilizing a one month lag. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Net revenues: Reportable Segments: Jefferies Group $ 774,749 $ 802,909 $ 2,419,410 $ 2,381,967 Corporate 8,692 1,915 14,753 4,257 Total net revenues related to reportable segments 783,441 804,824 2,434,163 2,386,224 All other (1) 367,405 52,399 523,277 634,386 Total consolidated net revenues $ 1,150,846 $ 857,223 $ 2,957,440 $ 3,020,610 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group $ 86,154 $ 128,112 $ 336,922 $ 383,094 Corporate (14,563 ) (16,311 ) (55,708 ) (56,816 ) Income from continuing operations before income taxes related to reportable segments 71,591 111,801 281,214 326,278 All other (1) 215,856 (71,516 ) 111,007 130,722 Parent Company interest (14,755 ) (14,737 ) (44,251 ) (44,201 ) Total consolidated income from continuing operations before income taxes $ 272,692 $ 25,548 $ 347,970 $ 412,799 Depreciation and amortization expenses: Reportable Segments: Jefferies Group $ 17,175 $ 15,928 $ 50,829 $ 46,877 Corporate 852 865 2,599 2,599 Total depreciation and amortization expenses related to reportable segments 18,027 16,793 53,428 49,476 All other 14,268 11,967 38,932 32,653 Total consolidated depreciation and amortization expenses $ 32,295 $ 28,760 $ 92,360 $ 82,129 (1) All other Net revenues and Income from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $1.3 million and $(2.9) million , respectively, for the three months ended September 30, 2018 ; $16.4 million and $(2.9) million , respectively, for the nine months ended September 30, 2018 ; $2.3 million and $(2.0) million , respectively, for the three months ended September 30, 2017 ; and $17.6 million and $(148.7) million , respectively, for the nine months ended September 30, 2017 . |
Nature of Operations (Details)
Nature of Operations (Details) $ in Millions | Oct. 01, 2018USD ($) | Jun. 05, 2018USD ($) | Apr. 30, 2018USD ($) | Sep. 30, 2018USD ($)directorDealership | Jun. 30, 2018USD ($) | Jun. 04, 2018USD ($) | Sep. 30, 2018USD ($)directorDealership | Jul. 13, 2018 | Jul. 12, 2018 | Dec. 31, 2017 |
National Beef | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 100.00% | 100.00% | ||||||||
Number of seats on investment committee retained by Company | director | 2 | 2 | ||||||||
Lockup period related to divestiture of businesses | 5 years | |||||||||
Marfrig Global Foods S.A. | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 51.00% | 51.00% | ||||||||
Ownership percentage to be acquired further from other equity owners | 3.00% | |||||||||
Garcadia | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Number of automobile dealerships | Dealership | 28 | 28 | ||||||||
Vitesse Energy, LLC | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Payments to acquire productive assets, funded as equity | $ 144 | |||||||||
Discontinued operations, disposed of by sale | National Beef | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 48.00% | |||||||||
Cash from sale of subsidiary | $ 907.7 | |||||||||
Pre-tax gain on disposal of discontinued operations | $ 873.5 | |||||||||
Held-for-sale, not discontinued operations | Garcadia | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage of equity method investment for sale | 100.00% | |||||||||
Proceeds from sale of equity method investments and associated real estate | $ 417.2 | |||||||||
Pre-tax gain on sale of equity method investments and associated real estate | $ 221.7 | $ 221.7 | ||||||||
Package of Non-Operated Bakken Assets | Vitesse Energy, LLC | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Payments to acquire Bakken assets | $ 190 | |||||||||
HRG | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 23.00% | 23.00% | ||||||||
National Beef | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | |||||||
Percentage interest owned in subsidiary | 79.00% | |||||||||
Weiss Multi-Strategy Advisors LLC | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Amount invested in asset management strategy | $ 250 | |||||||||
Combined Strategy | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Equity commitments | $ 250 | $ 250 | ||||||||
Spectrum Brands | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 14.00% | 14.00% | 14.00% | |||||||
Spectrum Brands | HRG | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Percentage interest owned in subsidiary | 62.00% | |||||||||
National Beef | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Additional proceeds expected from divestiture of businesses | $ 229.4 | |||||||||
Subsequent Event [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Capital contributed | $ 596 | |||||||||
Jefferies Group | Affiliated Entity | Subsequent Event [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Proceeds from related party transfer | $ 78.3 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Receivables from brokers, dealers and clearing organizations | $ 2,878,500 | $ 2,878,500 | $ 2,635,200 | |||
Receivables from customers of securities operations | 1,951,800 | 1,951,800 | 1,563,800 | |||
Payables to brokers, dealers and clearing organizations | 1,913,300 | 1,913,300 | 2,228,900 | |||
Payables to customers of securities operations | 3,187,600 | 3,187,600 | 2,664,000 | |||
Cash paid during the year for: | ||||||
Interest | 1,059,139 | $ 837,020 | ||||
Income tax payments (refunds), net | 28,204 | 9,183 | ||||
Purchase of common shares for treasury settled subsequent to quarter end | 21,000 | |||||
Retained earnings | 5,672,363 | 5,672,363 | 4,700,968 | |||
Decrease to accumulated other comprehensive income | (287,745) | (287,745) | $ (372,724) | |||
Decrease to compensation and benefits expenses | (461,265) | $ (493,471) | (1,429,439) | (1,468,373) | ||
Increase to selling, general and other expenses | $ 245,178 | 199,441 | 708,084 | 552,155 | ||
Decrease in net cash used for operating activities | 199,908 | 1,060,916 | ||||
Increase in net cash provided by (used for) investing activities | $ (118,541) | (28,754) | ||||
Accounting Standards Update 2014-09 | ||||||
Cash paid during the year for: | ||||||
Retained earnings | $ 17,800 | |||||
Accounting Standards Update 2016-13 | ||||||
Cash paid during the year for: | ||||||
Retained earnings | 27,600 | |||||
Decrease to accumulated other comprehensive income | 27,600 | |||||
Accounting Standards Update 2016-18 | ||||||
Cash paid during the year for: | ||||||
Decrease in net cash used for operating activities | 49,300 | |||||
Increase in net cash provided by (used for) investing activities | 6,700 | |||||
Accounting Standards Update 2017-07 | ||||||
Cash paid during the year for: | ||||||
Decrease to compensation and benefits expenses | 900 | 2,600 | ||||
Increase to selling, general and other expenses | 900 | 2,600 | ||||
Changes to Presentation of Gains and Losses Generated from Capital Invested in Assets Management Funds | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Decrease of principal transactions revenue, Net | 11,300 | 12,200 | ||||
Increase of other revenues | $ 11,300 | $ 12,200 | ||||
HomeFed | Accounting Standards Update 2014-09 | ||||||
Cash paid during the year for: | ||||||
Retained earnings | 24,300 | |||||
Jefferies Group | Accounting Standards Update 2014-09 | ||||||
Cash paid during the year for: | ||||||
Retained earnings | $ (6,100) |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Schedule of Impact of Applying New Revenue Recognition Standard) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 1,458,977 | $ 1,102,593 | $ 3,863,914 | $ 3,735,702 |
Interest expense | 28,837 | 25,612 | 74,614 | 76,762 |
Net revenues | 1,150,846 | 857,223 | 2,957,440 | 3,020,610 |
Expenses: | ||||
Compensation and benefits | 461,265 | 493,471 | 1,429,439 | 1,468,373 |
Cost of sales | 84,876 | 71,596 | 257,501 | 210,834 |
Floor brokerage and clearing fees | 44,570 | 42,852 | 131,792 | 133,145 |
Depreciation and amortization | 32,295 | 28,760 | 92,360 | 82,129 |
Selling, general and other expenses | 245,178 | 199,441 | 708,084 | 552,155 |
Total expenses | 897,021 | 861,732 | 2,693,790 | 2,523,398 |
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 253,825 | (4,509) | 263,650 | 497,212 |
Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 36,319 | 101,146 | ||
Interest expense | 0 | 0 | ||
Net revenues | 36,319 | 101,146 | ||
Expenses: | ||||
Compensation and benefits | 0 | 0 | ||
Cost of sales | 0 | 0 | ||
Floor brokerage and clearing fees | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Selling, general and other expenses | 36,319 | 101,146 | ||
Total expenses | 36,319 | 101,146 | ||
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 0 | 0 | ||
Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 1,422,658 | 3,762,768 | ||
Interest expense | 28,837 | 74,614 | ||
Net revenues | 1,114,527 | 2,856,294 | ||
Expenses: | ||||
Compensation and benefits | 461,265 | 1,429,439 | ||
Cost of sales | 84,876 | 257,501 | ||
Floor brokerage and clearing fees | 44,570 | 131,792 | ||
Depreciation and amortization | 32,295 | 92,360 | ||
Selling, general and other expenses | 208,859 | 606,938 | ||
Total expenses | 860,702 | 2,592,644 | ||
Income (loss) from continuing operations before income taxes and income (loss) related to associated companies | 253,825 | 263,650 | ||
Commissions and other fees | ||||
Revenues: | ||||
Revenues | 155,417 | 139,082 | 461,023 | 437,547 |
Commissions and other fees | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 0 | 0 | ||
Commissions and other fees | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 155,417 | 461,023 | ||
Principal transactions | ||||
Revenues: | ||||
Revenues | 116,204 | 84,143 | 315,622 | 725,780 |
Principal transactions | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 0 | 0 | ||
Principal transactions | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 116,204 | 315,622 | ||
Investment banking | ||||
Revenues: | ||||
Revenues | 460,043 | 475,702 | 1,400,331 | 1,235,586 |
Investment banking | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 36,319 | 101,146 | ||
Investment banking | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 423,724 | 1,299,185 | ||
Interest income | ||||
Revenues: | ||||
Revenues | 336,736 | 253,916 | 939,272 | 726,972 |
Interest income | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 0 | 0 | ||
Interest income | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 336,736 | 939,272 | ||
Manufacturing revenues | ||||
Revenues: | ||||
Revenues | 94,029 | 81,939 | 307,129 | 243,482 |
Manufacturing revenues | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 0 | 0 | ||
Manufacturing revenues | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 94,029 | 307,129 | ||
Other | ||||
Revenues: | ||||
Revenues | 296,548 | 67,811 | 440,537 | 366,335 |
Other | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenues | 0 | 0 | ||
Other | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Revenues | 296,548 | 440,537 | ||
Jefferies Group | ||||
Revenues: | ||||
Interest expense | 308,131 | $ 245,370 | 906,474 | $ 715,092 |
Jefferies Group | Impact of Adoption of Revenue Recognition Standard | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Interest expense | 0 | 0 | ||
Jefferies Group | Financial Results Prior to Adoption of Revenue Recognition Standard | ||||
Revenues: | ||||
Interest expense | $ 308,131 | $ 906,474 |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Trading assets, at fair value | $ 17,310,213 | $ 15,492,572 |
Derivative assets | 189,645 | 179,488 |
Counterparty and Cash Collateral Netting, assets | (3,334,100) | (3,318,481) |
Available for sale securities, equity securities | 88,486 | |
Debt securities, available for sale securities | 1,868,420 | 628,075 |
Available-for-sale Securities | 716,561 | |
Liabilities: | ||
Trading liabilities, at fair value | 9,479,213 | 8,454,965 |
Counterparty and Cash Collateral Netting, liabilities | (3,454,488) | (3,490,514) |
Short-term borrowings | 23,324 | |
Long-term debt - structured notes | 709,557 | 606,956 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 913,456 | 578,014 |
Level 1 | ||
Assets: | ||
Trading assets, at fair value | 7,968,625 | 5,791,641 |
Derivative assets | 13,117 | 165,396 |
Available for sale securities, equity securities | 88,486 | |
Debt securities, available for sale securities | 1,607,725 | |
Available-for-sale Securities | 641,291 | |
Liabilities: | ||
Trading liabilities, at fair value | 5,141,271 | 4,618,008 |
Short-term borrowings | 0 | |
Long-term debt - structured notes | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading assets, at fair value | 12,031,299 | 12,369,954 |
Derivative assets | 3,507,491 | 3,323,278 |
Available for sale securities, equity securities | 0 | |
Debt securities, available for sale securities | 260,695 | |
Available-for-sale Securities | 75,270 | |
Liabilities: | ||
Trading liabilities, at fair value | 7,769,540 | 7,307,269 |
Short-term borrowings | 23,324 | |
Long-term debt - structured notes | 545,927 | 606,956 |
Level 3 | ||
Assets: | ||
Trading assets, at fair value | 644,389 | 649,458 |
Derivative assets | 3,137 | 9,295 |
Available for sale securities, equity securities | 0 | |
Debt securities, available for sale securities | 0 | |
Available-for-sale Securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 22,890 | 20,202 |
Short-term borrowings | 0 | |
Long-term debt - structured notes | 163,630 | 0 |
Fair Value Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investments | 399,032 | 590,104 |
Corporate equity securities | ||
Assets: | ||
Trading assets, at fair value | 3,757,540 | 3,058,033 |
Liabilities: | ||
Trading liabilities, at fair value | 2,223,245 | 1,753,437 |
Corporate equity securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 3,635,288 | 2,975,463 |
Liabilities: | ||
Trading liabilities, at fair value | 2,221,325 | 1,721,267 |
Corporate equity securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 72,569 | 60,300 |
Liabilities: | ||
Trading liabilities, at fair value | 1,507 | 32,122 |
Corporate equity securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 49,683 | 22,270 |
Liabilities: | ||
Trading liabilities, at fair value | 413 | 48 |
Corporate debt securities | ||
Assets: | ||
Trading assets, at fair value | 2,507,682 | 3,287,336 |
Liabilities: | ||
Trading liabilities, at fair value | 1,513,536 | 1,689,347 |
Corporate debt securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 2,498,031 | 3,261,300 |
Liabilities: | ||
Trading liabilities, at fair value | 1,511,979 | 1,688,825 |
Corporate debt securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 9,651 | 26,036 |
Liabilities: | ||
Trading liabilities, at fair value | 1,557 | 522 |
Collateralized debt obligations and collateralized loan obligations | ||
Assets: | ||
Trading assets, at fair value | 116,320 | 181,350 |
Collateralized debt obligations and collateralized loan obligations | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Collateralized debt obligations and collateralized loan obligations | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 82,339 | 139,166 |
Collateralized debt obligations and collateralized loan obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 33,981 | 42,184 |
U.S. government securities | ||
Assets: | ||
Trading assets, at fair value | 3,046,694 | 1,308,673 |
Debt securities, available for sale securities | 1,607,725 | 552,805 |
Liabilities: | ||
Trading liabilities, at fair value | 1,398,222 | 1,430,737 |
U.S. government securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 3,000,805 | 1,269,230 |
Liabilities: | ||
Trading liabilities, at fair value | 1,398,222 | 1,430,737 |
U.S. government securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 45,889 | 39,443 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
U.S. government securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Municipal securities | ||
Assets: | ||
Trading assets, at fair value | 749,616 | 710,513 |
Municipal securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Municipal securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 749,616 | 710,513 |
Municipal securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Sovereign obligations | ||
Assets: | ||
Trading assets, at fair value | 1,989,334 | 2,417,459 |
Liabilities: | ||
Trading liabilities, at fair value | 2,483,137 | 2,173,635 |
Sovereign obligations | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,319,415 | 1,381,552 |
Liabilities: | ||
Trading liabilities, at fair value | 1,513,237 | 1,216,643 |
Sovereign obligations | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 669,919 | 1,035,907 |
Liabilities: | ||
Trading liabilities, at fair value | 969,845 | 956,992 |
Sovereign obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 55 | 0 |
Residential mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 1,899,487 | 1,479,371 |
Debt securities, available for sale securities | 146,678 | 34,561 |
Residential mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Debt securities, available for sale securities | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,894,533 | 1,453,294 |
Debt securities, available for sale securities | 146,678 | 34,561 |
Residential mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 4,954 | 26,077 |
Debt securities, available for sale securities | 0 | 0 |
Commercial mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 815,365 | 520,534 |
Debt securities, available for sale securities | 15,719 | 5,870 |
Liabilities: | ||
Trading liabilities, at fair value | 70 | 105 |
Commercial mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Debt securities, available for sale securities | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 791,449 | 508,115 |
Debt securities, available for sale securities | 15,719 | 5,870 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Commercial mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 23,916 | 12,419 |
Debt securities, available for sale securities | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 70 | 105 |
Other asset-backed securities | ||
Assets: | ||
Trading assets, at fair value | 333,272 | 278,240 |
Debt securities, available for sale securities | 98,298 | 34,839 |
Other asset-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Debt securities, available for sale securities | 0 | 0 |
Other asset-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 263,967 | 217,111 |
Debt securities, available for sale securities | 98,298 | 34,839 |
Other asset-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 69,305 | 61,129 |
Debt securities, available for sale securities | 0 | 0 |
Loans and other receivables | ||
Assets: | ||
Trading assets, at fair value | 1,504,481 | 1,667,885 |
Loans and other receivables | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Loans and other receivables | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,455,496 | 1,620,581 |
Loans and other receivables | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 48,985 | 47,304 |
Investments at fair value | ||
Assets: | ||
Trading assets, at fair value | 326,977 | 330,890 |
Investments at fair value | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Investments at fair value | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 0 | 946 |
Investments at fair value | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 326,977 | 329,944 |
FXCM term loan | ||
Assets: | ||
Trading assets, at fair value | 73,800 | 72,800 |
FXCM term loan | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
FXCM term loan | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
FXCM term loan | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 73,800 | 72,800 |
Loans | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,145,240 | 1,152,310 |
Loans | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Loans | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,136,579 | 1,148,824 |
Loans | Level 3 | ||
Liabilities: | ||
Trading liabilities, at fair value | 8,661 | 3,486 |
US Treasury securities | ||
Assets: | ||
Debt securities, available for sale securities | 1,607,725 | 552,805 |
US Treasury securities | Level 1 | ||
Assets: | ||
Debt securities, available for sale securities | 1,607,725 | 552,805 |
Liabilities: | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 34,800 | 99,700 |
US Treasury securities | Level 2 | ||
Assets: | ||
Debt securities, available for sale securities | 0 | 0 |
US Treasury securities | Level 3 | ||
Assets: | ||
Debt securities, available for sale securities | 0 | 0 |
Derivatives | ||
Liabilities: | ||
Trading liabilities, at fair value | 715,763 | 255,394 |
Counterparty and Cash Collateral Netting, liabilities | (3,454,488) | (3,490,514) |
Derivatives | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 8,487 | 249,361 |
Derivatives | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 4,149,630 | 3,480,506 |
Derivatives | Level 3 | ||
Assets: | ||
Derivative assets | 3,137 | 9,295 |
Liabilities: | ||
Trading liabilities, at fair value | $ 12,134 | $ 16,041 |
Fair Value Disclosures (Investm
Fair Value Disclosures (Investments Measured At Fair Value Based On Net Asset Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | $ 20,209 | $ 19,084 | $ 20,209 | $ 19,084 |
Equity Long/Short Hedge Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Long/Short Hedge Funds | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice period redemption of investments prior written notice period | 30 days | 30 days | ||
Equity Long/Short Hedge Funds | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice period redemption of investments prior written notice period | 60 days | 60 days | ||
Equity Long/Short Hedge Funds | 10 business days or less prior written notice | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Notice period redemption of investments prior written notice period | 10 days | |||
Percentage of investments redeemable | 73.00% | 73.00% | ||
Equity Long/Short Hedge Funds | 30 to 60 days prior written notice | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Percentage of investments redeemable | 18.00% | 15.00% | 18.00% | 15.00% |
Fixed Income and High Yield Hedge Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 |
Fund of Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | 0 | 0 | 0 | 0 |
Equity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | 20,209 | 19,084 | $ 20,209 | $ 19,084 |
Equity Funds | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated period for the liquidation of the underlying assets | 1 year | 1 year | ||
Equity Funds | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated period for the liquidation of the underlying assets | 10 years | 10 years | ||
Commodity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | 0 | $ 0 | ||
Notice period redemption of investments prior written notice period | 60 days | |||
Multi-asset Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 |
Notice period redemption of investments prior written notice period | 30 days | 30 days | ||
Percentage of investments redeemable | 17.00% | 12.00% | 17.00% | 12.00% |
Fair Value Measured at NAV | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 399,032 | $ 590,104 | $ 399,032 | $ 590,104 |
Fair Value Measured at NAV | Equity Long/Short Hedge Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 90,347 | 407,895 | 90,347 | 407,895 |
Fair Value Measured at NAV | Fixed Income and High Yield Hedge Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 219 | 417 | 219 | 417 |
Fair Value Measured at NAV | Fund of Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 175 | 189 | 175 | 189 |
Fair Value Measured at NAV | Equity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 36,702 | 26,798 | 36,702 | 26,798 |
Fair Value Measured at NAV | Commodity Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | 10,228 | 10,228 | ||
Fair Value Measured at NAV | Multi-asset Funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair Value | $ 261,361 | $ 154,805 | $ 261,361 | $ 154,805 |
Fair Value Disclosures (Inves_2
Fair Value Disclosures (Investment in FXCM Narrative) (Details) | 3 Months Ended | 9 Months Ended | 45 Months Ended | |||||
Sep. 30, 2018USD ($)director | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)director | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)director | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2015USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Investment in associated company | $ 2,450,901,000 | $ 2,350,980,000 | $ 2,450,901,000 | $ 2,350,980,000 | $ 2,450,901,000 | $ 2,066,829,000 | $ 2,125,098,000 | |
FXCM | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Senior secured term loan receivable | 70,600,000 | $ 70,600,000 | 70,600,000 | $ 300,000,000 | ||||
Loan receivable interest rate percentage | 10.00% | |||||||
Increase in Interest rate per annum each quarter | 1.50% | |||||||
Accrued interest rate | 20.50% | |||||||
Principal and interest payments received | $ 15,400,000 | |||||||
Principal, interest and fees received | 347,000,000 | |||||||
Initial investment amount | $ 279,000,000 | |||||||
Unrealized and realized gains (losses), interest income and fees | 1,300,000 | $ 2,300,000 | 16,400,000 | $ 17,600,000 | ||||
FXCM term loan | 73,800,000 | 73,800,000 | 73,800,000 | |||||
Investment in associated company | 139,000,000 | 139,000,000 | 139,000,000 | |||||
Investment in FXCM | $ 212,800,000 | $ 212,800,000 | $ 212,800,000 | |||||
Maximum | FXCM | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Loan receivable interest rate percentage | 20.50% | |||||||
Investment in FXCM | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | |||||
Maximum percentage of all distributions | 75.00% | 75.00% | 75.00% | |||||
Number of directors appointed by Company | director | 3 | 3 | 3 | |||||
Number of directors appointed | director | 6 | 6 | 6 | |||||
Percentage of distributions from sale of assets or certain other events until loan repayment | 100.00% | 100.00% | 100.00% | |||||
Percentage of distributions from sale of assets or certain other events until next milestone amount | 50.00% | 50.00% | 50.00% | |||||
Distributions milestone after loan repayment | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||
Percentage of distributions from sale of assets or certain other events until milestone two | 90.00% | 90.00% | 90.00% | |||||
Distributions milestone two after loan repayment | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | |||||
Percentage of distributions from sale of assets or certain other events thereafter | 60.00% | 60.00% | 60.00% | |||||
Investment in FXCM | Global Brokerage Holdings | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||
Percentage of ownership owned | 50.00% | 50.00% | 50.00% |
Fair Value Disclosures (Nonrecu
Fair Value Disclosures (Nonrecurring Fair Value Measurements Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Investment in FXCM | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment impairment | $ 130.2 | |||
Investment in FXCM | Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investments, fair value | $ 186.7 | |||
Investment In Golden Queen | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment impairment | $ 47.9 | $ 47.9 | ||
Investment In Golden Queen | Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investments, fair value | $ 62.3 | |||
Measurement Input, Discount Rate | Investment in FXCM | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment, measurement input | 0.15 | |||
Measurement Input, Discount Rate | Investment In Golden Queen | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment, measurement input | 0.12 | |||
Measurement Input, EBITDA Multiple | Investment in FXCM | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment, measurement input | 5.4 | |||
Measurement Input, Revenue Multiple | Investment in FXCM | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity method investment, measurement input | 1.5 |
Fair Value Disclosures (Level 3
Fair Value Disclosures (Level 3 Rollforwards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Assets: | ||||
Total gains (losses) (realized and unrealized) | $ 11,700 | $ 1,500 | $ 29,800 | $ 17,100 |
Liabilities: | ||||
Total gains (losses) (realized and unrealized) | (4,400) | 6,000 | 26,800 | 1,500 |
Fair value, Liabilities, change in unrealized gains/(losses) included in other comprehensive income relating to instruments still held | (100) | 11,800 | ||
Corporate equity securities | ||||
Assets: | ||||
Beginning Balance | 44,871 | 20,548 | 22,270 | 21,739 |
Total gains (losses) (realized and unrealized) | 11,796 | 4,344 | 31,475 | 3,416 |
Purchases | 17,652 | 4 | 35,993 | 945 |
Sales | (23,010) | (645) | (39,008) | (1,502) |
Settlements | (302) | (55) | (2,082) | (356) |
Net transfers into (out of) Level 3 | (1,324) | (2,022) | 1,035 | (2,068) |
Ending Balance | 49,683 | 22,174 | 49,683 | 22,174 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 9,136 | 4,319 | 26,852 | 2,689 |
Liabilities: | ||||
Beginning Balance | 87 | 354 | 48 | 313 |
Total gains (losses) (realized and unrealized) | 326 | 107 | 365 | 134 |
Purchases | 0 | (369) | 0 | (355) |
Sales | 0 | 27 | 0 | 27 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 413 | 119 | 413 | 119 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (326) | (92) | (365) | (92) |
Corporate debt securities | ||||
Assets: | ||||
Beginning Balance | 28,066 | 24,727 | 26,036 | 25,005 |
Total gains (losses) (realized and unrealized) | 1,057 | (2,350) | 1,090 | (3,280) |
Purchases | 507 | 5,901 | 22,204 | 19,610 |
Sales | (21,403) | (5,551) | (38,553) | (18,364) |
Settlements | (59) | (31) | (2,066) | (1,724) |
Net transfers into (out of) Level 3 | 1,483 | 2,319 | 940 | 3,768 |
Ending Balance | 9,651 | 25,015 | 9,651 | 25,015 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (165) | (2,224) | (1,738) | (3,424) |
Liabilities: | ||||
Beginning Balance | 522 | 522 | 522 | 523 |
Total gains (losses) (realized and unrealized) | 39 | 0 | 39 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 996 | 0 | 996 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 1,557 | 522 | 1,557 | 522 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (39) | 0 | (39) | 1 |
Sovereign obligations | ||||
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Total gains (losses) (realized and unrealized) | 3 | 3 | ||
Purchases | (598) | (598) | ||
Sales | 629 | 629 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 21 | 21 | ||
Ending Balance | 55 | 55 | ||
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (124) | (124) | ||
CDOs and CLOs | ||||
Assets: | ||||
Beginning Balance | 42,517 | 48,208 | 42,184 | 54,354 |
Total gains (losses) (realized and unrealized) | (967) | (15,205) | (4,123) | (21,595) |
Purchases | 238,281 | 52,918 | 242,864 | 65,523 |
Sales | (240,002) | (36,564) | (249,691) | (62,441) |
Settlements | (2,127) | 245 | (5,859) | 239 |
Net transfers into (out of) Level 3 | (3,721) | 468 | 8,606 | 13,990 |
Ending Balance | 33,981 | 50,070 | 33,981 | 50,070 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (3,872) | (12,638) | (7,333) | (21,998) |
Municipal securities | ||||
Assets: | ||||
Beginning Balance | 27,257 | |||
Total gains (losses) (realized and unrealized) | (1,547) | |||
Purchases | 0 | |||
Sales | (25,710) | |||
Settlements | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Ending Balance | 0 | 0 | ||
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 0 | |||
Residential mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 3,655 | 33,032 | 26,077 | 38,772 |
Total gains (losses) (realized and unrealized) | (66) | (263) | (7,334) | (1,446) |
Purchases | 72 | 494 | 2,018 | 113,391 |
Sales | (1,597) | (732) | (12,621) | (125,731) |
Settlements | (1) | (291) | (6) | (572) |
Net transfers into (out of) Level 3 | 2,891 | (11,591) | (3,180) | (3,765) |
Ending Balance | 4,954 | 20,649 | 4,954 | 20,649 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 90 | 188 | 316 | (2,005) |
Commercial mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 27,239 | 16,263 | 12,419 | 20,580 |
Total gains (losses) (realized and unrealized) | (222) | (125) | (1,236) | (1,180) |
Purchases | 8 | 0 | 1,720 | 2,033 |
Sales | 0 | (676) | (548) | (5,199) |
Settlements | (1,156) | (637) | (5,415) | (985) |
Net transfers into (out of) Level 3 | (1,953) | 2,811 | 16,976 | 2,387 |
Ending Balance | 23,916 | 17,636 | 23,916 | 17,636 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (288) | (161) | (2,272) | (952) |
Liabilities: | ||||
Beginning Balance | 0 | 70 | 105 | 0 |
Total gains (losses) (realized and unrealized) | 70 | (35) | (35) | 35 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 70 | 35 | 70 | 35 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (70) | (35) | (70) | (35) |
Other asset-backed securities | ||||
Assets: | ||||
Beginning Balance | 55,535 | 43,349 | 61,129 | 40,911 |
Total gains (losses) (realized and unrealized) | (2,269) | (6,454) | (7,528) | (15,338) |
Purchases | 307,358 | 5,798 | 523,045 | 67,611 |
Sales | (290,838) | (3,789) | (495,055) | (4,121) |
Settlements | (4,356) | (2,924) | (12,281) | (16,891) |
Net transfers into (out of) Level 3 | 3,875 | 32,966 | (5) | (3,226) |
Ending Balance | 69,305 | 68,946 | 69,305 | 68,946 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (1,124) | (3,570) | (3,307) | (8,872) |
Loans and other receivables | ||||
Assets: | ||||
Beginning Balance | 64,036 | 49,365 | 47,304 | 81,872 |
Total gains (losses) (realized and unrealized) | (1,353) | 15,261 | (2,812) | 27,709 |
Purchases | 14,932 | 9,265 | 104,009 | 84,342 |
Sales | (23,700) | (5,854) | (98,733) | (83,791) |
Settlements | (3,453) | (8,249) | (14,610) | (23,241) |
Net transfers into (out of) Level 3 | (1,477) | 2,868 | 13,827 | (24,235) |
Ending Balance | 48,985 | 62,656 | 48,985 | 62,656 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 1,007 | 14,005 | (3,769) | 16,294 |
Investments at fair value | ||||
Assets: | ||||
Beginning Balance | 318,543 | 315,297 | 329,944 | 314,359 |
Total gains (losses) (realized and unrealized) | 2,383 | 3,964 | 3,865 | 12,760 |
Purchases | 6,051 | 10,000 | 9,791 | 12,800 |
Sales | 0 | 0 | (17,569) | (10,119) |
Settlements | 0 | (292) | 0 | (831) |
Net transfers into (out of) Level 3 | 0 | 0 | 946 | 0 |
Ending Balance | 326,977 | 328,969 | 326,977 | 328,969 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 2,383 | 3,964 | 3,271 | 14,783 |
FXCM term loan | ||||
Assets: | ||||
Beginning Balance | 76,100 | 129,050 | 72,800 | 164,500 |
Total gains (losses) (realized and unrealized) | 1,347 | 2,330 | 16,432 | 17,638 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | (3,647) | (60,580) | (15,432) | (111,338) |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 73,800 | 70,800 | 73,800 | 70,800 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (2,300) | (2,401) | 5,539 | (930) |
Loans | ||||
Liabilities: | ||||
Beginning Balance | 12,881 | 4,967 | 3,486 | 378 |
Total gains (losses) (realized and unrealized) | (148) | (3,071) | (1,059) | 1,604 |
Purchases | (4,871) | 0 | (15,702) | (364) |
Sales | 1,787 | 333 | 19,409 | 333 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (988) | 1,056 | 2,527 | 1,334 |
Ending Balance | 8,661 | 3,285 | 8,661 | 3,285 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 149 | 3,018 | 1,059 | (1,583) |
Derivatives | ||||
Liabilities: | ||||
Beginning Balance | 5,874 | 3,022 | 6,746 | 3,441 |
Total gains (losses) (realized and unrealized) | 1,107 | (2,980) | (1,034) | (2,854) |
Purchases | 0 | 0 | (6) | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 1,990 | 5,040 | 2,984 | 5,162 |
Issuances | 0 | 0 | 296 | 404 |
Net transfers into (out of) Level 3 | 26 | 0 | 11 | (1,071) |
Ending Balance | 8,997 | 5,082 | 8,997 | 5,082 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (2,090) | (2,474) | (2,660) | (2,333) |
Long-term debt | ||||
Liabilities: | ||||
Beginning Balance | 160,626 | 0 | ||
Total gains (losses) (realized and unrealized) | 3,004 | (25,078) | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 81,284 | ||
Net transfers into (out of) Level 3 | 0 | 107,424 | ||
Ending Balance | 163,630 | 163,630 | ||
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | $ (2,953) | $ 13,235 | ||
Other secured financings | ||||
Liabilities: | ||||
Beginning Balance | 418 | |||
Total gains (losses) (realized and unrealized) | (418) | |||
Purchases | 0 | |||
Sales | 0 | |||
Settlements | 0 | |||
Issuances | 0 | |||
Net transfers into (out of) Level 3 | 0 | |||
Ending Balance | $ 0 | 0 | ||
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | $ 0 |
Fair Value Disclosures (Analysi
Fair Value Disclosures (Analysis of Level 3 Assets and Liabilities Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | $ 13,600 | $ 63,500 | $ 49,100 | $ 30,900 | |
Transfers of assets from Level 3 to Level 2 | 13,800 | 35,700 | 10,000 | 44,000 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | 11,700 | 1,500 | 29,800 | 17,100 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (4,400) | 6,000 | 26,800 | 1,500 | |
Excluded assets from unobservable quantitative information | 223,700 | 223,700 | $ 228,600 | ||
Excluded liabilities from unobservable quantitative information | 500 | 500 | $ 4,200 | ||
Commercial mortgage-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,600 | 17,000 | |||
Transfers of assets from Level 3 to Level 2 | 4,600 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (222) | (125) | (1,236) | (1,180) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 70 | (35) | (35) | 35 | |
Other asset-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 3,900 | 46,400 | |||
Transfers of assets from Level 3 to Level 2 | 13,500 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (2,269) | (6,454) | (7,528) | (15,338) | |
Residential mortgage-backed securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 2,900 | ||||
Transfers of assets from Level 3 to Level 2 | 14,600 | 4,600 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | (66) | (263) | (7,334) | (1,446) | |
Municipal securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,547) | ||||
Loans and other receivables | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 15,300 | ||||
Transfers of assets from Level 3 to Level 2 | 28,300 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,353) | 15,261 | (2,812) | 27,709 | |
Corporate debt securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 8,100 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | 1,057 | (2,350) | 1,090 | (3,280) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 39 | 0 | 39 | (1) | |
CDOs and CLOs | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 8,700 | 14,000 | |||
Transfers of assets from Level 3 to Level 2 | 3,700 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | (967) | (15,205) | (4,123) | (21,595) | |
Corporate equity securities | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of assets from Level 3 to Level 2 | 2,600 | 2,500 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | 11,796 | 4,344 | 31,475 | 3,416 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 326 | 107 | 365 | 134 | |
Investments at fair value | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Net gains (losses) on Level 3 assets (realized and unrealized) | 2,383 | $ 3,964 | 3,865 | $ 12,760 | |
Long-term debt | |||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 107,400 | ||||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ 3,004 | $ (25,078) |
Fair Value Disclosures (Quantit
Fair Value Disclosures (Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements) (Details) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares$ / Bond$ / Asset | Sep. 30, 2018 | Sep. 30, 2018$ / shares | Sep. 30, 2018€ / Bond | Sep. 30, 2018$ / Bond | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | $ 189,645,000 | $ 179,488,000 | ||||
Derivative liability | $ | 715,763,000 | 255,394,000 | ||||
Long-term debt, fair value | $ | 709,557,000 | 606,956,000 | ||||
Level 3 | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | 3,137,000 | 9,295,000 | ||||
Long-term debt, fair value | $ | 163,630,000 | 0 | ||||
Level 3 | Price | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 80 | 70 | ||||
Level 3 | Price | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 112 | 100 | ||||
Level 3 | Price | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, measurement input | 96 | 80 | ||||
Level 3 | Non-exchange traded securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 41,038,000 | $ 18,109,000 | ||||
Level 3 | Non-exchange traded securities | Price | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Non-exchange traded securities | Price | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 75 | |||||
Level 3 | Non-exchange traded securities | Price | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 25 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 75 | |||||
Level 3 | Non-exchange traded securities | Price | Market approach | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 33 | |||||
Level 3 | Non-exchange traded securities | Underlying stock price | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 1 | |||||
Level 3 | Non-exchange traded securities | Underlying stock price | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 11 | |||||
Level 3 | Non-exchange traded securities | Underlying stock price | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 9 | |||||
Level 3 | Non-exchange traded securities | Underlying stock price | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 6 | |||||
Level 3 | Non-exchange traded securities | Comparable asset price | Comparable pricing | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / Asset | 7 | |||||
Level 3 | Private equity securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 111,899,000 | $ 110,010,000 | ||||
Level 3 | Private equity securities | Price | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Private equity securities | Price | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 250 | |||||
Level 3 | Private equity securities | Underlying stock price | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 7 | |||||
Level 3 | Private equity securities | Underlying stock price | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 105 | |||||
Level 3 | Private equity securities | Discount rate/yield | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | 0.20 | ||||
Level 3 | Private equity securities | Transaction level | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 3 | |||||
Level 3 | Private equity securities | Transaction level | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ / shares | 250 | |||||
Level 3 | Private equity securities | Transaction level | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | $ | 172 | |||||
Level 3 | Corporate debt securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 9,651,000 | $ 26,036,000 | ||||
Debt instrument, fair value | $ | 1,557,000 | |||||
Level 3 | Corporate debt securities | Price | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 10 | |||||
Level 3 | Corporate debt securities | Price | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 10 | |||||
Level 3 | Corporate debt securities | Comparable asset price | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 101 | |||||
Level 3 | Corporate debt securities | Discount rate/yield | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.19 | |||||
Level 3 | Corporate debt securities | Discount rate/yield | Convertible bond model | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | |||||
Level 3 | Corporate debt securities | Estimated recovery percentage | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.46 | |||||
Debt instrument, measurement input | 0.53 | |||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.17 | |||||
Level 3 | Corporate debt securities | Volatility | Convertible bond model | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.40 | |||||
Level 3 | CDOs and CLOs | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | 33,981,000 | $ 38,845,000 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.03 | 0.05 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.41 | ||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.12 | 0.16 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | 0.02 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.45 | 0.41 | ||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.23 | ||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.20 | 0.20 | ||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.01 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | |||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.30 | |||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.25 | |||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.30 | |||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | |||||
Level 3 | Residential mortgage-backed securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 4,954,000 | $ 26,077,000 | ||||
Level 3 | Residential mortgage-backed securities | Price | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.06 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.10 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | |||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.09 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.03 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.19 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.10 | |||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.23 | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 2 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 4 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 years | |||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 15 years | |||||
Level 3 | Commercial mortgage-backed securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 23,916,000 | $ 12,419,000 | ||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 49 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 52 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 56 | |||||
Level 3 | Commercial mortgage-backed securities | Price | Scenario analysis | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 54 | |||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.02 | 0.03 | ||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | 0.38 | ||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.12 | 0.12 | ||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.26 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.32 | |||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.28 | |||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.08 | 0.08 | ||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.65 | 0.84 | ||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.44 | 0.33 | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 0 years | 1 year | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 years | 3 years | ||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 2 years | ||||
Level 3 | Other asset-backed securities | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 69,305,000 | $ 61,129,000 | ||||
Level 3 | Other asset-backed securities | Price | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | 100 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.05 | 0.05 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.39 | 0.12 | ||||
Level 3 | Other asset-backed securities | Discount rate/yield | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.09 | 0.07 | ||||
Level 3 | Other asset-backed securities | Estimated recovery percentage | Scenario analysis | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.14 | |||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0 | 0 | ||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.33 | 0.29 | ||||
Level 3 | Other asset-backed securities | Cumulative loss rate | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.23 | 0.18 | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 1 year | 1 year | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 5 years | 6 years | ||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 2 years | 2 years | ||||
Level 3 | Loans and other receivables | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 48,985,000 | $ 46,121,000 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 54 | 50 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 100 | 100 | ||||
Level 3 | Loans and other receivables | Price | Market approach | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 95 | 95 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.76 | 0 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.13 | 0.57 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 1.07 | 1.07 | ||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input | 0.78 | 0.88 | ||||
Level 3 | Derivatives | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative assets | $ | 3,137,000 | $ 9,295,000 | ||||
Derivative liability | $ | 12,134,000 | $ 16,041,000 | ||||
Level 3 | Derivatives | Price | Total return swaps | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 100 | |||||
Level 3 | Derivatives | Price | Total return swaps | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 101 | |||||
Level 3 | Derivatives | Price | Total return swaps | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 106 | |||||
Level 3 | Derivatives | Price | Total return swaps | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 103 | |||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 101 | 95 | ||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 106 | 100 | ||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 103 | 97 | ||||
Level 3 | Derivatives | Price | Unfunded commitments | Market approach | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 99 | 99 | ||||
Level 3 | Derivatives | Discount rate/yield | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.26 | 0.41 | ||||
Level 3 | Derivatives | Constant prepayment rate | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.20 | 0.20 | ||||
Level 3 | Derivatives | Constant default rate | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.02 | 0.02 | ||||
Level 3 | Derivatives | Loss severity | Variable funding note swaps | Discounted cash flows | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0.25 | 0.30 | ||||
Level 3 | Derivatives | Default probability | Equity options | Option model/default rate | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative liability, measurement input | 0 | 0 | ||||
Level 3 | Derivatives | Price | Interest rate swaps | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Derivative asset, measurement input | 0.0800 | |||||
Level 3 | FXCM term loan | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, fair value | $ | $ 73,800,000 | $ 72,800,000 | ||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Minimum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 0 months | 0 months | ||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Maximum | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 4 months | 2 months | ||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Weighted Average | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Trading assets, measurement input, term | 3 months | 2 months | ||||
Level 3 | Loans | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, fair value | $ | $ 8,661,000 | |||||
Level 3 | Loans | Price | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, measurement input | 50 | |||||
Level 3 | Loans | Estimated recovery percentage | ||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Debt instrument, measurement input | 0 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary Of Gains (Losses) Due To Changes In Instrument Specific Credit Risk For Loans and Other Receivables And Loan Commitments Measured At Fair Value Under Fair Value Option) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financial Instruments [Line Items] | ||||
Loans and other receivables | $ 14,002 | $ 24,846 | $ 7,495 | $ 27,715 |
Financial Instruments Sold | ||||
Financial Instruments [Line Items] | ||||
Loans | (2,708) | 3,436 | (2,467) | (7,286) |
Loan commitments | (1,695) | 82 | (1,964) | 229 |
Long-term debt | ||||
Financial Instruments [Line Items] | ||||
Changes in instrument specific credit risk | 1,401 | 5,638 | 19,986 | (14,141) |
Other changes in fair value | (6,842) | (1,854) | 33,626 | 2,786 |
Short-term Borrowings | ||||
Financial Instruments [Line Items] | ||||
Changes in instrument specific credit risk | 0 | 19 | 0 | 1 |
Other changes in fair value | $ 0 | $ (2,570) | $ 0 | $ (37) |
Fair Value Disclosures (Summa_2
Fair Value Disclosures (Summary Of Amount By Which Contractual Principal Exceeds Fair Value For Loans And Other Receivables Measured At Fair Value Under Fair Value Option) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Loans and other receivables | $ 896,470 | $ 752,076 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 167,355 | 159,462 |
Long-term debt and short-term borrowings | 89,345 | 32,839 |
All loans and other receivables 90 days or greater past due | $ 33,700 | $ 38,700 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Option Election Narrative) (Details) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018USD ($)directorshares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)directorshares | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jul. 13, 2018 | Jul. 12, 2018 | Dec. 31, 2017USD ($)shares | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Financial instruments owned trading assets, at fair value | $ 17,709,245 | $ 17,709,245 | $ 16,082,676 | ||||||
Jefferies Group | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 77,000 | 77,000 | 55,100 | ||||||
Loans and other receivables 90 days or greater past due | 25,600 | 25,600 | 37,400 | ||||||
KCG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Changes in fair value of investments reflected as principal transactions | $ 2,200 | $ 93,400 | |||||||
HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Cash consideration paid for shares | 475,600 | 475,600 | |||||||
HRG Group/Spectrum Brands Holdings, Inc. | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Changes in fair value of investments reflected as principal transactions | (48,500) | $ (97,900) | (228,400) | $ 2,300 | |||||
Spectrum Brands | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Financial instruments owned trading assets, at fair value | $ 561,500 | $ 561,500 | $ 789,900 | ||||||
Revenue of investee | $ 2,358,100 | $ 2,222,700 | |||||||
Net income from continuing operations of investee | 443,700 | (46,000) | |||||||
Net income (loss) of investee | 941,600 | 249,200 | |||||||
Net income (loss) attributable to HRG | $ 847,700 | $ 132,200 | |||||||
Number of directors appointed by Company | director | 1 | 1 | |||||||
Spectrum Brands | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Shares owned, number | shares | 7.5 | 7.5 | |||||||
Percentage of ownership owned | 14.00% | 14.00% | 14.00% | ||||||
Spectrum Brands | HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Percentage of ownership owned | 62.00% | ||||||||
HRG | |||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Shares owned, number | shares | 46.6 | ||||||||
Percentage of outstanding common stock owned | 23.00% | ||||||||
Percentage of ownership owned | 23.00% | 23.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure) (Details) $ in Thousands | Sep. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 3,523,745 | $ 3,497,969 |
Fair Value, Liabilities | 4,170,251 | 3,745,908 |
Net Amounts in Consolidated Statements of Financial Condition | 189,645 | 179,488 |
Net Amounts in Consolidated Statements of Financial Condition | 715,763 | 255,394 |
Rule change impact, derivative asset | 189,645 | 179,488 |
Rule change impact, derivative liability | 715,763 | 255,394 |
Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 0 | $ 0 |
Number of Contracts, Assets | Contract | 0 | 0 |
Fair Value, Liabilities | $ 30,018 | $ 2,420 |
Number of Contracts, Liabilities | Contract | 1 | 1 |
Not Designated as Accounting Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 3,523,745 | $ 3,497,969 |
Fair Value, Liabilities | 4,140,233 | 3,743,488 |
Counterparty/cash-collateral netting, Assets | (3,334,100) | (3,318,481) |
Counterparty/cash-collateral netting, Liabilities | (3,454,488) | (3,490,514) |
Net Amounts in Consolidated Statements of Financial Condition | 189,645 | 179,488 |
Net Amounts in Consolidated Statements of Financial Condition | 685,745 | 252,974 |
Not Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 766,233 | $ 1,717,058 |
Number of Contracts, Assets | Contract | 20,867 | 38,941 |
Fair Value, Liabilities | $ 892,562 | $ 1,708,776 |
Number of Contracts, Liabilities | Contract | 38,331 | 12,828 |
Not Designated as Accounting Hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 234,641 | $ 366,541 |
Number of Contracts, Assets | Contract | 8,569 | 6,463 |
Fair Value, Liabilities | $ 223,565 | $ 349,512 |
Number of Contracts, Liabilities | Contract | 7,486 | 4,612 |
Not Designated as Accounting Hedges | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,491,005 | $ 1,373,016 |
Number of Contracts, Assets | Contract | 1,892,926 | 2,728,750 |
Fair Value, Liabilities | $ 2,987,654 | $ 1,638,258 |
Number of Contracts, Liabilities | Contract | 1,836,128 | 2,118,526 |
Not Designated as Accounting Hedges | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 4,599 | $ 3,093 |
Number of Contracts, Assets | Contract | 6,331 | 7,249 |
Fair Value, Liabilities | $ 16,312 | $ 5,141 |
Number of Contracts, Liabilities | Contract | 3,585 | 6,047 |
Not Designated as Accounting Hedges | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 27,267 | $ 38,261 |
Number of Contracts, Assets | Contract | 172 | 130 |
Fair Value, Liabilities | $ 20,140 | $ 41,801 |
Number of Contracts, Liabilities | Contract | 76 | 191 |
Rule Change by London Clearing House | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Rule change impact, derivative asset | $ 800,000 | |
Rule change impact, derivative liability | $ 800,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Unrealized And Realized Gains (Losses) On Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | $ 60 | $ 1,537 | $ 1,692 | $ 4,390 |
Unrealized and realized gains (losses) | 3,364 | (159,304) | (229,146) | (285,866) |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 13,951 | (7,485) | 36,053 | 2,555 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (4,781) | 481 | 6,737 | 3,341 |
Equity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 1,019 | (142,931) | (249,546) | (294,635) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (6,845) | (1,422) | (23,150) | (3,260) |
Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 20 | (7,947) | 760 | 6,133 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | (1,161) | 6,217 | (22,363) | 13,960 |
Long-term Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense on fair value hedge | $ 1,221 | $ (4,680) | $ 24,055 | $ (9,570) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
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 | $ 114,625 |
OTC derivative assets having maturity period of 1 to 5 years | 179,056 |
OTC derivative assets having maturity period of greater than 5 years | 98,168 |
OTC derivative assets cross-maturity netting | (105,568) |
Total OTC derivative assets, net of cross-maturity netting | 286,281 |
Cross product counterparty netting | (34,971) |
Total OTC derivative assets included in Trading assets | 251,310 |
OTC derivative liabilities having maturity period of 0 to 12 months | 148,158 |
OTC derivative liabilities having maturity period of 1 to 5 years | 292,346 |
OTC derivative liabilities having maturity period of greater than 5 years | 211,617 |
OTC derivative liabilities cross-maturity netting | (105,568) |
Total OTC derivative liabilities, net of cross-maturity netting | 546,553 |
Cross product counterparty netting | (34,971) |
Total OTC derivative liabilities included in Trading liabilities | 511,582 |
Exchange traded derivative assets and other credit agreements | 96,600 |
Cash collateral received | 158,200 |
Exchange traded derivative liabilities and other credit agreements | 482,800 |
Cash collateral pledged | 278,600 |
Commodity swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 738 |
OTC derivative assets having maturity period of 1 to 5 years | 512 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 1,250 |
OTC derivative liabilities having maturity period of 0 to 12 months | 12,234 |
OTC derivative liabilities having maturity period of 1 to 5 years | 2,388 |
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 | 14,622 |
Equity swaps and options | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 10,226 |
OTC derivative assets having maturity period of 1 to 5 years | 8,071 |
OTC derivative assets having maturity period of greater than 5 years | 2,195 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 20,492 |
OTC derivative liabilities having maturity period of 0 to 12 months | 15,125 |
OTC derivative liabilities having maturity period of 1 to 5 years | 92,491 |
OTC derivative liabilities having maturity period of greater than 5 years | 13,048 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 120,664 |
Credit default swaps | |
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 | 82 |
OTC derivative assets having maturity period of 1 to 5 years | 21,802 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (11) |
Total OTC derivative assets, net of cross-maturity netting | 21,873 |
OTC derivative liabilities having maturity period of 0 to 12 months | 17 |
OTC derivative liabilities having maturity period of 1 to 5 years | 11,480 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (11) |
Total OTC derivative liabilities, net of cross-maturity netting | 11,486 |
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 | 46,036 |
OTC derivative assets having maturity period of 1 to 5 years | 29,910 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (4,334) |
Total OTC derivative assets, net of cross-maturity netting | 71,612 |
OTC derivative liabilities having maturity period of 0 to 12 months | 67,526 |
OTC derivative liabilities having maturity period of 1 to 5 years | 19,806 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (4,334) |
Total OTC derivative liabilities, net of cross-maturity netting | 82,998 |
Foreign currency forwards, swaps and options | |
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 | 42,326 |
OTC derivative assets having maturity period of 1 to 5 years | 22,130 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (9,550) |
Total OTC derivative assets, net of cross-maturity netting | 54,906 |
OTC derivative liabilities having maturity period of 0 to 12 months | 36,183 |
OTC derivative liabilities having maturity period of 1 to 5 years | 17,496 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (9,550) |
Total OTC derivative liabilities, net of cross-maturity netting | 44,129 |
Fixed income forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 2,113 |
OTC derivative assets having maturity period of 1 to 5 years | 0 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 2,113 |
OTC derivative liabilities having maturity period of 0 to 12 months | 685 |
OTC derivative liabilities having maturity period of 1 to 5 years | 0 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 685 |
Interest rate swaps | |
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 | 13,104 |
OTC derivative assets having maturity period of 1 to 5 years | 96,631 |
OTC derivative assets having maturity period of greater than 5 years | 95,973 |
OTC derivative assets cross-maturity netting | (91,673) |
Total OTC derivative assets, net of cross-maturity netting | 114,035 |
OTC derivative liabilities having maturity period of 0 to 12 months | 16,388 |
OTC derivative liabilities having maturity period of 1 to 5 years | 148,685 |
OTC derivative liabilities having maturity period of greater than 5 years | 198,569 |
OTC derivative liabilities cross-maturity netting | (91,673) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 271,969 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 137,910 |
BBB- to BBB | 20,490 |
BB or lower | 74,097 |
Unrated | 18,813 |
Total OTC derivative assets included in Trading assets | $ 251,310 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Credit Related Derivative Contracts) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 18 | $ 129 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 75.3 | 218.2 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 3 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 32.5 | 129.1 |
Non-investment grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 15 | 126 |
Non-investment grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 39.9 | 89.1 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 2.9 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Contingent Features) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 106.3 | $ 95.1 |
Collateral posted | (59.3) | (86.4) |
Collateral received | 129.7 | 5.6 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 176.6 | $ 14.3 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Pledged) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,531,504 | $ 2,843,911 |
Repurchase agreements | 17,839,459 | 19,829,249 |
Total | 20,370,963 | 22,673,160 |
Cash | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | |
Repurchase agreements | 4,361 | |
Total | 4,361 | |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 2,214,433 | 2,353,798 |
Repurchase agreements | 490,609 | 214,413 |
Total | 2,705,042 | 2,568,211 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 315,718 | 470,908 |
Repurchase agreements | 1,496,127 | 2,336,702 |
Total | 1,811,845 | 2,807,610 |
Mortgage- and asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 2,667,439 | 2,562,268 |
Total | 2,667,439 | 2,562,268 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,353 | 19,205 |
Repurchase agreements | 10,124,642 | 11,792,534 |
Total | 10,125,995 | 11,811,739 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 582,699 | 444,861 |
Total | 582,699 | 444,861 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 1,955,879 | 2,023,530 |
Total | 1,955,879 | 2,023,530 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 517,703 | 454,941 |
Total | $ 517,703 | $ 454,941 |
Collateralized Transactions (_2
Collateralized Transactions (Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,531,504 | $ 2,843,911 |
Repurchase agreements | 17,839,459 | 19,829,249 |
Total | 20,370,963 | 22,673,160 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,354,136 | 1,676,940 |
Repurchase agreements | 8,122,962 | 10,780,474 |
Total | 9,477,098 | 12,457,414 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 2,733,400 | 4,058,228 |
Total | 2,733,400 | 4,058,228 |
30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 847,577 | 741,971 |
Repurchase agreements | 4,342,923 | 3,211,464 |
Total | 5,190,500 | 3,953,435 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 329,791 | 425,000 |
Repurchase agreements | 2,640,174 | 1,779,083 |
Total | $ 2,969,965 | $ 2,204,083 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Billions | Sep. 30, 2018 | Dec. 31, 2017 |
Collateralized Transactions [Abstract] | ||
Fair value of securities received as collateral that may be sold or repledged | $ 25.2 | $ 27.1 |
Securitization Activities (Acti
Securitization Activities (Activity Related To Securitizations Accounted For As Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Securitization Activities [Abstract] | ||||
Transferred assets | $ 1,865.5 | $ 1,009.1 | $ 5,665.9 | $ 2,677.7 |
Proceeds on new securitizations | 1,866.2 | 1,017.2 | 5,668.6 | 2,703.3 |
Cash flows received on retained interests | $ 17.2 | $ 8.7 | $ 35.7 | $ 22.7 |
Securitization Activities (Summ
Securitization Activities (Summary Of Retained Interests In SPEs) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Residential mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency residential mortgage-backed securities | $ 13,306 | $ 6,383.5 |
Retained Interests | 192.7 | 28.2 |
Commercial mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency commercial mortgage-backed securities | 2,101.5 | 2,075.7 |
Retained Interests | 276.1 | 81.4 |
CLOs | ||
Securitization Activities [Line Items] | ||
CLOs | 3,442.3 | 3,957.8 |
Retained Interests | 26.4 | 20.3 |
Consumer and other loans | ||
Securitization Activities [Line Items] | ||
Retained Interests | 53 | 47.8 |
Consumer and Other Loans Securitization Assets | $ 648.9 | $ 247.6 |
Available for Sale Securities_3
Available for Sale Securities and Other Investments (Amortized Cost, Gross Unrealized Gains and Losses and Estimated Fair Value of Available for Sale Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | $ 1,869,962 | $ 627,922 |
Debt securities, available for sale securities, gross unrealized gains | 149 | 335 |
Debt securities, available for sale securities, gross unrealized losses | 1,691 | 182 |
Debt securities, available for sale securities, estimated fair value | 1,868,420 | 628,075 |
Equity securities, available for sale securities, amortized cost | 52,575 | |
Equity securities, available for sale securities, gross unrealized gains | 35,911 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | 88,486 | |
Available for sale securities, amortized cost Basis | 680,497 | |
Available for sale securities, gross unrealized gains | 36,246 | |
Available for sale securities, gross unrealized losses | 182 | |
Available-for-sale Securities | 716,561 | |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 1,608,076 | 552,847 |
Debt securities, available for sale securities, gross unrealized gains | 2 | 0 |
Debt securities, available for sale securities, gross unrealized losses | 353 | 42 |
Debt securities, available for sale securities, estimated fair value | 1,607,725 | 552,805 |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 147,294 | 34,381 |
Debt securities, available for sale securities, gross unrealized gains | 138 | 272 |
Debt securities, available for sale securities, gross unrealized losses | 754 | 92 |
Debt securities, available for sale securities, estimated fair value | 146,678 | 34,561 |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 16,049 | 5,857 |
Debt securities, available for sale securities, gross unrealized gains | 0 | 17 |
Debt securities, available for sale securities, gross unrealized losses | 330 | 4 |
Debt securities, available for sale securities, estimated fair value | 15,719 | 5,870 |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Debt securities, available for sale securities, amortized cost | 98,543 | 34,837 |
Debt securities, available for sale securities, gross unrealized gains | 9 | 46 |
Debt securities, available for sale securities, gross unrealized losses | 254 | 44 |
Debt securities, available for sale securities, estimated fair value | $ 98,298 | 34,839 |
Common stocks: Banks, trusts and insurance companies | ||
Schedule of Investments [Line Items] | ||
Equity securities, available for sale securities, amortized cost | 35,071 | |
Equity securities, available for sale securities, gross unrealized gains | 17,500 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | 52,571 | |
Common stocks: Industrial, miscellaneous and all other | ||
Schedule of Investments [Line Items] | ||
Equity securities, available for sale securities, amortized cost | 17,504 | |
Equity securities, available for sale securities, gross unrealized gains | 18,411 | |
Equity securities, available for sale securities, gross unrealized losses | 0 | |
Equity securities, available for sale securities, estimated fair value | $ 35,915 |
Available for Sale Securities_4
Available for Sale Securities and Other Investments (Additional Information) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Other investment not readily marketable, fair value | $ 233.7 |
Available for Sale Securities_5
Available for Sale Securities and Other Investments (Amortized Cost and Estimated Fair Value of Investments Classified as Available for Sale By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due within one year, amortized cost | $ 1,608,076 | |
Fixed maturities investments excluding mortgage-backed and asset-backed securities, amortized cost | 1,608,076 | |
Mortgage-backed and asset-backed securities, amortized cost | 261,886 | |
Debt securities, available for sale securities, amortized cost | 1,869,962 | $ 627,922 |
Estimated Fair Value | ||
Due within one year, estimated fair value | 1,607,725 | |
Fixed maturities investments excluding mortgage-backed and asset-backed securities, estimated fair value | 1,607,725 | |
Mortgage-backed and asset-backed securities, estimated fair value | 260,695 | |
Debt securities, available for sale securities, estimated fair value | $ 1,868,420 | $ 628,075 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Cash | $ 4,895,788 | $ 5,275,480 | $ 5,016,932 | |
Financial instruments owned | 19,577,665 | 16,799,237 | ||
Securities purchased under agreement to resell | 3,659,059 | 3,689,559 | ||
Receivables | 5,864,815 | 5,419,015 | ||
Other | 1,506,986 | 1,661,777 | ||
Total assets | [1] | 48,948,669 | 47,169,108 | |
Other secured financings | 1,440,678 | 1,029,485 | ||
Total liabilities | [1] | 38,155,533 | 36,478,536 | |
Noncontrolling interests | 25,566 | 33,022 | ||
Jefferies Group | ||||
Variable Interest Entity [Line Items] | ||||
Secured financings eliminated in consolidation | 37,700 | 44,100 | ||
Consolidation, Eliminations | ||||
Variable Interest Entity [Line Items] | ||||
Intercompany payables | 31,100 | 32,000 | ||
Securitization Vehicles | ||||
Variable Interest Entity [Line Items] | ||||
Cash | 0 | 11,700 | ||
Financial instruments owned | 0 | 37,600 | ||
Securities purchased under agreement to resell | 1,043,400 | 729,300 | ||
Receivables | 453,200 | 318,100 | ||
Other | 25,800 | 15,500 | ||
Total assets | 1,522,400 | 1,112,200 | ||
Other secured financings | 1,478,300 | 1,073,500 | ||
Other | 44,100 | 38,300 | ||
Total liabilities | $ 1,522,400 | $ 1,111,800 | ||
[1] | Total assets include assets related to variable interest entities of $479.0 million and $382.9 million at September 30, 2018 and December 31, 2017, respectively, and Total liabilities include liabilities related to variable interest entities of $1,441.9 million and $1,031.0 million at September 30, 2018 and December 31, 2017, respectively. See Note 8 for additional information related to variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Automobile loan receivables securitized | $ 290.9 | |
Carrying Amount | 575 | $ 579.6 |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying amount of equity investment | 160.4 | 133 |
Unfunded equity commitment related to investments | 10.3 | 9.1 |
Carrying Amount | 160.4 | 133 |
Agency Mortgage-Backed Securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 2,622.2 | 1,829.6 |
Nonagency Mortgage- And Asset-Backed Securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 156.6 | 253.2 |
JCP Entities | Private Equity Vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity commitments | 139.3 | 148.1 |
Funded equity commitments | 121.3 | 126.3 |
Carrying amount of equity investment | $ 34.1 | $ 23.7 |
Foursight Capital Credit Facilities | Secured Debt | ||
Variable Interest Entity [Line Items] | ||
Number of warehouse credit commitment | Contract | 2 |
Variable Interest Entities (Non
Variable Interest Entities (Non-Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | $ 575 | $ 579.6 |
Financial Statement Carrying Amount, Liabilities | 0.7 | 8.9 |
Maximum Exposure to Loss | 1,609.2 | 1,977.6 |
VIE Assets | 12,221.2 | 12,386.9 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 57 | 168.1 |
Financial Statement Carrying Amount, Liabilities | 0.7 | 8.9 |
Maximum Exposure to Loss | 784 | 1,030.4 |
VIE Assets | 3,348 | 5,364.3 |
Consumer loan vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 323.5 | 254.8 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 602.4 | 759.8 |
VIE Assets | 3,441.8 | 2,322.7 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 34.1 | 23.7 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 52 | 45.4 |
VIE Assets | 107.2 | 75 |
Other private investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 160.4 | 133 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 170.8 | 142 |
VIE Assets | $ 5,324.2 | $ 4,624.9 |
Loans to and Investments In A_3
Loans to and Investments In Associated Companies (Schedule Of Loans to and Investments In Associated Companies) (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 05, 2018 | Jun. 04, 2018 | Dec. 31, 2017 | |
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | $ 2,066,829 | $ 2,125,098 | ||||||
Income (losses) related to associated companies | $ 18,867 | $ 30,057 | 84,320 | (84,413) | ||||
Income (losses) related to Jefferies associated companies | 5,853 | 10,828 | 30,687 | 65,323 | ||||
Contributions to (distributions from) associated companies, net | (134,300) | 203,849 | ||||||
Other | 403,365 | 41,123 | ||||||
Loans to and investments in associated companies, ending balance | 2,450,901 | 2,350,980 | $ 2,450,901 | 2,450,901 | 2,350,980 | |||
Noncontrolling interests | 25,566 | 25,566 | 25,566 | $ 33,022 | ||||
Jefferies Finance | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 655,467 | 490,464 | ||||||
Income (losses) related to associated companies | 0 | 0 | ||||||
Income (losses) related to Jefferies associated companies | 5,931 | 13,509 | 36,497 | 63,685 | ||||
Contributions to (distributions from) associated companies, net | 43,470 | 109,899 | ||||||
Other | 0 | 0 | ||||||
Loans to and investments in associated companies, ending balance | 735,434 | 664,048 | 735,434 | 735,434 | 664,048 | |||
National Beef | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 0 | |||||||
Income (losses) related to associated companies | 58,886 | 0 | 83,300 | 83,287 | 0 | |||
Income (losses) related to Jefferies associated companies | 0 | |||||||
Contributions to (distributions from) associated companies, net | (48,656) | |||||||
Other | 592,239 | |||||||
Loans to and investments in associated companies, ending balance | $ 626,870 | $ 626,870 | $ 626,870 | |||||
Percentage of ownership owned | 79.00% | |||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | 31.00% | ||||
Jefferies LoanCore | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 154,731 | |||||||
Income (losses) related to associated companies | 0 | |||||||
Income (losses) related to Jefferies associated companies | $ 0 | 1,656 | $ 0 | 8,030 | ||||
Contributions to (distributions from) associated companies, net | 43,714 | |||||||
Other | 1,095 | |||||||
Loans to and investments in associated companies, ending balance | 207,570 | 207,570 | ||||||
Berkadia | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 210,594 | 184,443 | ||||||
Income (losses) related to associated companies | 28,350 | 34,839 | 80,092 | 67,979 | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | (42,064) | (52,300) | ||||||
Other | (1,054) | (174) | ||||||
Loans to and investments in associated companies, ending balance | 247,568 | 199,948 | $ 247,568 | 247,568 | 199,948 | |||
FXCM | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 158,856 | 336,258 | ||||||
Income (losses) related to associated companies | (4,282) | (4,345) | (19,322) | (166,360) | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | 0 | 0 | ||||||
Other | (513) | 731 | ||||||
Loans to and investments in associated companies, ending balance | 139,021 | 170,629 | 139,021 | 139,021 | 170,629 | |||
Garcadia companies | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 179,143 | 185,815 | ||||||
Income (losses) related to associated companies | 691 | 12,565 | 21,646 | 38,536 | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | (26,962) | (40,955) | ||||||
Other | (173,827) | 0 | ||||||
Loans to and investments in associated companies, ending balance | 0 | 183,396 | 0 | 0 | 183,396 | |||
Linkem | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 192,136 | 154,000 | ||||||
Income (losses) related to associated companies | (7,770) | (9,533) | (20,534) | (26,557) | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | 542 | 31,996 | ||||||
Other | (3,601) | 33,979 | ||||||
Loans to and investments in associated companies, ending balance | 168,543 | 193,418 | 168,543 | 168,543 | 193,418 | |||
HomeFed | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 341,874 | 302,231 | ||||||
Income (losses) related to associated companies | (7,783) | 238 | (3,338) | 9,922 | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | 0 | 31,918 | ||||||
Other | 0 | 0 | ||||||
Loans to and investments in associated companies, ending balance | 338,536 | 344,071 | 338,536 | 338,536 | 344,071 | |||
Golden Queen | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 105,005 | 111,302 | ||||||
Income (losses) related to associated companies | (48,732) | (1,975) | (52,028) | (3,684) | ||||
Income (losses) related to Jefferies associated companies | 0 | 0 | ||||||
Contributions to (distributions from) associated companies, net | 8,441 | (59) | ||||||
Other | 0 | 0 | ||||||
Loans to and investments in associated companies, ending balance | 61,418 | 107,559 | 61,418 | 61,418 | 107,559 | |||
Noncontrolling interests | 15,100 | 15,100 | 15,100 | $ 30,500 | ||||
Other | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Loans to and investments in associated companies, beginning balance | 223,754 | 205,854 | ||||||
Income (losses) related to associated companies | (493) | (1,732) | (5,483) | (4,249) | ||||
Income (losses) related to Jefferies associated companies | (78) | (4,337) | (5,810) | (6,392) | ||||
Contributions to (distributions from) associated companies, net | (69,071) | 79,636 | ||||||
Other | (9,879) | 5,492 | ||||||
Loans to and investments in associated companies, ending balance | $ 133,511 | $ 280,341 | $ 133,511 | $ 133,511 | $ 280,341 | |||
Discontinued operations, disposed of by sale | National Beef | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Percentage of ownership owned | 48.00% | |||||||
Held-for-sale, not discontinued operations | Garcadia companies | ||||||||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | ||||||||
Percentage of equity method investment for sale | 100.00% |
Loans to and Investments In A_4
Loans to and Investments In Associated Companies (Jefferies Finance) (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Investments In Associated Companies [Line Items] | |||||
Other | $ 1,506,986,000 | $ 1,506,986,000 | $ 1,661,777,000 | ||
Payables, expense accruals and other liabilities | 6,680,224,000 | 6,680,224,000 | 7,167,666,000 | ||
Financial instruments owned trading assets, at fair value | 17,709,245,000 | 17,709,245,000 | 16,082,676,000 | ||
Jefferies Group | |||||
Investments In Associated Companies [Line Items] | |||||
Interest income and unfunded commitment fees related to facility commitment | 300,000 | $ 500,000 | 2,000,000 | $ 3,300,000 | |
Investment banking | 71,100,000 | 104,200,000 | 282,100,000 | 243,500,000 | |
Origination fees | 12,100,000 | 0 | 45,500,000 | 2,500,000 | |
Placement agent fees | $ 400,000 | 800,000 | $ 3,100,000 | 4,700,000 | |
Jefferies Finance | |||||
Investments In Associated Companies [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||
Equity commitment | $ 750,000,000 | $ 750,000,000 | |||
Funded equity commitments | 706,500,000 | $ 706,500,000 | |||
Investment commitment extension | 1 year | ||||
Termination notice | 60 days | ||||
Total line of credit facility commitment under joint venture | 500,000,000 | $ 500,000,000 | 500,000,000 | ||
Extension period | 1 year | ||||
Line of credit facility, commitment of Jefferies, funded | 0 | $ 0 | 0 | ||
Line of credit facility commitment of Jefferies | 250,000,000 | 250,000,000 | 250,000,000 | ||
Service fee income | 13,300,000 | $ 7,900,000 | 48,300,000 | $ 37,400,000 | |
Other | 36,300,000 | 36,300,000 | 34,600,000 | ||
Payables, expense accruals and other liabilities | 14,100,000 | 14,100,000 | 14,100,000 | ||
Foreign exchange contracts | Jefferies Finance | |||||
Investments In Associated Companies [Line Items] | |||||
Payables, expense accruals and other liabilities | $ 200,000 | $ 200,000 | |||
Financial instruments owned trading assets, at fair value | $ 1,500,000 |
Loans to and Investments In A_5
Loans to and Investments In Associated Companies (Jefferies LoanCore) (Narrative) (Details) $ in Millions | Oct. 31, 2017USD ($) |
Jefferies LoanCore | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 48.50% |
Jefferies LoanCore | Disposed of by sale, not discontinued operations | Jefferies Group | |
Investments In Associated Companies [Line Items] | |
Consideration for sale of business | $ 173.1 |
Period entitled to additional cash consideration | 5 years |
Loans to and Investments in A_6
Loans to and Investments in Associated Companies (National Beef) (Narrative) (Details) - USD ($) $ in Thousands | Jun. 05, 2018 | Sep. 30, 2018 | Jun. 04, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in associated company | $ 2,450,901 | $ 2,066,829 | $ 2,350,980 | $ 2,125,098 | ||
National Beef | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership owned | 79.00% | |||||
Equity method investment, ownership percentage | 31.00% | 31.00% | ||||
Investment in associated company | $ 592,300 | $ 626,870 | $ 0 | |||
Weighted average useful life | 15 years | |||||
National Beef | Discontinued operations, disposed of by sale | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of ownership owned | 48.00% | |||||
National Beef | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Enterprise value | $ 2,300,000 | |||||
Percentage of ownership owned | 100.00% | |||||
Equity valuation | $ 1,900,000 |
Loans to and Investments In A_7
Loans to and Investments In Associated Companies (Berkadia) (Narrative) (Details) - Berkadia - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2009 | Sep. 30, 2018 | |
Investments In Associated Companies [Line Items] | ||
Capital contributed | $ 217.2 | |
Equity method investment, ownership percentage | 50.00% | |
Surety policy issued | $ 1,500 | |
Reimbursement of losses incurred, maximum percentage | 50.00% | |
Commercial paper | $ 1,470 |
Loans to and Investments In A_8
Loans to and Investments In Associated Companies (FXCM) (Narrative) (Details) - Investment in FXCM - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2018 | |
Investments In Associated Companies [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investment impairment | $ 130.2 |
Loans to and Investments In A_9
Loans to and Investments In Associated Companies (Garcadia) (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($)Dealership | Sep. 30, 2018USD ($)Dealership | |
Garcadia | ||
Investments In Associated Companies [Line Items] | ||
Number of automobile dealerships | 28 | 28 |
Plan One | Garcadia | ||
Investments In Associated Companies [Line Items] | ||
Percentage of cash flows allocated from joint venture | 65.00% | |
Plan One | Garff Enterprises, Inc | ||
Investments In Associated Companies [Line Items] | ||
Percentage of cash flows allocated from joint venture | 35.00% | |
Plan Two | Garcadia | ||
Investments In Associated Companies [Line Items] | ||
Number of automobile dealerships | 1 | 1 |
Percentage of cash flows allocated from joint venture | 83.00% | |
Plan Three | Garcadia | ||
Investments In Associated Companies [Line Items] | ||
Number of automobile dealerships | 4 | 4 |
Percentage of cash flows allocated from joint venture | 71.00% | |
Garcadia | Held-for-sale, not discontinued operations | ||
Investments In Associated Companies [Line Items] | ||
Percentage of equity method investment for sale | 100.00% | |
Proceeds from sale of equity method investments and associated real estate | $ | $ 417.2 | |
Pre-tax gain on sale of equity method investments and associated real estate | $ | $ 221.7 | $ 221.7 |
Loans to and Investments In _10
Loans to and Investments In Associated Companies (Linkem) (Narrative) (Details) - Linkem | 9 Months Ended |
Sep. 30, 2018 | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 42.00% |
Stated interest rate on convertible notes | 5.00% |
Percentage of ownership upon conversion of note | 54.00% |
Equity method investment, voting percentage | 48.00% |
Convertible Preferred Stock | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 63.00% |
Loans to and Investments In _11
Loans to and Investments In Associated Companies (HomeFed) (Narrative) (Details) - HomeFed | 9 Months Ended |
Sep. 30, 2018directorshares | |
Investments In Associated Companies [Line Items] | |
Shares of common stock owned | shares | 10,852,123 |
Equity method investment, ownership percentage | 70.00% |
Maximum voting rights as a percentage of total voting securities voting | 45.00% |
Number of directors appointed by Company | director | 3 |
Company Chairman | |
Investments In Associated Companies [Line Items] | |
Ownership percentage of company | 5.00% |
Loans to and Investments In _12
Loans to and Investments In Associated Companies (Golden Queen Mining Company) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 57 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2013 | |
Investments In Associated Companies [Line Items] | |||||
Contributions from noncontrolling interests | $ 113 | $ 25,724 | |||
Gauss LLC | |||||
Investments In Associated Companies [Line Items] | |||||
Cash invested in Limited Liability Company | $ 93,000 | ||||
Clay Family | |||||
Investments In Associated Companies [Line Items] | |||||
Contributions from noncontrolling interests | 34,500 | ||||
Golden Queen Mining Company, LLC | Gauss LLC | |||||
Investments In Associated Companies [Line Items] | |||||
Total investment in associated company | $ 127,500 | $ 127,500 | $ 127,500 | ||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | ||
Golden Queen Mining Co, Ltd | |||||
Investments In Associated Companies [Line Items] | |||||
Percentage of ownership owned | 50.00% | 50.00% | 50.00% | 100.00% | |
Investment In Golden Queen | |||||
Investments In Associated Companies [Line Items] | |||||
Equity method investment impairment | $ 47,900 | $ 47,900 |
Loans to and Investments in _13
Loans to and Investments in Associated Companies (Other) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Revenues | $ 3,341,369 | $ 763,727 |
Income from continuing operations before extraordinary items | 591,191 | 267,796 |
Net income | $ 591,191 | $ 267,796 |
Financial Statement Offsettin_2
Financial Statement Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative contracts, Assets | ||
Gross Amounts | $ 3,523,745 | $ 3,497,969 |
Netting in Consolidated Statements of Financial Condition | (3,334,100) | (3,318,481) |
Net Amounts in Consolidated Statements of Financial Condition | 189,645 | 179,488 |
Additional Amounts Available for Setoff | 0 | 0 |
Available Collateral | 0 | 0 |
Net Amount | 189,645 | 179,488 |
Securities borrowing arrangements, Assets | ||
Gross Amounts | 7,369,908 | 7,721,803 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 7,369,908 | 7,721,803 |
Additional Amounts Available for Setoff | (529,662) | (966,712) |
Available Collateral | (1,088,612) | (1,032,629) |
Net Amount | 5,751,634 | 5,722,462 |
Reverse repurchase agreements, Assets | ||
Gross Amounts | 11,634,035 | 14,858,297 |
Netting in Consolidated Statements of Financial Condition | (7,974,976) | (11,168,738) |
Net Amounts in Consolidated Statements of Financial Condition | 3,659,059 | 3,689,559 |
Additional Amounts Available for Setoff | (187,426) | (463,973) |
Available Collateral | (3,441,009) | (3,207,147) |
Net Amount | 30,624 | 18,439 |
Derivative contracts, Liabilities | ||
Gross Amounts | 4,170,251 | 3,745,908 |
Netting in Consolidated Statements of Financial Condition | (3,454,488) | (3,490,514) |
Net Amounts in Consolidated Statements of Financial Condition | 715,763 | 255,394 |
Additional Amounts Available for Setoff | 0 | 0 |
Available Collateral | 0 | 0 |
Net Amount | 715,763 | 255,394 |
Securities lending arrangements, Liabilities | ||
Gross Amounts | 2,531,504 | 2,843,911 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 2,531,504 | 2,843,911 |
Additional Amounts Available for Setoff | (529,662) | (966,712) |
Available Collateral | (1,977,558) | (1,795,408) |
Net Amount | 24,284 | 81,791 |
Repurchase agreements, Liabilities | ||
Gross Amounts | 17,839,459 | 19,829,249 |
Netting in Consolidated Statements of Financial Condition | (7,974,976) | (11,168,738) |
Net Amounts in Consolidated Statements of Financial Condition | 9,864,483 | 8,660,511 |
Additional Amounts Available for Setoff | (187,426) | (463,973) |
Available Collateral | (8,632,482) | (7,067,512) |
Net Amount | 1,044,575 | 1,129,026 |
Securities borrowing agreement, subject to review | 5,717,100 | 5,678,600 |
Securities borrowing agreement, collateral received, subject to review | 5,544,100 | 5,516,700 |
Repurchase agreement, net amount, subject to review | 1,019,600 | 1,084,400 |
Repurchase agreements, collateral pledged, subject to review | $ 1,054,100 | $ 1,115,900 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill (Schedule of Intangible Assets, Net And Goodwill) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | $ 191,770 | $ 741,030 |
Goodwill | 1,703,128 | 1,722,150 |
Total intangible assets, net and goodwill | 1,894,898 | 2,463,180 |
Exchange and clearing organization membership interests and registrations | ||
Intangible Assets [Line Items] | ||
Indefinite lived intangibles | 8,475 | 8,551 |
Customer and other relationships | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 70,071 | 347,767 |
Intangibles, accumulated amortization | 100,591 | 230,074 |
Trademarks and tradename | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 108,406 | 293,851 |
Intangibles, accumulated amortization | 20,211 | 95,627 |
Supply contracts | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 0 | 86,160 |
Intangibles, accumulated amortization | 0 | 57,440 |
Other | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 4,818 | 4,701 |
Intangibles, accumulated amortization | 4,132 | 3,885 |
Other operations | ||
Intangible Assets [Line Items] | ||
Goodwill | 3,859 | 3,859 |
National Beef | ||
Intangible Assets [Line Items] | ||
Goodwill | 0 | 14,991 |
Jefferies Group | ||
Intangible Assets [Line Items] | ||
Goodwill | $ 1,699,269 | $ 1,703,300 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 05, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Amortization expense on intangible assets | $ 3,300 | $ 3,200 | $ 9,900 | $ 9,700 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Intangible assets | 191,770 | 191,770 | $ 741,030 | |||
Goodwill | $ 1,703,128 | $ 1,703,128 | 1,722,150 | |||
National Beef | Discontinued operations, disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of ownership owned | 48.00% | |||||
Intangible assets | 539,600 | |||||
Goodwill | $ 15,000 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill (Schedule of Estimated Future Amortization Expense) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of current year | $ 3,359 |
2,019 | 13,439 |
2,020 | 13,439 |
2,021 | 13,052 |
2,022 | $ 13,052 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) € in Millions | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 382,006,000 | $ 436,215,000 | |
Interest rates on short-term borrowings outstanding | 3.39% | 2.51% | |
Floating rate puttable notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 57,985,000 | $ 108,240,000 | |
Debt matured amount | € | € 41 | ||
Equity-linked notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 0 | 23,324,000 | |
Principal amount of debt issued | 70,500,000 | ||
Debt matured amount | 23,300,000 | ||
Bank loans | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 324,021,000 | $ 304,651,000 | |
Line of Credit | Intraday Credit Facility | |||
Short-term Debt [Line Items] | |||
Credit facility maximum amount | $ 150,000,000 | ||
Line of Credit | Intraday Credit Facility | Federal funds effective rate | |||
Short-term Debt [Line Items] | |||
Debt instrument, basic spread on variable rate | 0.50% | 0.50% |
Long-Term Debt (Schedule Of Ind
Long-Term Debt (Schedule Of Indebtedness) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 13, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 7,777,425 | $ 7,777,425 | $ 7,885,783 | ||||
Gains (losses) recognized in Interest expense on fair value hedge | 60 | $ 1,537 | 1,692 | $ 4,390 | |||
Long-term debt, fair value | $ 709,557 | $ 709,557 | $ 606,956 | ||||
5.50% Senior Notes due October 18, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.50% | 5.50% | 5.50% | ||||
Principal | $ 750,000 | $ 750,000 | $ 750,000 | ||||
6.625% Senior Notes due October 23, 2043 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.625% | 6.625% | 6.625% | ||||
Principal | $ 250,000 | $ 250,000 | $ 250,000 | ||||
5.125% Senior Notes, due April 13, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | $ 682,338 | ||||
Interest rate | 5.125% | 5.125% | |||||
Principal | $ 678,300 | ||||||
8.50% Senior Notes, due July 15, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 707,072 | $ 707,072 | $ 728,872 | ||||
Interest rate | 8.50% | 8.50% | 8.50% | ||||
Principal | $ 680,800 | $ 680,800 | $ 680,800 | ||||
2.375% Euro Medium Term Notes, due May 20, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 578,896 | $ 578,896 | $ 593,334 | ||||
Interest rate | 2.375% | 2.375% | 2.375% | ||||
Principal | $ 579,850 | $ 579,850 | $ 594,725 | ||||
6.875% Senior Notes, due April 15, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 795,967 | $ 795,967 | $ 808,157 | ||||
Interest rate | 6.875% | 6.875% | 6.875% | ||||
Principal | $ 750,000 | $ 750,000 | $ 750,000 | ||||
2.25% Euro Medium Term Notes, due July 13, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 4,332 | $ 4,332 | $ 4,389 | ||||
Interest rate | 2.25% | 2.25% | 2.25% | ||||
Principal | $ 4,639 | $ 4,639 | $ 4,758 | ||||
5.125% Senior Notes, due January 20, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 613,634 | $ 613,634 | $ 615,703 | ||||
Interest rate | 5.125% | 5.125% | 5.125% | ||||
Principal | $ 600,000 | $ 600,000 | $ 600,000 | ||||
4.85% Senior Notes, due January 15, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 712,667 | $ 712,667 | $ 736,357 | ||||
Interest rate | 4.85% | 4.85% | 4.85% | ||||
Principal | $ 750,000 | $ 750,000 | $ 750,000 | ||||
6.45% Senior Debentures, due June 8, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 374,211 | $ 374,211 | $ 375,794 | ||||
Interest rate | 6.45% | 6.45% | 6.45% | ||||
Principal | $ 350,000 | $ 350,000 | $ 350,000 | ||||
3.875% Convertible Senior Debentures, due November 1, 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | $ 324,779 | ||||
Interest rate | 3.875% | ||||||
Principal | $ 324,779 | ||||||
4.15% Senior Notes, due January 23, 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 987,576 | $ 987,576 | 0 | ||||
Interest rate | 4.15% | 4.15% | |||||
Principal | $ 1,000,000 | $ 1,000,000 | |||||
6.25% Senior Debentures, due January 15, 2036 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 511,758 | $ 511,758 | $ 512,040 | ||||
Interest rate | 6.25% | 6.25% | 6.25% | ||||
Principal | $ 500,000 | $ 500,000 | $ 500,000 | ||||
6.50% Senior Notes, due January 20, 2043 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 420,718 | $ 420,718 | $ 420,990 | ||||
Interest rate | 6.50% | 6.50% | 6.50% | ||||
Principal | $ 400,000 | $ 400,000 | $ 400,000 | ||||
Structured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 709,557 | 709,557 | 614,091 | ||||
Long-term debt, fair value | 709,600 | 709,600 | 607,000 | ||||
Foursight Capital Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 138,033 | 138,033 | 170,455 | ||||
Other | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 74,613 | 74,613 | 112,654 | ||||
Parent Company | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 989,913 | 989,913 | 989,021 | ||||
Parent Company | 5.50% Senior Notes due October 18, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 743,203 | 743,203 | 742,348 | ||||
Parent Company | 6.625% Senior Notes due October 23, 2043 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 246,710 | 246,710 | 246,673 | ||||
Subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 6,787,512 | 6,787,512 | 6,896,762 | ||||
Jefferies Group | 5.125% Senior Notes, due April 13, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.125% | ||||||
Jefferies Group | 3.875% Convertible Senior Debentures, due November 1, 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.875% | ||||||
Jefferies Group | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 158,478 | 158,478 | 0 | ||||
National Beef | Reducing Revolver Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | 120,000 | ||||
National Beef | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | 0 | $ 76,809 | ||||
Interest rate swaps | Subsidiaries | 4.85% Senior Notes, due January 15, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Gains (losses) recognized in Interest expense on fair value hedge | $ 24,100 | $ (9,600) |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 1 Months Ended | |||||||
Jan. 31, 2018USD ($) | Sep. 30, 2018USD ($)Contract | Jun. 05, 2018 | May 16, 2018USD ($) | Apr. 13, 2018 | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 30, 2017 | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 7,777,425,000 | $ 7,885,783,000 | ||||||
National Beef | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of ownership owned | 100.00% | |||||||
3.875% Convertible Senior Debentures, due November 1, 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.875% | |||||||
Long-term debt | $ 0 | $ 324,779,000 | ||||||
3.875% Convertible Senior Debentures, due November 1, 2029 | Jefferies Group | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 3.875% | |||||||
Redemption price as percentage of principal amount redeemed | 100.00% | |||||||
5.125% Senior Notes, due April 13, 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.125% | 5.125% | ||||||
Long-term debt | $ 0 | $ 682,338,000 | ||||||
5.125% Senior Notes, due April 13, 2018 | Jefferies Group | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.125% | |||||||
Debt face amount | $ 668,300,000 | |||||||
4.15% Senior Notes, due January 23, 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.15% | |||||||
Long-term debt | $ 987,576,000 | 0 | ||||||
Structured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 709,557,000 | 614,091,000 | ||||||
Structured Notes | Jefferies Group | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | 162,600,000 | |||||||
Revolving Credit Facility | Jefferies Group | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 160,000,000 | |||||||
Long-term debt | 158,478,000 | 0 | ||||||
Revolving Credit Facility | National Beef | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 76,809,000 | ||||||
Reducing Revolver Loan | National Beef | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 0 | 120,000,000 | ||||||
Foursight Capital Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 138,033,000 | 170,455,000 | ||||||
Secured Debt | Foursight Capital Credit Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum amount | $ 225,000,000 | |||||||
Number of warehouse credit commitment | Contract | 2 | |||||||
Senior Notes | 4.15% Senior Notes, due January 23, 2030 | Jefferies Group | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.15% | |||||||
Debt face amount | $ 1,000,000,000 | |||||||
Line of Credit | Foursight Capital Credit Facilities | Foursight Capital | ||||||||
Debt Instrument [Line Items] | ||||||||
Assets pledged for indebtedness | $ 167,900,000 | |||||||
Discontinued operations, disposed of by sale | National Beef | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of ownership owned | 48.00% | |||||||
Long-term debt | $ 199,200,000 |
Mezzanine Equity (Narrative) (D
Mezzanine Equity (Narrative) (Details) - USD ($) | Jun. 05, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Purchase Requirement [Line Items] | ||||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | $ 237,669,000 | |||||||
Redeemable noncontrolling interests | $ 21,400,000 | 21,400,000 | $ 14,500,000 | |||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | |||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.0625 | $ 0.325 | $ 0.225 | ||
Preferred stock dividend | $ 1,276,000 | $ 1,172,000 | $ 3,619,000 | $ 3,203,000 | ||||
3.25% Cumulative Convertible Preferred Shares | ||||||||
Purchase Requirement [Line Items] | ||||||||
Dividend rate on preferred stock | 3.25% | |||||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | ||||||
Mandatorily redeemable preferred stock, number of shares in conversion | 4,162,200 | 4,162,200 | ||||||
Mandatorily redeemable preferred stock, effective conversion price per share | $ 30.03 | $ 30.03 | ||||||
Minimum dividend considered for additional quarterly payments | 0.0625 | $ 0.0625 | ||||||
Preferred stock dividend | $ 3,600,000 | $ 3,200,000 | ||||||
Mandatorily redeemable preferred shares callable price per share | $ 1,000 | $ 1,000 | ||||||
Discontinued operations, disposed of by sale | National Beef | ||||||||
Purchase Requirement [Line Items] | ||||||||
Percentage of ownership owned | 48.00% | |||||||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustments prior to deconsolidation | $ 237,700,000 |
Mezzanine Equity (Schedule Of R
Mezzanine Equity (Schedule Of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ 426,593 | |||
Income allocated to redeemable noncontrolling interests | $ 390 | $ 36,216 | 37,294 | $ 64,538 |
Increase in fair value of redeemable noncontrolling interests | (28,136) | (24,404) | ||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | |||
Ending balance | 21,385 | 21,385 | ||
National Beef | ||||
Redeemable Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 412,128 | 321,962 | ||
Income allocated to redeemable noncontrolling interests | 36,600 | 37,141 | 65,088 | |
Distributions to redeemable noncontrolling interests | (70,681) | (37,029) | ||
Increase in fair value of redeemable noncontrolling interests | 21,404 | 24,404 | ||
Reversal of cumulative National Beef redeemable noncontrolling interests fair value adjustment prior to deconsolidation | (237,669) | 0 | ||
Deconsolidation of National Beef | (162,323) | 0 | ||
Ending balance | $ 0 | $ 374,425 | $ 0 | $ 374,425 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) shares in Thousands | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 12,800,000 | $ 11,100,000 | $ 37,975,000 | $ 31,494,000 | |
Tax benefit for issuance of share-based awards | 4,000,000 | $ 4,000,000 | 10,000,000 | $ 11,200,000 | |
Total unrecognized compensation cost related to nonvested share-based awards | $ 131,500,000 | $ 131,500,000 | $ 131,500,000 | ||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition | 2 years 4 months 24 days | ||||
Potential maximum increase to common shares outstanding from restricted stock and other shares (in shares) | 20,557 | 20,557 | 20,557 | ||
Restricted cash awards, cost expected to be recognized | $ 446,900,000 | $ 446,900,000 | $ 446,900,000 | ||
Restricted cash awards, cost expected to be recognized, period | 2 years | ||||
Sign-on and Retention Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Amortization period | 4 years | ||||
Other Shares Issuable | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Other shares issuable (in shares) | 871 | 871 | 871 | ||
Future Service Required | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, nonvested (in shares) | 9,424 | 9,424 | 9,424 | ||
Future Service Required | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, nonvested (in shares) | 1,862 | 1,862 | 1,862 | ||
No Future Service Required | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, vested (in shares) | 10,262 | 10,262 | 10,262 | ||
Senior Executives Compensation Plan 2018 | Senior Executives | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 25,000,000 | ||||
Performance measurement period | 3 years | ||||
Performance measurement benchmark, growth date in TSR and ROTDE | 8.00% | ||||
Performance measurement benchmark, growth date in TSR (less than) | 5.00% | ||||
Additional incentive compensation | 50.00% | ||||
Performance measurement benchmark, growth date in TSR (up to) | 12.00% | ||||
Senior Executives Compensation Plan 2018 | Senior Executives | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 16,000,000 | ||||
Performance measurement benchmark, growth date in TSR | 8.00% | ||||
Senior Executives Compensation Plan 2018 | Senior Executives | Long-term Cash | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 9,000,000 | ||||
Performance measurement benchmark, growth date in ROTDE | 8.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Summary Of Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 10,646,751 | $ 10,138,979 | $ 10,641,577 | $ 10,303,649 |
Net unrealized gains on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 542,790 | 572,085 | ||
Net unrealized foreign exchange losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (180,926) | (101,400) | ||
Net unrealized losses on instrument specific credit risk | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (18,916) | (34,432) | ||
Net unrealized gains (losses) on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 446 | (1,138) | ||
Net minimum pension liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (55,649) | (62,391) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 287,745 | $ 372,724 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 1,458,977 | $ 1,102,593 | $ 3,863,914 | $ 3,735,702 |
Reclassification for the period, net of tax | 14,193 | (5,352) | ||
Net unrealized losses on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 37 | 14 | ||
Net unrealized foreign exchange losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | (16) | 1,086 | ||
Net unrealized losses on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 126 | 0 | ||
Amortization of defined benefit pension plan actuarial gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, net of tax | (1,398) | (1,297) | ||
Reclassification for the period, tax | (508) | (604) | ||
Other pension | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, net of tax | (5,344) | 1,231 | ||
Reclassification for the period, tax | 0 | (1,231) | ||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized foreign exchange losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income and other expenses | 20,459 | (5,310) | ||
Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 296,548 | 67,811 | 440,537 | 366,335 |
Other | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 105 | 24 | ||
Principal transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 116,204 | $ 84,143 | 315,622 | 725,780 |
Principal transactions | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 371 | $ 0 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Narrative) (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Reclassification adjustment from AOCI related to pension plan | $ 479 | $ 438 | $ 6,742 | $ 66 | |
German Plan | Pension Plan | Jefferies Bache Limited | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment to transfer defined benefit obligation and insurance contracts | € | € 6.5 | ||||
Reclassification adjustment from AOCI related to pension plan | $ 5,300 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Schedule of Components of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 780,079 | $ 2,343,048 | ||
Revenue from other sources | 678,898 | 1,520,866 | ||
Total revenues | 1,458,977 | $ 1,102,593 | 3,863,914 | $ 3,735,702 |
Commissions and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 155,417 | 461,023 | ||
Total revenues | 155,417 | 139,082 | 461,023 | 437,547 |
Investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 460,043 | 1,400,331 | ||
Total revenues | 460,043 | 475,702 | 1,400,331 | 1,235,586 |
Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 94,029 | 307,129 | ||
Total revenues | 94,029 | 81,939 | 307,129 | 243,482 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 70,590 | 174,565 | ||
Principal transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | 116,204 | 315,622 | ||
Total revenues | 116,204 | 84,143 | 315,622 | 725,780 |
Interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | 336,736 | 939,272 | ||
Total revenues | 336,736 | $ 253,916 | 939,272 | $ 726,972 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other sources | $ 225,958 | $ 265,972 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 780,079 | $ 2,343,048 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 697,685 | 2,082,546 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 63,428 | 204,079 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 18,966 | 56,423 |
Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 627,805 | 1,898,133 |
Reportable Segments | Jefferies Group | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 545,998 | 1,638,828 |
Reportable Segments | Jefferies Group | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 62,914 | 203,103 |
Reportable Segments | Jefferies Group | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 18,893 | 56,202 |
Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Reportable Segments | Corporate | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Reportable Segments | Corporate | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Reportable Segments | Corporate | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
All other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 152,274 | 444,915 |
All other | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 151,687 | 443,718 |
All other | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 514 | 976 |
All other | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 73 | 221 |
Equities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 159,571 | 471,161 |
Equities | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 159,571 | 471,161 |
Fixed Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,007 | 10,511 |
Fixed Income | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,007 | 10,511 |
Investment banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 460,043 | 1,400,331 |
Investment banking | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 460,043 | 1,400,331 |
Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 5,184 | 16,130 |
Asset Management | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 5,184 | 16,130 |
Manufacturing revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 94,029 | 307,129 |
Manufacturing revenues | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Manufacturing revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Manufacturing revenues | All other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 94,029 | 307,129 |
Oil and gas revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 46,506 | 106,741 |
Oil and gas revenues | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Oil and gas revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Oil and gas revenues | All other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 46,506 | 106,741 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 11,739 | 31,045 |
Other revenues | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other revenues | All other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 11,739 | $ 31,045 |
Revenues from Contracts with _5
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Jun. 05, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Receivables related to revenue from contracts with customers | $ 259.1 | $ 259.1 | $ 469.3 | |
Deferred revenue | 16.3 | 16.3 | 15.5 | |
Deferred revenue, revenue recognized | 6.3 | 20.8 | ||
Capitalized contract cost | 4.8 | 4.8 | ||
Expenses related to capitalized costs to fulfill a contract | $ 1.5 | $ 1.5 | ||
National Beef | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of ownership owned | 100.00% | 100.00% | ||
Jefferies Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue related to performance obligation satisfied | $ 4.4 | $ 18.3 | ||
Revenue associated with distribution services, a portion of which related to prior period | $ 4.6 | $ 13.5 | ||
National Beef | Discontinued operations, disposed of by sale | ||||
Disaggregation of Revenue [Line Items] | ||||
Receivables related to revenue from contracts with customers | $ 183.4 | |||
Percentage of ownership owned | 48.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 237.8 | $ 226.4 | |
Decrease of income tax provision | 43.9 | ||
Interest included in unrecognized tax benefits | 63 | 57.4 | |
Tax benefit from repatriation of foreign earnings | $ 31.9 | ||
Increase of income tax expense related to Tax Cuts and Jobs Act Of 2017 | 3.8 | ||
Jefferies Group | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 184 | $ 177.8 |
Common Share and Earnings (Lo_3
Common Share and Earnings (Loss) Per Common Share (Earnings Per Share Computation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator for earnings per share: | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 192,635 | $ 99,351 | $ 1,042,689 | $ 438,952 |
Allocation of earnings to participating securities | (1,054) | (368) | (5,049) | (1,692) |
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 191,581 | 98,983 | 1,037,640 | 437,260 |
Adjustment to allocation of earnings to participating securities related to diluted shares | 3 | (2) | 34 | 3 |
Mandatorily redeemable convertible preferred share dividends | 1,276 | 0 | 0 | 3,203 |
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 192,860 | $ 98,981 | $ 1,037,674 | $ 440,466 |
Denominator for earnings per share: | ||||
Weighted average common shares outstanding | 332,191,000 | 358,039,000 | 343,829,000 | 359,031,000 |
Denominator for basic earnings per share – weighted average shares | 341,434,000 | 367,828,000 | 353,300,000 | 368,736,000 |
Mandatorily redeemable convertible preferred shares (in shares) | 4,162,000 | 0 | 0 | 4,162,000 |
Denominator for diluted earnings (loss) per share (in shares) | 350,307,000 | 370,198,000 | 357,169,000 | 375,233,000 |
Weighted average shares of participating securities (in shares) | 1,888,700 | 1,366,700 | 1,700,700 | 1,433,500 |
Restricted Stock with Future Service Required | ||||
Denominator for earnings per share: | ||||
Weighted average shares of restricted stock outstanding with future service required | (1,879,000) | (1,320,000) | (1,681,000) | (1,377,000) |
Restricted Stock Units with No Future Service Required | ||||
Denominator for earnings per share: | ||||
Weighted average RSUs outstanding with no future service required (in shares) | 11,122,000 | 11,109,000 | 11,152,000 | 11,082,000 |
Stock options | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 5,000 | 23,000 | 13,000 | 22,000 |
Restricted Stock Units | Senior Executive Compensation Plan | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 4,706,000 | 2,347,000 | 3,856,000 | 2,313,000 |
Common Share and Earnings (Lo_4
Common Share and Earnings (Loss) Per Common Share (Narrative) (Details) - shares | 9 Months Ended | |||||
Sep. 30, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Earnings Per Share [Line Items] | ||||||
Number of shares authorized to be repurchased | 25,000,000 | 25,000,000 | ||||
Remaining number of shares authorized to be repurchased | 23,880,517 | 12,500,000 | ||||
Stock repurchased during period (in shares) | 26,119,483 | |||||
3.875% Convertible Senior Debentures, due November 1, 2029 | ||||||
Earnings Per Share [Line Items] | ||||||
Convertible notes interest rate | 3.875% | |||||
3.875% Convertible Senior Debentures, due November 1, 2029 | Convertible Debt Securities | ||||||
Earnings Per Share [Line Items] | ||||||
Convertible notes interest rate | 3.875% | 3.875% |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Commitments and Contingencies) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | $ 5,968.2 |
2,019 | 455.6 |
2020 and 2021 | 128.4 |
2022 and 2023 | 32.5 |
2024 and Later | 14.7 |
Maximum Payout | $ 6,599.4 |
Guarantor obligation settled period | 3 days |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | $ 280 |
2,019 | 56.9 |
2020 and 2021 | 31.7 |
2022 and 2023 | 0 |
2024 and Later | 9.8 |
Maximum Payout | 378.4 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 0 |
2,019 | 250 |
2020 and 2021 | 54.4 |
2022 and 2023 | 32.5 |
2024 and Later | 0 |
Maximum Payout | 336.9 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 411 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 411 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 3,159.4 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 3,159.4 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 2,057.8 |
2,019 | 0 |
2020 and 2021 | 0 |
2022 and 2023 | 0 |
2024 and Later | 0 |
Maximum Payout | 2,057.8 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2,018 | 60 |
2,019 | 148.7 |
2020 and 2021 | 42.3 |
2022 and 2023 | 0 |
2024 and Later | 4.9 |
Maximum Payout | 255.9 |
Forward starting securities purchased under agreements to resell settled | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | $ 3,141.9 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Commitments Contingencies And Guarantees [Line Items] | ||
Loan commitments outstanding to clients | $ 86,300,000 | |
Fair value of derivative contracts meeting the definition of a guarantee | 216,900,000 | |
Contractual obligations | $ 6,599,400,000 | |
Standby Letters of Credit | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Expiration period maximum | 1 year | |
Berkadia | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Surety policy issued | $ 1,500,000,000 | |
Reimbursement of losses incurred, maximum percentage | 50.00% | |
Aggregate amount of commercial paper outstanding | $ 1,470,000,000 | |
Jefferies Finance | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Line of credit facility, commitment of Jefferies, funded | 0 | $ 0 |
Line of credit facility commitment of Jefferies | 250,000,000 | $ 250,000,000 |
Jefferies Group | Standby Letters of Credit | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Letters of credit | 51,800,000 | |
Other subsidiaries | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Letters of credit | 1,100,000 | |
Jefferies Capital Partners LLC and Its Private Equity Funds | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Equity commitments | 18,100,000 | |
Other Investments | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Equity commitments | 316,700,000 | |
Alternative Asset Management Platforms | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Equity commitments | $ 280,000,000 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees (Guarantees) (Details) - Derivative Notional Amount $ in Millions | Sep. 30, 2018USD ($) |
Derivative contracts – non-credit related | |
Guarantee Obligations [Line Items] | |
2,018 | $ 10,898.5 |
2,019 | 5,978.6 |
2020 and 2021 | 2,948.5 |
2022 and 2023 | 1,015 |
2024 and Later | 454.6 |
Notional/ Maximum Payout | 21,295.2 |
Written derivative contracts – credit related | |
Guarantee Obligations [Line Items] | |
2,018 | 0 |
2,019 | 0 |
2020 and 2021 | 36.4 |
2022 and 2023 | 33.8 |
2024 and Later | 0 |
Notional/ Maximum Payout | 70.2 |
Derivatives | |
Guarantee Obligations [Line Items] | |
2,018 | 10,898.5 |
2,019 | 5,978.6 |
2020 and 2021 | 2,984.9 |
2022 and 2023 | 1,048.8 |
2024 and Later | 454.6 |
Notional/ Maximum Payout | $ 21,365.4 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Millions | Sep. 30, 2018USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 1,917.6 |
Excess Net Capital | $ 1,806.2 |
Other Fair Value Information (D
Other Fair Value Information (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 382,006 | $ 436,215 |
Long-term debt | 7,777,425 | 7,885,783 |
Carrying Amount [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 663,508 | 579,071 |
Short-term borrowings | 382,006 | 412,891 |
Long-term debt | 7,067,868 | 7,278,827 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 644,184 | 565,285 |
Short-term borrowings | 382,006 | 412,891 |
Long-term debt | $ 7,113,515 | $ 7,678,210 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Private Equity Related Funds | |||||
Related Party Transaction [Line Items] | |||||
Loans to and/or equity investments in related funds | $ 34.1 | $ 34.1 | $ 23.7 | ||
Net gains (losses) from private equity related funds | 0.2 | $ (0.4) | 10.2 | $ (9.8) | |
Officers and Employees | |||||
Related Party Transaction [Line Items] | |||||
Loans outstanding to related party | 51.2 | 51.2 | 45.6 | ||
Berkadia | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Purchase commitment | 748.8 | 748.8 | 864.1 | ||
HRG | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 3 | 3 | |||
FXCM | Payables, expense accruals and other liabilities | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
OTC foreign exchange contracts | $ 12.3 | $ 12.3 | $ 17 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | Jun. 05, 2018USD ($) | Sep. 30, 2018USD ($)director | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)director | Sep. 30, 2018USD ($)director | Sep. 30, 2017USD ($) | Jun. 04, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Income allocated to redeemable noncontrolling interests | $ 390 | $ 36,216 | $ 37,294 | $ 64,538 | |||||
Income from discontinued operations before income taxes | 137,800 | 140,000 | 244,900 | ||||||
Income (loss) related to associated companies | 18,867 | 30,057 | 84,320 | (84,413) | |||||
Consolidated income before income taxes | 272,692 | 25,548 | 347,970 | 412,799 | |||||
Gain on disposal of discontinued operations, net of taxes | 0 | 0 | 643,921 | 0 | |||||
Investment in associated company | $ 2,450,901 | 2,350,980 | $ 2,450,901 | $ 2,450,901 | 2,350,980 | $ 2,066,829 | $ 2,125,098 | ||
National Beef | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Percentage of ownership owned | 79.00% | ||||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% | 31.00% | |||||
Income (loss) related to associated companies | $ 58,886 | 0 | $ 83,300 | $ 83,287 | 0 | ||||
Distributions received | 48,700 | ||||||||
Investment in associated company | $ 592,300 | $ 626,870 | $ 626,870 | $ 626,870 | $ 0 | ||||
Marfrig Global Foods S.A. | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Percentage of ownership owned | 51.00% | 51.00% | 51.00% | ||||||
Ownership percentage to be acquired further from other equity owners | 3.00% | ||||||||
National Beef | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Percentage of ownership owned | 100.00% | 100.00% | 100.00% | ||||||
Number of directors appointed by Company | director | 2 | 2 | 2 | ||||||
Lockup period related to divestiture of businesses | 5 years | ||||||||
Income allocated to redeemable noncontrolling interests | $ 36,600 | $ 37,141 | $ 65,088 | ||||||
Consolidated income before income taxes | $ 276,500 | ||||||||
Equity valuation | $ 1,900,000 | ||||||||
Enterprise value | $ 2,300,000 | ||||||||
Discontinued operations, disposed of by sale | National Beef | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Percentage of ownership owned | 48.00% | ||||||||
Cash from sale of subsidiary | $ 907,700 | ||||||||
Pre-tax gain on disposal of discontinued operations | 873,500 | ||||||||
Pre-tax gain on disposal of discontinued operation, portion related to remeasurement to fair value | 352,400 | ||||||||
Gain on disposal of discontinued operations, net of taxes | $ 643,900 |
Discontinued Operations (Summar
Discontinued Operations (Summary of discontinued operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Expenses: | ||||
Income tax provision | $ 0 | $ 53,490 | $ 47,045 | $ 90,856 |
Income from discontinued operations, net of income tax provision | $ 0 | 120,989 | 130,063 | 219,151 |
National Beef | Discontinued operations, disposed of by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 2,039,299 | 3,142,071 | 5,476,274 | |
Expenses: | ||||
Compensation and benefits | 10,505 | 17,414 | 29,649 | |
Cost of sales | 1,816,480 | 2,884,983 | 5,030,887 | |
Interest expense | 1,713 | 4,316 | 5,781 | |
Depreciation and amortization | 26,664 | 43,959 | 73,522 | |
Selling, general and other expenses | 9,458 | 14,291 | 26,428 | |
Total expenses | 1,864,820 | 2,964,963 | 5,166,267 | |
Income from discontinued operations before income taxes | 174,479 | 177,108 | 310,007 | |
Income tax provision | 53,490 | 47,045 | 90,856 | |
Income from discontinued operations, net of income tax provision | 120,989 | 130,063 | 219,151 | |
National Beef | Discontinued operations, disposed of by sale | Beef processing services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 2,038,821 | 3,137,611 | 5,472,339 | |
National Beef | Discontinued operations, disposed of by sale | Interest income | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 58 | 131 | 230 | |
National Beef | Discontinued operations, disposed of by sale | Other | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | $ 420 | $ 4,329 | $ 3,705 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 1,150,846 | $ 857,223 | $ 2,957,440 | $ 3,020,610 |
Consolidated income before income taxes | 272,692 | 25,548 | 347,970 | 412,799 |
Depreciation and amortization expenses | 32,295 | 28,760 | 92,360 | 82,129 |
Parent Company interest | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated income before income taxes | (14,755) | (14,737) | (44,251) | (44,201) |
FXCM | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated income before income taxes | (2,900) | (2,000) | (2,900) | (148,700) |
Principal transactions | 1,300 | 2,300 | 16,400 | 17,600 |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 783,441 | 804,824 | 2,434,163 | 2,386,224 |
Consolidated income before income taxes | 71,591 | 111,801 | 281,214 | 326,278 |
Depreciation and amortization expenses | 18,027 | 16,793 | 53,428 | 49,476 |
Reportable Segments | Jefferies Group | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 774,749 | 802,909 | 2,419,410 | 2,381,967 |
Consolidated income before income taxes | 86,154 | 128,112 | 336,922 | 383,094 |
Depreciation and amortization expenses | 17,175 | 15,928 | 50,829 | 46,877 |
Reportable Segments | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 8,692 | 1,915 | 14,753 | 4,257 |
Consolidated income before income taxes | (14,563) | (16,311) | (55,708) | (56,816) |
Depreciation and amortization expenses | 852 | 865 | 2,599 | 2,599 |
All other | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 367,405 | 52,399 | 523,277 | 634,386 |
Consolidated income before income taxes | 215,856 | (71,516) | 111,007 | 130,722 |
Depreciation and amortization expenses | $ 14,268 | $ 11,967 | $ 38,932 | $ 32,653 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | Jun. 05, 2018 | Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 04, 2018 |
Segment Reporting Information [Line Items] | |||||||
Interest expense | $ 28,837 | $ 25,612 | $ 74,614 | $ 76,762 | |||
Pre-tax gain from sale of subsidiary | 221,712 | 178,236 | |||||
Parent Company interest | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest expense | 14,800 | 14,700 | 44,300 | 44,200 | |||
All other | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest expense | $ 14,000 | $ 10,900 | 30,300 | 32,600 | |||
Discontinued operations, disposed of by sale | National Beef | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership owned | 48.00% | ||||||
Cash from sale of subsidiary | $ 907,700 | ||||||
Held-for-sale, not discontinued operations | Garcadia | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of equity method investment for sale | 100.00% | ||||||
Pre-tax gain on sale of equity method investments and associated real estate | $ 221,700 | $ 221,700 | |||||
Disposed of by sale, not discontinued operations | Conwed | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership owned | 100.00% | ||||||
Cash from sale of subsidiary | $ 295,000 | ||||||
Pre-tax gain from sale of subsidiary | $ 178,200 | ||||||
Maximum | Disposed of by sale, not discontinued operations | Conwed | |||||||
Segment Reporting Information [Line Items] | |||||||
Potential earn-out payment to be received from sale of subsidiary | $ 40,000 | ||||||
National Beef | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership owned | 79.00% | ||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | 31.00% |