Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 28, 2019 | Apr. 02, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | JEFFERIES FINANCIAL GROUP INC. | |
Entity Central Index Key | 0000096223 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 297,826,222 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 | |
ASSETS | |||
Cash and cash equivalents | $ 5,517,121 | $ 5,258,809 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 763,213 | 707,960 | |
Financial instruments owned, at fair value (including securities pledged of $14,322,307 and $13,059,802): | |||
Trading assets, at fair value | 17,925,044 | 17,463,256 | |
Available for sale securities | 24,049 | 1,409,886 | |
Total financial instruments owned | 17,949,093 | 18,873,142 | |
Loans to and investments in associated companies | 2,381,026 | 2,417,332 | |
Securities borrowed | 7,231,073 | 6,538,212 | |
Securities purchased under agreements to resell | 3,496,570 | 2,785,758 | |
Receivables | 7,228,766 | 6,287,401 | |
Intangible assets, net and goodwill | 1,890,948 | 1,890,131 | |
Deferred tax asset, net | 499,827 | 512,789 | |
Other assets | 2,001,708 | 1,859,561 | |
Total assets | [1] | 48,959,345 | 47,131,095 |
LIABILITIES | |||
Short-term borrowings | 530,484 | 387,492 | |
Trading liabilities, at fair value | 10,278,412 | 9,478,946 | |
Securities loaned | 2,234,700 | 1,838,688 | |
Securities sold under agreements to repurchase | 9,307,283 | 8,643,069 | |
Other secured financings | 1,527,393 | 1,534,271 | |
Payables, expense accruals and other liabilities | 7,293,843 | 7,407,030 | |
Long-term debt | 7,685,908 | 7,617,563 | |
Total liabilities | [1] | 38,858,023 | 36,907,059 |
Commitments and contingencies | |||
MEZZANINE EQUITY | |||
Redeemable noncontrolling interests | 20,189 | 19,779 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 298,312,821 and 307,515,472 shares issued and outstanding, after deducting 18,663,425 and 109,460,774 shares held in treasury | 298,313 | 307,515 | |
Additional paid-in capital | 3,681,085 | 3,854,847 | |
Accumulated other comprehensive income | 338,619 | 288,286 | |
Retained earnings | 5,614,935 | 5,610,218 | |
Total Jefferies Financial Group Inc. shareholders’ equity | 9,932,952 | 10,060,866 | |
Noncontrolling interests | 23,181 | 18,391 | |
Total equity | 9,956,133 | 10,079,257 | |
Total | $ 48,959,345 | $ 47,131,095 | |
[1] | Total assets include assets related to variable interest entities of $971.5 million and $704.4 million at February 28, 2019 and November 30, 2018, respectively, and Total liabilities include liabilities related to variable interest entities of $1,528.2 million and $1,535.8 million at February 28, 2019 and November 30, 2018, respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 | |
ASSETS | |||
Securities pledged | $ 14,322,307 | $ 13,059,802 | |
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) | 298,312,821 | 307,515,472 | |
Treasury stock (in shares) | 18,663,425 | 109,460,774 | |
Assets | [1] | $ 48,959,345 | $ 47,131,095 |
Liabilities | [1] | 38,858,023 | 36,907,059 |
Variable interest entities | |||
Assets | 971,500 | 704,400 | |
Liabilities | $ 1,528,200 | $ 1,535,800 | |
[1] | Total assets include assets related to variable interest entities of $971.5 million and $704.4 million at February 28, 2019 and November 30, 2018, respectively, and Total liabilities include liabilities related to variable interest entities of $1,528.2 million and $1,535.8 million at February 28, 2019 and November 30, 2018, respectively. See Note 8 for additional information related to variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Revenues | $ 1,195,012 | $ 1,161,111 |
Interest expense | 23,018 | 21,498 |
Net revenues | 828,443 | 895,435 |
Expenses: | ||
Compensation and benefits | 409,592 | 489,659 |
Cost of sales | 66,921 | 81,935 |
Floor brokerage and clearing fees | 51,868 | 42,176 |
Depreciation and amortization | 33,934 | 28,160 |
Selling, general and other expenses | 221,106 | 226,344 |
Total expenses | 806,439 | 889,772 |
Income from continuing operations before income taxes and income related to associated companies | 22,004 | 5,663 |
Income related to associated companies | 27,313 | 32,100 |
Income from continuing operations before income taxes | 49,317 | 37,763 |
Income tax provision (benefit) | 2,302 | (48,429) |
Income from continuing operations | 47,015 | 86,192 |
Income from discontinued operations, net of income tax provision of $0 and $15,934 | 0 | 52,957 |
Net income | 47,015 | 139,149 |
Net (income) loss attributable to the noncontrolling interests | (1,066) | 1,344 |
Net (income) loss attributable to the redeemable noncontrolling interests | 138 | (14,796) |
Preferred stock dividends | (1,276) | (1,172) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 44,811 | $ 124,525 |
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||
Income from continuing operations (in dollars per share) | $ 0.14 | $ 0.23 |
Income from discontinued operations (in dollars per share) | 0 | 0.11 |
Net income (in dollars per share) | 0.14 | 0.34 |
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||
Income from continuing operations (in dollars per share) | 0.14 | 0.23 |
Income from discontinued operations (in dollars per share) | 0 | 0.11 |
Net income (in dollars per share) | $ 0.14 | $ 0.34 |
Amounts attributable to Jefferies Financial Group Inc. common shareholders: | ||
Income from continuing operations, net of taxes | $ 44,811 | $ 86,018 |
Income from discontinued operations, net of taxes | 0 | 38,507 |
Net income attributable to Jefferies Financial Group Inc. common shareholders | 44,811 | 124,525 |
Commissions and other fees | ||
Revenues: | ||
Revenues | 147,134 | 147,902 |
Principal transactions | ||
Revenues: | ||
Revenues | 246,182 | 145,663 |
Investment banking | ||
Revenues: | ||
Revenues | 285,596 | 439,991 |
Interest income | ||
Revenues: | ||
Revenues | 386,844 | 275,222 |
Manufacturing revenues | ||
Revenues: | ||
Revenues | 75,425 | 98,365 |
Other | ||
Revenues: | ||
Revenues | 53,831 | 53,968 |
Jefferies Group | ||
Revenues: | ||
Interest expense | $ 366,569 | $ 265,676 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Income tax provision | $ 0 | $ 15,934 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 47,015 | $ 139,149 |
Other comprehensive income (loss): | ||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $107 and $(370) | 317 | (1,226) |
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $(377) and $(5) | 1,129 | 15 |
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $484 and $(365) | 1,446 | (1,211) |
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $7,722 and $1,926 | 30,954 | 17,903 |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $0 and $0 | 0 | 0 |
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $7,722 and $1,926 | 30,954 | 17,903 |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $5,949 and $(4,634) | 17,535 | (11,569) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $(99) and $0 | 294 | 0 |
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $6,048 and $(4,634) | 17,829 | (11,569) |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $(86) and $1,234 | (251) | 1,248 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), net of income tax provision (benefit) of $0 and $0 | 0 | 0 |
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $(86) and $1,234 | (251) | 1,248 |
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $0 and $0 | 0 | 0 |
Reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(119) and $(151) | 355 | 5,806 |
Net change in pension liability, net of income tax provision (benefit) of $119 and $151 | 355 | 5,806 |
Other comprehensive income (loss), net of income taxes | 50,333 | 12,177 |
Comprehensive income | 97,348 | 151,326 |
Comprehensive (income) loss attributable to the noncontrolling interests | (1,066) | 1,344 |
Comprehensive (income) loss attributable to the redeemable noncontrolling interests | 138 | (14,796) |
Preferred stock dividends | (1,276) | (1,172) |
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 95,144 | $ 136,702 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ 107 | $ (370) |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | (377) | (5) |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | 484 | (365) |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | 7,722 | 1,926 |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | 7,722 | 1,926 |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, tax provision (benefit) | 5,949 | (4,634) |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), tax provision (benefit) | (99) | 0 |
Net change in unrealized instrument specific credit risk gains (losses), tax provision (benefit) | 6,048 | (4,634) |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $(86) and $1,234 | (86) | 1,234 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 |
Net change in unrealized cash flow hedges gains (losses), tax provision (benefit) | (86) | 1,234 |
Net pension gains (losses) arising during the period, tax provision (benefit) | 0 | 0 |
Less: reclassification adjustment for pension (gains) losses included in net income (loss), tax provision (benefit) | (119) | (151) |
Net change in pension liability, tax provision (benefit) | $ 119 | $ 151 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Net cash flows from operating activities: | ||
Net income | $ 47,015 | $ 139,149 |
Adjustments to reconcile net income to net cash used for operations: | ||
Pre-tax income from discontinued operations | 0 | (68,891) |
Deferred income tax provision (benefit) | 1,948 | (28,494) |
Depreciation and amortization of property, equipment and leasehold improvements | 30,671 | 24,503 |
Other amortization | (9,225) | (8,108) |
Share-based compensation | 11,813 | 12,431 |
Provision for doubtful accounts | 9,672 | 10,078 |
Income related to associated companies | (38,650) | (37,705) |
Distributions from associated companies | 120,573 | 26,546 |
Net losses related to property and equipment, and other assets | 1,784 | 8,359 |
Net change in: | ||
Securities deposited with clearing and depository organizations | 12 | 64,861 |
Trading assets | (358,751) | (1,161,274) |
Securities borrowed | (674,484) | 427,310 |
Securities purchased under agreements to resell | (660,842) | 716,157 |
Receivables from brokers, dealers and clearing organizations | (1,094,082) | (1,320,380) |
Receivables from customers of securities operations | 417,327 | (37,552) |
Other receivables | (27,067) | 28,926 |
Other assets | (173,435) | (131,706) |
Trading liabilities | 705,164 | 1,517,714 |
Securities loaned | 378,261 | (476,725) |
Securities sold under agreements to repurchase | 632,686 | (418,052) |
Payables to brokers, dealers and clearing organizations | 301,741 | 812,757 |
Payables to customers of securities operations | 212,895 | 222,603 |
Trade payables, expense accruals and other liabilities | (652,490) | (682,364) |
Other | 33,509 | (33,644) |
Net cash used for operating activities - continuing operations | (783,955) | (393,501) |
Net cash used for operating activities - discontinued operations | 0 | (11,752) |
Net cash used for operating activities | (783,955) | (405,253) |
Net cash flows from investing activities: | ||
Acquisitions of property, equipment and leasehold improvements, and other assets | (46,059) | (42,336) |
Proceeds from disposals of property and equipment, and other assets | 2,313 | 3,597 |
Advances on notes, loans and other receivables | (87,019) | 0 |
Collections on notes, loans and other receivables | 57,013 | 8,197 |
Loans to and investments in associated companies | (45,448) | (1,790,110) |
Capital distributions and loan repayments from associated companies | 802 | 1,643,665 |
Purchases of investments (other than short-term) | (1,386) | (653,392) |
Proceeds from maturities of investments | 527,148 | 293,550 |
Proceeds from sales of investments | 667,488 | 296,606 |
Other | 0 | 4 |
Net cash provided by (used for) investing activities - continuing operations | 1,074,852 | (240,219) |
Net cash used for investing activities - discontinued operations | 0 | (16,542) |
Net cash provided by (used for) investing activities | 1,074,852 | (256,761) |
Net cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 533,435 | 1,477,741 |
Repayment of debt | (307,695) | (816,249) |
Net change in other secured financings | (7,450) | 225,020 |
Net change in bank overdrafts | (8,360) | 2,360 |
Purchase of common shares for treasury | (214,661) | (2,700) |
Dividends paid | (37,817) | (35,990) |
Other | 4,211 | 1,013 |
Net cash provided by (used for) financing activities - continuing operations | (38,337) | 851,195 |
Net cash provided by financing activities - discontinued operations | 0 | 23,313 |
Net cash provided by (used for) financing activities | (38,337) | 874,508 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 13,194 | 2,583 |
Net increase in cash, cash equivalents and restricted cash | 265,754 | 215,077 |
Cash, cash equivalents and restricted cash at beginning of period | 6,012,662 | 5,774,505 |
Cash, cash equivalents and restricted cash at end of period | $ 6,278,416 | $ 5,989,582 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2019 | Mar. 31, 2018 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 5,517,121 | $ 5,144,625 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 728,406 | 767,824 |
Other assets | 32,889 | 77,133 |
Total cash, cash equivalents and restricted cash | $ 6,278,416 | $ 5,989,582 |
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 |
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 | 123,181 | 124,525 | 124,525 | (1,344) | |||
Other comprehensive income, net of taxes | 12,177 | 12,177 | 12,177 | ||||
Change in interest in consolidated subsidiary | 0 | 2,677 | 2,677 | (2,677) | |||
Share-based compensation expense | 12,431 | 12,431 | 12,431 | ||||
Change in fair value of redeemable noncontrolling interests | 17,067 | 17,067 | 17,067 | ||||
Purchase of common shares for treasury | (2,700) | (100) | (2,600) | (2,700) | |||
Dividends | (37,560) | (37,560) | (37,560) | ||||
Other | 6,741 | 1,089 | 5,605 | 6,694 | 47 | ||
Ending Balance at Mar. 31, 2018 | 10,288,128 | 357,216 | 4,711,218 | 357,317 | 4,833,329 | 10,259,080 | 29,048 |
Beginning Balance at Nov. 30, 2018 | 10,079,257 | 307,515 | 3,854,847 | 288,286 | 5,610,218 | 10,060,866 | 18,391 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 45,877 | 44,811 | 44,811 | 1,066 | |||
Other comprehensive income, net of taxes | 50,333 | 50,333 | 50,333 | ||||
Contributions from noncontrolling interests | 4,705 | 0 | 4,705 | ||||
Distributions to noncontrolling interests | (981) | 0 | (981) | ||||
Share-based compensation expense | 11,813 | 11,813 | 11,813 | ||||
Change in fair value of redeemable noncontrolling interests | (536) | (536) | (536) | ||||
Purchase of common shares for treasury | (197,093) | (9,728) | (187,365) | (197,093) | |||
Dividends | (40,094) | (40,094) | (40,094) | ||||
Other | 2,852 | 526 | 2,326 | 2,852 | 0 | ||
Ending Balance at Feb. 28, 2019 | $ 9,956,133 | $ 298,313 | $ 3,681,085 | $ 338,619 | $ 5,614,935 | $ 9,932,952 | $ 23,181 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Feb. 28, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.0625 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Feb. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Jefferies Financial Group Inc. ("Jefferies" or the "Company") is a diversified financial services company engaged in investment banking and capital markets, asset management and direct investing. Jefferies Group LLC ("Jefferies Group"), our largest subsidiary, is the largest independent full-service global investment banking firm headquartered in the U.S. Jefferies Group operates in two business segments: Capital Markets and Asset Management. Capital Markets includes investment banking, sales and trading and other related services. Investment banking provides capital markets and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Sales and trading businesses operate across the spectrum of equities, fixed income and foreign exchange products. Related services include, among other things, prime brokerage and equity finance, research and strategy, corporate lending and real estate finance, as well as other principal and corporate investing activities. Asset Management provides investment management services to investors in the U.S. and overseas and makes capital investments in managed funds and accounts. In March 2013, Jefferies Group became an indirect wholly-owned subsidiary of Jefferies, yet retains a separate credit rating and continues to be a separate U.S. Securities and Exchange Commission ("SEC") reporting company. Merchant Banking is where we invest in unique long-term opportunities. Our current Merchant Banking businesses and investments include National Beef Packing Company, LLC ("National Beef") (beef processing), Spectrum Brands Holdings, Inc. ("Spectrum Brands") (consumer products), Linkem (fixed wireless broadband services in Italy), Vitesse Energy, LLC ("Vitesse Energy Finance") and JETX Energy, LLC ("JETX Energy") (oil and gas production and development), WeWork (global network of workspaces), HomeFed Corporation ("HomeFed") (real estate), Idaho Timber (manufacturing) and FXCM Group, LLC ("FXCM") (provider of online foreign exchange trading services). Our Merchant Banking businesses and investments also included Leucadia Asset Management ("LAM") (asset management) and Berkadia Commercial Mortgage Holding LLC ("Berkadia") (commercial mortgage banking, investment sales and servicing), prior to their transfer to Jefferies Group in the fourth quarter of 2018 and Garcadia (automobile dealerships), prior to its sale in August 2018. The structure of each of our investments was tailored to the unique opportunity each transaction presented. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings. We now own 31% of National Beef, one of the largest beef processing companies in the U.S. On June 5, 2018, we completed the sale of 48% of National Beef to Marfrig Global Foods S.A. ("Marfrig") reducing our ownership in National Beef from 79% 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 31% interest in National Beef under the equity method of accounting. We 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. We own approximately 15% of Spectrum Brands, a publicly traded global consumer products company on the NYSE (NYSE: SPB), and we reflect this investment at fair value based on quoted market prices. We own approximately 42% of the common shares of Linkem, as well as convertible preferred shares which, if converted, would increase our ownership to approximately 54% of Linkem's common equity at February 28, 2019 . Linkem provides residential broadband services in Italy using LTE technologies deployed over the 3.5 GHz spectrum band. Linkem is accounted for under the equity method. Vitesse Energy Finance is our 97% owned consolidated subsidiary that acquires and invests in non-operated working interests and royalties predominantly in the Bakken Shale oil field in North Dakota. JETX Energy is our 98% owned consolidated subsidiary that currently has non-operated working interests and acreage in east Texas. We invested $9.0 million in 2013 in WeWork, which creates collaborative office communities. Currently we own less than 1% of the company. Our interest in WeWork is reflected in Trading assets in our financial statements at fair value. We own an approximate 70% equity interest of HomeFed, which owns and develops residential and mixed use real estate properties. We account for our interest under the equity method. HomeFed is a public company traded on the Over-the-Counter Bulletin Board. During the first quarter of 2019, we proposed to acquire the remaining common stock of HomeFed (the "Proposed Transaction"). The Proposed Transaction would entail issuing two shares of our common stock for each share of HomeFed’s common stock. The proposal includes a condition that the Proposed Transaction will require the approval of a majority of the outstanding shares of HomeFed’s common stock not already owned by us (or our affiliates), in addition to approval of HomeFed's board of directors upon the recommendation of a special committee of independent directors and any other vote required by applicable law. As an offset to these potentially issued shares, our Board of Directors has, conditioned on the closing of the Proposed Transaction, authorized the repurchase of these shares in the open market. This share-repurchase approval is incremental to the $500.0 million share repurchase previously approved by our Board of Directors, approximately $305.3 million of which remains to be purchased as of February 28, 2019 . The Proposed Transaction is currently being evaluated by a special committee of independent directors of HomeFed. Idaho Timber is our consolidated subsidiary engaged in the manufacture and distribution of various wood products. Our investment in FXCM and associated companies consists of a senior secured term loan due in the second quarter of 2019, ( $71.4 million principal outstanding at February 28, 2019 ); a 50% voting interest in FXCM and the right to receive up to 75% of all distributions in respect of the equity of FXCM. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2019 | |
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 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 Transition Report on Form 10-K for the year ended November 30, 2018 ("2018 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. In the fourth quarter of 2018, we changed 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. Jefferies Group has a November 30 year-end, which it retains for standalone reporting purposes. Prior to the fourth quarter of 2018, because our fiscal year end was December 31, we reflected Jefferies Group in our consolidated financial statements utilizing a one month lag. In connection with our change in fiscal year end to November 30, we eliminated the one month lag utilized to reflect Jefferies Group results beginning with the fourth quarter of 2018. Receivables At February 28, 2019 and November 30, 2018 , Receivables include receivables from brokers, dealers and clearing organizations of $4,537.2 million and $3,223.7 million , respectively, and receivables from customers of securities operations of $1,597.0 million and $2,017.1 million , respectively. Our subsidiary, Foursight Capital, had auto loan receivables of $668.6 million and $648.7 million at February 28, 2019 and November 30, 2018 , respectively. Based primarily on Beacon credit scores, Foursight Capital classifies its auto loan receivables as prime, near-prime and sub-prime based on the perceived credit risk at origination and generally considers prime receivables as those with a Beacon score of 680 and above, near-prime with scores of 620 and 679 and sub-prime with scores below 620. The credit quality classification at February 28, 2019 and November 30, 2018 was approximately 14% and 13% prime, 57% and 57% near-prime and 29% and 30% sub-prime, respectively. Payables, expense accruals and other liabilities At February 28, 2019 and November 30, 2018 , Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $2,767.6 million and $2,465.6 million , respectively, and payables to customers of securities operations of $3,389.6 million and $3,176.7 million , respectively. Supplemental Cash Flow Information For the Three Months Ended February 28, 2019 March 31, 2018 (In thousands) Cash paid during the year for: Interest $ 399,350 $ 322,769 Income tax payments (refunds), net $ 7,205 $ (1,918 ) Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the Financial Accounting Standards Board ("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 certain of 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 of the new guidance 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 of the new guidance 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. 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. Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial instruments, trading liabilities 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 $633.0 million and $394.4 million at February 28, 2019 and November 30, 2018 , respectively, by level within the fair value hierarchy (in thousands): February 28, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,848,134 $ 132,546 $ 55,576 $ — $ 3,036,256 Corporate debt securities — 2,574,258 10,930 — 2,585,188 Collateralized debt obligations and collateralized loan obligations — 87,414 43,144 — 130,558 U.S. government and federal agency securities 1,726,076 92,128 — — 1,818,204 Municipal securities — 647,475 — — 647,475 Sovereign obligations 1,653,015 1,311,179 — — 2,964,194 Residential mortgage-backed securities — 1,994,309 20,963 — 2,015,272 Commercial mortgage-backed securities — 860,865 12,820 — 873,685 Other asset-backed securities — 254,870 35,886 — 290,756 Loans and other receivables — 2,145,486 78,051 — 2,223,537 Derivatives 11,301 2,488,759 8,211 (2,296,080 ) 212,191 Investments at fair value — — 421,098 — 421,098 FXCM term loan — — 73,600 — 73,600 Total trading assets, excluding investments at fair value based on NAV $ 6,238,526 $ 12,589,289 $ 760,279 $ (2,296,080 ) $ 17,292,014 Available for sale securities: Residential mortgage-backed securities $ — $ 24,049 $ — $ — $ 24,049 Total available for sale securities $ — $ 24,049 $ — $ — $ 24,049 Liabilities: Trading liabilities: Corporate equity securities $ 2,806,579 $ 1,383 $ 78 $ — $ 2,808,040 Corporate debt securities — 1,741,692 730 — 1,742,422 U.S. government and federal agency securities 855,042 — — — 855,042 Sovereign obligations 1,770,566 1,164,066 — — 2,934,632 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,572,077 3,420 — 1,575,497 Derivatives 14,018 2,695,257 37,186 (2,383,752 ) 362,709 Total trading liabilities $ 5,446,205 $ 7,174,475 $ 41,484 $ (2,383,752 ) $ 10,278,412 Long-term debt $ — $ 467,839 $ 283,139 $ — $ 750,978 November 30, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,497,045 $ 118,681 $ 52,192 $ — $ 2,667,918 Corporate debt securities — 2,683,180 9,484 — 2,692,664 Collateralized debt obligations and collateralized loan obligations — 72,949 36,105 — 109,054 U.S. government and federal agency securities 1,789,614 56,592 — — 1,846,206 Municipal securities — 894,253 — — 894,253 Sovereign obligations 1,769,556 1,043,409 — — 2,812,965 Residential mortgage-backed securities — 2,163,629 19,603 — 2,183,232 Commercial mortgage-backed securities — 819,406 10,886 — 830,292 Other asset-backed securities — 239,381 53,175 — 292,556 Loans and other receivables — 2,056,593 46,985 — 2,103,578 Derivatives 34,841 2,539,943 5,922 (2,413,931 ) 166,775 Investments at fair value — — 396,254 — 396,254 FXCM term loan — — 73,150 — 73,150 Total trading assets, excluding investments at fair value based on NAV $ 6,091,056 $ 12,688,016 $ 703,756 $ (2,413,931 ) $ 17,068,897 Available for sale securities: U.S. government securities $ 1,072,856 $ — $ — $ — $ 1,072,856 Residential mortgage-backed securities — 210,518 — — 210,518 Commercial mortgage-backed securities — 15,642 — — 15,642 Other asset-backed securities — 110,870 — — 110,870 Total available for sale securities $ 1,072,856 $ 337,030 $ — $ — $ 1,409,886 Liabilities: Trading liabilities: Corporate equity securities $ 1,685,071 $ 1,444 $ — $ — $ 1,686,515 Corporate debt securities — 1,505,618 522 — 1,506,140 U.S. government and federal agency securities 1,384,295 — — — 1,384,295 Sovereign obligations 1,735,242 661,095 — — 2,396,337 Loans — 1,371,630 6,376 — 1,378,006 Derivatives 26,473 3,586,694 27,536 (2,513,050 ) 1,127,653 Total trading liabilities $ 4,831,081 $ 7,126,481 $ 34,434 $ (2,513,050 ) $ 9,478,946 Long-term debt $ — $ 485,425 $ 200,745 $ — $ 686,170 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. The following is a description of the valuation basis, including valuation techniques and inputs, used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis: Corporate Equity Securities • Exchange-Traded Equity Securities: Exchange-traded equity securities are measured based on quoted closing exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy, otherwise they are categorized within Level 2 of the fair value hierarchy. To the extent these securities are actively traded, valuation adjustments are not applied. • Non-Exchange-Traded Equity Securities : Non-exchange-traded equity securities are measured primarily using broker quotations, pricing data from external pricing services and prices observed from recently executed market transactions and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity securities are categorized within Level 3 of the fair value hierarchy and measured using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/Earnings before interest, taxes, depreciation and amortization ("EBITDA"), price/book value), discounted cash flow analyses and transaction prices observed from subsequent financing or capital issuance by 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 • Investment Grade Corporate Bonds: Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. 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 obtained from external pricing services and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations, with consideration given to the country of issuance, are generally categorized in Level 1 or Level 2 of the fair value hierarchy. 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 or 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. Where available, valuation inputs are calibrated from observables 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. Where available, external data is used in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are generally observable for the underlying asset and used as the basis for measuring the fair value of the derivative contracts. Total return swaps executed on other underlyings are measured based on valuations received from external pricing services. • 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 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, contingent claims analysis and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): Fair Value (1) Unfunded Commitments February 28, 2019 Equity Long/Short Hedge Funds (2) $ 349,128 $ — Equity Funds (3) 35,719 20,036 Commodity Funds (4) 15,382 — Multi-asset Funds (5) 232,465 — Other funds (6) 336 — Total $ 633,030 $ 20,036 November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — Equity Funds (3) 40,070 20,996 Commodity Funds (4) 10,129 — Multi-asset Funds (5) 256,972 — Other funds (6) 400 — Total $ 394,359 $ 20,996 (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 February 28, 2019 and November 30, 2018 , approximately 74% and 0% , respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At the end of this restriction period, which is in approximately 34 months , these investments are redeemable monthly with 45 to 90 days prior written notice. At February 28, 2019 and November 30, 2018 , 22% and 82% , respectively, of these investments are redeemable in 2020. At February 28, 2019 and November 30, 2018 , 4% and 17% , respectively, of these investments are redeemable quarterly with 60 days prior written notice. (3) 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 approximately one to ten years. (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At February 28, 2019 and November 30, 2018 , investments representing approximately 6% and 15% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by Jefferies Group and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. Investments at fair value also include our investment in WeWork. We invested $9.0 million in WeWork in 2013 and currently own less than 1% of the company. Our interest in WeWork is reflected in Trading assets at fair value of $258.9 million and $254.4 million at February 28, 2019 and November 30, 2018 , respectively. Investment in FXCM 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. $71.4 million of principal remained outstanding under the term loan as of February 28, 2019 . During the three months ended February 28, 2019 , interest accrued at 20.5% per annum. Through February 28, 2019 , we have received cumulatively $349.8 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. We recorded income related to the term loan in Principal transactions revenues of $0.5 million during the three months ended February 28, 2019 and $8.6 million during the three months ended March 31, 2018 . We classify our equity investment in FXCM in our February 28, 2019 and November 30, 2018 Consolidated Statements of Financial Condition as Loans to and investments in associated companies, as we have the ability to significantly influence FXCM through our seats on the board of directors. We account for our equity interest on a one month lag. 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 under the equity method 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 ( $73.6 million ) and the investment in associated company ( $72.5 million ), which totaled $146.1 million at February 28, 2019 . 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. Long-term Debt Long-term debt includes variable rate, fixed-to-floating rate, constant maturity swap, digital and Bermudan structured notes. These are valued using various valuation models that incorporate Jefferies Group's own credit spread, market price quotations from external pricing sources referencing the appropriate interest rate curves, volatilities and other inputs as well as prices for transactions in a given note during the period. Long-term debt notes are generally categorized within Level 2 of the fair value hierarchy where market trades have been observed during the quarter, otherwise they are categorized within Level 3. Level 3 Rollforwards The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended February 28, 2019 (in thousands): Three Months Ended February 28, 2019 Balance, November 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, February 28, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at February 28, 2019 (1) Assets: Trading assets: Corporate equity securities $ 52,192 $ 4,488 $ 1,410 $ (2,411 ) $ (66 ) $ — $ (37 ) $ 55,576 $ 4,603 Corporate debt securities 9,484 466 3,568 (3,233 ) (834 ) — 1,479 10,930 498 CDOs and CLOs 36,105 (6,726 ) 49,201 (32,759 ) (1,139 ) — (1,538 ) 43,144 (3,526 ) Residential mortgage-backed securities 19,603 462 975 — (27 ) — (50 ) 20,963 494 Commercial mortgage-backed securities 10,886 136 12 — (41 ) — 1,827 12,820 96 Other asset-backed securities 53,175 (2,290 ) 29,195 (30,060 ) (12,320 ) — (1,814 ) 35,886 (1,763 ) Loans and other receivables 46,985 814 40,061 (27,142 ) (1,990 ) — 19,323 78,051 130 Investments at fair value 396,254 (2,923 ) 27,767 — — — — 421,098 (2,923 ) FXCM term loan 73,150 450 — — — — — 73,600 450 Liabilities: Trading liabilities: Corporate equity securities $ — $ (2 ) $ — $ 80 $ — $ — $ — $ 78 $ 2 Corporate debt securities 522 (241 ) — — — — 449 730 241 Commercial mortgage-backed securities — 70 — — — — — 70 (70 ) Loans 6,376 (229 ) (1,411 ) 504 — — (1,820 ) 3,420 338 Net derivatives (2) 21,614 (5,348 ) (2,804 ) 3,084 169 — 12,260 28,975 3,333 Long-term debt (1) 200,745 (16,701 ) — — (5,665 ) 92,016 12,744 283,139 4,045 (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 February 28, 2019 were gains of $12.7 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. Analysis of Level 3 Assets and Liabilities for the three months ended February 28, 2019 During the three months ended February 28, 2019 , transfers of assets of $60.4 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $25.8 million , CDOs and CLOs of $14.1 million and other asset-backed securities of $10.8 million due to reduced pricing transparency. During the three months ended February 28, 2019 , transfers of assets of $41.2 million from Level 3 to Level 2 are primarily attributed to: • CDOs and CLOs of $15.7 million , other asset-backed securities of $12.6 million and loans and other receivables of $6.5 million due to greater pricing transparency supporting classification into Level 2. During the three months ended February 28, 2019 , transfers of liabilities of $36.6 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Structured notes of $22.2 million and net derivatives of $13.9 million due to reduced market and pricing transparency. During the three months ended February 28, 2019 , transfers of liabilities of $12.9 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes of $9.4 million due to greater market transparency. Net losses on Level 3 assets were $5.1 million and net gains on Level 3 liabilities were $22.5 million for the three months ended February 28, 2019 . Net losses on Level 3 assets were primarily due to decreased market values across CDOs and CLOs, other asset-backed securities and investments at fair value, partially offset by increased market values across corporate equity securities. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain structured notes. The following is a summary of changes in fair val |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Feb. 28, 2019 | |
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 enters into derivative transactions to satisfy the needs of its clients and to manage its own exposure to market and credit risks resulting from its 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 February 28, 2019 and November 30, 2018 . 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 (1) Fair Value Number of Contracts (1) February 28, 2019 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 18,037 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 831,019 45,802 $ 840,900 31,862 Foreign exchange contracts 302,480 9,384 291,008 9,401 Equity contracts 1,329,281 1,863,817 1,566,911 1,518,951 Commodity contracts 13,602 8,623 2,945 5,418 Credit contracts 31,889 122 26,660 101 Total derivatives not designated as accounting hedges 2,508,271 2,728,424 Total gross derivative assets/ liabilities 2,508,271 2,746,461 Amounts offset in Consolidated Statement of Financial Condition (2) (2,296,080 ) (2,383,752 ) Net amounts per Consolidated Statement of Financial Condition (3) $ 212,191 $ 362,709 November 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 29,647 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 796,493 35,652 $ 904,043 69,305 Foreign exchange contracts 311,270 10,086 314,989 1,602 Equity contracts 1,410,148 2,109,810 2,377,133 1,782,600 Commodity contracts 37,823 8,546 1,717 5,683 Credit contracts 24,972 130 13,174 93 Total derivatives not designated as accounting hedges 2,580,706 3,611,056 Total gross derivative assets/ liabilities 2,580,706 3,640,703 Amounts offset in Consolidated Statement of Financial Condition (2) (2,413,931 ) (2,513,050 ) Net amounts per Consolidated Statement of Financial Condition (3) $ 166,775 $ 1,127,653 (1) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. (2) Amounts netted include both netting by counterparty and for cash collateral paid or received. (3) 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. 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 February 28, 2019 March 31, 2018 Interest rate swaps $ 14,587 $ (21,221 ) Long-term debt (15,556 ) 22,715 Total $ (969 ) $ 1,494 The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues 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 February 28, 2019 March 31, 2018 Interest rate contracts $ (69,831 ) $ 26,962 Foreign exchange contracts (176 ) 3,128 Equity contracts (28,481 ) (205,146 ) Commodity contracts (19,273 ) (5,314 ) Credit contracts 4,095 (991 ) Total $ (113,666 ) $ (181,361 ) 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 February 28, 2019 (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 $ 1,332 $ 6,078 $ — $ (2,098 ) $ 5,312 Equity swaps and options 2,539 17,857 5,240 — 25,636 Credit default swaps 111 19,824 — (108 ) 19,827 Total return swaps 47,890 18,274 — (984 ) 65,180 Foreign currency forwards, swaps and options 65,040 11,413 — (16,118 ) 60,335 Fixed income forwards 1,645 — — — 1,645 Interest rate swaps, options and forwards 29,360 114,382 115,221 (76,899 ) 182,064 Total $ 147,917 $ 187,828 $ 120,461 $ (96,207 ) 359,999 Cross product counterparty netting (32,496 ) Total OTC derivative assets included in Trading assets $ 327,503 (1) At February 28, 2019 , we held exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $31.8 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition. At February 28, 2019 , cash collateral received was $147.1 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. 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 $ 1,832 $ 954 $ — $ (2,098 ) $ 688 Equity swaps and options 30,988 106,443 37,837 — 175,268 Credit default swaps 1,918 10,878 — (108 ) 12,688 Total return swaps 11,553 14,057 — (984 ) 24,626 Foreign currency forwards, swaps and options 53,908 11,042 — (16,118 ) 48,832 Fixed income forwards 3,810 — — — 3,810 Interest rate swaps, options and forwards 32,805 74,816 182,540 (76,899 ) 213,262 Total $ 136,814 $ 218,190 $ 220,377 $ (96,207 ) 479,174 Cross product counterparty netting (32,496 ) Total OTC derivative liabilities included in Trading liabilities $ 446,678 (1) At February 28, 2019 , we held exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $150.8 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 February 28, 2019 , cash collateral pledged was $234.8 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. At February 28, 2019 , 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 $ 136,803 BBB- to BBB+ 56,918 BB+ or lower 88,357 Unrated 45,425 Total $ 327,503 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's Risk Management department. Credit ratings determined by Jefferies Group 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 are as follows (in millions): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional February 28, 2019 Credit protection sold: Index credit default swaps $ 90.5 $ 100.0 $ — $ 190.5 Single name credit default swaps $ 8.4 $ 53.9 $ 32.6 $ 94.9 November 30, 2018 Credit protection sold: Index credit default swaps $ 25.7 $ 167.4 $ — $ 193.1 Single name credit default swaps $ 57.7 $ 84.5 $ 3.0 $ 145.2 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): February 28, 2019 November 30, 2018 Derivative instrument liabilities with credit-risk-related contingent features $ 32.3 $ 93.5 Collateral posted $ (19.2 ) $ (61.5 ) Collateral received $ 128.2 $ 91.5 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 141.3 $ 123.3 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. 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 | 3 Months Ended |
Feb. 28, 2019 | |
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 returns 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, at fair value 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 February 28, 2019 Corporate equity securities $ 1,860,725 $ 277,041 $ 2,137,766 Corporate debt securities 269,547 1,915,333 2,184,880 Mortgage- and asset-backed securities — 3,277,181 3,277,181 U.S. government and federal agency securities 104,428 11,987,128 12,091,556 Municipal securities — 466,849 466,849 Sovereign obligations — 3,387,020 3,387,020 Loans and other receivables — 352,411 352,411 Total $ 2,234,700 $ 21,662,963 $ 23,897,663 November 30, 2018 Corporate equity securities $ 1,505,218 $ 487,124 $ 1,992,342 Corporate debt securities 333,221 1,853,309 2,186,530 Mortgage- and asset-backed securities 249 2,820,543 2,820,792 U.S. government and federal agency securities — 8,181,947 8,181,947 Municipal securities — 604,274 604,274 Sovereign obligations — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total February 28, 2019 Securities lending arrangements $ 1,034,306 $ — $ 1,002,932 $ 197,462 $ 2,234,700 Repurchase agreements 11,379,518 4,169,261 4,223,211 1,890,973 21,662,963 Total $ 12,413,824 $ 4,169,261 $ 5,226,143 $ 2,088,435 $ 23,897,663 November 30, 2018 Securities lending arrangements $ 807,347 $ — $ 560,417 $ 470,924 $ 1,838,688 Repurchase agreements 7,849,052 1,915,325 6,042,951 1,386,158 17,193,486 Total $ 8,656,399 $ 1,915,325 $ 6,603,368 $ 1,857,082 $ 19,032,174 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 February 28, 2019 and November 30, 2018 , the approximate fair value of securities received as collateral by Jefferies Group that may be sold or repledged was $28.2 billion and $23.1 billion , respectively. At February 28, 2019 and November 30, 2018 , a substantial portion of the securities received by Jefferies Group have been sold or repledged. |
Securitization Activities
Securitization Activities | 3 Months Ended |
Feb. 28, 2019 | |
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 these 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 its 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). These securities are included in Trading assets in our Consolidated Statements of Financial Condition and are generally initially categorized as Level 2 within the fair value hierarchy. 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 February 28, 2019 March 31, 2018 Transferred assets $ 1,260.6 $ 2,757.8 Proceeds on new securitizations $ 1,331.2 $ 2,758.9 Cash flows received on retained interests $ 14.8 $ 9.2 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 securitizations at February 28, 2019 and November 30, 2018 . 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): February 28, 2019 November 30, 2018 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 12,620.2 $ 353.1 $ 13,633.5 $ 365.3 U.S. government agency commercial mortgage-backed securities $ 1,594.4 $ 70.7 $ 2,027.6 $ 185.6 CLOs $ 3,522.8 $ 23.7 $ 3,512.0 $ 20.9 Consumer and other loans $ 938.0 $ 61.3 $ 604.1 $ 48.9 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 | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 Bonds and notes: Residential mortgage-backed securities $ 24,191 $ — $ 142 $ 24,049 Total Available for sale securities $ 24,191 $ — $ 142 $ 24,049 November 30, 2018 Bonds and notes: U.S. government securities $ 1,073,038 $ 1 $ 183 $ 1,072,856 Residential mortgage-backed securities 211,209 376 1,067 210,518 Commercial mortgage-backed securities 16,068 — 426 15,642 Other asset-backed securities 111,447 1 578 110,870 Total Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 Proceeds from the maturities and sales of available for sale securities during the three months ended February 28, 2019, were primarily invested in prime and government money market funds, which are classified as Cash and cash equivalents in the Consolidated Statement of Financial Condition at February 28, 2019 . At February 28, 2019 and November 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 $229.8 million and $230.0 million , respectively. There were no unrealized gains, losses or impairments recognized on these investments during the three months ended February 28, 2019 and March 31, 2018 . |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 28, 2019 | |
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 Jefferies Group's trading and secondary market-making activities; • Retained interests held as a result of securitization activities, including the resecuritization of mortgage- and other asset-backed securities and the securitization of commercial mortgage, corporate and consumer loans; • Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; • Financing of agency and non-agency mortgage- and other asset-backed securities; • Warehouse funding arrangements for client-sponsored consumer loan vehicles and CLOs through participation certificates, forward sale agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE's most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE's purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE's initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE's significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the "power" criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the "power" criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about 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. February 28, 2019 November 30, 2018 Financial instruments owned $ 323.4 $ — Securities purchased under agreement to resell (1) 936.3 883.1 Receivables 613.5 626.0 Other 33.0 78.4 Total assets $ 1,906.2 $ 1,587.5 Other secured financings (2) $ 1,853.3 $ 1,535.3 Other (3) 48.6 45.9 Total liabilities $ 1,901.9 $ 1,581.2 (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 $326.6 million and $1.0 million of the secured financings represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at February 28, 2019 and November 30, 2018 , respectively. (3) Includes $47.1 million and $44.1 million at February 28, 2019 and November 30, 2018 , 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, and mortgage-backed securities and consumer loans pursuant to the terms of a master repurchase agreement. Jefferies Group's variable interests in these vehicles consist of its collateral margin maintenance obligations under the master repurchase agreement, which Jefferies Group manages, 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 is also the primary beneficiary of securitization vehicles to which it sold agency residential mortgage-backed securities and retained all of the interests issued by these vehicles. Jefferies Group's variable interests in these vehicles consist of its retained interests in the securities issued. The assets of these VIEs consist of agency residential mortgage-backed securities. At February 28, 2019 and November 30, 2018 , 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. 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 February 28, 2019 CLOs $ 156.8 $ 3.8 $ 1,939.5 $ 4,887.2 Consumer loan and other asset-backed vehicles 445.5 — 771.6 3,491.0 Related party private equity vehicles 31.6 — 49.4 90.8 Other investment vehicles 461.1 — 471.5 7,175.1 Total $ 1,095.0 $ 3.8 $ 3,232.0 $ 15,644.1 November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan and other asset-backed vehicles 462.1 — 807.1 3,273.1 Related party private equity vehicles 35.5 — 53.5 108.3 Other investment vehicles 203.6 — 214.7 5,719.1 Total $ 746.4 $ — $ 1,646.7 $ 12,382.4 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 and Other Asset-Backed 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, and trust preferred securities. 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 February 28, 2019 and November 30, 2018 , Jefferies Group's total equity commitment in the JCP Entities was $139.3 million and $139.3 million , respectively, of which $121.5 million and $121.3 million , respectively, had been funded. The carrying value of Jefferies Group's equity investments in the JCP Entities was $31.6 million and $35.5 million at February 28, 2019 and November 30, 2018 , 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 Investment Vehicles. The carrying amount of our equity investment was $461.1 million and $203.6 million at February 28, 2019 and November 30, 2018 , respectively. Our unfunded equity commitment related to these investments totaled $10.4 million and $11.1 million at February 28, 2019 and November 30, 2018 , respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These investment vehicles have assets primarily consisting of private and public equity investments, debt instruments 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. At February 28, 2019 and November 30, 2018 , Jefferies Group held $2,821.0 million and $2,913.0 million of agency mortgage-backed securities, respectively, and $167.0 million and $170.5 million of non-agency mortgage- and other asset-backed securities, respectively, as a result of its secondary trading and market-making activities, and underwriting, placement and structuring 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 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 | 3 Months Ended |
Feb. 28, 2019 | |
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 three months ended February 28, 2019 and March 31, 2018 is as follows (in thousands): Loans to and investments in associated companies as of beginning of period 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 end of period 2019 Jefferies Finance $ 728,560 $ — $ (6,999 ) $ (71,348 ) $ — $ 650,213 Berkadia (2) 245,228 — 22,649 (17,323 ) 172 250,726 National Beef 653,630 27,105 — (25,596 ) 3 655,142 FXCM (3) 75,031 (2,716 ) — — 187 72,502 Linkem 165,157 (1,621 ) — 32,578 1,030 197,144 HomeFed 337,542 1,983 — — — 339,525 Other 212,184 2,562 (4,313 ) 5,728 (387 ) 215,774 Total $ 2,417,332 $ 27,313 $ 11,337 $ (75,961 ) $ 1,005 $ 2,381,026 2018 Jefferies Finance $ 655,467 $ — $ 9,833 $ 139,386 $ — $ 804,686 Berkadia (2) 210,594 26,281 — (17,212 ) (453 ) 219,210 FXCM (3) 158,856 (8,224 ) — — 239 150,871 Garcadia companies (4) 179,143 11,383 — (9,727 ) — 180,799 Linkem 192,136 (7,455 ) — 542 8,024 193,247 HomeFed 341,874 11,610 — — — 353,484 Other 328,759 (1,495 ) (4,228 ) 6,061 1,676 330,773 Total $ 2,066,829 $ 32,100 $ 5,605 $ 119,050 $ 9,486 $ 2,233,070 (1) Primarily classified in Investment banking revenues and Other revenues. (2) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (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 in Loans to and investments in associated companies and our term loan is included in Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) 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. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 National Beef $ 27,105 $ — Berkadia — 26,281 FXCM (2,716 ) (8,224 ) Garcadia companies — 11,383 Linkem (1,621 ) (7,455 ) HomeFed 1,983 11,610 Other 2,562 (1,495 ) Total $ 27,313 $ 32,100 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 February 28, 2019 March 31, 2018 Jefferies Finance $ (6,999 ) $ 9,833 Berkadia 22,649 — Other (4,313 ) (4,228 ) Total $ 11,337 $ 5,605 Jefferies Finance Through Jefferies Group, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), a 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 February 28, 2019 , Jefferies Group and MassMutual each had equity commitments to Jefferies Finance of $750.0 million . At February 28, 2019 , $622.9 million of Jefferies Group's commitment was funded. The investment commitment is scheduled to expire on March 1, 2020 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 February 28, 2019 and November 30, 2018 . Advances are shared equally between Jefferies Group and MassMutual. The facility is scheduled to mature on March 1, 2020 with automatic one year extensions absent a 60 -day termination notice by either party. At February 28, 2019 and November 30, 2018 , 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 $1.0 million during the three months ended February 28, 2019 and March 31, 2018 , 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 $21.9 million and $101.4 million during the three months ended February 28, 2019 and March 31, 2018 , 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 $5.4 million and $18.5 million during the three months ended February 28, 2019 and March 31, 2018 , respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations. During the three months ended February 28, 2019 and March 31, 2018 , Jefferies Group acted as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees of $1.3 million and $0.3 million , respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations. At February 28, 2019 and November 30, 2018 , 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 $27.1 million and $26.1 million for services provided during the three months ended February 28, 2019 and March 31, 2018 , respectively. At February 28, 2019 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $10.7 million and a payable to Jefferies Finance, related to cash deposited with Jefferies Group, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition of $13.9 million . At November 30, 2018 , Jefferies Group had a receivable from Jefferies Finance, included in Other assets in the Consolidated Statement of Financial Condition, of $35.2 million and a payable to Jefferies Finance, related to cash deposited with Jefferies Group, 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 Trading assets in our Consolidated Statement of Financial Condition at February 28, 2019 and $0.2 million recorded in Payables, expense accruals and other liabilities and $0.4 million included in Trading liabilities in our Consolidated Statement of Financial Condition at November 30, 2018 . Subsequent to quarter-end, on March 28, 2019, Jefferies Group entered into a promissory note with Jefferies Finance with a principal amount of $1.0 billion , the proceeds of which are being used in connection with Jefferies Group's investment banking loan syndication activities. Interest is based on the London Interbank Offered Rate ("LIBOR") plus 5.00% per annum. Jefferies Group agrees to pay Jefferies Finance the entire outstanding principal amount of this note no later than May 15, 2019. 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% membership interest in Berkadia. We are entitled to receive 45% of the profits. 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 adviser 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. At February 28, 2019 , the aggregate amount of commercial paper outstanding was $1.47 billion . 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 Note 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. We are amortizing our basis 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 over their respective useful lives (weighted average life of 15 years ). FXCM As discussed more fully in Note 3, at February 28, 2019 , Jefferies has a 50% voting interest in FXCM and a senior secured term loan to FXCM due in the second quarter of 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 and long-term debt over their respective useful lives (weighted average life of 11 years ). 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 automobile dealerships comprised of domestic and foreign automobile makers. 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. Linkem We own approximately 42% of the common shares of Linkem, a fast-growing fixed wireless broadband services provider in Italy. In addition, we own 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 February 28, 2019 . We have approximately 48% of the total voting securities of Linkem. We account for our equity interest in Linkem on a two month lag. HomeFed At February 28, 2019 , 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 Over-the-Counter 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 February 28, 2019 . 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. We account for our equity interest in HomeFed on a two month lag. Other The following table provides required summarized data for Jefferies Finance and Berkadia for both the three months ended February 28, 2019 and March 31, 2018 . The table also provides required summarized data for National Beef for the three months ended February 28, 2019 (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Revenues $ 2,082,765 $ 266,339 Income from continuing operations before extraordinary items $ 141,516 $ 99,811 Net income $ 141,516 $ 99,811 |
Financial Statement Offsetting
Financial Statement Offsetting | 3 Months Ended |
Feb. 28, 2019 | |
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 to manage its exposure to credit risk. 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). 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 February 28, 2019 Derivative contracts $ 2,508,271 $ (2,296,080 ) $ 212,191 $ — $ — $ 212,191 Securities borrowing arrangements $ 7,231,073 $ — $ 7,231,073 $ (529,874 ) $ (1,171,891 ) $ 5,529,308 Reverse repurchase agreements $ 15,852,250 $ (12,355,680 ) $ 3,496,570 $ (328,449 ) $ (3,137,324 ) $ 30,797 Liabilities at February 28, 2019 Derivative contracts $ 2,746,461 $ (2,383,752 ) $ 362,709 $ — $ — $ 362,709 Securities lending arrangements $ 2,234,700 $ — $ 2,234,700 $ (529,874 ) $ (1,681,346 ) $ 23,480 Repurchase agreements $ 21,662,963 $ (12,355,680 ) $ 9,307,283 $ (328,449 ) $ (8,097,893 ) $ 880,941 Assets at November 30, 2018 Derivative contracts $ 2,580,706 $ (2,413,931 ) $ 166,775 $ — $ — $ 166,775 Securities borrowing arrangements $ 6,538,212 $ — $ 6,538,212 $ (468,778 ) $ (1,193,986 ) $ 4,875,448 Reverse repurchase agreements $ 11,336,175 $ (8,550,417 ) $ 2,785,758 $ (609,225 ) $ (2,126,730 ) $ 49,803 Liabilities at November 30, 2018 Derivative contracts $ 3,640,703 $ (2,513,050 ) $ 1,127,653 $ — $ — $ 1,127,653 Securities lending arrangements $ 1,838,688 $ — $ 1,838,688 $ (468,778 ) $ (1,343,704 ) $ 26,206 Repurchase agreements $ 17,193,486 $ (8,550,417 ) $ 8,643,069 $ (609,225 ) $ (7,070,967 ) $ 962,877 (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 February 28, 2019 , amounts include $5,495.4 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,338.4 million , and $848.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $869.3 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,591 $ 8,524 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $104,929 and $102,579 66,009 67,894 Trademarks and tradenames, net of accumulated amortization of $22,116 and $21,086 106,894 107,262 Other, net of accumulated amortization of $4,601 and $4,339 4,349 4,611 Total intangible assets, net 185,843 188,291 Goodwill: Jefferies Group 1,701,646 1,698,381 Other operations 3,459 3,459 Total goodwill 1,705,105 1,701,840 Total intangible assets, net and goodwill $ 1,890,948 $ 1,890,131 Amortization expense on intangible assets included in Income from continuing operations was $3.3 million and $3.3 million for the three months ended February 28, 2019 and March 31, 2018 , 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 $ 10,079 2020 $ 13,439 2021 $ 13,085 2022 $ 10,110 2023 $ 9,001 |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Bank loans $ 473,582 $ 330,942 Floating rate puttable notes 56,902 56,550 Total short-term borrowings $ 530,484 $ 387,492 At February 28, 2019 and November 30, 2018 , the weighted average interest rate on short-term borrowings outstanding was 3.69% and 3.08% per annum, respectively. Subsequent to quarter-end, on March 28, 2019, Jefferies Group entered into a promissory note with Jefferies Finance. See Note 9 for further information. On December 27, 2018, one of Jefferies Group's subsidiaries entered into a credit facility agreement ("Jefferies Group Credit Facility") with JPMorgan Chase Bank, N.A. for a committed amount of $135.0 million . Interest is based on an annual alternative base rate or an adjusted LIBOR, as defined in the Jefferies Group Credit Facility. The Jefferies Group Credit Facility contains certain covenants that, among other things, require Jefferies Group LLC to maintain a specified level of tangible net worth. The covenants also require the borrower to maintain specified leverage amounts and impose certain restrictions on the borrower’s future indebtedness. During the three months ended February 28, 2019 , Jefferies Group was in compliance with all debt covenants under the Jefferies Group Credit Facility. The Bank of New York Mellon has agreed to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $150.0 million . The Intraday Credit Facility contains financial covenants, which include 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. At February 28, 2019 , Jefferies Group was in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,693 $ 743,397 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,732 246,719 Total long-term debt – Parent Company 990,425 990,116 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 8.50% Senior Notes, due July 15, 2019, $644,800 and $680,800 principal 655,494 699,659 2.375% Euro Medium Term Notes, due May 20, 2020, $569,025 and $565,500 principal 568,356 564,702 6.875% Senior Notes, due April 15, 2021, $750,000 principal 787,615 791,814 2.25% Euro Medium Term Notes, due July 13, 2022, $4,552 and $4,524 principal 4,287 4,243 5.125% Senior Notes, due January 20, 2023, $600,000 principal 612,214 612,928 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 725,167 709,484 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 373,120 373,669 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 988,003 987,788 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,564 511,662 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,531 420,625 Structured Notes (2) 750,978 686,170 Jefferies Group Revolving Credit Facility 183,690 183,539 Foursight Capital Credit Facilities 32,298 — Other 82,166 81,164 Total long-term debt – subsidiaries 6,695,483 6,627,447 Long-term debt $ 7,685,908 $ 7,617,563 (1) Amount includes a loss of $15.6 million and a gain of $22.7 million during the three months ended February 28, 2019 and March 31, 2018 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. Subsidiary Debt : Structured notes with a total principal amount of approximately $79.9 million , net of retirements were issued during the three months ended February 28, 2019 . Additionally, during the three months ended February 28, 2019 , Jefferies Group repaid $36.0 million of its 8.50% Senior Notes. During 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 $185.0 million . The 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 LIBOR, as defined in the Jefferies Group Revolving Credit Facility agreement. The obligations of certain of Jefferies Group's subsidiaries under the Jefferies Group Revolving Credit Facility are secured by substantially all its assets. At February 28, 2019 , Jefferies Group was in compliance with the debt covenants under the Jefferies Group Revolving Credit Facility. At February 28, 2019 , 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 $38.9 million at February 28, 2019 . |
Mezzanine Equity
Mezzanine Equity | 3 Months Ended |
Feb. 28, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests The following table rolls forward National Beef’s redeemable noncontrolling interests activity (prior to its deconsolidation in June 2018) during the three months ended March 31, 2018 (in thousands): Balance, January 1, 2018 $ 412,128 Income allocated to redeemable noncontrolling interests 14,450 Distributions to redeemable noncontrolling interests (9,519 ) Decrease in fair value of redeemable noncontrolling interests (17,067 ) Balance, March 31, 2018 $ 399,992 At February 28, 2019 and November 30, 2018 , redeemable noncontrolling interests include other redeemable noncontrolling interests of $20.2 million and $19.8 million , respectively, primarily related to our oil and gas exploration and development businesses. 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 $1.2 million for the three months ended March 31, 2018 to $1.3 million for the three months ended February 28, 2019 . 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 | 3 Months Ended |
Feb. 28, 2019 | |
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. Stock-Based Compensation Expense. Compensation and benefits expense included $11.8 million and $12.4 million for the three months ended February 28, 2019 and March 31, 2018 , 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 $3.0 million and $2.9 million for the three months ended February 28, 2019 and March 31, 2018 , respectively. At February 28, 2019 , total unrecognized compensation cost related to nonvested share-based compensation plans was $109.9 million ; this cost is expected to be recognized over a weighted average period of three years. At February 28, 2019 , there were 1,821,000 shares of restricted stock outstanding with future service required, 5,958,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 14,434,000 RSUs outstanding with no future service required and 715,000 shares issuable under other plans. The maximum potential increase to common shares outstanding resulting from these outstanding awards is 21,107,000 . 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. These awards are amortized to compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year. At February 28, 2019 , the remaining unamortized amount of the restricted cash awards was $591.3 million and is included within Other assets in the Consolidated Statement of Financial Condition; this cost is expected to be recognized over a weighted average period of three years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Net unrealized gains on available for sale securities $ 544,278 $ 542,832 Net unrealized foreign exchange losses (162,448 ) (193,402 ) Net unrealized gains (losses) on instrument specific credit risk 12,101 (5,728 ) Net unrealized gains on cash flow hedges 219 470 Net minimum pension liability (55,531 ) (55,886 ) $ 338,619 $ 288,286 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 For the Three Months Ended February 28, 2019 March 31, 2018 Net unrealized losses on available for sale securities, net of income tax benefit of $(377) and $(5) $ (1,129 ) $ (15 ) Other revenues Net unrealized losses on instrument specific credit risk, net of income tax benefit of $(99) and $0 (294 ) — Principal transactions Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(119) and $(151) (355 ) (462 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $0 — (5,344 ) Compensation and benefits expense Total reclassifications for the period, net of tax $ (1,778 ) $ (5,821 ) 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 three months ended March 31, 2018 . |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 March 31, 2018 Revenues from contracts with customers: Commissions and other fees $ 147,134 $ 147,902 Investment banking 285,596 439,991 Manufacturing revenues 75,425 98,365 Other 61,832 42,158 Total revenue from contracts with customers 569,987 728,416 Other sources of revenue: Principal transactions 246,182 145,663 Interest income 386,844 275,222 Other (8,001 ) 11,810 Total revenue from other sources 625,025 432,695 Total revenues $ 1,195,012 $ 1,161,111 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 the uncertainties with respect to the amounts are resolved. Investment Banking. 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 earns 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 or semi-annual. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. 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 (in thousands): Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Three months ended February 28, 2019 Jefferies Group: Equities (1) $ 152,061 $ — $ — $ (192 ) $ 151,869 Fixed Income (1) 3,068 — — — 3,068 Investment Banking - Capital markets 105,114 — — — 105,114 Investment Banking - Advisory 180,482 — — — 180,482 Asset Management 6,669 — — — 6,669 Manufacturing revenues — 75,425 — — 75,425 Oil and gas revenues — 36,365 — — 36,365 Other revenues — 10,995 — — 10,995 Total revenues from contracts with customers $ 447,394 $ 122,785 $ — $ (192 ) $ 569,987 Primary Geographic Region: Americas $ 326,757 $ 122,527 $ — $ (192 ) $ 449,092 Europe, Middle East and Africa 103,493 234 — — 103,727 Asia 17,144 24 — — 17,168 Total revenues from contracts with customers $ 447,394 $ 122,785 $ — $ (192 ) $ 569,987 Three months ended March 31, 2018 Jefferies Group: Equities (1) $ 151,630 $ — $ — $ — $ 151,630 Fixed Income (1) 2,958 — — — 2,958 Investment Banking - Capital markets 248,834 — — — 248,834 Investment Banking - Advisory 191,157 — — — 191,157 Asset Management 4,930 — — — 4,930 Manufacturing revenues — 98,365 — — 98,365 Oil and gas revenues — 20,330 — — 20,330 Other revenues — 10,212 — — 10,212 Total revenues from contracts with customers $ 599,509 $ 128,907 $ — $ — $ 728,416 Primary Geographic Region: Americas $ 520,854 $ 128,577 $ — $ — $ 649,431 Europe, Middle East and Africa 61,328 255 — — 61,583 Asia 17,327 75 — — 17,402 Total revenues from contracts with customers $ 599,509 $ 128,907 $ — $ — $ 728,416 (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 February 28, 2019 . Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at February 28, 2019 . During the three months ended February 28, 2019 and March 31, 2018 , Jefferies Group recognized $14.7 million and $11.7 million , respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, Jefferies Group recognized $4.9 million and $4.6 million , respectively, of revenues primarily associated with distribution services during the three months ended February 28, 2019 and March 31, 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. We had receivables related to revenues from contracts with customers of $247.1 million and $250.6 million at February 28, 2019 and November 30, 2018 , respectively. We had no significant impairments related to these receivables during the three months ended February 28, 2019 and March 31, 2018 . Jefferies Group's deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Our deferred revenue, which primarily relates to Jefferies Group, was $11.5 million and $14.2 million at February 28, 2019 and November 30, 2018 , respectively, which are recorded as Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. During the three months ended February 28, 2019 , we recognized $7.6 million of deferred revenue from the balance at November 30, 2018 . During the three months ended March 31, 2018 , we recognized $4.9 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 February 28, 2019 and November 30, 2018 , Jefferies Group's capitalized costs to fulfill a contract were $4.0 million and $4.7 million , respectively, which are recorded in Receivables in the Consolidated Statements of Financial Condition. For the three months ended February 28, 2019 and March 31, 2018 , Jefferies Group recognized expenses of $2.1 million and $2.4 million , respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the period. There were no significant impairment charges recognized in relation to these capitalized costs during the three months ended February 28, 2019 and March 31, 2018 . At February 28, 2019 and November 30, 2018 , capitalized costs related to our other subsidiaries were not material. |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions at February 28, 2019 was $248.5 million (including $57.5 million for interest), of which $177.6 million related to Jefferies Group. The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions at November 30, 2018 was $251.4 million (including $54.1 million for interest), of which $174.9 million related to Jefferies Group. If recognized, such amounts would lower our effective tax rate. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense. No material penalties were accrued for the three months ended February 28, 2019 and March 31, 2018 . The statute of limitations with respect to our federal income tax returns has expired for all years through 2014. We are currently under examination in a number of major tax jurisdictions. 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 and Jefferies Group is also currently under examination in a number of 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. Regarding the new tax on global intangible low-taxed income ("GILTI"), which became applicable in fiscal 2019, we have made an accounting policy election to treat GILTI as a period cost if and when incurred. Our provision for income taxes for continuing operations for the three months ended February 28, 2019 was $2.3 million , representing an effective tax rate of 4.7% . Our provision for income taxes for the three months ended February 28, 2019 was reduced by $6.7 million related to completing our accounting for tax reform enacted in 2017, as permitted by Staff Accounting Bulletin No. 118, which was issued by the SEC staff on December 22, 2017. Our provision for income taxes for continuing operations for the three months ended March 31, 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. |
Common Share and Earnings Per C
Common Share and Earnings Per Common Share | 3 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Common Share and Earnings Per Common Share | Common Share and Earnings Per Common Share Basic and diluted earnings per share amounts were calculated by dividing net income by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings per share are as follows (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 44,811 $ 124,525 Allocation of earnings to participating securities (1) (255 ) (499 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 44,556 124,026 Adjustment to allocation of earnings to participating securities related to diluted shares (1) (7 ) (1 ) Mandatorily redeemable convertible preferred share dividends — 1,172 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 44,549 $ 125,197 Denominator for earnings per share: Weighted average common shares outstanding 304,533 356,576 Weighted average shares of restricted stock outstanding with future service required (1,828 ) (1,285 ) Weighted average RSUs outstanding with no future service required 12,470 11,136 Denominator for basic earnings per share – weighted average shares 315,175 366,427 Stock options — 30 Senior executive compensation plan awards 3,577 2,842 Mandatorily redeemable convertible preferred shares — 4,162 Denominator for diluted earnings per share 318,752 373,461 (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 1,831,000 and 1,317,000 for the for the three months ended February 28, 2019 and March 31, 2018 , respectively. Dividends declared on participating securities were not material during the three months ended February 28, 2019 and March 31, 2018 . 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 three months ended February 28, 2019 , 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 January 2019, the Board of Directors approved an additional $500.0 million share repurchase authorization. During the three months ended February 28, 2019 , we purchased a total of 9,600,000 of our common shares for an aggregate purchase price of $194.7 million under these authorizations. At February 28, 2019 , $305.3 million remained available for repurchase. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Feb. 28, 2019 | |
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 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 17.2 $ 148.6 $ 1.3 $ — $ 9.8 $ 176.9 Loan commitments (1) 250.0 5.0 54.0 30.0 500.0 839.0 Underwriting commitments 215.4 — — — — 215.4 Forward starting reverse repos (2) 6,225.6 — — — — 6,225.6 Forward starting repos (2) 4,738.8 — — — — 4,738.8 Other unfunded commitments (1) 165.3 — 90.9 4.9 — 261.1 $ 11,612.3 $ 153.6 $ 146.2 $ 34.9 $ 509.8 $ 12,456.8 (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 February 28, 2019 , $6,225.4 million within forward starting securities purchased under agreements to resell and $4,736.0 million within forward starting 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 consists of a team led by our President and a Director. At February 28, 2019 , Jefferies Group's outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $17.9 million . See Note 9 for additional information regarding Jefferies Group's investment in Jefferies Finance. Additionally, as of February 28, 2019 , we have other equity commitments to invest up to $31.8 million in various other investments. 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 February 28, 2019 , Jefferies Group had $584.0 million of outstanding loan commitments to clients. Loan commitments outstanding at February 28, 2019 , 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 February 28, 2019 , 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's derivative contracts meeting the definition of a guarantee under GAAP at February 28, 2019 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 9,764.7 $ 2,569.7 $ 4,148.7 $ 281.8 $ 332.3 $ 17,097.2 Written derivative contracts – credit related — 32.4 1.5 61.0 — 94.9 Total derivative contracts $ 9,764.7 $ 2,602.1 $ 4,150.2 $ 342.8 $ 332.3 $ 17,192.1 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 $161.7 million at February 28, 2019 . 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 February 28, 2019 , 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 February 28, 2019 , Jefferies Group provided guarantees to certain counterparties in the form of standby letters of credit totaling $37.1 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 $1.6 million at February 28, 2019 . Primarily all letters of credit expire within one year. |
Net Capital Requirements
Net Capital Requirements | 3 Months Ended |
Feb. 28, 2019 | |
Net Capital Requirements [Abstract] | |
Net Capital Requirements | Net Capital Requirements Jefferies LLC 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 SEC Uniform Net Capital Rule ("Rule 15c3-1"), which requires the maintenance of minimum net capital and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S. broker-dealer and futures commission merchant ("FCM"), is also subject to Rule 1.17 of the Commodity Futures Trading Commission ("CFTC"), which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. Jefferies LLC’s net capital and excess net capital at February 28, 2019 were $1,411.6 million and $1,303.2 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 | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 699,780 $ 697,333 $ 680,015 $ 676,152 Financial Liabilities: Short-term borrowings (2) $ 530,484 $ 530,484 $ 387,492 $ 387,492 Long-term debt (3) $ 6,934,930 $ 6,853,309 $ 6,931,393 $ 6,826,503 (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 | 3 Months Ended |
Feb. 28, 2019 | |
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 our President and a Director ("Private Equity Related Funds"). Reflected in our Consolidated Statements of Financial Condition at February 28, 2019 and November 30, 2018 are Jefferies Group's equity investments in Private Equity Related Funds of $31.6 million and $35.5 million , respectively. Net gains (losses) aggregating $(4.1) million and $7.0 million for the three months ended February 28, 2019 and March 31, 2018 , 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 February 28, 2019 and November 30, 2018 , Jefferies Group has commitments to purchase $578.5 million and $723.8 million , respectively, in agency commercial mortgage-backed securities from Berkadia. FXCM . Jefferies Group entered into a foreign exchange prime brokerage agreement with FXCM in 2017. In connection with the foreign exchange contracts entered into under this agreement, Jefferies Group had $13.8 million and $9.9 million at February 28, 2019 and November 30, 2018 , respectively, included in Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. Officers, Directors and Employees. We have $48.3 million and $49.3 million of loans outstanding to certain officers and employees (none of whom are an executive officer or director of the Company) at February 28, 2019 and November 30, 2018 , 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. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Feb. 28, 2019 | |
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 also acquired an additional 3% of National Beef from other equity owners and 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 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 for the three months ended March 31, 2018 is as follows (in thousands): Revenues: Beef processing services $ 1,781,920 Interest income 68 Other 3,370 Total revenues 1,785,358 Expenses: Compensation and benefits 10,207 Cost of sales 1,670,776 Interest expense 2,109 Depreciation and amortization 25,519 Selling, general and other expenses 7,856 Total expenses 1,716,467 Income from discontinued operations before income taxes 68,891 Income tax provision 15,934 Income from discontinued operations, net of income tax provision $ 52,957 Net income attributable to the redeemable noncontrolling interests in the Consolidated Statements of Operations includes $14.5 million related to National Beef's noncontrolling interests for the three months ended March 31, 2018 . Pre-tax income from discontinued operations attributable to Jefferies Financial Group Inc. common shareholders was $54.4 million for the three months ended March 31, 2018 . As discussed above, we account for our retained 31% ownership of National Beef subsequent to the sale to Marfrig under the equity method. During the three months ended February 28, 2019 , we recorded $27.1 million in Income related to associated companies from our 31% ownership in National Beef and we received distributions from National Beef of $25.6 million . The pre-tax income of 100% of National Beef during the three months ended February 28, 2019 was $94.5 million . |
Segment Information
Segment Information | 3 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are a diversified financial services company engaged in investment banking and capital markets, asset management and direct investing. In 2018, we made a number of strategic changes including the sale of 48% of National Beef and 100% of our interest in Garcadia. During the fourth quarter of 2018, we transferred to Jefferies Group our 50% interest in Berkadia and our LAM seed investments, thereby amalgamating our primary financial services operating businesses into one platform. Culminating with the fourth quarter reorganization, we began managing our business across three reportable operating segments consisting of Jefferies Group, Merchant Banking and Corporate. In connection with this change, we have reclassified the prior periods to conform to our current presentation. Jefferies Group is the largest independent U.S. headquartered global full-service integrated investment banking and securities firm. Merchant Banking consists of our various merchant banking businesses and investments, primarily including National Beef, Spectrum Brands, Linkem, Vitesse Energy Finance and JETX Energy, WeWork, HomeFed, Idaho Timber and FXCM. Our Merchant Banking businesses and investments also include Berkadia and our LAM seed investments, prior to their transfer to Jefferies Group in the fourth quarter of 2018, and Garcadia, prior to its sale in August 2018. 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 As discussed further in Note 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 Merchant Banking 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 March 31, 2018 . For the Three Months Ended February 28, 2019 March 31, 2018 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 685,718 $ 821,246 Merchant Banking (1) (2) 136,338 73,901 Corporate 4,193 3,067 Total net revenues related to reportable segments 826,249 898,214 Consolidation adjustments 2,194 (2,779 ) Total consolidated net revenues $ 828,443 $ 895,435 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 62,585 $ 122,738 Merchant Banking (1) (2) 20,105 (49,257 ) Corporate (21,343 ) (21,525 ) Income from continuing operations before income taxes related to reportable segments 61,347 51,956 Parent Company interest (14,762 ) (14,746 ) Consolidation adjustments 2,732 553 Total consolidated income from continuing operations before income taxes $ 49,317 $ 37,763 Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 17,662 $ 16,366 Merchant Banking (1) 15,417 10,924 Corporate 855 870 Total consolidated depreciation and amortization expenses $ 33,934 $ 28,160 (1) Amounts related to LAM and Berkadia are included in Merchant Banking prior to their transfer to Jefferies Group in the fourth quarter of 2018. For the three months ended March 31, 2018 , revenues related to the net assets transferred were $(36.6) million and income (loss) from continuing operations before income taxes related to the net assets transferred was $(20.7) million . (2) Merchant Banking Net revenues and Income from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $0.5 million and $(2.3) million , respectively, for the three months ended February 28, 2019 and $8.6 million and $0.4 million , respectively, for the three months ended March 31, 2018 . Interest expense classified as a component of Net revenues relates to Jefferies Group. For the three months ended February 28, 2019 and March 31, 2018 , interest expense classified as a component of Expenses was primarily comprised of parent company interest ( $14.8 million and $14.7 million , respectively) and Merchant Banking ( $8.3 million and $6.8 million , respectively). |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policy) | 3 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition Policies | 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 the uncertainties with respect to the amounts are resolved. Investment Banking. 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 earns 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 or semi-annual. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. 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. |
Accounting Developments | Accounting Developments - Accounting Standards to be Adopted in Future Periods Leases. In February 2016, the Financial Accounting Standards Board ("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 certain of 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 of the new guidance 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 of the new guidance 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. 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. Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
Supplemental cash flow information | Supplemental Cash Flow Information For the Three Months Ended February 28, 2019 March 31, 2018 (In thousands) Cash paid during the year for: Interest $ 399,350 $ 322,769 Income tax payments (refunds), net $ 7,205 $ (1,918 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 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 $633.0 million and $394.4 million at February 28, 2019 and November 30, 2018 , respectively, by level within the fair value hierarchy (in thousands): February 28, 2019 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,848,134 $ 132,546 $ 55,576 $ — $ 3,036,256 Corporate debt securities — 2,574,258 10,930 — 2,585,188 Collateralized debt obligations and collateralized loan obligations — 87,414 43,144 — 130,558 U.S. government and federal agency securities 1,726,076 92,128 — — 1,818,204 Municipal securities — 647,475 — — 647,475 Sovereign obligations 1,653,015 1,311,179 — — 2,964,194 Residential mortgage-backed securities — 1,994,309 20,963 — 2,015,272 Commercial mortgage-backed securities — 860,865 12,820 — 873,685 Other asset-backed securities — 254,870 35,886 — 290,756 Loans and other receivables — 2,145,486 78,051 — 2,223,537 Derivatives 11,301 2,488,759 8,211 (2,296,080 ) 212,191 Investments at fair value — — 421,098 — 421,098 FXCM term loan — — 73,600 — 73,600 Total trading assets, excluding investments at fair value based on NAV $ 6,238,526 $ 12,589,289 $ 760,279 $ (2,296,080 ) $ 17,292,014 Available for sale securities: Residential mortgage-backed securities $ — $ 24,049 $ — $ — $ 24,049 Total available for sale securities $ — $ 24,049 $ — $ — $ 24,049 Liabilities: Trading liabilities: Corporate equity securities $ 2,806,579 $ 1,383 $ 78 $ — $ 2,808,040 Corporate debt securities — 1,741,692 730 — 1,742,422 U.S. government and federal agency securities 855,042 — — — 855,042 Sovereign obligations 1,770,566 1,164,066 — — 2,934,632 Commercial mortgage-backed securities — — 70 — 70 Loans — 1,572,077 3,420 — 1,575,497 Derivatives 14,018 2,695,257 37,186 (2,383,752 ) 362,709 Total trading liabilities $ 5,446,205 $ 7,174,475 $ 41,484 $ (2,383,752 ) $ 10,278,412 Long-term debt $ — $ 467,839 $ 283,139 $ — $ 750,978 November 30, 2018 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Trading assets, at fair value: Corporate equity securities $ 2,497,045 $ 118,681 $ 52,192 $ — $ 2,667,918 Corporate debt securities — 2,683,180 9,484 — 2,692,664 Collateralized debt obligations and collateralized loan obligations — 72,949 36,105 — 109,054 U.S. government and federal agency securities 1,789,614 56,592 — — 1,846,206 Municipal securities — 894,253 — — 894,253 Sovereign obligations 1,769,556 1,043,409 — — 2,812,965 Residential mortgage-backed securities — 2,163,629 19,603 — 2,183,232 Commercial mortgage-backed securities — 819,406 10,886 — 830,292 Other asset-backed securities — 239,381 53,175 — 292,556 Loans and other receivables — 2,056,593 46,985 — 2,103,578 Derivatives 34,841 2,539,943 5,922 (2,413,931 ) 166,775 Investments at fair value — — 396,254 — 396,254 FXCM term loan — — 73,150 — 73,150 Total trading assets, excluding investments at fair value based on NAV $ 6,091,056 $ 12,688,016 $ 703,756 $ (2,413,931 ) $ 17,068,897 Available for sale securities: U.S. government securities $ 1,072,856 $ — $ — $ — $ 1,072,856 Residential mortgage-backed securities — 210,518 — — 210,518 Commercial mortgage-backed securities — 15,642 — — 15,642 Other asset-backed securities — 110,870 — — 110,870 Total available for sale securities $ 1,072,856 $ 337,030 $ — $ — $ 1,409,886 Liabilities: Trading liabilities: Corporate equity securities $ 1,685,071 $ 1,444 $ — $ — $ 1,686,515 Corporate debt securities — 1,505,618 522 — 1,506,140 U.S. government and federal agency securities 1,384,295 — — — 1,384,295 Sovereign obligations 1,735,242 661,095 — — 2,396,337 Loans — 1,371,630 6,376 — 1,378,006 Derivatives 26,473 3,586,694 27,536 (2,513,050 ) 1,127,653 Total trading liabilities $ 4,831,081 $ 7,126,481 $ 34,434 $ (2,513,050 ) $ 9,478,946 Long-term debt $ — $ 485,425 $ 200,745 $ — $ 686,170 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. |
Investments Measured At Fair Value Based On Net Asset Value | 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 February 28, 2019 Equity Long/Short Hedge Funds (2) $ 349,128 $ — Equity Funds (3) 35,719 20,036 Commodity Funds (4) 15,382 — Multi-asset Funds (5) 232,465 — Other funds (6) 336 — Total $ 633,030 $ 20,036 November 30, 2018 Equity Long/Short Hedge Funds (2) $ 86,788 $ — Equity Funds (3) 40,070 20,996 Commodity Funds (4) 10,129 — Multi-asset Funds (5) 256,972 — Other funds (6) 400 — Total $ 394,359 $ 20,996 (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 February 28, 2019 and November 30, 2018 , approximately 74% and 0% , respectively, of the fair value of investments in this category cannot be redeemed because these investments include restrictions that do not allow for redemption in the first 36 months after acquisition. At the end of this restriction period, which is in approximately 34 months , these investments are redeemable monthly with 45 to 90 days prior written notice. At February 28, 2019 and November 30, 2018 , 22% and 82% , respectively, of these investments are redeemable in 2020. At February 28, 2019 and November 30, 2018 , 4% and 17% , respectively, of these investments are redeemable quarterly with 60 days prior written notice. (3) 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 approximately one to ten years. (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At February 28, 2019 and November 30, 2018 , investments representing approximately 6% and 15% , respectively, of the fair value of investments in this category are redeemable monthly with 30 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by Jefferies Group and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. |
Summary Of Changes In Fair Value Of Financial Assets And Liabilities Classified As Level 3 | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended March 31, 2018 (in thousands): Three Months Ended March 31, 2018 Balance, December 31, 2017 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, March 31, 2018 Changes in unrealized gains/ losses relating to instruments still held at March 31, 2018 (1) Assets: Trading assets: Corporate equity securities $ 22,270 $ 11,764 $ 2,733 $ (1,381 ) $ (1,687 ) $ — $ 2,054 $ 35,753 $ 10,754 Corporate debt securities 26,036 (9 ) 928 (346 ) (2,049 ) — 1,543 26,103 (1,086 ) CDOs and CLOs 42,184 (3,782 ) 43,796 (34,168 ) (3,838 ) — (5,579 ) 38,613 (3,006 ) Residential mortgage-backed securities 26,077 (3,212 ) — — (3 ) — (1,100 ) 21,762 (2,366 ) Commercial mortgage-backed securities 12,419 (231 ) 1,260 (508 ) (1,285 ) — 3,448 15,103 (622 ) Other asset-backed securities 61,129 (1,385 ) 57,095 (53,459 ) (3,776 ) — (8,316 ) 51,288 127 Loans and other receivables 47,304 1,598 15,635 (803 ) (9,730 ) — 8,039 62,043 (190 ) Investments at fair value 329,944 2,289 240 (16,624 ) — — 2,310 318,159 1,695 FXCM term loan 72,800 8,597 — — (8,197 ) — — 73,200 4,939 Liabilities: Trading liabilities: Corporate equity securities $ 48 $ 13 $ — $ — $ — $ — $ — $ 61 $ (13 ) Corporate debt securities 522 — — — — — — 522 — Commercial mortgage-backed securities 105 (70 ) — — — — — 35 (35 ) Loans 3,486 6 (25 ) 3,442 — — 3,414 10,323 (6 ) Net derivatives (2) 6,746 (1,166 ) (6 ) — 1,012 296 — 6,882 (5,609 ) (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 February 28, 2019 (in thousands): Three Months Ended February 28, 2019 Balance, November 30, 2018 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, February 28, 2019 Changes in unrealized gains/losses included in earnings relating to instruments still held at February 28, 2019 (1) Assets: Trading assets: Corporate equity securities $ 52,192 $ 4,488 $ 1,410 $ (2,411 ) $ (66 ) $ — $ (37 ) $ 55,576 $ 4,603 Corporate debt securities 9,484 466 3,568 (3,233 ) (834 ) — 1,479 10,930 498 CDOs and CLOs 36,105 (6,726 ) 49,201 (32,759 ) (1,139 ) — (1,538 ) 43,144 (3,526 ) Residential mortgage-backed securities 19,603 462 975 — (27 ) — (50 ) 20,963 494 Commercial mortgage-backed securities 10,886 136 12 — (41 ) — 1,827 12,820 96 Other asset-backed securities 53,175 (2,290 ) 29,195 (30,060 ) (12,320 ) — (1,814 ) 35,886 (1,763 ) Loans and other receivables 46,985 814 40,061 (27,142 ) (1,990 ) — 19,323 78,051 130 Investments at fair value 396,254 (2,923 ) 27,767 — — — — 421,098 (2,923 ) FXCM term loan 73,150 450 — — — — — 73,600 450 Liabilities: Trading liabilities: Corporate equity securities $ — $ (2 ) $ — $ 80 $ — $ — $ — $ 78 $ 2 Corporate debt securities 522 (241 ) — — — — 449 730 241 Commercial mortgage-backed securities — 70 — — — — — 70 (70 ) Loans 6,376 (229 ) (1,411 ) 504 — — (1,820 ) 3,420 338 Net derivatives (2) 21,614 (5,348 ) (2,804 ) 3,084 169 — 12,260 28,975 3,333 Long-term debt (1) 200,745 (16,701 ) — — (5,665 ) 92,016 12,744 283,139 4,045 (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 February 28, 2019 were gains of $12.7 million . (2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives. |
Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. February 28, 2019 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 48,459 Non-exchange-traded securities Market approach Price $3 to $518 $123 Transaction level $85 — Underlying stock price $3 to $11 $8 Corporate debt securities $ 10,930 Market approach Discount rate/yield 25% — Estimated recovery percentage 48% — Price $16 to $131 $98 CDOs and CLOs $ 43,144 Discounted cash flows Constant prepayment rate 10% to 20% 15 % Constant default rate 1% to 2% 2 % Loss severity 25% to 30% 27 % Discount rate/yield 10% to 16% 12 % Scenario analysis Estimated recovery percentage 2% to 42% 28 % Residential mortgage-backed securities $ 20,963 Discounted cash flows Cumulative loss rate 1% to 2% 2 % Duration (years) 7 years to 22 years 8 years Discount rate/yield 3% to 5% 3 % Market approach Price $100 — Commercial mortgage-backed securities $ 11,319 Discounted cash flows Cumulative loss rate 8% to 84% 28 % Duration (years) 1 year to 2 years 1 year Discount rate/yield 2% to 26% 17 % Scenario analysis Estimated recovery percentage 15% — Price $49 — Other asset-backed securities $ 35,886 Discounted cash flows Cumulative loss rate 11% to 30% 22 % Duration (years) 1 year to 2 years 1 year Discount rate/yield 6% to 12% 10 % Market approach Price $100 — Loans and other receivables $ 78,051 Market approach Estimated recovery percentage 1% — Price $50 to $100 $92 Scenario analysis Estimated recovery percentage 13% to 117% 105 % Derivatives $ 6,552 Total return swaps Market approach Price $95 to $100 $98 Investments at fair value $ 371,945 Private equity securities Market approach Price $3 to $250 $116 Scenario analysis Discount rate 20% — Revenue growth 0% — Contingent claims analysis Volatility 25% to 35% 30 % Duration (years) 4 years — Investment in FXCM $ 73,600 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 0.3 years 0.3 years Trading Liabilities Loans $ 3,420 Market approach Price $50 — Derivatives $ 37,186 Equity options Option model/default rate Default probability 0% — Volatility benchmarking Volatility 27% to 82% 48 % Interest rate swaps Market approach Basis points 18 to 19 18 Total return swaps Market approach Price $95 to $100 $97 Long-term debt $ 283,139 Structured notes Market approach Price $73 to $95 $84 Price €76 to €107 €93 November 30, 2018 Financial Instruments Owned Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Corporate equity securities $ 43,644 Non-exchange-traded securities Market approach Price $1 to $75 $12 Transaction level $47 — Corporate debt securities $ 9,484 Market approach Estimated recovery percentage 46% — Transaction level $80 — CDOs and CLOs $ 36,105 Discounted cash flows Constant prepayment rate 10% to 20% 18 % Constant default rate 1% to 2% 2 % Loss severity 25% to 30% 26 % Discount rate/yield 11% to 16% 14 % Scenario analysis Estimated recovery percentage 2% to 41% 23 % Residential mortgage-backed securities $ 19,603 Discounted cash flows Cumulative loss rate 4% — Duration (years) 13 years — Discount rate/yield 3% — Loss severity 0% — Market approach Price $100 — Commercial mortgage-backed securities $ 9,444 Discounted cash flows Cumulative loss rate 8% to 85% 45 % Duration (years) 1 year to 3 years 1 year Discount rate/yield 2% to 15% 6 % Loss severity 64% — Scenario analysis Estimated recovery percentage 26% — Price $49 — Other asset-backed securities $ 53,175 Discounted cash flows Cumulative loss rate 12% to 30% 22 % Duration (years) 1 year to 2 years 1 year Discount rate/yield 6% to 12% 8 % Market approach Price $100 — Loans and other receivables $ 46,078 Market approach Price $50 to $100 $96 Scenario analysis Estimated recovery percentage 13% to 117% 105 % Derivatives $ 4,602 Total return swaps Market approach Price $97 — Investments at fair value $ 368,231 Private equity securities Market approach Price $3 to $250 $108 Transaction level $169 — Scenario analysis Discount rate/yield 20% — Revenue growth 0% — Contingent claims analysis Volatility 25% to 35% 30 % Duration (years) 4 years — Investment in FXCM $ 73,150 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 0.3 years 0.3 years Trading Liabilities Loans $ 6,376 Market approach Price $50 to $101 $74 Derivatives $ 27,536 Equity options Option model/default rate Default probability 0% — Volatility benchmarking Volatility 39% to 62% 50 % Interest rate swaps Market approach Price $20 — Total return swaps Market approach Price $97 — Long-term Debt $ 200,745 Structured notes Market approach Price $78 to $94 $86 Price €68 to €110 €96 |
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 measured at fair value under the fair value option (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Trading Assets: Loans and other receivables $ (7,335 ) $ 2,628 Trading Liabilities: Loans $ — $ 250 Loan commitments $ 79 $ (129 ) Long-term Debt: Changes in instrument specific credit risk (1) $ 23,483 $ (16,202 ) Other changes in fair value (2) $ (10,643 ) $ 41,154 (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 and long-term debt measured at fair value under the fair value option (in thousands): February 28, 2019 November 30, 2018 Trading Assets: Loans and other receivables (1) $ 907,395 $ 961,554 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) $ 267,047 $ 158,392 Long-term debt $ 128,085 $ 114,669 (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 $18.7 million and $20.5 million at February 28, 2019 and November 30, 2018 , respectively |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 and November 30, 2018 . 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 (1) Fair Value Number of Contracts (1) February 28, 2019 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 18,037 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 831,019 45,802 $ 840,900 31,862 Foreign exchange contracts 302,480 9,384 291,008 9,401 Equity contracts 1,329,281 1,863,817 1,566,911 1,518,951 Commodity contracts 13,602 8,623 2,945 5,418 Credit contracts 31,889 122 26,660 101 Total derivatives not designated as accounting hedges 2,508,271 2,728,424 Total gross derivative assets/ liabilities 2,508,271 2,746,461 Amounts offset in Consolidated Statement of Financial Condition (2) (2,296,080 ) (2,383,752 ) Net amounts per Consolidated Statement of Financial Condition (3) $ 212,191 $ 362,709 November 30, 2018 Derivatives designated as accounting hedges - interest rate contracts $ — — $ 29,647 1 Derivatives not designated as accounting hedges: Interest rate contracts $ 796,493 35,652 $ 904,043 69,305 Foreign exchange contracts 311,270 10,086 314,989 1,602 Equity contracts 1,410,148 2,109,810 2,377,133 1,782,600 Commodity contracts 37,823 8,546 1,717 5,683 Credit contracts 24,972 130 13,174 93 Total derivatives not designated as accounting hedges 2,580,706 3,611,056 Total gross derivative assets/ liabilities 2,580,706 3,640,703 Amounts offset in Consolidated Statement of Financial Condition (2) (2,413,931 ) (2,513,050 ) Net amounts per Consolidated Statement of Financial Condition (3) $ 166,775 $ 1,127,653 (1) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in our Consolidated Statements of Financial Condition. (2) Amounts netted include both netting by counterparty and for cash collateral paid or received. (3) 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. |
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 February 28, 2019 March 31, 2018 Interest rate swaps $ 14,587 $ (21,221 ) Long-term debt (15,556 ) 22,715 Total $ (969 ) $ 1,494 The following table presents unrealized and realized gains (losses) on derivative contracts which are primarily recognized in Principal transactions revenues 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 February 28, 2019 March 31, 2018 Interest rate contracts $ (69,831 ) $ 26,962 Foreign exchange contracts (176 ) 3,128 Equity contracts (28,481 ) (205,146 ) Commodity contracts (19,273 ) (5,314 ) Credit contracts 4,095 (991 ) Total $ (113,666 ) $ (181,361 ) |
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 February 28, 2019 (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 $ 1,332 $ 6,078 $ — $ (2,098 ) $ 5,312 Equity swaps and options 2,539 17,857 5,240 — 25,636 Credit default swaps 111 19,824 — (108 ) 19,827 Total return swaps 47,890 18,274 — (984 ) 65,180 Foreign currency forwards, swaps and options 65,040 11,413 — (16,118 ) 60,335 Fixed income forwards 1,645 — — — 1,645 Interest rate swaps, options and forwards 29,360 114,382 115,221 (76,899 ) 182,064 Total $ 147,917 $ 187,828 $ 120,461 $ (96,207 ) 359,999 Cross product counterparty netting (32,496 ) Total OTC derivative assets included in Trading assets $ 327,503 (1) At February 28, 2019 , we held exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $31.8 million , which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition. At February 28, 2019 , cash collateral received was $147.1 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. 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 $ 1,832 $ 954 $ — $ (2,098 ) $ 688 Equity swaps and options 30,988 106,443 37,837 — 175,268 Credit default swaps 1,918 10,878 — (108 ) 12,688 Total return swaps 11,553 14,057 — (984 ) 24,626 Foreign currency forwards, swaps and options 53,908 11,042 — (16,118 ) 48,832 Fixed income forwards 3,810 — — — 3,810 Interest rate swaps, options and forwards 32,805 74,816 182,540 (76,899 ) 213,262 Total $ 136,814 $ 218,190 $ 220,377 $ (96,207 ) 479,174 Cross product counterparty netting (32,496 ) Total OTC derivative liabilities included in Trading liabilities $ 446,678 (1) At February 28, 2019 , we held exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $150.8 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 February 28, 2019 , cash collateral pledged was $234.8 million . (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets | At February 28, 2019 , 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 $ 136,803 BBB- to BBB+ 56,918 BB+ or lower 88,357 Unrated 45,425 Total $ 327,503 (1) Jefferies Group utilizes internal credit ratings determined by Jefferies Group's Risk Management department. Credit ratings determined by Jefferies Group 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 are as follows (in millions): External Credit Rating Investment Grade Non-investment grade Unrated Total Notional February 28, 2019 Credit protection sold: Index credit default swaps $ 90.5 $ 100.0 $ — $ 190.5 Single name credit default swaps $ 8.4 $ 53.9 $ 32.6 $ 94.9 November 30, 2018 Credit protection sold: Index credit default swaps $ 25.7 $ 167.4 $ — $ 193.1 Single name credit default swaps $ 57.7 $ 84.5 $ 3.0 $ 145.2 |
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): February 28, 2019 November 30, 2018 Derivative instrument liabilities with credit-risk-related contingent features $ 32.3 $ 93.5 Collateral posted $ (19.2 ) $ (61.5 ) Collateral received $ 128.2 $ 91.5 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) $ 141.3 $ 123.3 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 Corporate equity securities $ 1,860,725 $ 277,041 $ 2,137,766 Corporate debt securities 269,547 1,915,333 2,184,880 Mortgage- and asset-backed securities — 3,277,181 3,277,181 U.S. government and federal agency securities 104,428 11,987,128 12,091,556 Municipal securities — 466,849 466,849 Sovereign obligations — 3,387,020 3,387,020 Loans and other receivables — 352,411 352,411 Total $ 2,234,700 $ 21,662,963 $ 23,897,663 November 30, 2018 Corporate equity securities $ 1,505,218 $ 487,124 $ 1,992,342 Corporate debt securities 333,221 1,853,309 2,186,530 Mortgage- and asset-backed securities 249 2,820,543 2,820,792 U.S. government and federal agency securities — 8,181,947 8,181,947 Municipal securities — 604,274 604,274 Sovereign obligations — 2,945,521 2,945,521 Loans and other receivables — 300,768 300,768 Total $ 1,838,688 $ 17,193,486 $ 19,032,174 Contractual Maturity Overnight and Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total February 28, 2019 Securities lending arrangements $ 1,034,306 $ — $ 1,002,932 $ 197,462 $ 2,234,700 Repurchase agreements 11,379,518 4,169,261 4,223,211 1,890,973 21,662,963 Total $ 12,413,824 $ 4,169,261 $ 5,226,143 $ 2,088,435 $ 23,897,663 November 30, 2018 Securities lending arrangements $ 807,347 $ — $ 560,417 $ 470,924 $ 1,838,688 Repurchase agreements 7,849,052 1,915,325 6,042,951 1,386,158 17,193,486 Total $ 8,656,399 $ 1,915,325 $ 6,603,368 $ 1,857,082 $ 19,032,174 |
Securitization Activities (Tabl
Securitization Activities (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 March 31, 2018 Transferred assets $ 1,260.6 $ 2,757.8 Proceeds on new securitizations $ 1,331.2 $ 2,758.9 Cash flows received on retained interests $ 14.8 $ 9.2 |
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): February 28, 2019 November 30, 2018 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency residential mortgage-backed securities $ 12,620.2 $ 353.1 $ 13,633.5 $ 365.3 U.S. government agency commercial mortgage-backed securities $ 1,594.4 $ 70.7 $ 2,027.6 $ 185.6 CLOs $ 3,522.8 $ 23.7 $ 3,512.0 $ 20.9 Consumer and other loans $ 938.0 $ 61.3 $ 604.1 $ 48.9 |
Available for Sale Securities_2
Available for Sale Securities and Other Investments (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Investments [Abstract] | |
Schedule of Available for Sale Securities | 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 February 28, 2019 Bonds and notes: Residential mortgage-backed securities $ 24,191 $ — $ 142 $ 24,049 Total Available for sale securities $ 24,191 $ — $ 142 $ 24,049 November 30, 2018 Bonds and notes: U.S. government securities $ 1,073,038 $ 1 $ 183 $ 1,072,856 Residential mortgage-backed securities 211,209 376 1,067 210,518 Commercial mortgage-backed securities 16,068 — 426 15,642 Other asset-backed securities 111,447 1 578 110,870 Total Available for sale securities $ 1,411,762 $ 378 $ 2,254 $ 1,409,886 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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. February 28, 2019 November 30, 2018 Financial instruments owned $ 323.4 $ — Securities purchased under agreement to resell (1) 936.3 883.1 Receivables 613.5 626.0 Other 33.0 78.4 Total assets $ 1,906.2 $ 1,587.5 Other secured financings (2) $ 1,853.3 $ 1,535.3 Other (3) 48.6 45.9 Total liabilities $ 1,901.9 $ 1,581.2 (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 $326.6 million and $1.0 million of the secured financings represent amounts held by Jefferies Group in inventory and are eliminated in consolidation at February 28, 2019 and November 30, 2018 , respectively. (3) Includes $47.1 million and $44.1 million at February 28, 2019 and November 30, 2018 , 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 February 28, 2019 CLOs $ 156.8 $ 3.8 $ 1,939.5 $ 4,887.2 Consumer loan and other asset-backed vehicles 445.5 — 771.6 3,491.0 Related party private equity vehicles 31.6 — 49.4 90.8 Other investment vehicles 461.1 — 471.5 7,175.1 Total $ 1,095.0 $ 3.8 $ 3,232.0 $ 15,644.1 November 30, 2018 CLOs $ 45.2 $ — $ 571.4 $ 3,281.9 Consumer loan and other asset-backed vehicles 462.1 — 807.1 3,273.1 Related party private equity vehicles 35.5 — 53.5 108.3 Other investment vehicles 203.6 — 214.7 5,719.1 Total $ 746.4 $ — $ 1,646.7 $ 12,382.4 |
Loans to and Investments In A_2
Loans to and Investments In Associated Companies (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 three months ended February 28, 2019 and March 31, 2018 is as follows (in thousands): Loans to and investments in associated companies as of beginning of period 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 end of period 2019 Jefferies Finance $ 728,560 $ — $ (6,999 ) $ (71,348 ) $ — $ 650,213 Berkadia (2) 245,228 — 22,649 (17,323 ) 172 250,726 National Beef 653,630 27,105 — (25,596 ) 3 655,142 FXCM (3) 75,031 (2,716 ) — — 187 72,502 Linkem 165,157 (1,621 ) — 32,578 1,030 197,144 HomeFed 337,542 1,983 — — — 339,525 Other 212,184 2,562 (4,313 ) 5,728 (387 ) 215,774 Total $ 2,417,332 $ 27,313 $ 11,337 $ (75,961 ) $ 1,005 $ 2,381,026 2018 Jefferies Finance $ 655,467 $ — $ 9,833 $ 139,386 $ — $ 804,686 Berkadia (2) 210,594 26,281 — (17,212 ) (453 ) 219,210 FXCM (3) 158,856 (8,224 ) — — 239 150,871 Garcadia companies (4) 179,143 11,383 — (9,727 ) — 180,799 Linkem 192,136 (7,455 ) — 542 8,024 193,247 HomeFed 341,874 11,610 — — — 353,484 Other 328,759 (1,495 ) (4,228 ) 6,061 1,676 330,773 Total $ 2,066,829 $ 32,100 $ 5,605 $ 119,050 $ 9,486 $ 2,233,070 (1) Primarily classified in Investment banking revenues and Other revenues. (2) In the fourth quarter of 2018, we transferred our interest in Berkadia to Jefferies Group. (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 in Loans to and investments in associated companies and our term loan is included in Trading assets, at fair value in our Consolidated Statements of Financial Condition. (4) 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. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 National Beef $ 27,105 $ — Berkadia — 26,281 FXCM (2,716 ) (8,224 ) Garcadia companies — 11,383 Linkem (1,621 ) (7,455 ) HomeFed 1,983 11,610 Other 2,562 (1,495 ) Total $ 27,313 $ 32,100 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 February 28, 2019 March 31, 2018 Jefferies Finance $ (6,999 ) $ 9,833 Berkadia 22,649 — Other (4,313 ) (4,228 ) Total $ 11,337 $ 5,605 |
Schedule of Equity Method Investments | The following table provides required summarized data for Jefferies Finance and Berkadia for both the three months ended February 28, 2019 and March 31, 2018 . The table also provides required summarized data for National Beef for the three months ended February 28, 2019 (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Revenues $ 2,082,765 $ 266,339 Income from continuing operations before extraordinary items $ 141,516 $ 99,811 Net income $ 141,516 $ 99,811 |
Financial Statement Offsetting
Financial Statement Offsetting (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 February 28, 2019 Derivative contracts $ 2,508,271 $ (2,296,080 ) $ 212,191 $ — $ — $ 212,191 Securities borrowing arrangements $ 7,231,073 $ — $ 7,231,073 $ (529,874 ) $ (1,171,891 ) $ 5,529,308 Reverse repurchase agreements $ 15,852,250 $ (12,355,680 ) $ 3,496,570 $ (328,449 ) $ (3,137,324 ) $ 30,797 Liabilities at February 28, 2019 Derivative contracts $ 2,746,461 $ (2,383,752 ) $ 362,709 $ — $ — $ 362,709 Securities lending arrangements $ 2,234,700 $ — $ 2,234,700 $ (529,874 ) $ (1,681,346 ) $ 23,480 Repurchase agreements $ 21,662,963 $ (12,355,680 ) $ 9,307,283 $ (328,449 ) $ (8,097,893 ) $ 880,941 Assets at November 30, 2018 Derivative contracts $ 2,580,706 $ (2,413,931 ) $ 166,775 $ — $ — $ 166,775 Securities borrowing arrangements $ 6,538,212 $ — $ 6,538,212 $ (468,778 ) $ (1,193,986 ) $ 4,875,448 Reverse repurchase agreements $ 11,336,175 $ (8,550,417 ) $ 2,785,758 $ (609,225 ) $ (2,126,730 ) $ 49,803 Liabilities at November 30, 2018 Derivative contracts $ 3,640,703 $ (2,513,050 ) $ 1,127,653 $ — $ — $ 1,127,653 Securities lending arrangements $ 1,838,688 $ — $ 1,838,688 $ (468,778 ) $ (1,343,704 ) $ 26,206 Repurchase agreements $ 17,193,486 $ (8,550,417 ) $ 8,643,069 $ (609,225 ) $ (7,070,967 ) $ 962,877 (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 February 28, 2019 , amounts include $5,495.4 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,338.4 million , and $848.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $869.3 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has 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 February 28, 2019 Derivative contracts $ 2,508,271 $ (2,296,080 ) $ 212,191 $ — $ — $ 212,191 Securities borrowing arrangements $ 7,231,073 $ — $ 7,231,073 $ (529,874 ) $ (1,171,891 ) $ 5,529,308 Reverse repurchase agreements $ 15,852,250 $ (12,355,680 ) $ 3,496,570 $ (328,449 ) $ (3,137,324 ) $ 30,797 Liabilities at February 28, 2019 Derivative contracts $ 2,746,461 $ (2,383,752 ) $ 362,709 $ — $ — $ 362,709 Securities lending arrangements $ 2,234,700 $ — $ 2,234,700 $ (529,874 ) $ (1,681,346 ) $ 23,480 Repurchase agreements $ 21,662,963 $ (12,355,680 ) $ 9,307,283 $ (328,449 ) $ (8,097,893 ) $ 880,941 Assets at November 30, 2018 Derivative contracts $ 2,580,706 $ (2,413,931 ) $ 166,775 $ — $ — $ 166,775 Securities borrowing arrangements $ 6,538,212 $ — $ 6,538,212 $ (468,778 ) $ (1,193,986 ) $ 4,875,448 Reverse repurchase agreements $ 11,336,175 $ (8,550,417 ) $ 2,785,758 $ (609,225 ) $ (2,126,730 ) $ 49,803 Liabilities at November 30, 2018 Derivative contracts $ 3,640,703 $ (2,513,050 ) $ 1,127,653 $ — $ — $ 1,127,653 Securities lending arrangements $ 1,838,688 $ — $ 1,838,688 $ (468,778 ) $ (1,343,704 ) $ 26,206 Repurchase agreements $ 17,193,486 $ (8,550,417 ) $ 8,643,069 $ (609,225 ) $ (7,070,967 ) $ 962,877 (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 February 28, 2019 , amounts include $5,495.4 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $5,338.4 million , and $848.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $869.3 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. At November 30, 2018 , amounts include $4,825.7 million of securities borrowing arrangements, for which Jefferies Group has received securities collateral of $4,711.7 million , and $931.7 million of repurchase agreements, for which Jefferies Group has pledged securities collateral of $963.6 million , which are subject to master netting agreements, but Jefferies Group has not determined the agreements to be legally enforceable. |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 8,591 $ 8,524 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $104,929 and $102,579 66,009 67,894 Trademarks and tradenames, net of accumulated amortization of $22,116 and $21,086 106,894 107,262 Other, net of accumulated amortization of $4,601 and $4,339 4,349 4,611 Total intangible assets, net 185,843 188,291 Goodwill: Jefferies Group 1,701,646 1,698,381 Other operations 3,459 3,459 Total goodwill 1,705,105 1,701,840 Total intangible assets, net and goodwill $ 1,890,948 $ 1,890,131 |
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 $ 10,079 2020 $ 13,439 2021 $ 13,085 2022 $ 10,110 2023 $ 9,001 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Bank loans $ 473,582 $ 330,942 Floating rate puttable notes 56,902 56,550 Total short-term borrowings $ 530,484 $ 387,492 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 743,693 $ 743,397 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,732 246,719 Total long-term debt – Parent Company 990,425 990,116 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 8.50% Senior Notes, due July 15, 2019, $644,800 and $680,800 principal 655,494 699,659 2.375% Euro Medium Term Notes, due May 20, 2020, $569,025 and $565,500 principal 568,356 564,702 6.875% Senior Notes, due April 15, 2021, $750,000 principal 787,615 791,814 2.25% Euro Medium Term Notes, due July 13, 2022, $4,552 and $4,524 principal 4,287 4,243 5.125% Senior Notes, due January 20, 2023, $600,000 principal 612,214 612,928 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 725,167 709,484 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 373,120 373,669 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 988,003 987,788 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 511,564 511,662 6.50% Senior Notes, due January 20, 2043, $400,000 principal 420,531 420,625 Structured Notes (2) 750,978 686,170 Jefferies Group Revolving Credit Facility 183,690 183,539 Foursight Capital Credit Facilities 32,298 — Other 82,166 81,164 Total long-term debt – subsidiaries 6,695,483 6,627,447 Long-term debt $ 7,685,908 $ 7,617,563 (1) Amount includes a loss of $15.6 million and a gain of $22.7 million during the three months ended February 28, 2019 and March 31, 2018 , respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument specific credit risk presented in 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) | 3 Months Ended |
Feb. 28, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Schedule Of Redeemable Noncontrolling Interests | The following table rolls forward National Beef’s redeemable noncontrolling interests activity (prior to its deconsolidation in June 2018) during the three months ended March 31, 2018 (in thousands): Balance, January 1, 2018 $ 412,128 Income allocated to redeemable noncontrolling interests 14,450 Distributions to redeemable noncontrolling interests (9,519 ) Decrease in fair value of redeemable noncontrolling interests (17,067 ) Balance, March 31, 2018 $ 399,992 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Net unrealized gains on available for sale securities $ 544,278 $ 542,832 Net unrealized foreign exchange losses (162,448 ) (193,402 ) Net unrealized gains (losses) on instrument specific credit risk 12,101 (5,728 ) Net unrealized gains on cash flow hedges 219 470 Net minimum pension liability (55,531 ) (55,886 ) $ 338,619 $ 288,286 |
Schedule Of Accumulated Other Comprehensive Income Reclassifications | mounts 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 For the Three Months Ended February 28, 2019 March 31, 2018 Net unrealized losses on available for sale securities, net of income tax benefit of $(377) and $(5) $ (1,129 ) $ (15 ) Other revenues Net unrealized losses on instrument specific credit risk, net of income tax benefit of $(99) and $0 (294 ) — Principal transactions Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(119) and $(151) (355 ) (462 ) Selling, general and other expenses, which includes pension expense Other pension, net of income tax benefit of $0 and $0 — (5,344 ) Compensation and benefits expense Total reclassifications for the period, net of tax $ (1,778 ) $ (5,821 ) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Reportable Segments Major Business Activity: Jefferies Group Merchant Banking Corporate Consolidation Adjustments Total Three months ended February 28, 2019 Jefferies Group: Equities (1) $ 152,061 $ — $ — $ (192 ) $ 151,869 Fixed Income (1) 3,068 — — — 3,068 Investment Banking - Capital markets 105,114 — — — 105,114 Investment Banking - Advisory 180,482 — — — 180,482 Asset Management 6,669 — — — 6,669 Manufacturing revenues — 75,425 — — 75,425 Oil and gas revenues — 36,365 — — 36,365 Other revenues — 10,995 — — 10,995 Total revenues from contracts with customers $ 447,394 $ 122,785 $ — $ (192 ) $ 569,987 Primary Geographic Region: Americas $ 326,757 $ 122,527 $ — $ (192 ) $ 449,092 Europe, Middle East and Africa 103,493 234 — — 103,727 Asia 17,144 24 — — 17,168 Total revenues from contracts with customers $ 447,394 $ 122,785 $ — $ (192 ) $ 569,987 Three months ended March 31, 2018 Jefferies Group: Equities (1) $ 151,630 $ — $ — $ — $ 151,630 Fixed Income (1) 2,958 — — — 2,958 Investment Banking - Capital markets 248,834 — — — 248,834 Investment Banking - Advisory 191,157 — — — 191,157 Asset Management 4,930 — — — 4,930 Manufacturing revenues — 98,365 — — 98,365 Oil and gas revenues — 20,330 — — 20,330 Other revenues — 10,212 — — 10,212 Total revenues from contracts with customers $ 599,509 $ 128,907 $ — $ — $ 728,416 Primary Geographic Region: Americas $ 520,854 $ 128,577 $ — $ — $ 649,431 Europe, Middle East and Africa 61,328 255 — — 61,583 Asia 17,327 75 — — 17,402 Total revenues from contracts with customers $ 599,509 $ 128,907 $ — $ — $ 728,416 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Revenues from contracts with customers: Commissions and other fees $ 147,134 $ 147,902 Investment banking 285,596 439,991 Manufacturing revenues 75,425 98,365 Other 61,832 42,158 Total revenue from contracts with customers 569,987 728,416 Other sources of revenue: Principal transactions 246,182 145,663 Interest income 386,844 275,222 Other (8,001 ) 11,810 Total revenue from other sources 625,025 432,695 Total revenues $ 1,195,012 $ 1,161,111 |
Common Share and Earnings Per_2
Common Share and Earnings Per Common Share (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computation | The numerators and denominators used to calculate basic and diluted earnings per share are as follows (in thousands): For the Three Months Ended February 28, 2019 March 31, 2018 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 44,811 $ 124,525 Allocation of earnings to participating securities (1) (255 ) (499 ) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 44,556 124,026 Adjustment to allocation of earnings to participating securities related to diluted shares (1) (7 ) (1 ) Mandatorily redeemable convertible preferred share dividends — 1,172 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 44,549 $ 125,197 Denominator for earnings per share: Weighted average common shares outstanding 304,533 356,576 Weighted average shares of restricted stock outstanding with future service required (1,828 ) (1,285 ) Weighted average RSUs outstanding with no future service required 12,470 11,136 Denominator for basic earnings per share – weighted average shares 315,175 366,427 Stock options — 30 Senior executive compensation plan awards 3,577 2,842 Mandatorily redeemable convertible preferred shares — 4,162 Denominator for diluted earnings per share 318,752 373,461 (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 1,831,000 and 1,317,000 for the for the three months ended February 28, 2019 and March 31, 2018 , respectively. Dividends declared on participating securities were not material during the three months ended February 28, 2019 and March 31, 2018 . 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) | 3 Months Ended |
Feb. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The following table summarizes commitments associated with certain business activities (in millions): Expected Maturity Date 2019 2020 2021 2023 2025 Maximum Payout Equity commitments (1) $ 17.2 $ 148.6 $ 1.3 $ — $ 9.8 $ 176.9 Loan commitments (1) 250.0 5.0 54.0 30.0 500.0 839.0 Underwriting commitments 215.4 — — — — 215.4 Forward starting reverse repos (2) 6,225.6 — — — — 6,225.6 Forward starting repos (2) 4,738.8 — — — — 4,738.8 Other unfunded commitments (1) 165.3 — 90.9 4.9 — 261.1 $ 11,612.3 $ 153.6 $ 146.2 $ 34.9 $ 509.8 $ 12,456.8 (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 February 28, 2019 , $6,225.4 million within forward starting securities purchased under agreements to resell and $4,736.0 million within forward starting securities sold under agreements to repurchase settled within three business days. |
Guarantees | The following table summarizes the notional amounts associated with Jefferies Group's derivative contracts meeting the definition of a guarantee under GAAP at February 28, 2019 (in millions): Expected Maturity Date Guarantee Type 2019 2020 2021 2023 2025 Notional/ Maximum Payout Derivative contracts – non-credit related $ 9,764.7 $ 2,569.7 $ 4,148.7 $ 281.8 $ 332.3 $ 17,097.2 Written derivative contracts – credit related — 32.4 1.5 61.0 — 94.9 Total derivative contracts $ 9,764.7 $ 2,602.1 $ 4,150.2 $ 342.8 $ 332.3 $ 17,192.1 |
Other Fair Value Information (T
Other Fair Value Information (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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): February 28, 2019 November 30, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Receivables: Notes and loans receivable (1) $ 699,780 $ 697,333 $ 680,015 $ 676,152 Financial Liabilities: Short-term borrowings (2) $ 530,484 $ 530,484 $ 387,492 $ 387,492 Long-term debt (3) $ 6,934,930 $ 6,853,309 $ 6,931,393 $ 6,826,503 (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) | 3 Months Ended |
Feb. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of results of discontinued operations | A summary of the results of discontinued operations for National Beef for the three months ended March 31, 2018 is as follows (in thousands): Revenues: Beef processing services $ 1,781,920 Interest income 68 Other 3,370 Total revenues 1,785,358 Expenses: Compensation and benefits 10,207 Cost of sales 1,670,776 Interest expense 2,109 Depreciation and amortization 25,519 Selling, general and other expenses 7,856 Total expenses 1,716,467 Income from discontinued operations before income taxes 68,891 Income tax provision 15,934 Income from discontinued operations, net of income tax provision $ 52,957 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2019 | |
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 March 31, 2018 . For the Three Months Ended February 28, 2019 March 31, 2018 (In thousands) Net revenues: Reportable Segments: Jefferies Group (1) $ 685,718 $ 821,246 Merchant Banking (1) (2) 136,338 73,901 Corporate 4,193 3,067 Total net revenues related to reportable segments 826,249 898,214 Consolidation adjustments 2,194 (2,779 ) Total consolidated net revenues $ 828,443 $ 895,435 Income (loss) from continuing operations before income taxes: Reportable Segments: Jefferies Group (1) $ 62,585 $ 122,738 Merchant Banking (1) (2) 20,105 (49,257 ) Corporate (21,343 ) (21,525 ) Income from continuing operations before income taxes related to reportable segments 61,347 51,956 Parent Company interest (14,762 ) (14,746 ) Consolidation adjustments 2,732 553 Total consolidated income from continuing operations before income taxes $ 49,317 $ 37,763 Depreciation and amortization expenses: Reportable Segments: Jefferies Group (1) $ 17,662 $ 16,366 Merchant Banking (1) 15,417 10,924 Corporate 855 870 Total consolidated depreciation and amortization expenses $ 33,934 $ 28,160 (1) Amounts related to LAM and Berkadia are included in Merchant Banking prior to their transfer to Jefferies Group in the fourth quarter of 2018. For the three months ended March 31, 2018 , revenues related to the net assets transferred were $(36.6) million and income (loss) from continuing operations before income taxes related to the net assets transferred was $(20.7) million . (2) Merchant Banking Net revenues and Income from continuing operations before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $0.5 million and $(2.3) million , respectively, for the three months ended February 28, 2019 and $8.6 million and $0.4 million , respectively, for the three months ended March 31, 2018 . |
Nature of Operations (Details)
Nature of Operations (Details) | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2019USD ($)Segmentshares | Mar. 31, 2018USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2019USD ($) | Jul. 13, 2018 | Jun. 05, 2018 | Jun. 04, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire investments | $ 1,386,000 | $ 653,392,000 | |||||
Share repurchase program, authorized amount | $ 500,000,000 | ||||||
Remaining authorized repurchase amount | $ 305,300,000 | ||||||
National Beef | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 31.00% | 31.00% | |||||
Ownership percentage | 79.00% | ||||||
Spectrum Brands | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 15.00% | 14.00% | |||||
Linkem | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 42.00% | ||||||
Percentage of ownership upon conversion of preferred shares | 54.00% | ||||||
WeWork | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire investments | $ 9,000,000 | ||||||
HomeFed | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 70.00% | ||||||
Number of common stock issued per investment share acquired (in shares) | shares | 2 | ||||||
Investment in FXCM | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | ||||||
Senior secured term loan receivable, principal outstanding | $ 71,400,000 | ||||||
Maximum percentage of all distributions | 75.00% | ||||||
Jefferies Group | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of business segments | Segment | 2 | ||||||
National Beef | Discontinued operations, disposed of by sale | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 48.00% | ||||||
Maximum | WeWork | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 1.00% | ||||||
Vitesse Energy, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 97.00% | ||||||
JETX Energy | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 98.00% |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Receivables from brokers, dealers and clearing organizations | $ 4,537,200 | $ 3,223,700 | |
Receivables from customers of securities operations | 1,597,000 | 2,017,100 | |
Payables to brokers, dealers and clearing organizations | 2,767,600 | 2,465,600 | |
Payables to customers of securities operations | 3,389,600 | 3,176,700 | |
Cash paid during the year for: | |||
Interest | 399,350 | $ 322,769 | |
Income tax payments (refunds), net | 7,205 | $ (1,918) | |
Foursight Capital | Automobile Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans and Leases Receivable, Gross | $ 668,600 | $ 648,700 | |
Credit Concentration Risk | Loans Receivable | Prime | Foursight Capital | Automobile Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Concentration risk, percentage | 14.00% | 13.00% | |
Credit Concentration Risk | Loans Receivable | Near-Prime | Foursight Capital | Automobile Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Concentration risk, percentage | 57.00% | 57.00% | |
Credit Concentration Risk | Loans Receivable | Subprime | Foursight Capital | Automobile Loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Concentration risk, percentage | 29.00% | 30.00% |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Assets: | ||
Trading assets, at fair value | $ 17,292,014 | $ 17,068,897 |
Derivative assets | 212,191 | 166,775 |
Counterparty and Cash Collateral Netting, assets | (2,296,080) | (2,413,931) |
Available for sale securities | 24,049 | 1,409,886 |
Liabilities: | ||
Trading liabilities, at fair value | 10,278,412 | 9,478,946 |
Counterparty and Cash Collateral Netting, liabilities | (2,383,752) | (2,513,050) |
Long-term debt | 750,978 | 686,170 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 763,213 | 707,960 |
Level 1 | ||
Assets: | ||
Trading assets, at fair value | 6,238,526 | 6,091,056 |
Derivative assets | 11,301 | 34,841 |
Available for sale securities | 0 | 1,072,856 |
Liabilities: | ||
Trading liabilities, at fair value | 5,446,205 | 4,831,081 |
Long-term debt | 0 | 0 |
Level 2 | ||
Assets: | ||
Trading assets, at fair value | 12,589,289 | 12,688,016 |
Derivative assets | 2,488,759 | 2,539,943 |
Available for sale securities | 24,049 | 337,030 |
Liabilities: | ||
Trading liabilities, at fair value | 7,174,475 | 7,126,481 |
Long-term debt | 467,839 | 485,425 |
Level 3 | ||
Assets: | ||
Trading assets, at fair value | 760,279 | 703,756 |
Derivative assets | 8,211 | 5,922 |
Available for sale securities | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 41,484 | 34,434 |
Long-term debt | 283,139 | 200,745 |
Fair Value Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investments | 633,030 | 394,359 |
Corporate equity securities | ||
Assets: | ||
Trading assets, at fair value | 3,036,256 | 2,667,918 |
Liabilities: | ||
Trading liabilities, at fair value | 2,808,040 | 1,686,515 |
Corporate equity securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 2,848,134 | 2,497,045 |
Liabilities: | ||
Trading liabilities, at fair value | 2,806,579 | 1,685,071 |
Corporate equity securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 132,546 | 118,681 |
Liabilities: | ||
Trading liabilities, at fair value | 1,383 | 1,444 |
Corporate equity securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 55,576 | 52,192 |
Liabilities: | ||
Trading liabilities, at fair value | 78 | 0 |
Corporate debt securities | ||
Assets: | ||
Trading assets, at fair value | 2,585,188 | 2,692,664 |
Liabilities: | ||
Trading liabilities, at fair value | 1,742,422 | 1,506,140 |
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 | 2,574,258 | 2,683,180 |
Liabilities: | ||
Trading liabilities, at fair value | 1,741,692 | 1,505,618 |
Corporate debt securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 10,930 | 9,484 |
Liabilities: | ||
Trading liabilities, at fair value | 730 | 522 |
Collateralized debt obligations and collateralized loan obligations | ||
Assets: | ||
Trading assets, at fair value | 130,558 | 109,054 |
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 | 87,414 | 72,949 |
Collateralized debt obligations and collateralized loan obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 43,144 | 36,105 |
U.S. government securities | ||
Assets: | ||
Trading assets, at fair value | 1,818,204 | 1,846,206 |
Available for sale securities | 1,072,856 | |
Liabilities: | ||
Trading liabilities, at fair value | 855,042 | 1,384,295 |
U.S. government securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,726,076 | 1,789,614 |
Liabilities: | ||
Trading liabilities, at fair value | 855,042 | 1,384,295 |
U.S. government securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 92,128 | 56,592 |
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 | 647,475 | 894,253 |
Municipal securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Municipal securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 647,475 | 894,253 |
Municipal securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Sovereign obligations | ||
Assets: | ||
Trading assets, at fair value | 2,964,194 | 2,812,965 |
Liabilities: | ||
Trading liabilities, at fair value | 2,934,632 | 2,396,337 |
Sovereign obligations | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 1,653,015 | 1,769,556 |
Liabilities: | ||
Trading liabilities, at fair value | 1,770,566 | 1,735,242 |
Sovereign obligations | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,311,179 | 1,043,409 |
Liabilities: | ||
Trading liabilities, at fair value | 1,164,066 | 661,095 |
Sovereign obligations | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Residential mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 2,015,272 | 2,183,232 |
Available for sale securities | 24,049 | 210,518 |
Residential mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 1,994,309 | 2,163,629 |
Available for sale securities | 24,049 | 210,518 |
Residential mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 20,963 | 19,603 |
Available for sale securities | 0 | 0 |
Commercial mortgage-backed securities | ||
Assets: | ||
Trading assets, at fair value | 873,685 | 830,292 |
Available for sale securities | 15,642 | |
Liabilities: | ||
Trading liabilities, at fair value | 70 | |
Commercial mortgage-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 860,865 | 819,406 |
Available for sale securities | 15,642 | |
Liabilities: | ||
Trading liabilities, at fair value | 0 | |
Commercial mortgage-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 12,820 | 10,886 |
Available for sale securities | 0 | |
Liabilities: | ||
Trading liabilities, at fair value | 70 | |
Other asset-backed securities | ||
Assets: | ||
Trading assets, at fair value | 290,756 | 292,556 |
Available for sale securities | 110,870 | |
Other asset-backed securities | Level 1 | ||
Assets: | ||
Trading assets, at fair value | 0 | 0 |
Available for sale securities | 0 | |
Other asset-backed securities | Level 2 | ||
Assets: | ||
Trading assets, at fair value | 254,870 | 239,381 |
Available for sale securities | 110,870 | |
Other asset-backed securities | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 35,886 | 53,175 |
Available for sale securities | 0 | |
Loans and other receivables | ||
Assets: | ||
Trading assets, at fair value | 2,223,537 | 2,103,578 |
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 | 2,145,486 | 2,056,593 |
Loans and other receivables | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 78,051 | 46,985 |
Investments at fair value | ||
Assets: | ||
Trading assets, at fair value | 421,098 | 396,254 |
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 | 0 |
Investments at fair value | Level 3 | ||
Assets: | ||
Trading assets, at fair value | 421,098 | 396,254 |
FXCM term loan | ||
Assets: | ||
Trading assets, at fair value | 73,600 | 73,150 |
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 | 73,600 | 73,150 |
Loans | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,575,497 | 1,378,006 |
Loans | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 0 | 0 |
Loans | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 1,572,077 | 1,371,630 |
Loans | Level 3 | ||
Liabilities: | ||
Trading liabilities, at fair value | 3,420 | 6,376 |
U.S. government securities | ||
Assets: | ||
Available for sale securities | 1,072,856 | |
U.S. government securities | Level 1 | ||
Assets: | ||
Available for sale securities | 1,072,856 | |
Liabilities: | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 34,800 | 34,800 |
U.S. government securities | Level 2 | ||
Assets: | ||
Available for sale securities | 0 | |
U.S. government securities | Level 3 | ||
Assets: | ||
Available for sale securities | 0 | |
Derivatives | ||
Liabilities: | ||
Trading liabilities, at fair value | 362,709 | 1,127,653 |
Counterparty and Cash Collateral Netting, liabilities | (2,383,752) | (2,513,050) |
Derivatives | Level 1 | ||
Liabilities: | ||
Trading liabilities, at fair value | 14,018 | 26,473 |
Derivatives | Level 2 | ||
Liabilities: | ||
Trading liabilities, at fair value | 2,695,257 | 3,586,694 |
Derivatives | Level 3 | ||
Assets: | ||
Derivative assets | 6,552 | 4,602 |
Liabilities: | ||
Trading liabilities, at fair value | $ 37,186 | $ 27,536 |
Fair Value Disclosures (Investm
Fair Value Disclosures (Investments Measured At Fair Value Based On Net Asset Value) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 | Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2013 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 20,036 | $ 20,996 | $ 20,036 | $ 20,996 | ||
Investment redemption restriction period | 36 months | |||||
Investment redemption restriction period remaining | 34 months | |||||
Payments to acquire investments | $ 1,386 | $ 653,392 | ||||
Trading assets, at fair value | 17,925,044 | 17,463,256 | 17,925,044 | 17,463,256 | ||
Equity Long/Short Hedge Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Percentage of investment at fair value, redemption restriction | 74.00% | 0.00% | 74.00% | 0.00% | ||
Percentage of investments redeemable | 22.00% | 82.00% | 22.00% | 82.00% | ||
Equity Long/Short Hedge Funds | 45 to 90 days prior written notice | Minimum | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Notice period redemption of investments prior written notice period | 45 days | 45 days | ||||
Equity Long/Short Hedge Funds | 45 to 90 days prior written notice | Maximum | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Notice period redemption of investments prior written notice period | 90 days | 90 days | ||||
Equity Long/Short Hedge Funds | 60 days 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 | 60 days | 60 days | ||||
Percentage of investments redeemable | 4.00% | 17.00% | 4.00% | 17.00% | ||
Equity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 20,036 | $ 20,996 | $ 20,036 | $ 20,996 | ||
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 | $ 0 | $ 0 | ||
Notice period redemption of investments prior written notice period | 60 days | 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 | 6.00% | 15.00% | 6.00% | 15.00% | ||
Other funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Unfunded Commitments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Fair Value Measured at NAV | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 633,030 | 394,359 | 633,030 | 394,359 | ||
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 | 349,128 | 86,788 | 349,128 | 86,788 | ||
Fair Value Measured at NAV | Equity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 35,719 | 40,070 | 35,719 | 40,070 | ||
Fair Value Measured at NAV | Commodity Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 15,382 | 10,129 | 15,382 | 10,129 | ||
Fair Value Measured at NAV | Multi-asset Funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 232,465 | 256,972 | 232,465 | 256,972 | ||
Fair Value Measured at NAV | Other funds | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Fair Value | 336 | 400 | 336 | 400 | ||
WeWork | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Payments to acquire investments | $ 9,000 | |||||
Trading assets, at fair value | $ 258,900 | $ 254,400 | $ 258,900 | $ 254,400 | ||
WeWork | Maximum | ||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||||
Ownership percentage | 1.00% | 1.00% |
Fair Value Disclosures (Inves_2
Fair Value Disclosures (Investment in FXCM Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 50 Months Ended | ||||
Feb. 28, 2019 | Mar. 31, 2018 | Feb. 28, 2019 | Nov. 30, 2018 | Dec. 31, 2017 | Jan. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Investment in associated company | $ 2,381,026 | $ 2,233,070 | $ 2,381,026 | $ 2,417,332 | $ 2,066,829 | |
FXCM | ||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Senior secured term loan receivable | $ 300,000 | |||||
Accrued interest rate | 20.50% | |||||
Principal, interest and fees received | 349,800 | |||||
Initial investment amount | $ 279,000 | |||||
Unrealized and realized gains (losses), interest income and fees | $ 500 | $ 8,600 | ||||
FXCM term loan | 73,600 | 73,600 | ||||
Investment in associated company | 72,500 | 72,500 | ||||
Investment in FXCM | 146,100 | 146,100 | ||||
Investment in FXCM | ||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||
Senior secured term loan receivable, principal outstanding | $ 71,400 | $ 71,400 |
Fair Value Disclosures (Level 3
Fair Value Disclosures (Level 3 Rollforwards) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Assets: | ||
Total gains (losses) (realized and unrealized) | $ (5,100) | $ 15,600 |
Liabilities: | ||
Total gains/ losses (realized and unrealized) | 1,200 | |
Total gains (losses) (realized and unrealized), included in earnings and OCI | 22,500 | |
Fair value, Liabilities, change in unrealized gains/(losses) included in other comprehensive income relating to instruments still held | 12,700 | |
Corporate equity securities | ||
Assets: | ||
Beginning Balance | 52,192 | 22,270 |
Total gains (losses) (realized and unrealized) | 4,488 | 11,764 |
Purchases | 1,410 | 2,733 |
Sales | (2,411) | (1,381) |
Settlements | (66) | (1,687) |
Net transfers into (out of) Level 3 | (37) | 2,054 |
Ending Balance | 55,576 | 35,753 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 4,603 | 10,754 |
Liabilities: | ||
Beginning Balance | 0 | 48 |
Total gains/ losses (realized and unrealized) | (2) | 13 |
Purchases | 0 | 0 |
Sales | 80 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 78 | 61 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 2 | (13) |
Corporate debt securities | ||
Assets: | ||
Beginning Balance | 9,484 | 26,036 |
Total gains (losses) (realized and unrealized) | 466 | (9) |
Purchases | 3,568 | 928 |
Sales | (3,233) | (346) |
Settlements | (834) | (2,049) |
Net transfers into (out of) Level 3 | 1,479 | 1,543 |
Ending Balance | 10,930 | 26,103 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 498 | (1,086) |
Liabilities: | ||
Beginning Balance | 522 | 522 |
Total gains/ losses (realized and unrealized) | (241) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into (out of) Level 3 | 449 | 0 |
Ending Balance | 730 | 522 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 241 | 0 |
CDOs and CLOs | ||
Assets: | ||
Beginning Balance | 36,105 | 42,184 |
Total gains (losses) (realized and unrealized) | (6,726) | (3,782) |
Purchases | 49,201 | 43,796 |
Sales | (32,759) | (34,168) |
Settlements | (1,139) | (3,838) |
Net transfers into (out of) Level 3 | (1,538) | (5,579) |
Ending Balance | 43,144 | 38,613 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (3,526) | (3,006) |
Residential mortgage-backed securities | ||
Assets: | ||
Beginning Balance | 19,603 | 26,077 |
Total gains (losses) (realized and unrealized) | 462 | (3,212) |
Purchases | 975 | 0 |
Sales | 0 | 0 |
Settlements | (27) | (3) |
Net transfers into (out of) Level 3 | (50) | (1,100) |
Ending Balance | 20,963 | 21,762 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 494 | (2,366) |
Commercial mortgage-backed securities | ||
Assets: | ||
Beginning Balance | 10,886 | 12,419 |
Total gains (losses) (realized and unrealized) | 136 | (231) |
Purchases | 12 | 1,260 |
Sales | 0 | (508) |
Settlements | (41) | (1,285) |
Net transfers into (out of) Level 3 | 1,827 | 3,448 |
Ending Balance | 12,820 | 15,103 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 96 | (622) |
Liabilities: | ||
Beginning Balance | 0 | 105 |
Total gains/ losses (realized and unrealized) | 70 | (70) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 70 | 35 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | (70) | (35) |
Other asset-backed securities | ||
Assets: | ||
Beginning Balance | 53,175 | 61,129 |
Total gains (losses) (realized and unrealized) | (2,290) | (1,385) |
Purchases | 29,195 | 57,095 |
Sales | (30,060) | (53,459) |
Settlements | (12,320) | (3,776) |
Net transfers into (out of) Level 3 | (1,814) | (8,316) |
Ending Balance | 35,886 | 51,288 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (1,763) | 127 |
Loans and other receivables | ||
Assets: | ||
Beginning Balance | 46,985 | 47,304 |
Total gains (losses) (realized and unrealized) | 814 | 1,598 |
Purchases | 40,061 | 15,635 |
Sales | (27,142) | (803) |
Settlements | (1,990) | (9,730) |
Net transfers into (out of) Level 3 | 19,323 | 8,039 |
Ending Balance | 78,051 | 62,043 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 130 | (190) |
Investments at fair value | ||
Assets: | ||
Beginning Balance | 396,254 | 329,944 |
Total gains (losses) (realized and unrealized) | (2,923) | 2,289 |
Purchases | 27,767 | 240 |
Sales | 0 | (16,624) |
Settlements | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 2,310 |
Ending Balance | 421,098 | 318,159 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | (2,923) | 1,695 |
FXCM term loan | ||
Assets: | ||
Beginning Balance | 73,150 | 72,800 |
Total gains (losses) (realized and unrealized) | 450 | 8,597 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | (8,197) |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 73,600 | 73,200 |
Fair value, Assets, change in unrealized gains/(losses) included in earnings relating to instruments still held | 450 | 4,939 |
Loans | ||
Liabilities: | ||
Beginning Balance | 6,376 | 3,486 |
Total gains/ losses (realized and unrealized) | (229) | 6 |
Purchases | (1,411) | (25) |
Sales | 504 | 3,442 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Net transfers into (out of) Level 3 | (1,820) | 3,414 |
Ending Balance | 3,420 | 10,323 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 338 | (6) |
Derivatives | ||
Liabilities: | ||
Beginning Balance | 21,614 | 6,746 |
Total gains/ losses (realized and unrealized) | (5,348) | (1,166) |
Purchases | (2,804) | (6) |
Sales | 3,084 | 0 |
Settlements | 169 | 1,012 |
Issuances | 0 | 296 |
Net transfers into (out of) Level 3 | 12,260 | 0 |
Ending Balance | 28,975 | 6,882 |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | 3,333 | $ (5,609) |
Long-term debt | ||
Liabilities: | ||
Beginning Balance | 200,745 | |
Total gains (losses) (realized and unrealized), included in earnings and OCI | (16,701) | |
Purchases | 0 | |
Sales | 0 | |
Settlements | (5,665) | |
Issuances | 92,016 | |
Net transfers into (out of) Level 3 | 12,744 | |
Ending Balance | 283,139 | |
Fair value, Liabilities, change in unrealized gains/(losses) included in earnings relating to instruments still held | $ 4,045 |
Fair Value Disclosures (Analysi
Fair Value Disclosures (Analysis of Level 3 Assets and Liabilities Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Transfers of assets from Level 2 to Level 3 | $ 60,400 | $ 31,900 | |
Transfers of assets from Level 3 to Level 2 | 41,200 | 29,500 | |
Transfers of liabilities from Level 2 to Level 3 | 36,600 | ||
Transfers of liabilities from Level 3 to Level 2 | 12,900 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (5,100) | 15,600 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 1,200 | ||
Net gains (losses) on Level 3 liabilities (realized and unrealized), included in earnings and OCI | 22,500 | ||
Excluded assets from unobservable quantitative information | 59,500 | $ 40,300 | |
Excluded liabilities from unobservable quantitative information | 900 | $ 500 | |
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 | 25,800 | 8,600 | |
Transfers of assets from Level 3 to Level 2 | 6,500 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | 814 | 1,598 | |
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 | 14,100 | 9,100 | |
Transfers of assets from Level 3 to Level 2 | 15,700 | 14,700 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | (6,726) | (3,782) | |
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 | 10,800 | ||
Transfers of assets from Level 3 to Level 2 | 12,600 | 8,300 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | (2,290) | (1,385) | |
Structured Notes | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 22,200 | ||
Transfers of liabilities from Level 3 to Level 2 | 9,400 | ||
Derivatives | |||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Transfers of liabilities from Level 2 to Level 3 | 13,900 | ||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ (5,348) | $ (1,166) |
Fair Value Disclosures (Quantit
Fair Value Disclosures (Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements) (Details) $ in Thousands | 3 Months Ended | 11 Months Ended | ||||||||
Feb. 28, 2019USD ($) | Nov. 30, 2018USD ($) | Feb. 28, 2019 | Feb. 28, 2019$ / shares | Feb. 28, 2019€ / Bond | Feb. 28, 2019$ / Bond | Nov. 30, 2018 | Nov. 30, 2018$ / shares | Nov. 30, 2018€ / Bond | Nov. 30, 2018$ / Bond | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative assets | $ | $ 212,191 | $ 166,775 | ||||||||
Derivative liability | $ | 362,709 | 1,127,653 | ||||||||
Long-term debt, fair value | $ | 750,978 | 686,170 | ||||||||
Level 3 | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative assets | $ | 8,211 | 5,922 | ||||||||
Long-term debt, fair value | $ | 283,139 | 200,745 | ||||||||
Level 3 | Price | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Long-term debt, measurement input | 76 | 73 | 68 | 78 | ||||||
Level 3 | Price | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Long-term debt, measurement input | 107 | 95 | 110 | 94 | ||||||
Level 3 | Price | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Long-term debt, measurement input | 93 | 84 | 96 | 86 | ||||||
Level 3 | Non-exchange-traded securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | 48,459 | 43,644 | ||||||||
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 | 1 | ||||||||
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 | 518 | 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 | 123 | 12 | ||||||||
Level 3 | Non-exchange-traded securities | Transaction level | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | $ / shares | 85 | 47 | ||||||||
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 | 3 | |||||||||
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 | 8 | |||||||||
Level 3 | Corporate debt securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | 10,930 | 9,484 | ||||||||
Level 3 | Corporate debt securities | Price | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 16 | |||||||||
Level 3 | Corporate debt securities | Price | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 131 | |||||||||
Level 3 | Corporate debt securities | Price | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 98 | |||||||||
Level 3 | Corporate debt securities | Transaction level | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 80 | |||||||||
Level 3 | Corporate debt securities | Discount rate/yield | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.25 | |||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.48 | 0.46 | ||||||||
Level 3 | CDOs and CLOs | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | 43,144 | 36,105 | ||||||||
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 | 0.10 | 0.11 | ||||||||
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 | 0.16 | 0.16 | ||||||||
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 | 0.14 | ||||||||
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 | 0.02 | 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 | 0.42 | 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 | 0.28 | 0.23 | ||||||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.10 | 0.10 | ||||||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Maximum | ||||||||||
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 prepayment rate | Discounted cash flows | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.15 | 0.18 | ||||||||
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 | 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 | 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 | 0.02 | ||||||||
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 | 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 | 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 | 0.27 | 0.26 | ||||||||
Level 3 | Residential mortgage-backed securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 20,963 | $ 19,603 | ||||||||
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 | 100 | ||||||||
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 | 0.03 | |||||||||
Level 3 | Residential 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 | 0.03 | |||||||||
Level 3 | Residential 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 | 0.05 | |||||||||
Level 3 | Residential 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 | 0.03 | |||||||||
Level 3 | Residential mortgage-backed securities | Loss severity | Discounted cash flows | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0 | |||||||||
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 | 0.04 | |||||||||
Level 3 | Residential 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 | 0.01 | |||||||||
Level 3 | Residential 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 | 0.02 | |||||||||
Level 3 | Residential 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 | 0.02 | |||||||||
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 | 13 years | |||||||||
Level 3 | Residential 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 | 7 years | |||||||||
Level 3 | Residential 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 | 22 years | |||||||||
Level 3 | Residential 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 | 8 years | |||||||||
Level 3 | Commercial mortgage-backed securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 11,319 | $ 9,444 | ||||||||
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 | 49 | ||||||||
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 | 0.02 | ||||||||
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 | 0.15 | ||||||||
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 | 0.17 | 0.06 | ||||||||
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 | 0.15 | 0.26 | ||||||||
Level 3 | Commercial mortgage-backed securities | Loss severity | Discounted cash flows | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.64 | |||||||||
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 | 0.84 | 0.85 | ||||||||
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 | 0.28 | 0.45 | ||||||||
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 | 1 year | 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 | 2 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 | 1 year | ||||||||
Level 3 | Other asset-backed securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 35,886 | $ 53,175 | ||||||||
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 | 0.06 | 0.06 | ||||||||
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 | 0.12 | 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 | 0.10 | 0.08 | ||||||||
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 | 0.11 | 0.12 | ||||||||
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 | 0.30 | 0.30 | ||||||||
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 | 0.22 | 0.22 | ||||||||
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 | 2 years | 2 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 | 1 year | 1 year | ||||||||
Level 3 | Loans and other receivables | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 78,051 | $ 46,078 | ||||||||
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 | 50 | 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 | 92 | 96 | ||||||||
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 | 0.13 | ||||||||
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 | 1.17 | 1.17 | ||||||||
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 | 1.05 | 1.05 | ||||||||
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 | 0.01 | |||||||||
Level 3 | Derivatives | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative assets | $ | 6,552 | 4,602 | ||||||||
Derivative liability | $ | 37,186 | 27,536 | ||||||||
Level 3 | Derivatives | Price | Total return swaps | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative asset, measurement input | 97 | |||||||||
Level 3 | Derivatives | Price | Total return swaps | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative asset, measurement input | 95 | |||||||||
Level 3 | Derivatives | Price | Total return swaps | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative asset, measurement input | 100 | |||||||||
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 | 98 | |||||||||
Level 3 | Derivatives | Price | Total return swaps | Market approach | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 97 | |||||||||
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 | 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 | 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 | 97 | |||||||||
Level 3 | Derivatives | Price | Interest rate swaps | Market approach | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 20 | |||||||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 0.27 | 0.39 | ||||||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 0.82 | 0.62 | ||||||||
Level 3 | Derivatives | Volatility | Equity options | Volatility benchmarking | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 0.48 | 0.50 | ||||||||
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 | Basis points | Interest rate swaps | Market approach | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 18 | |||||||||
Level 3 | Derivatives | Basis points | Interest rate swaps | Market approach | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 19 | |||||||||
Level 3 | Derivatives | Basis points | Interest rate swaps | Market approach | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Derivative liability, measurement input | 18 | |||||||||
Level 3 | Private equity securities | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 371,945 | $ 368,231 | ||||||||
Level 3 | Private equity securities | Price | Market approach | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | $ / shares | 3 | 3 | ||||||||
Level 3 | Private equity securities | Price | Market approach | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | $ / shares | 250 | 250 | ||||||||
Level 3 | Private equity securities | Price | Market approach | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 116 | 108 | ||||||||
Level 3 | Private equity securities | Transaction level | Market approach | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | $ / shares | 169 | |||||||||
Level 3 | Private equity securities | Discount rate/yield | Scenario analysis | ||||||||||
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 | Duration (years) | Contingent claims analysis | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input, term | 4 years | 4 years | ||||||||
Level 3 | Private equity securities | Revenue growth | Scenario analysis | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0 | 0 | ||||||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.25 | 0.25 | ||||||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.35 | 0.35 | ||||||||
Level 3 | Private equity securities | Volatility | Contingent claims analysis | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, measurement input | 0.30 | 0.30 | ||||||||
Level 3 | FXCM term loan | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Trading assets, fair value | $ | $ 73,600 | $ 73,150 | ||||||||
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 | 4 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 | 4 months | 3 months | ||||||||
Level 3 | Loans | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Debt instrument, fair value | $ | $ 3,420 | $ 6,376 | ||||||||
Level 3 | Loans | Price | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Debt instrument, measurement input | 50 | |||||||||
Level 3 | Loans | Price | Minimum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Debt instrument, measurement input | 50 | |||||||||
Level 3 | Loans | Price | Maximum | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Debt instrument, measurement input | 101 | |||||||||
Level 3 | Loans | Price | Weighted Average | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||
Debt instrument, measurement input | 74 |
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 | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Financial Instruments [Line Items] | ||
Loans and other receivables | $ (7,335) | $ 2,628 |
Trading Liabilities | ||
Financial Instruments [Line Items] | ||
Loans | 0 | 250 |
Loan commitments | 79 | (129) |
Long-term debt | ||
Financial Instruments [Line Items] | ||
Changes in instrument specific credit risk | 23,483 | (16,202) |
Other changes in fair value | $ (10,643) | $ 41,154 |
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 | Feb. 28, 2019 | Nov. 30, 2018 |
Fair Value Disclosures [Abstract] | ||
Loans and other receivables | $ 907,395 | $ 961,554 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 267,047 | 158,392 |
Long-term debt | 128,085 | 114,669 |
All loans and other receivables 90 days or greater past due | $ 18,700 | $ 20,500 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Option Election Narrative) (Details) $ in Thousands, shares in Millions | 3 Months Ended | ||||||
Feb. 28, 2019USD ($)directorshares | Dec. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2017USD ($)shares | Nov. 30, 2018USD ($) | Jul. 13, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned trading assets, at fair value | $ 17,925,044 | $ 17,463,256 | |||||
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 | 165,700 | 105,300 | |||||
Loans and other receivables 90 days or greater past due | 43,700 | 19,400 | |||||
HRG | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Cash consideration paid for shares | $ 475,600 | ||||||
Revenue of investee | $ 646,500 | ||||||
Net income (loss) from continuing operations of investee | 78,100 | ||||||
Net income (loss) of investee | 578,900 | ||||||
Net income attributable to HRG controlling interest | $ 507,400 | ||||||
Number of directors appointed by Company | director | 1 | ||||||
Spectrum Brands | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Financial instruments owned trading assets, at fair value | $ 407,100 | 371,100 | |||||
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 | $ 36,000 | $ (21,400) | |||||
Fiesta Restaurant Group, Inc. | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Revenue of investee | $ 167,600 | $ 162,200 | |||||
Net income (loss) from continuing operations of investee | 7,900 | 10,800 | |||||
Net income (loss) of investee | $ 7,900 | $ 10,800 | |||||
Number of directors appointed by Company | director | 1 | ||||||
HRG | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Shares owned, number | shares | 46.6 | 46.6 | |||||
Percentage of outstanding common stock owned | 23.00% | 23.00% | |||||
Ownership percentage | 23.00% | 23.00% | |||||
Spectrum Brands | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Shares owned, number | shares | 7.5 | ||||||
Ownership percentage | 15.00% | 14.00% | |||||
Spectrum Brands | HRG | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Ownership percentage | 62.00% | ||||||
Fiesta Restaurant Group, Inc. | |||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Shares owned, number | shares | 3.8 | ||||||
Percentage of outstanding common stock owned | 14.00% | ||||||
Financial instruments owned trading assets, at fair value | $ 57,100 | $ 71,400 | |||||
Changes in fair value of investments reflected as principal transactions | $ (14,300) | $ (200) |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure) (Details) $ in Thousands | Feb. 28, 2019USD ($)Contract | Nov. 30, 2018USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,508,271 | $ 2,580,706 |
Fair Value, Liabilities | 2,746,461 | 3,640,703 |
Amounts offset in Consolidated Statement of Financial Condition, Assets | (2,296,080) | (2,413,931) |
Amounts offset in Consolidated Statement of Financial Condition, Liabilities | (2,383,752) | (2,513,050) |
Net Amounts in Consolidated Statements of Financial Condition | 212,191 | 166,775 |
Net Amounts in Consolidated Statements of Financial Condition | 362,709 | 1,127,653 |
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 | $ 18,037 | $ 29,647 |
Number of Contracts, Liabilities | Contract | 1 | 1 |
Not Designated as Accounting Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 2,508,271 | $ 2,580,706 |
Fair Value, Liabilities | 2,728,424 | 3,611,056 |
Not Designated as Accounting Hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 831,019 | $ 796,493 |
Number of Contracts, Assets | Contract | 45,802 | 35,652 |
Fair Value, Liabilities | $ 840,900 | $ 904,043 |
Number of Contracts, Liabilities | Contract | 31,862 | 69,305 |
Not Designated as Accounting Hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 302,480 | $ 311,270 |
Number of Contracts, Assets | Contract | 9,384 | 10,086 |
Fair Value, Liabilities | $ 291,008 | $ 314,989 |
Number of Contracts, Liabilities | Contract | 9,401 | 1,602 |
Not Designated as Accounting Hedges | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 1,329,281 | $ 1,410,148 |
Number of Contracts, Assets | Contract | 1,863,817 | 2,109,810 |
Fair Value, Liabilities | $ 1,566,911 | $ 2,377,133 |
Number of Contracts, Liabilities | Contract | 1,518,951 | 1,782,600 |
Not Designated as Accounting Hedges | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 13,602 | $ 37,823 |
Number of Contracts, Assets | Contract | 8,623 | 8,546 |
Fair Value, Liabilities | $ 2,945 | $ 1,717 |
Number of Contracts, Liabilities | Contract | 5,418 | 5,683 |
Not Designated as Accounting Hedges | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Assets | $ 31,889 | $ 24,972 |
Number of Contracts, Assets | Contract | 122 | 130 |
Fair Value, Liabilities | $ 26,660 | $ 13,174 |
Number of Contracts, Liabilities | Contract | 101 | 93 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Unrealized And Realized Gains (Losses) On Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Interest expense on fair value hedge | $ (969) | $ 1,494 |
Unrealized and realized gains (losses) | (113,666) | (181,361) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (69,831) | 26,962 |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (176) | 3,128 |
Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (28,481) | (205,146) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | (19,273) | (5,314) |
Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized and realized gains (losses) | 4,095 | (991) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Interest expense on fair value hedge | 14,587 | (21,221) |
Long-term Debt | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in Interest expense on fair value hedge | $ (15,556) | $ 22,715 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities) (Details) $ in Thousands | Feb. 28, 2019USD ($) |
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 | $ 147,917 |
OTC derivative assets having maturity period of 1 to 5 years | 187,828 |
OTC derivative assets having maturity period of greater than 5 years | 120,461 |
OTC derivative assets cross-maturity netting | (96,207) |
Total OTC derivative assets, net of cross-maturity netting | 359,999 |
Cross product counterparty netting | (32,496) |
Total OTC derivative assets included in Trading assets | 327,503 |
OTC derivative liabilities having maturity period of 0 to 12 months | 136,814 |
OTC derivative liabilities having maturity period of 1 to 5 years | 218,190 |
OTC derivative liabilities having maturity period of greater than 5 years | 220,377 |
OTC derivative liabilities cross-maturity netting | (96,207) |
Total OTC derivative liabilities, net of cross-maturity netting | 479,174 |
Cross product counterparty netting | (32,496) |
Total OTC derivative liabilities included in Trading liabilities | 446,678 |
Exchange traded derivative assets and other credit agreements | 31,800 |
Cash collateral received | 147,100 |
Exchange traded derivative liabilities and other credit agreements | 150,800 |
Cash collateral pledged | 234,800 |
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 | 1,332 |
OTC derivative assets having maturity period of 1 to 5 years | 6,078 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (2,098) |
Total OTC derivative assets, net of cross-maturity netting | 5,312 |
OTC derivative liabilities having maturity period of 0 to 12 months | 1,832 |
OTC derivative liabilities having maturity period of 1 to 5 years | 954 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (2,098) |
Total OTC derivative liabilities, net of cross-maturity netting | 688 |
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 | 2,539 |
OTC derivative assets having maturity period of 1 to 5 years | 17,857 |
OTC derivative assets having maturity period of greater than 5 years | 5,240 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 25,636 |
OTC derivative liabilities having maturity period of 0 to 12 months | 30,988 |
OTC derivative liabilities having maturity period of 1 to 5 years | 106,443 |
OTC derivative liabilities having maturity period of greater than 5 years | 37,837 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 175,268 |
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 | 111 |
OTC derivative assets having maturity period of 1 to 5 years | 19,824 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (108) |
Total OTC derivative assets, net of cross-maturity netting | 19,827 |
OTC derivative liabilities having maturity period of 0 to 12 months | 1,918 |
OTC derivative liabilities having maturity period of 1 to 5 years | 10,878 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (108) |
Total OTC derivative liabilities, net of cross-maturity netting | 12,688 |
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 | 47,890 |
OTC derivative assets having maturity period of 1 to 5 years | 18,274 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (984) |
Total OTC derivative assets, net of cross-maturity netting | 65,180 |
OTC derivative liabilities having maturity period of 0 to 12 months | 11,553 |
OTC derivative liabilities having maturity period of 1 to 5 years | 14,057 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (984) |
Total OTC derivative liabilities, net of cross-maturity netting | 24,626 |
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 | 65,040 |
OTC derivative assets having maturity period of 1 to 5 years | 11,413 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (16,118) |
Total OTC derivative assets, net of cross-maturity netting | 60,335 |
OTC derivative liabilities having maturity period of 0 to 12 months | 53,908 |
OTC derivative liabilities having maturity period of 1 to 5 years | 11,042 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (16,118) |
Total OTC derivative liabilities, net of cross-maturity netting | 48,832 |
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 | 1,645 |
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 | 1,645 |
OTC derivative liabilities having maturity period of 0 to 12 months | 3,810 |
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 | 3,810 |
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 | 29,360 |
OTC derivative assets having maturity period of 1 to 5 years | 114,382 |
OTC derivative assets having maturity period of greater than 5 years | 115,221 |
OTC derivative assets cross-maturity netting | (76,899) |
Total OTC derivative assets, net of cross-maturity netting | 182,064 |
OTC derivative liabilities having maturity period of 0 to 12 months | 32,805 |
OTC derivative liabilities having maturity period of 1 to 5 years | 74,816 |
OTC derivative liabilities having maturity period of greater than 5 years | 182,540 |
OTC derivative liabilities cross-maturity netting | (76,899) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 213,262 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets) (Details) $ in Thousands | Feb. 28, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 136,803 |
BBB- to BBB | 56,918 |
BB or lower | 88,357 |
Unrated | 45,425 |
Total OTC derivative assets included in Trading assets | $ 327,503 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Credit Related Derivative Contracts) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 190.5 | $ 193.1 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 94.9 | 145.2 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 90.5 | 25.7 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 8.4 | 57.7 |
Non-investment grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 100 | 167.4 |
Non-investment grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 53.9 | 84.5 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 32.6 | $ 3 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Contingent Features) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 32.3 | $ 93.5 |
Collateral posted | (19.2) | (61.5) |
Collateral received | 128.2 | 91.5 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 141.3 | $ 123.3 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Pledged) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,234,700 | $ 1,838,688 |
Repurchase agreements | 21,662,963 | 17,193,486 |
Total | 23,897,663 | 19,032,174 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,860,725 | 1,505,218 |
Repurchase agreements | 277,041 | 487,124 |
Total | 2,137,766 | 1,992,342 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 269,547 | 333,221 |
Repurchase agreements | 1,915,333 | 1,853,309 |
Total | 2,184,880 | 2,186,530 |
Mortgage- and asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 249 |
Repurchase agreements | 3,277,181 | 2,820,543 |
Total | 3,277,181 | 2,820,792 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 104,428 | 0 |
Repurchase agreements | 11,987,128 | 8,181,947 |
Total | 12,091,556 | 8,181,947 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 466,849 | 604,274 |
Total | 466,849 | 604,274 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 3,387,020 | 2,945,521 |
Total | 3,387,020 | 2,945,521 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 352,411 | 300,768 |
Total | $ 352,411 | $ 300,768 |
Collateralized Transactions (_2
Collateralized Transactions (Contractual Maturity) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 2,234,700 | $ 1,838,688 |
Repurchase agreements | 21,662,963 | 17,193,486 |
Total | 23,897,663 | 19,032,174 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,034,306 | 807,347 |
Repurchase agreements | 11,379,518 | 7,849,052 |
Total | 12,413,824 | 8,656,399 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 4,169,261 | 1,915,325 |
Total | 4,169,261 | 1,915,325 |
30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,002,932 | 560,417 |
Repurchase agreements | 4,223,211 | 6,042,951 |
Total | 5,226,143 | 6,603,368 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 197,462 | 470,924 |
Repurchase agreements | 1,890,973 | 1,386,158 |
Total | $ 2,088,435 | $ 1,857,082 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Billions | Feb. 28, 2019 | Nov. 30, 2018 |
Collateralized Transactions [Abstract] | ||
Fair value of securities received as collateral that may be sold or repledged | $ 28.2 | $ 23.1 |
Securitization Activities (Acti
Securitization Activities (Activity Related To Securitizations Accounted For As Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Securitization Activities [Abstract] | ||
Transferred assets | $ 1,260.6 | $ 2,757.8 |
Proceeds on new securitizations | 1,331.2 | 2,758.9 |
Cash flows received on retained interests | $ 14.8 | $ 9.2 |
Securitization Activities (Summ
Securitization Activities (Summary Of Retained Interests In SPEs) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Residential mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency residential mortgage-backed securities | $ 12,620.2 | $ 13,633.5 |
Retained Interests | 353.1 | 365.3 |
Commercial mortgage-backed securities | ||
Securitization Activities [Line Items] | ||
U.S. government agency commercial mortgage-backed securities | 1,594.4 | 2,027.6 |
Retained Interests | 70.7 | 185.6 |
CLOs | ||
Securitization Activities [Line Items] | ||
CLOs | 3,522.8 | 3,512 |
Retained Interests | 23.7 | 20.9 |
Consumer and other loans | ||
Securitization Activities [Line Items] | ||
Retained Interests | 61.3 | 48.9 |
Consumer and Other Loans Securitization Assets | $ 938 | $ 604.1 |
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 | Feb. 28, 2019 | Nov. 30, 2018 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 24,191 | $ 1,411,762 |
Gross Unrealized Gains | 0 | 378 |
Gross Unrealized Losses | 142 | 2,254 |
Estimated Fair Value | 24,049 | 1,409,886 |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,073,038 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 183 | |
Estimated Fair Value | 1,072,856 | |
Residential mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 24,191 | 211,209 |
Gross Unrealized Gains | 0 | 376 |
Gross Unrealized Losses | 142 | 1,067 |
Estimated Fair Value | $ 24,049 | 210,518 |
Commercial mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 16,068 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 426 | |
Estimated Fair Value | 15,642 | |
Other asset-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 111,447 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 578 | |
Estimated Fair Value | $ 110,870 |
Available for Sale Securities_4
Available for Sale Securities and Other Investments (Additional Information) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Other investment not readily marketable, fair value | $ 229.8 | $ 230 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets And Liabilities Of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 | |
Variable Interest Entity [Line Items] | |||
Financial instruments owned | $ 17,949,093 | $ 18,873,142 | |
Securities purchased under agreement to resell | 3,496,570 | 2,785,758 | |
Receivables | 7,228,766 | 6,287,401 | |
Other | 2,001,708 | 1,859,561 | |
Total assets | [1] | 48,959,345 | 47,131,095 |
Other secured financings | 1,527,393 | 1,534,271 | |
Total liabilities | [1] | 38,858,023 | 36,907,059 |
Jefferies Group | |||
Variable Interest Entity [Line Items] | |||
Secured financings eliminated in consolidation | 326,600 | 1,000 | |
Consolidation adjustments | |||
Variable Interest Entity [Line Items] | |||
Intercompany payables | 47,100 | 44,100 | |
Securitization Vehicles | |||
Variable Interest Entity [Line Items] | |||
Financial instruments owned | 323,400 | 0 | |
Securities purchased under agreement to resell | 936,300 | 883,100 | |
Receivables | 613,500 | 626,000 | |
Other | 33,000 | 78,400 | |
Total assets | 1,906,200 | 1,587,500 | |
Other secured financings | 1,853,300 | 1,535,300 | |
Other | 48,600 | 45,900 | |
Total liabilities | $ 1,901,900 | $ 1,581,200 | |
[1] | Total assets include assets related to variable interest entities of $971.5 million and $704.4 million at February 28, 2019 and November 30, 2018, respectively, and Total liabilities include liabilities related to variable interest entities of $1,528.2 million and $1,535.8 million at February 28, 2019 and November 30, 2018, respectively. See Note 8 for additional information related to variable interest entities. |
Variable Interest Entities (Non
Variable Interest Entities (Nonconsolidated VIEs) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | $ 1,095 | $ 746.4 |
Financial Statement Carrying Amount, Liabilities | 3.8 | 0 |
Maximum Exposure to Loss | 3,232 | 1,646.7 |
VIE Assets | 15,644.1 | 12,382.4 |
CLOs | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 156.8 | 45.2 |
Financial Statement Carrying Amount, Liabilities | 3.8 | 0 |
Maximum Exposure to Loss | 1,939.5 | 571.4 |
VIE Assets | 4,887.2 | 3,281.9 |
Consumer loan and other asset-backed vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 445.5 | 462.1 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 771.6 | 807.1 |
VIE Assets | 3,491 | 3,273.1 |
Related party private equity vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 31.6 | 35.5 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 49.4 | 53.5 |
VIE Assets | 90.8 | 108.3 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Financial Statement Carrying Amount, Assets | 461.1 | 203.6 |
Financial Statement Carrying Amount, Liabilities | 0 | 0 |
Maximum Exposure to Loss | 471.5 | 214.7 |
VIE Assets | $ 7,175.1 | $ 5,719.1 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Nov. 30, 2018 |
Variable Interest Entity [Line Items] | ||
Carrying Amount | $ 1,095 | $ 746.4 |
Other investment vehicles | ||
Variable Interest Entity [Line Items] | ||
Carrying amount of equity investment | 461.1 | 203.6 |
Unfunded equity commitment related to investments | 10.4 | 11.1 |
Carrying Amount | 461.1 | 203.6 |
Agency Mortgage-Backed Securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 2,821 | 2,913 |
Nonagency Mortgage- And Asset-Backed Securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount | 167 | 170.5 |
JCP Entities | Private Equity Vehicles | ||
Variable Interest Entity [Line Items] | ||
Equity commitments | 139.3 | 139.3 |
Funded equity commitments | 121.5 | 121.3 |
Carrying amount of equity investment | $ 31.6 | $ 35.5 |
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 | ||
Feb. 28, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | $ 2,417,332 | $ 2,066,829 | |
Income (losses) related to associated companies | 27,313 | 32,100 | |
Income (losses) related to Jefferies associated companies | 11,337 | 5,605 | |
Contributions to (distributions from) associated companies, net | (75,961) | 119,050 | |
Other | 1,005 | 9,486 | |
Loans to and investments in associated companies, ending balance | 2,381,026 | 2,233,070 | |
Jefferies Finance | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 728,560 | 655,467 | |
Income (losses) related to associated companies | 0 | 0 | |
Income (losses) related to Jefferies associated companies | (6,999) | 9,833 | |
Contributions to (distributions from) associated companies, net | (71,348) | 139,386 | |
Other | 0 | 0 | |
Loans to and investments in associated companies, ending balance | 650,213 | 804,686 | |
Berkadia | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 245,228 | 210,594 | |
Income (losses) related to associated companies | 0 | 26,281 | |
Income (losses) related to Jefferies associated companies | 22,649 | 0 | |
Contributions to (distributions from) associated companies, net | (17,323) | (17,212) | |
Other | 172 | (453) | |
Loans to and investments in associated companies, ending balance | 250,726 | 219,210 | |
National Beef | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 653,630 | ||
Income (losses) related to associated companies | 27,105 | 0 | |
Income (losses) related to Jefferies associated companies | 0 | ||
Contributions to (distributions from) associated companies, net | (25,596) | ||
Other | 3 | ||
Loans to and investments in associated companies, ending balance | 655,142 | ||
FXCM | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 75,031 | 158,856 | |
Income (losses) related to associated companies | (2,716) | (8,224) | |
Income (losses) related to Jefferies associated companies | 0 | 0 | |
Contributions to (distributions from) associated companies, net | 0 | 0 | |
Other | 187 | 239 | |
Loans to and investments in associated companies, ending balance | 72,502 | 150,871 | |
Garcadia companies | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 179,143 | ||
Income (losses) related to associated companies | 0 | 11,383 | |
Income (losses) related to Jefferies associated companies | 0 | ||
Contributions to (distributions from) associated companies, net | (9,727) | ||
Other | 0 | ||
Loans to and investments in associated companies, ending balance | 180,799 | ||
Linkem | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 165,157 | 192,136 | |
Income (losses) related to associated companies | (1,621) | (7,455) | |
Income (losses) related to Jefferies associated companies | 0 | 0 | |
Contributions to (distributions from) associated companies, net | 32,578 | 542 | |
Other | 1,030 | 8,024 | |
Loans to and investments in associated companies, ending balance | 197,144 | 193,247 | |
HomeFed | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 337,542 | 341,874 | |
Income (losses) related to associated companies | 1,983 | 11,610 | |
Income (losses) related to Jefferies associated companies | 0 | 0 | |
Contributions to (distributions from) associated companies, net | 0 | 0 | |
Other | 0 | 0 | |
Loans to and investments in associated companies, ending balance | 339,525 | 353,484 | |
Other | |||
Loans to and Investments in Associated Companies Rollforward [Roll Forward] | |||
Loans to and investments in associated companies, beginning balance | 212,184 | 328,759 | |
Income (losses) related to associated companies | 2,562 | (1,495) | |
Income (losses) related to Jefferies associated companies | (4,313) | (4,228) | |
Contributions to (distributions from) associated companies, net | 5,728 | 6,061 | |
Other | (387) | 1,676 | |
Loans to and investments in associated companies, ending balance | $ 215,774 | $ 330,773 | |
Disposal group, disposed of by 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 ($) | Mar. 28, 2019 | Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 |
Investments In Associated Companies [Line Items] | ||||
Other | $ 2,001,708,000 | $ 1,859,561,000 | ||
Payables, expense accruals and other liabilities | 7,293,843,000 | 7,407,030,000 | ||
Trading assets, at fair value | 17,925,044,000 | 17,463,256,000 | ||
Trading liabilities, at fair value | 10,278,412,000 | 9,478,946,000 | ||
Jefferies Group | ||||
Investments In Associated Companies [Line Items] | ||||
Interest income and unfunded commitment fees related to facility commitment | 300,000 | $ 1,000,000 | ||
Investment banking | 21,900,000 | 101,400,000 | ||
Origination fees | 5,400,000 | 18,500,000 | ||
Placement agent fees | $ 1,300,000 | 300,000 | ||
Jefferies Finance | ||||
Investments In Associated Companies [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Equity commitment | $ 750,000,000 | |||
Funded equity commitments | $ 622,900,000 | |||
Investment commitment extension | 1 year | |||
Termination notice | 60 days | |||
Total line of credit facility commitment under joint venture | $ 500,000,000 | 500,000,000 | ||
Extension period | 1 year | |||
Line of credit facility, commitment of Jefferies, funded | $ 0 | 0 | ||
Line of credit facility commitment of Jefferies | 250,000,000 | 250,000,000 | ||
Service fee income | 27,100,000 | $ 26,100,000 | ||
Other | 10,700,000 | 35,200,000 | ||
Payables, expense accruals and other liabilities | 13,900,000 | 14,100,000 | ||
Foreign exchange contracts | Jefferies Finance | ||||
Investments In Associated Companies [Line Items] | ||||
Payables, expense accruals and other liabilities | 200,000 | |||
Trading assets, at fair value | $ 200,000 | |||
Trading liabilities, at fair value | $ 400,000 | |||
Subsequent Event | Promissory Note | Jefferies Group | ||||
Investments In Associated Companies [Line Items] | ||||
Debt principal amount | $ 1,000,000,000 | |||
London Interbank Offered Rate (LIBOR) | Subsequent Event | Promissory Note | Jefferies Group | ||||
Investments In Associated Companies [Line Items] | ||||
Debt instrument, basic spread on variable rate | 5.00% |
Loans to and Investments In A_5
Loans to and Investments In Associated Companies (Berkadia) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2009 | Feb. 28, 2019 | Oct. 01, 2018 | |
Berkadia | |||
Investments In Associated Companies [Line Items] | |||
Surety policy issued | $ 1,500,000,000 | ||
Reimbursement of losses incurred, maximum percentage | 50.00% | ||
Commercial paper | $ 1,470,000,000 | ||
Berkadia | |||
Investments In Associated Companies [Line Items] | |||
Capital contributed | $ 217,200,000 | ||
Equity method investment, ownership percentage | 50.00% | ||
Percentage of profits received from joint venture | 45.00% | ||
Reimbursement of losses incurred, maximum percentage | 50.00% |
Loans to and Investments in A_6
Loans to and Investments in Associated Companies (National Beef) (Narrative) (Details) | 3 Months Ended | ||
Feb. 28, 2019 | Jun. 05, 2018 | Jun. 04, 2018 | |
National Beef | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 79.00% | ||
Equity method investment, ownership percentage | 31.00% | 31.00% | |
Weighted average useful life | 15 years | ||
National Beef | Discontinued operations, disposed of by sale | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 48.00% |
Loans to and Investments In A_7
Loans to and Investments In Associated Companies (FXCM) (Narrative) (Details) - Investment in FXCM | 3 Months Ended |
Feb. 28, 2019 | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Weighted average useful life | 11 years |
Loans to and Investments In A_8
Loans to and Investments In Associated Companies (Garcadia) (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Garcadia | Disposal group, disposed of by sale, not discontinued operations | |
Investments In Associated Companies [Line Items] | |
Percentage of equity method investment for sale | 100.00% |
Loans to and Investments In A_9
Loans to and Investments In Associated Companies (Linkem) (Narrative) (Details) - Linkem | Feb. 28, 2019 |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 42.00% |
Percentage of ownership upon conversion of note | 54.00% |
Equity method investment, voting percentage | 48.00% |
Loans to and Investments In _10
Loans to and Investments In Associated Companies (HomeFed) (Narrative) (Details) | 3 Months Ended |
Feb. 28, 2019directorshares | |
HomeFed | |
Investments In Associated Companies [Line Items] | |
Maximum voting rights as a percentage of total voting securities voting | 45.00% |
Number of directors appointed by Company | director | 3 |
Company Chairman | HomeFed | |
Investments In Associated Companies [Line Items] | |
Ownership percentage of company | 5.00% |
HomeFed | |
Investments In Associated Companies [Line Items] | |
Shares of common stock owned | shares | 10,852,123 |
Equity method investment, ownership percentage | 70.00% |
Loans to and Investments in _11
Loans to and Investments in Associated Companies (Other) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Revenues | $ 2,082,765 | $ 266,339 |
Income from continuing operations before extraordinary items | 141,516 | 99,811 |
Net income | $ 141,516 | $ 99,811 |
Financial Statement Offsettin_2
Financial Statement Offsetting (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Derivative contracts, Assets | ||
Gross Amounts | $ 2,508,271 | $ 2,580,706 |
Netting in Consolidated Statements of Financial Condition | (2,296,080) | (2,413,931) |
Net Amounts in Consolidated Statements of Financial Condition | 212,191 | 166,775 |
Additional Amounts Available for Setoff | 0 | 0 |
Available Collateral | 0 | 0 |
Net Amount | 212,191 | 166,775 |
Securities borrowing arrangements, Assets | ||
Gross Amounts | 7,231,073 | 6,538,212 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 7,231,073 | 6,538,212 |
Additional Amounts Available for Setoff | (529,874) | (468,778) |
Available Collateral | (1,171,891) | (1,193,986) |
Net Amount | 5,529,308 | 4,875,448 |
Reverse repurchase agreements, Assets | ||
Gross Amounts | 15,852,250 | 11,336,175 |
Netting in Consolidated Statements of Financial Condition | (12,355,680) | (8,550,417) |
Net Amounts in Consolidated Statements of Financial Condition | 3,496,570 | 2,785,758 |
Additional Amounts Available for Setoff | (328,449) | (609,225) |
Available Collateral | (3,137,324) | (2,126,730) |
Net Amount | 30,797 | 49,803 |
Derivative contracts, Liabilities | ||
Gross Amounts | 2,746,461 | 3,640,703 |
Netting in Consolidated Statements of Financial Condition | (2,383,752) | (2,513,050) |
Net Amounts in Consolidated Statements of Financial Condition | 362,709 | 1,127,653 |
Additional Amounts Available for Setoff | 0 | 0 |
Available Collateral | 0 | 0 |
Net Amount | 362,709 | 1,127,653 |
Securities lending arrangements, Liabilities | ||
Gross Amounts | 2,234,700 | 1,838,688 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 2,234,700 | 1,838,688 |
Additional Amounts Available for Setoff | (529,874) | (468,778) |
Available Collateral | (1,681,346) | (1,343,704) |
Net Amount | 23,480 | 26,206 |
Repurchase agreements, Liabilities | ||
Gross Amounts | 21,662,963 | 17,193,486 |
Netting in Consolidated Statements of Financial Condition | (12,355,680) | (8,550,417) |
Net Amounts in Consolidated Statements of Financial Condition | 9,307,283 | 8,643,069 |
Additional Amounts Available for Setoff | (328,449) | (609,225) |
Available Collateral | (8,097,893) | (7,070,967) |
Net Amount | 880,941 | 962,877 |
Securities borrowing agreement, subject to review | 5,495,400 | 4,825,700 |
Securities borrowing agreement, collateral received, subject to review | 5,338,400 | 4,711,700 |
Repurchase agreement, net amount, subject to review | 848,700 | 931,700 |
Repurchase agreements, collateral pledged, subject to review | $ 869,300 | $ 963,600 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill (Schedule of Intangible Assets, Net And Goodwill) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | $ 185,843 | $ 188,291 |
Goodwill | 1,705,105 | 1,701,840 |
Total intangible assets, net and goodwill | 1,890,948 | 1,890,131 |
Other operations | ||
Intangible Assets [Line Items] | ||
Goodwill | 3,459 | 3,459 |
Jefferies Group | ||
Intangible Assets [Line Items] | ||
Goodwill | 1,701,646 | 1,698,381 |
Customer and other relationships | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 66,009 | 67,894 |
Intangibles, accumulated amortization | 104,929 | 102,579 |
Trademarks and tradename | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 106,894 | 107,262 |
Intangibles, accumulated amortization | 22,116 | 21,086 |
Other | ||
Intangible Assets [Line Items] | ||
Intangible assets, net (excluding goodwill) | 4,349 | 4,611 |
Intangibles, accumulated amortization | 4,601 | 4,339 |
Exchange and clearing organization membership interests and registrations | ||
Intangible Assets [Line Items] | ||
Indefinite lived intangibles | $ 8,591 | $ 8,524 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $ 3.3 | $ 3.3 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill (Schedule of Estimated Future Amortization Expense) (Details) $ in Thousands | Feb. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of current year | $ 10,079 |
2020 | 13,439 |
2021 | 13,085 |
2022 | 10,110 |
2023 | $ 9,001 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2019 | Dec. 27, 2018 | Nov. 30, 2018 | |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 530,484,000 | $ 387,492,000 | |
Interest rates on short-term borrowings outstanding | 3.69% | 3.08% | |
Floating rate puttable notes | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 56,902,000 | $ 56,550,000 | |
Jefferies Group Credit Facility | |||
Short-term Debt [Line Items] | |||
Credit facility maximum amount | $ 135,000,000 | ||
Bank loans | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 473,582,000 | $ 330,942,000 | |
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% |
Long-Term Debt (Schedule Of Ind
Long-Term Debt (Schedule Of Indebtedness) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 7,685,908 | $ 7,617,563 | |
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | $ (969) | $ 1,494 | |
5.50% Senior Notes due October 18, 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | 5.50% | |
Principal Outstanding | $ 750,000 | $ 750,000 | |
6.625% Senior Notes due October 23, 2043 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.625% | 6.625% | |
Principal Outstanding | $ 250,000 | $ 250,000 | |
8.50% Senior Notes, due July 15, 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 655,494 | $ 699,659 | |
Interest rate | 8.50% | 8.50% | |
Principal Outstanding | $ 644,800 | $ 680,800 | |
2.375% Euro Medium Term Notes, due May 20, 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 568,356 | $ 564,702 | |
Interest rate | 2.375% | 2.375% | |
Principal Outstanding | $ 569,025 | $ 565,500 | |
6.875% Senior Notes, due April 15, 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 787,615 | $ 791,814 | |
Interest rate | 6.875% | 6.875% | |
Principal Outstanding | $ 750,000 | $ 750,000 | |
2.25% Euro Medium Term Notes, due July 13, 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,287 | $ 4,243 | |
Interest rate | 2.25% | 2.25% | |
Principal Outstanding | $ 4,552 | $ 4,524 | |
5.125% Senior Notes, due January 20, 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 612,214 | $ 612,928 | |
Interest rate | 5.125% | 5.125% | |
Principal Outstanding | $ 600,000 | $ 600,000 | |
4.85% Senior Notes, due January 15, 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 725,167 | $ 709,484 | |
Interest rate | 4.85% | 4.85% | |
Principal Outstanding | $ 750,000 | $ 750,000 | |
6.45% Senior Debentures, due June 8, 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 373,120 | $ 373,669 | |
Interest rate | 6.45% | 6.45% | |
Principal Outstanding | $ 350,000 | $ 350,000 | |
4.15% Senior Notes, due January 23, 2030 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 988,003 | $ 987,788 | |
Interest rate | 4.15% | 4.15% | |
Principal Outstanding | $ 1,000,000 | $ 1,000,000 | |
6.25% Senior Debentures, due January 15, 2036 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 511,564 | $ 511,662 | |
Interest rate | 6.25% | 6.25% | |
Principal Outstanding | $ 500,000 | $ 500,000 | |
6.50% Senior Notes, due January 20, 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 420,531 | $ 420,625 | |
Interest rate | 6.50% | 6.50% | |
Principal Outstanding | $ 400,000 | $ 400,000 | |
Structured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 750,978 | 686,170 | |
Foursight Capital Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 32,298 | 0 | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | 82,166 | 81,164 | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Long-term debt | 990,425 | 990,116 | |
Parent Company | 5.50% Senior Notes due October 18, 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 743,693 | 743,397 | |
Parent Company | 6.625% Senior Notes due October 23, 2043 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 246,732 | 246,719 | |
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term debt | 6,695,483 | 6,627,447 | |
Jefferies Group | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 183,690 | $ 183,539 | |
Interest rate swaps | Subsidiaries | 4.85% Senior Notes, due January 15, 2027 | |||
Debt Instrument [Line Items] | |||
Gain (loss) associated with an interest rate swap based on its designation as a fair value hedge | $ (15,600) | $ 22,700 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 3 Months Ended | |
Feb. 28, 2019USD ($)Contract | Nov. 30, 2018USD ($) | |
Structured Notes | Jefferies Group | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 79,900,000 | |
8.50% Senior Notes, due July 15, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.50% | 8.50% |
8.50% Senior Notes, due July 15, 2019 | Jefferies Group | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 36,000,000 | |
Revolving Credit Facility | Jefferies Group | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 185,000,000 | |
Secured Debt | Foursight Capital Credit Facilities | ||
Debt Instrument [Line Items] | ||
Number of warehouse credit commitment | Contract | 2 | |
Credit facility maximum amount | $ 225,000,000 | |
Line of Credit | Foursight Capital Credit Facilities | Foursight Capital | ||
Debt Instrument [Line Items] | ||
Assets pledged for indebtedness | $ 38,900,000 |
Mezzanine Equity (Schedule Of R
Mezzanine Equity (Schedule Of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 19,779 | |
Income allocated to redeemable noncontrolling interests | (138) | $ 14,796 |
Decrease in fair value of redeemable noncontrolling interests | (536) | 17,067 |
Ending balance | $ 20,189 | |
National Beef | ||
Redeemable Noncontrolling Interest [Roll Forward] | ||
Beginning balance | 412,128 | |
Income allocated to redeemable noncontrolling interests | 14,450 | |
Distributions to redeemable noncontrolling interests | (9,519) | |
Decrease in fair value of redeemable noncontrolling interests | (17,067) | |
Ending balance | $ 399,992 |
Mezzanine Equity (Narrative) (D
Mezzanine Equity (Narrative) (Details) - USD ($) | 3 Months Ended | ||||||
Feb. 28, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Nov. 30, 2018 | |
Purchase Requirement [Line Items] | |||||||
Redeemable noncontrolling interests | $ 20,200,000 | $ 19,800,000 | |||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | |||||
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.0625 | |
Preferred stock dividend | $ 1,276,000 | $ 1,172,000 | |||||
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 | ||||||
Mandatorily redeemable preferred stock, number of shares in conversion | 4,162,200 | ||||||
Mandatorily redeemable preferred stock, effective conversion price per share (in dollars per share) | $ 30.03 | ||||||
Minimum dividend considered for additional quarterly payments (in dollars per share) | $ 0.0625 | ||||||
Preferred stock dividend | $ 1,300,000 | $ 1,200,000 | |||||
Mandatorily redeemable preferred shares callable price per share (in dollars per share) | $ 1,000 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) shares in Thousands, $ in Thousands | Feb. 28, 2019 | Feb. 28, 2019 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 11,813 | $ 12,431 | |
Tax benefit for issuance of share-based awards | 3,000 | $ 2,900 | |
Total unrecognized compensation cost related to nonvested share-based awards | $ 109,900 | $ 109,900 | |
Employee service share-based compensation, unrecognized compensation costs on nonvested awards, weighted average period of recognition | 3 years | ||
Potential maximum increase to common shares outstanding from restricted stock and other shares (in shares) | 21,107 | 21,107 | |
Restricted cash awards, cost expected to be recognized | $ 591,300 | $ 591,300 | |
Restricted cash awards, cost expected to be recognized, period | 3 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) | 715 | 715 | |
Future Service Required | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares, nonvested (in shares) | 1,821 | 1,821 | |
Future Service Required | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares, nonvested (in shares) | 5,958 | 5,958 | |
No Future Service Required | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares, vested (in shares) | 14,434 | 14,434 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Summary Of Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 9,956,133 | $ 10,079,257 | $ 10,288,128 | $ 10,138,979 |
Net unrealized gains on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 544,278 | 542,832 | ||
Net unrealized foreign exchange losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (162,448) | (193,402) | ||
Net unrealized gains (losses) on instrument specific credit risk | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 12,101 | (5,728) | ||
Net unrealized gains on cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | 219 | 470 | ||
Net minimum pension liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | (55,531) | (55,886) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Equity | $ 338,619 | $ 288,286 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income Reclassifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | $ 1,195,012 | $ 1,161,111 |
Reclassification for the period, net of tax | (1,778) | (5,821) |
Net unrealized losses on available for sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification for the period, tax | (377) | (5) |
Net unrealized gains (losses) on instrument specific credit risk | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification for the period, tax | (99) | 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 | (355) | (462) |
Reclassification for the period, tax | (119) | (151) |
Other pension | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification for the period, net of tax | 0 | (5,344) |
Reclassification for the period, tax | 0 | 0 |
Other | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | 53,831 | 53,968 |
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 | (1,129) | (15) |
Principal transactions | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | 246,182 | 145,663 |
Principal transactions | Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains (losses) on instrument specific credit risk | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | $ (294) | $ 0 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Narrative) (Details) - German Plan - Pension Plan - Jefferies Bache Limited € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | |
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 | $ | $ 5.3 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Schedule of Components of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 569,987 | $ 728,416 |
Revenue from other sources | 625,025 | 432,695 |
Total revenues | 1,195,012 | 1,161,111 |
Commissions and other fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 147,134 | 147,902 |
Total revenues | 147,134 | 147,902 |
Investment banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 285,596 | 439,991 |
Total revenues | 285,596 | 439,991 |
Manufacturing revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 75,425 | 98,365 |
Total revenues | 75,425 | 98,365 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 61,832 | 42,158 |
Principal transactions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from other sources | 246,182 | 145,663 |
Total revenues | 246,182 | 145,663 |
Interest income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from other sources | 386,844 | 275,222 |
Total revenues | 386,844 | 275,222 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from other sources | $ (8,001) | $ 11,810 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 569,987 | $ 728,416 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 449,092 | 649,431 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 103,727 | 61,583 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 17,168 | 17,402 |
Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 447,394 | 599,509 |
Reportable Segments | Jefferies Group | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 326,757 | 520,854 |
Reportable Segments | Jefferies Group | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 103,493 | 61,328 |
Reportable Segments | Jefferies Group | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 17,144 | 17,327 |
Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 122,785 | 128,907 |
Reportable Segments | Merchant Banking | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 122,527 | 128,577 |
Reportable Segments | Merchant Banking | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 234 | 255 |
Reportable Segments | Merchant Banking | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 24 | 75 |
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 |
Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (192) | 0 |
Consolidation adjustments | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (192) | 0 |
Consolidation adjustments | Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Consolidation adjustments | Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Equities | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 151,869 | 151,630 |
Equities | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 152,061 | 151,630 |
Equities | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Equities | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Equities | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | (192) | 0 |
Fixed Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,068 | 2,958 |
Fixed Income | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 3,068 | 2,958 |
Fixed Income | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Fixed Income | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Fixed Income | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Capital markets | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 105,114 | 248,834 |
Investment Banking - Capital markets | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 105,114 | 248,834 |
Investment Banking - Capital markets | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Capital markets | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Capital markets | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Advisory | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 180,482 | 191,157 |
Investment Banking - Advisory | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 180,482 | 191,157 |
Investment Banking - Advisory | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Advisory | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Investment Banking - Advisory | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Asset Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 6,669 | 4,930 |
Asset Management | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 6,669 | 4,930 |
Asset Management | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Asset Management | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Asset Management | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Manufacturing revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 75,425 | 98,365 |
Manufacturing revenues | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Manufacturing revenues | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 75,425 | 98,365 |
Manufacturing revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Manufacturing revenues | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Oil and gas revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 36,365 | 20,330 |
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 | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 36,365 | 20,330 |
Oil and gas revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Oil and gas revenues | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 10,995 | 10,212 |
Other revenues | Reportable Segments | Jefferies Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other revenues | Reportable Segments | Merchant Banking | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 10,995 | 10,212 |
Other revenues | Reportable Segments | Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0 | 0 |
Other revenues | Consolidation adjustments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Receivables related to revenue from contracts with customers | $ 247.1 | $ 250.6 | |
Deferred revenue | 11.5 | 14.2 | |
Deferred revenue, revenue recognized | 7.6 | $ 4.9 | |
Capitalized contract cost | 4 | $ 4.7 | |
Expenses related to capitalized costs to fulfill a contract | 2.1 | 2.4 | |
Jefferies Group | |||
Disaggregation of Revenue [Line Items] | |||
Revenue related to performance obligation satisfied | 14.7 | 11.7 | |
Revenue associated with distribution services, a portion of which related to prior period | $ 4.9 | $ 4.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 248,500 | $ 251,400 | |
Interest included in unrecognized tax benefits | 57,500 | 54,100 | |
Tax Cuts and Jobs Act of 2017, measurement period adjustment, income tax benefit | 6,700 | ||
Provision for income taxes | $ 2,302 | $ (48,429) | |
Effective tax rate | 4.70% | ||
Decrease of income tax provision | $ 43,900 | ||
Jefferies Group | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 177,600 | $ 174,900 |
Common Share and Earnings Per_3
Common Share and Earnings Per Common Share (Earnings Per Share Computation) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Numerator for earnings per share: | ||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 44,811 | $ 124,525 |
Allocation of earnings to participating securities | (255) | (499) |
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 44,556 | 124,026 |
Adjustment to allocation of earnings to participating securities related to diluted shares | (7) | (1) |
Mandatorily redeemable convertible preferred share dividends | 0 | 1,172 |
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 44,549 | $ 125,197 |
Denominator for earnings per share: | ||
Weighted average common shares outstanding | 304,533 | 356,576 |
Denominator for basic earnings per share – weighted average shares | 315,175 | 366,427 |
Mandatorily redeemable convertible preferred shares (in shares) | 0 | 4,162 |
Denominator for diluted earnings (loss) per share (in shares) | 318,752 | 373,461 |
Weighted average shares of participating securities (in shares) | 1,831 | 1,317 |
Restricted Stock with Future Service Required | ||
Denominator for earnings per share: | ||
Weighted average shares of restricted stock outstanding with future service required | (1,828) | (1,285) |
Restricted Stock Units with No Future Service Required | ||
Denominator for earnings per share: | ||
Weighted average RSUs outstanding with no future service required (in shares) | 12,470 | 11,136 |
Stock options | ||
Denominator for earnings per share: | ||
Dilutive effect of share-based payment awards (in shares) | 0 | 30 |
Restricted Stock Units | Senior Executive Compensation Plan | ||
Denominator for earnings per share: | ||
Dilutive effect of share-based payment awards (in shares) | 3,577 | 2,842 |
Common Share and Earnings Per_4
Common Share and Earnings Per Common Share (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | |
Feb. 28, 2019 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Share repurchase program, authorized amount | $ 500,000,000 | |
Stock repurchased during period (in shares) | 9.6 | |
Stock repurchased during period | $ 194,700,000 | |
Remaining authorized repurchase amount | $ 305,300,000 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Commitments and Contingencies) (Details) $ in Millions | Feb. 28, 2019USD ($) |
Commitments And Guarantee Obligations [Line Items] | |
2019 | $ 11,612.3 |
2020 | 153.6 |
2021 and 2022 | 146.2 |
2023 and 2024 | 34.9 |
2025 and Later | 509.8 |
Maximum Payout | $ 12,456.8 |
Guarantor obligation settled period | 3 days |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | $ 17.2 |
2020 | 148.6 |
2021 and 2022 | 1.3 |
2023 and 2024 | 0 |
2025 and Later | 9.8 |
Maximum Payout | 176.9 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 250 |
2020 | 5 |
2021 and 2022 | 54 |
2023 and 2024 | 30 |
2025 and Later | 500 |
Maximum Payout | 839 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 215.4 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 215.4 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 6,225.6 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 6,225.6 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 4,738.8 |
2020 | 0 |
2021 and 2022 | 0 |
2023 and 2024 | 0 |
2025 and Later | 0 |
Maximum Payout | 4,738.8 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2019 | 165.3 |
2020 | 0 |
2021 and 2022 | 90.9 |
2023 and 2024 | 4.9 |
2025 and Later | 0 |
Maximum Payout | 261.1 |
Forward starting securities purchased under agreements to resell settled | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | 6,225.4 |
Forward starting securities purchased under agreements to repurchase settled | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | $ 4,736 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees (Narrative) (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2019 | Nov. 30, 2018 | |
Commitments Contingencies And Guarantees [Line Items] | ||
Loan commitments outstanding to clients | $ 584,000,000 | |
Fair value of derivative contracts meeting the definition of a guarantee | 161,700,000 | |
Contractual obligations | $ 12,456,800,000 | |
Standby Letters of Credit | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Expiration period maximum | 1 year | |
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 |
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 Group | Standby Letters of Credit | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Letters of credit | 37,100,000 | |
Other subsidiaries | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Letters of credit | 1,600,000 | |
Jefferies Capital Partners LLC and Its Private Equity Funds | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Equity commitments | 17,900,000 | |
Other Investments | ||
Commitments Contingencies And Guarantees [Line Items] | ||
Equity commitments | $ 31,800,000 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees (Guarantees) (Details) - Derivative Notional Amount $ in Millions | Feb. 28, 2019USD ($) |
Derivative contracts – non-credit related | |
Guarantee Obligations [Line Items] | |
2019 | $ 9,764.7 |
2020 | 2,569.7 |
2021 and 2022 | 4,148.7 |
2023 and 2024 | 281.8 |
2025 and Later | 332.3 |
Notional/ Maximum Payout | 17,097.2 |
Written derivative contracts – credit related | |
Guarantee Obligations [Line Items] | |
2019 | 0 |
2020 | 32.4 |
2021 and 2022 | 1.5 |
2023 and 2024 | 61 |
2025 and Later | 0 |
Notional/ Maximum Payout | 94.9 |
Derivatives | |
Guarantee Obligations [Line Items] | |
2019 | 9,764.7 |
2020 | 2,602.1 |
2021 and 2022 | 4,150.2 |
2023 and 2024 | 342.8 |
2025 and Later | 332.3 |
Notional/ Maximum Payout | $ 17,192.1 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Millions | Feb. 28, 2019USD ($) |
Net Capital Requirements [Line Items] | |
Net Capital | $ 1,411.6 |
Excess Net Capital | $ 1,303.2 |
Other Fair Value Information (D
Other Fair Value Information (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Nov. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 530,484 | $ 387,492 |
Long-term debt | 7,685,908 | 7,617,563 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 699,780 | 680,015 |
Short-term borrowings | 530,484 | 387,492 |
Long-term debt | 6,934,930 | 6,931,393 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 697,333 | 676,152 |
Short-term borrowings | 530,484 | 387,492 |
Long-term debt | $ 6,853,309 | $ 6,826,503 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | |
Private Equity Related Funds | |||
Related Party Transaction [Line Items] | |||
Loans to and/or equity investments in related funds | $ 31.6 | $ 35.5 | |
Net gains (losses) from private equity related funds | (4.1) | $ 7 | |
Officers and Employees | |||
Related Party Transaction [Line Items] | |||
Loans outstanding to related party | 48.3 | 49.3 | |
Berkadia | Affiliated Entity | Jefferies Group | |||
Related Party Transaction [Line Items] | |||
Purchase commitment | 578.5 | 723.8 | |
FXCM | Payables, expense accruals and other liabilities | Affiliated Entity | Jefferies Group | |||
Related Party Transaction [Line Items] | |||
OTC foreign exchange contracts | $ 13.8 | $ 9.9 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | Jun. 05, 2018USD ($) | Feb. 28, 2019USD ($)director | Mar. 31, 2018USD ($) | Jun. 04, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income allocated to redeemable noncontrolling interests | $ (138) | $ 14,796 | ||
Income from discontinued operations before income taxes | 54,400 | |||
Income related to associated companies | 27,313 | 32,100 | ||
Consolidated income before income taxes | $ 49,317 | 37,763 | ||
National Beef | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 79.00% | |||
Equity method investment, ownership percentage | 31.00% | 31.00% | ||
Income related to associated companies | $ 27,105 | 0 | ||
Distributions received | $ 25,600 | |||
National Beef | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 100.00% | |||
Number of directors appointed by Company | director | 2 | |||
Lockup period related to divestiture of businesses | 5 years | |||
Income allocated to redeemable noncontrolling interests | $ 14,450 | |||
Consolidated income before income taxes | $ 94,500 | |||
Marfrig Global Foods S.A. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 51.00% | |||
Ownership percentage to be acquired further from other equity owners | 3.00% | |||
Discontinued operations, disposed of by sale | National Beef | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership percentage | 48.00% | |||
Cash from sale of subsidiary | $ 907,700 |
Discontinued Operations (Summar
Discontinued Operations (Summary of discontinued operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Expenses: | ||
Income tax provision | $ 0 | $ 15,934 |
Income from discontinued operations, net of income tax provision | $ 0 | 52,957 |
National Beef | Discontinued operations, disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 1,785,358 | |
Expenses: | ||
Compensation and benefits | 10,207 | |
Cost of sales | 1,670,776 | |
Interest expense | 2,109 | |
Depreciation and amortization | 25,519 | |
Selling, general and other expenses | 7,856 | |
Total expenses | 1,716,467 | |
Income from discontinued operations before income taxes | 68,891 | |
Income tax provision | 15,934 | |
Income from discontinued operations, net of income tax provision | 52,957 | |
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 | 1,781,920 | |
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 | 68 | |
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 | $ 3,370 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Feb. 28, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Oct. 01, 2018 | Jun. 05, 2018 | Jun. 04, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Interest expense | $ 23,018 | $ 21,498 | ||||
Parent Company interest | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest expense | $ 14,800 | 14,700 | ||||
Discontinued operations, disposed of by sale | National Beef | ||||||
Segment Reporting Information [Line Items] | ||||||
Ownership percentage | 48.00% | |||||
Disposal group, disposed of by sale, not discontinued operations | Garcadia | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of equity method investment for sale | 100.00% | |||||
National Beef | ||||||
Segment Reporting Information [Line Items] | ||||||
Ownership percentage | 79.00% | |||||
Equity method investment, ownership percentage | 31.00% | 31.00% | ||||
Berkadia | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | |||||
Merchant Banking | Reportable Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest expense | $ 8,300 | $ 6,800 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net Revenues | $ 828,443 | $ 895,435 |
Consolidated income before income taxes | 49,317 | 37,763 |
Depreciation and amortization | 33,934 | 28,160 |
Parent Company interest | ||
Segment Reporting Information [Line Items] | ||
Consolidated income before income taxes | (14,762) | (14,746) |
LAM and Berkadia Transferred | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | (36,600) | |
Consolidated income before income taxes | (20,700) | |
FXCM | ||
Segment Reporting Information [Line Items] | ||
Consolidated income before income taxes | (2,300) | 400 |
Principal transactions | 500 | 8,600 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 826,249 | 898,214 |
Consolidated income before income taxes | 61,347 | 51,956 |
Reportable Segments | Jefferies Group | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 685,718 | 821,246 |
Consolidated income before income taxes | 62,585 | 122,738 |
Depreciation and amortization | 17,662 | 16,366 |
Reportable Segments | Merchant Banking | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 136,338 | 73,901 |
Consolidated income before income taxes | 20,105 | (49,257) |
Depreciation and amortization | 15,417 | 10,924 |
Reportable Segments | Corporate | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 4,193 | 3,067 |
Consolidated income before income taxes | (21,343) | (21,525) |
Depreciation and amortization | 855 | 870 |
Consolidation adjustments | ||
Segment Reporting Information [Line Items] | ||
Net Revenues | 2,194 | (2,779) |
Consolidated income before income taxes | $ 2,732 | $ 553 |