Cover
Cover - shares | 9 Months Ended | |
Aug. 31, 2020 | Oct. 08, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5721 | |
Entity Registrant Name | JEFFERIES FINANCIAL GROUP INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-2615557 | |
Entity Address, Address Line One | 520 Madison Avenue | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 460-1900 | |
Title of 12(b) Security | Common Shares, par value $1 per share | |
Trading Symbol | JEF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 255,434,677 | |
Entity Central Index Key | 0000096223 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 | |
ASSETS | |||
Cash and cash equivalents | $ 8,426,832 | $ 7,678,821 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 986,117 | 796,797 | |
Financial instruments owned, at fair value (including securities pledged of $12,793,080 and $12,058,522): | 17,986,721 | 16,895,741 | |
Loans to and investments in associated companies | 1,539,356 | 1,652,957 | |
Securities borrowed | 7,268,413 | 7,624,642 | |
Securities purchased under agreements to resell | 5,327,391 | 4,299,598 | |
Securities received as collateral, at fair value | 4,413 | 9,500 | |
Receivables | 5,029,136 | 5,744,106 | |
Property, equipment and leasehold improvements, net | 915,896 | ||
Property, equipment and leasehold improvements, net | 385,029 | ||
Intangible assets, net and goodwill | 1,914,542 | 1,922,934 | |
Other assets | 2,375,171 | 2,450,109 | |
Total assets | [1] | 51,773,988 | 49,460,234 |
LIABILITIES | |||
Short-term borrowings | 805,381 | 548,490 | |
Financial instruments sold, not yet purchased, at fair value | 10,994,556 | 10,532,460 | |
Securities loaned | 1,929,737 | 1,525,140 | |
Securities sold under agreements to repurchase | 7,258,972 | 7,504,670 | |
Other secured financings | 3,376,257 | 3,070,611 | |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 | |
Lease liabilities | 598,363 | 0 | |
Payables, expense accruals and other liabilities | 8,792,748 | 8,179,013 | |
Long-term debt | 8,419,837 | 8,337,061 | |
Total liabilities | [1] | 42,180,264 | 39,706,945 |
Commitments and contingencies | |||
MEZZANINE EQUITY | |||
Redeemable noncontrolling interests | 24,273 | 26,605 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 259,245,885 and 291,644,153 shares issued and outstanding, after deducting 57,216,727 and 24,818,459 shares held in treasury | 259,246 | 291,644 | |
Additional paid-in capital | 3,083,137 | 3,627,711 | |
Accumulated other comprehensive income (loss) | (196,407) | (273,039) | |
Retained earnings | 6,264,689 | 5,933,389 | |
Total Jefferies Financial Group Inc. shareholders' equity | 9,410,665 | 9,579,705 | |
Noncontrolling interests | 33,786 | 21,979 | |
Total equity | 9,444,451 | 9,601,684 | |
Total | $ 51,773,988 | $ 49,460,234 | |
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 | |
ASSETS | |||
Securities pledged | $ 12,793,080 | $ 12,058,522 | |
EQUITY | |||
Common shares, par value (in dollars 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) | 259,245,885 | 291,644,153 | |
Treasury stock (in shares) | 57,216,727 | 24,818,459 | |
Assets | [1] | $ 51,773,988 | $ 49,460,234 |
Liabilities | [1] | 42,180,264 | 39,706,945 |
Variable interest entities, primary beneficiary | |||
Assets | 637,500 | 645,800 | |
Liabilities | $ 3,377,300 | $ 3,071,100 | |
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Revenues: | ||||
Revenues | $ 1,825,499 | $ 1,223,156 | $ 4,895,294 | $ 3,928,539 |
Interest expense | 21,512 | 23,663 | 64,226 | 69,819 |
Net revenues | 1,616,170 | 856,778 | 4,150,087 | 2,786,878 |
Expenses: | ||||
Compensation and benefits | 760,837 | 446,882 | 2,029,497 | 1,367,034 |
Cost of sales | 82,657 | 85,773 | 235,871 | 233,109 |
Floor brokerage and clearing fees | 66,743 | 50,858 | 201,403 | 163,113 |
Depreciation and amortization | 39,520 | 39,880 | 119,356 | 110,600 |
Selling, general and other expenses | 237,712 | 268,742 | 784,668 | 718,910 |
Total expenses | 1,208,981 | 915,798 | 3,435,021 | 2,662,585 |
Income (loss) before income taxes and income (loss) related to associated companies | 407,189 | (59,020) | 715,066 | 124,293 |
Income (loss) related to associated companies | 5,053 | 72,283 | (69,523) | 121,766 |
Income before income taxes | 412,242 | 13,263 | 645,543 | 246,059 |
Income tax provision (benefit) | 107,403 | (36,131) | 185,138 | (522,626) |
Net income | 304,839 | 49,394 | 460,405 | 768,685 |
Net (income) loss attributable to the noncontrolling interests | 324 | 116 | 5,033 | (759) |
Net (income) loss attributable to the redeemable noncontrolling interests | 650 | 242 | 1,130 | (47) |
Preferred stock dividends | (1,404) | (1,275) | (4,230) | (3,827) |
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 304,409 | $ 48,477 | $ 462,338 | $ 764,052 |
Basic earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Net income (in dollars per share) | $ 1.08 | $ 0.16 | $ 1.58 | $ 2.44 |
Diluted earnings per common share attributable to Jefferies Financial Group Inc. common shareholders: | ||||
Net income (in dollars per share) | $ 1.07 | $ 0.15 | $ 1.57 | $ 2.41 |
Commissions and other fees | ||||
Revenues: | ||||
Revenues | $ 204,032 | $ 171,000 | $ 626,434 | $ 493,560 |
Principal transactions | ||||
Revenues: | ||||
Revenues | 623,283 | (20,920) | 1,421,485 | 465,451 |
Investment banking | ||||
Revenues: | ||||
Revenues | 615,837 | 410,796 | 1,595,330 | 1,126,479 |
Interest income | ||||
Revenues: | ||||
Revenues | 219,843 | 410,467 | 782,941 | 1,243,278 |
Manufacturing revenues | ||||
Revenues: | ||||
Revenues | 119,751 | 82,565 | 282,737 | 248,227 |
Other | ||||
Revenues: | ||||
Revenues | 42,753 | 169,248 | 186,367 | 351,544 |
Jefferies Group | ||||
Revenues: | ||||
Interest expense | $ 209,329 | $ 366,378 | $ 745,207 | $ 1,141,661 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 304,839 | $ 49,394 | $ 460,405 | $ 768,685 |
Other comprehensive income (loss): | ||||
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $(7), $58, $141 and $196 | (22) | 198 | 411 | 577 |
Less: reclassification adjustment for net (gains) losses included in net income, net of income tax provision (benefit) of $0, $0, $0 and $(545,054) | 0 | 0 | 0 | (543,178) |
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $(7), $58, $141 and $545,250 | (22) | 198 | 411 | (542,601) |
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $24,621, $(9,597), $13,636 and $(12,314) | 70,758 | (30,070) | 35,815 | (39,263) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income, net of income tax provision (benefit) of $0,$0, $0 and $0 | 0 | 0 | 0 | 0 |
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $24,621, $(9,597), $13,636 and $(12,314) | 70,758 | (30,070) | 35,815 | (39,263) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(45,669), $1,984, $13,437 and $8,791 | (133,915) | 5,889 | 39,373 | 26,040 |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income, net of income tax provision (benefit) of $(224), $0, $306 and $(166) | 656 | 0 | (898) | 493 |
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(45,445), $1,984, $13,131 and $8,957 | (133,259) | 5,889 | 38,475 | 26,533 |
Net unrealized gains (losses) on cash flow hedges arising during the period, net of income tax provision (benefit) of $0, $0, $0 and $0 | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0, $0 and $161 | 0 | 0 | 0 | (470) |
Net change in unrealized cash flow hedges gains (losses), net of income tax provision (benefit) of $0, $0, $0 and $(161) | 0 | 0 | 0 | (470) |
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $0, $0, $0 and $0 | 0 | 0 | 0 | 0 |
Reclassification adjustment for pension (gains) losses included in net income, net of income tax provision (benefit) of $(220), $(120), $(658) and $(361) | 644 | 355 | 1,931 | 1,063 |
Net change in pension liability, net of income tax provision (benefit) of $220, $120, $658 and $361 | 644 | 355 | 1,931 | 1,063 |
Other comprehensive income (loss), net of income taxes | (61,879) | (23,628) | 76,632 | (554,738) |
Comprehensive income | 242,960 | 25,766 | 537,037 | 213,947 |
Comprehensive (income) loss attributable to the noncontrolling interests | 324 | 116 | 5,033 | (759) |
Comprehensive (income) loss attributable to the redeemable noncontrolling interests | 650 | 242 | 1,130 | (47) |
Preferred stock dividends | (1,404) | (1,275) | (4,230) | (3,827) |
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 242,530 | $ 24,849 | $ 538,970 | $ 209,314 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit) | $ (7) | $ 58 | $ 141 | $ 196 |
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | 0 | (545,054) |
Net change in unrealized holding gains (losses) on investments, tax provision (benefit) | (7) | 58 | 141 | 545,250 |
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit) | 24,621 | (9,597) | 13,636 | (12,314) |
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | 0 | 0 |
Net change in unrealized foreign exchange gains (losses), tax provision (benefit) | 24,621 | (9,597) | 13,636 | (12,314) |
Net unrealized gains (losses) on instrument specific credit risk arising during the period, tax provision (benefit) | (45,669) | 1,984 | 13,437 | 8,791 |
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), tax provision (benefit) | (224) | 0 | 306 | (166) |
Net change in unrealized instrument specific credit risk gains (losses), tax provision (benefit) | (45,445) | 1,984 | 13,131 | 8,957 |
Net unrealized gains (losses) on cash flow hedges arising during the period, tax provision (benefit) | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for cash flow hedges (gains) losses included in net income (loss), tax provision (benefit) | 0 | 0 | 0 | 161 |
Net change in unrealized cash flow hedges gains (losses), tax provision (benefit) | 0 | 0 | 0 | (161) |
Net pension gains (losses) arising during the period, tax provision (benefit) | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for pension (gains) losses included in net income (loss), tax provision (benefit) | (220) | (120) | (658) | (361) |
Net change in pension liability, tax provision (benefit) | $ 220 | $ 120 | $ 658 | $ 361 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Net cash flows from operating activities: | ||
Net income | $ 460,405 | $ 768,685 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Deferred income tax provision | 106,501 | 8,148 |
Recognition of accumulated other comprehensive income lodged taxes | 0 | (544,583) |
Depreciation and amortization of real estate, property, equipment and leasehold improvements | 109,877 | 100,679 |
Other amortization | 7,942 | (13,252) |
Share-based compensation | 29,554 | 37,036 |
Provision for doubtful accounts | 32,344 | 21,375 |
(Income) loss related to associated companies | 91,805 | (193,380) |
Distributions from associated companies | 54,916 | 249,895 |
Net (gains) losses related to property and equipment, and other assets | 59,125 | (56,706) |
Lease expense | 67,555 | |
Lease payments | (59,155) | |
Net change in: | ||
Securities deposited with clearing and depository organizations | (20,955) | (153) |
Financial instruments owned, at fair value | (1,038,140) | 123,734 |
Securities borrowed | 382,907 | (1,410,295) |
Securities purchased under agreements to resell | (979,989) | (1,772,192) |
Receivables from brokers, dealers and clearing organizations | 261,569 | 268,321 |
Receivables from customers of securities operations | 524,860 | 329,504 |
Other receivables | (42,659) | (47,657) |
Other assets | (153,557) | (100,165) |
Financial instruments sold, not yet purchased, at fair value | 366,737 | 921,280 |
Securities loaned | 387,692 | 387,016 |
Securities sold under agreements to repurchase | (260,144) | (346,031) |
Payables to brokers, dealers and clearing organizations | (81,905) | (169,021) |
Payables to customers of securities operations | 128,167 | 422,840 |
Trade payables, expense accruals and other liabilities | 651,918 | (328,902) |
Other | 220,488 | 92,502 |
Net cash provided by (used for) operating activities | 1,307,858 | (1,251,322) |
Net cash flows from investing activities: | ||
Acquisitions of property, equipment and leasehold improvements, and other assets | (146,416) | (164,165) |
Proceeds from disposals of property and equipment, and other assets | 4,847 | 20,134 |
Acquisitions, net of cash acquired | 0 | 100,743 |
Advances on notes, loans and other receivables | (601,068) | (333,198) |
Collections on notes, loans and other receivables | 546,676 | 202,516 |
Loans to and investments in associated companies | (1,390,779) | (172,493) |
Capital distributions and loan repayments from associated companies | 1,372,779 | 31,269 |
Purchases of investments (other than short-term) | (906) | (2,995) |
Proceeds from maturities of investments | 2,025 | 531,104 |
Proceeds from sales of investments | 19,939 | 890,259 |
Other | 4,499 | 0 |
Net cash provided by (used for) investing activities | (188,404) | 1,103,174 |
Net cash flows from financing activities: | ||
Issuance of debt, net of issuance costs | 2,362,574 | 2,493,735 |
Repayment of debt | (2,121,748) | (2,141,271) |
Net change in other secured financings | 303,893 | 972,296 |
Net change in bank overdrafts | (37,758) | (9,028) |
Distributions to noncontrolling interests | (1,719) | (2,481) |
Contributions from noncontrolling interests | 18,558 | 6,771 |
Purchase of common shares for treasury | (623,469) | (372,849) |
Dividends paid | (122,871) | (112,455) |
Other | 821 | 792 |
Net cash provided by (used for) financing activities | (221,719) | 835,510 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 19,723 | (18,243) |
Net increase in cash, cash equivalents and restricted cash | 917,458 | 669,119 |
Cash, cash equivalents and restricted cash at beginning of period | 8,480,435 | 6,012,662 |
Cash, cash equivalents and restricted cash at end of period | $ 9,397,893 | $ 6,681,781 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 8,426,832 | $ 6,011,350 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 930,174 | 623,363 |
Other assets | 40,887 | 47,068 |
Total cash, cash equivalents and restricted cash | $ 9,397,893 | $ 6,681,781 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Shares $1 Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Subtotal | Noncontrolling Interests |
Beginning Balance at 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 attributable to Jefferies Financial Group Inc. common shareholders | 764,052 | 764,052 | 764,052 | ||||
Net income (loss) attributable to the noncontrolling interests | 759 | 0 | 759 | ||||
Other comprehensive loss, net of taxes | (554,738) | (554,738) | (554,738) | ||||
Contributions from noncontrolling interests | 6,771 | 0 | 6,771 | ||||
Distributions to noncontrolling interests | (2,481) | 0 | (2,481) | ||||
Issuance of shares for HomeFed acquisition | 181,780 | 9,295 | 168,585 | 177,880 | 3,900 | ||
Share-based compensation expense | 37,036 | 37,036 | 37,036 | ||||
Change in fair value of redeemable noncontrolling interests | (1,437) | (1,437) | (1,437) | ||||
Purchase of common shares for treasury | (355,280) | (17,891) | (337,389) | (355,280) | |||
Dividends | (118,956) | (118,956) | (118,956) | ||||
Other | 11,018 | 949 | 10,070 | 11,019 | (1) | ||
Ending Balance at Aug. 31, 2019 | 10,047,781 | 299,868 | 3,731,712 | (266,452) | 6,255,314 | 10,020,442 | 27,339 |
Beginning Balance at May. 31, 2019 | 9,877,361 | 290,687 | 3,559,156 | (242,824) | 6,246,852 | 9,853,871 | 23,490 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 48,477 | 48,477 | 48,477 | ||||
Net income (loss) attributable to the noncontrolling interests | (116) | 0 | (116) | ||||
Other comprehensive loss, net of taxes | (23,628) | (23,628) | (23,628) | ||||
Contributions from noncontrolling interests | 66 | 0 | 66 | ||||
Issuance of shares for HomeFed acquisition | 181,780 | 9,295 | 168,585 | 177,880 | 3,900 | ||
Share-based compensation expense | 12,150 | 12,150 | 12,150 | ||||
Change in fair value of redeemable noncontrolling interests | (2,558) | (2,558) | (2,558) | ||||
Purchase of common shares for treasury | (8,141) | (401) | (7,740) | (8,141) | |||
Dividends | (40,015) | (40,015) | (40,015) | ||||
Other | 2,405 | 287 | 2,119 | 2,406 | (1) | ||
Ending Balance at Aug. 31, 2019 | 10,047,781 | 299,868 | 3,731,712 | (266,452) | 6,255,314 | 10,020,442 | 27,339 |
Beginning Balance at Nov. 30, 2019 | 9,601,684 | 291,644 | 3,627,711 | (273,039) | 5,933,389 | 9,579,705 | 21,979 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 462,338 | 462,338 | 462,338 | ||||
Net income (loss) attributable to the noncontrolling interests | (5,033) | 0 | (5,033) | ||||
Other comprehensive loss, net of taxes | 76,632 | 76,632 | 76,632 | ||||
Contributions from noncontrolling interests | 18,558 | 0 | 18,558 | ||||
Distributions to noncontrolling interests | (1,719) | 0 | (1,719) | ||||
Share-based compensation expense | 29,554 | 29,554 | 29,554 | ||||
Change in fair value of redeemable noncontrolling interests | 3,875 | 3,875 | 3,875 | ||||
Purchase of common shares for treasury | (622,255) | (32,756) | (589,499) | (622,255) | |||
Dividends | (131,038) | (131,038) | (131,038) | ||||
Other | 11,855 | 358 | 11,496 | 11,854 | 1 | ||
Ending Balance at Aug. 31, 2020 | 9,444,451 | 259,246 | 3,083,137 | (196,407) | 6,264,689 | 9,410,665 | 33,786 |
Beginning Balance at May. 31, 2020 | 9,361,113 | 267,111 | 3,191,893 | (134,528) | 6,002,078 | 9,326,554 | 34,559 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | 304,409 | 304,409 | 304,409 | ||||
Net income (loss) attributable to the noncontrolling interests | (324) | 0 | (324) | ||||
Other comprehensive loss, net of taxes | (61,879) | (61,879) | (61,879) | ||||
Contributions from noncontrolling interests | 1,054 | 0 | 1,054 | ||||
Distributions to noncontrolling interests | (1,503) | 0 | (1,503) | ||||
Share-based compensation expense | 8,870 | 8,870 | 8,870 | ||||
Purchase of common shares for treasury | (128,217) | (7,888) | (120,329) | (128,217) | |||
Dividends | (41,798) | (41,798) | (41,798) | ||||
Other | 2,726 | 23 | 2,703 | 2,726 | 0 | ||
Ending Balance at Aug. 31, 2020 | $ 9,444,451 | $ 259,246 | $ 3,083,137 | $ (196,407) | $ 6,264,689 | $ 9,410,665 | $ 33,786 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in dollars per share) | $ 0.15 | $ 0.125 | $ 0.45 | $ 0.375 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Aug. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Jefferies Financial Group Inc. ("Jefferies," "we," "our" 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: Investment Banking and Capital Markets, and Asset Management. Investment Banking and Capital Markets includes investment banking, capital markets and other related services. Investment banking provides underwriting and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Capital markets 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. Our Asset Management segment includes both the operations of Leucadia Asset Management ("LAM") as well as the asset management operations within Jefferies Group. Within Asset Management, we manage, invest in and provide services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. Asset Management offers institutional clients an innovative range of investment strategies through its affiliated managers. Merchant Banking is where we own a portfolio of businesses and investments, including 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); real estate, primarily HomeFed LLC ("HomeFed"); Idaho Timber (manufacturing); and FXCM Group, LLC ("FXCM") (provider of online foreign exchange trading services). Our Merchant Banking businesses and investments also included National Beef Packing Company, LLC ("National Beef") (beef processing), prior to its sale in November 2019 and Spectrum Brands Holdings, Inc. ("Spectrum Brands") (consumer products), prior to its distribution to our shareholders in October 2019. 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 own approximately 42% of the common shares of Linkem, as well as convertible preferred shares and warrants. If all of our convertible preferred stock was converted and warrants were exercised, it would increase our ownership to approximately 56% of Linkem's common equity at August 31, 2020. Linkem provides residential broadband services in Italy using LTE technologies deployed over the 3.5 GHz spectrum band and is preparing to upgrade its service to 5G. 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. HomeFed is our 100% owned consolidated subsidiary that owns and develops residential and mixed use real estate properties. Prior to July 1, 2019, we owned approximately 70% of HomeFed and accounted for it under the equity method. On July 1, 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. Idaho Timber is our 100% owned 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 February 15, 2021 ($71.6 million principal outstanding at August 31, 2020), a 50% voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2020 | |
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 Annual Report on Form 10-K for the year ended November 30, 2019 ("2019 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. During the nine months ended August 31, 2020, other than the following, there were no significant changes made to the Company's significant accounting policies. The accounting policy changes are attributable to the adoption of the Financial Accounting Standards Board ("FASB") guidance on leases (the "new lease standard") on December 1, 2019. These lease policy updates are applied using a modified retrospective approach. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical periods. Lease Accounting For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right of use ("ROU") asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives. The ROU assets are included in Property, equipment and leasehold improvements, net and the lease liabilities are included in Lease liabilities in the Consolidated Statement of Financial Condition. The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease's term and currency of payment. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Lease expense is generally recognized on a straight-line basis over the lease term and included in Selling, general and other expenses in the Consolidated Statement of Operations. See Note 12 for further information. Receivables At August 31, 2020 and November 30, 2019, Receivables include receivables from brokers, dealers and clearing organizations of $2,755.8 million and $3,011.0 million, respectively, and receivables from customers of securities operations of $956.8 million and $1,490.9 million, respectively. Our subsidiary, Foursight Capital, had auto loan receivables of $734.5 million and $741.2 million at August 31, 2020 and November 30, 2019, respectively. Of these amounts, $600.5 million and $621.2 million at August 31, 2020 and November 30, 2019, respectively, were in securitized vehicles. See Notes 6 and 7 for additional information on Foursight Capital's securitization activities. 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 between 620 and 679 and sub-prime with scores below 620. The credit quality classification at August 31, 2020 and November 30, 2019 was approximately 14% and 15% prime, 52% and 53% near-prime and 34% and 32% sub-prime, respectively. Other Investments At August 31, 2020 and November 30, 2019, 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 $104.8 million and $172.8 million, respectively. Impairments recognized on these investments were $0.3 million and $2.3 million during the three months ended August 31, 2020 and 2019, respectively, and $20.9 million and $2.3 million during the nine months ended August 31, 2020 and 2019, respectively . Capitalization of Interest We capitalize interest on qualifying HomeFed real estate assets. During the three and nine months ended August 31, 2020, capitalized interest of $1.6 million and $6.4 million, respectively, was allocated among all of HomeFed's projects that are currently under development. Payables, expense accruals and other liabilities At August 31, 2020 and November 30, 2019, Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $2,546.5 million and $2,621.7 million, respectively, and payables to customers of securities operations of $3,936.8 million and $3,808.6 million, respectively. Supplemental Cash Flow Information For the Nine Months Ended August 31, 2020 August 31, 2019 (In thousands) Cash paid during the year for: Interest $ 880,853 $ 1,257,311 Income tax payments (refunds), net $ (13,514) $ 25,825 During the nine months ended August 31, 2019, we had $178.8 million in non-cash investing activities related to the issuance of common stock for the acquisition of the remaining common stock of HomeFed. In June 2019, we entered into a Membership Interest Purchase Agreement ("MIPA") which provided for each of the owners of National Beef to purchase, in the aggregate, 100% of the ownership interests in Iowa Premium, LLC ("Iowa Premium"). The funds used to acquire Iowa Premium were provided by way of a permitted distribution from National Beef to its owners, of which our proportionate share was approximately $49.0 million. The distribution from National Beef and the acquisition of Iowa Premium are included in our Consolidated Statement of Cash Flows for the nine months ended August 31, 2019. Immediately following the acquisition, we contributed our ownership interest in Iowa Premium to National Beef, which was a non-cash investing activity. Accounting Developments - Accounting Standards Adopted in Current Annual Reporting Period Leases . We adopted the new lease standard on December 1, 2019 using a modified retrospective transition approach. Accordingly, reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. We elected not to reassess whether existing contracts are or contain leases, or the lease classification and initial direct costs of existing leases upon transition. At transition on December 1, 2019, the adoption of this standard resulted in the recognition of operating ROU assets of $545.8 million and operating lease liabilities of $614.9 million reflected in Property, equipment and leasehold improvements, net and Lease liabilities in the Consolidated Statement of Financial Condition, respectively. Finance lease ROU assets and finance lease liabilities were not material and are reflected in Property, equipment and leasehold improvements, net and Lease liabilities in the Consolidated Statement of Financial Condition, respectively. 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. We adopted the guidance in the first quarter of fiscal 2020 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods 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 which simplifies goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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 postretirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. Income Taxes. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The guidance is effective in the first quarter of fiscal 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Reference Rate Reform . In March 2020, the FASB issued new guidance which provides optional exceptions for applying GAAP to contracts, hedge accounting relationships or other transactions affected by reference rate reform. The optional exceptions can be elected through December 31, 2022. We are currently evaluating the impact of applying the optional exceptions on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") of $928.2 million and $586.9 million at August 31, 2020 and November 30, 2019, respectively, by level within the fair value hierarchy (in thousands): August 31, 2020 Level 1 Level 2 Level 3 Counterparty Total Assets: Financial instruments owned, at fair value: Corporate equity securities $ 2,594,722 $ 63,256 $ 77,941 $ — $ 2,735,919 Corporate debt securities — 2,720,644 23,269 — 2,743,913 Collateralized debt obligations and collateralized loan obligations — 68,287 36,122 — 104,409 U.S. government and federal agency securities 3,164,472 92,036 — — 3,256,508 Municipal securities — 358,292 — — 358,292 Sovereign obligations 1,686,522 877,334 — — 2,563,856 Residential mortgage-backed securities — 975,166 28,317 — 1,003,483 Commercial mortgage-backed securities — 1,091,406 4,663 — 1,096,069 Other asset-backed securities — 48,734 63,337 — 112,071 Loans and other receivables — 2,117,162 162,941 — 2,280,103 Derivatives 2,897 2,086,407 52,195 (1,611,815) 529,684 Investments at fair value — 45,156 172,498 — 217,654 FXCM term loan — — 56,542 — 56,542 Total financial instruments owned, at fair value, excluding investments at fair value based on NAV $ 7,448,613 $ 10,543,880 $ 677,825 $ (1,611,815) $ 17,058,503 Loans to and investments in associated $ — $ 8,404 $ 34,688 $ — $ 43,092 Securities received as collateral, at fair value $ 4,413 $ — $ — $ — $ 4,413 Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 2,295,391 $ 12,533 $ 4,367 $ — $ 2,312,291 Corporate debt securities — 1,448,558 148 — 1,448,706 U.S. government and federal agency securities 2,722,907 — — — 2,722,907 Sovereign obligations 1,452,399 1,096,176 — — 2,548,575 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,432,113 46,594 — 1,478,707 Derivatives 1,031 2,207,365 74,620 (1,799,681) 483,335 Total financial instruments sold, not yet purchased, at fair value $ 6,471,728 $ 6,196,745 $ 125,764 $ (1,799,681) $ 10,994,556 Short-term borrowings $ — $ 21,829 $ — $ — $ 21,829 Other secured financings $ — $ — $ 3,402 $ — $ 3,402 Long-term debt $ — $ 891,845 $ 630,260 $ — $ 1,522,105 Obligation to return securities received as collateral, at fair value $ 4,413 $ — $ — $ — $ 4,413 November 30, 2019 Level 1 Level 2 Level 3 Counterparty Total Assets: Financial instruments owned, at fair value: Corporate equity securities $ 2,507,164 $ 218,403 $ 58,426 $ — $ 2,783,993 Corporate debt securities — 2,472,245 7,490 — 2,479,735 Collateralized debt obligations and collateralized loan obligations — 124,225 28,788 — 153,013 U.S. government and federal agency securities 2,101,624 158,618 — — 2,260,242 Municipal securities — 742,326 — — 742,326 Sovereign obligations 1,330,026 1,405,827 — — 2,735,853 Residential mortgage-backed securities — 1,069,066 17,740 — 1,086,806 Commercial mortgage-backed securities — 424,060 6,110 — 430,170 Other asset-backed securities — 303,847 42,563 — 346,410 Loans and other receivables — 2,460,551 114,080 — 2,574,631 Derivatives 2,809 1,833,907 14,889 (1,433,197) 418,408 Investments at fair value — 32,688 205,412 — 238,100 FXCM term loan — — 59,120 — 59,120 Total financial instruments owned, at fair value, excluding investments at fair value based on NAV $ 5,941,623 $ 11,245,763 $ 554,618 $ (1,433,197) $ 16,308,807 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Securities received as collateral, at fair value $ 9,500 $ — $ — $ — $ 9,500 Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 2,755,601 $ 7,438 $ 4,487 $ — $ 2,767,526 Corporate debt securities — 1,471,142 340 — 1,471,482 U.S. government and federal agency securities 1,851,981 — — — 1,851,981 Sovereign obligations 1,363,475 941,065 — — 2,304,540 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,600,228 9,463 — 1,609,691 Derivatives 871 2,066,455 92,057 (1,632,178) 527,205 Total financial instruments sold, not yet purchased, at fair value $ 5,971,928 $ 6,086,328 $ 106,382 $ (1,632,178) $ 10,532,460 Short-term borrowings $ — $ 20,981 $ — $ — $ 20,981 Long-term debt $ — $ 735,216 $ 480,069 $ — $ 1,215,285 Obligation to return securities received as collateral, at fair value $ 9,500 $ — $ — $ — $ 9,500 (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 can be measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Corporate Debt Securities • Investment Grade Corporate Bonds: Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Investment grade corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Investment grade corporate bonds measured using alternative valuation techniques are categorized within Level 2 or Level 3 of the fair value hierarchy and are a limited portion of our investment grade corporate bonds. • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer's subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs") are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third-party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices obtained from external pricing services and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations, with consideration given to the country of issuance, are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities: 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 or Level 3 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • Non-Agency 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. 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 Claim Receivables: Escrow and claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. Derivatives • Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, broker quotes or vanilla option valuation models, such as Black-Scholes, using observable valuation inputs from the principal market or consensus pricing services. Exchange quotes and/or valuation inputs are generally obtained from external vendors and pricing services. Broker quotes are validated directly through observable and tradeable quotes. Listed derivative contracts that use unadjusted exchange close prices are generally categorized within Level 1 of the fair value hierarchy. All other listed derivative contracts are generally categorized within Level 2 of the fair value hierarchy. • Over-the-Counter ("OTC") Derivative Contracts: OTC derivative contracts are generally valued using models, whose inputs reflect assumptions that we believe market participants would use in valuing the derivative in a current transaction. Where available, valuation inputs are calibrated from observable market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy. OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as Black-Scholes, with key inputs including the underlying security price, foreign exchange spot rate, commodity price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Discounted cash flow models are utilized to measure certain OTC derivative contracts including the valuations of our interest rate swaps, which incorporate observable inputs related to interest rate curves, valuations of our foreign exchange forwards and swaps, which incorporate observable inputs related to foreign currency spot rates and forward curves and valuations of our commodity swaps and forwards, which incorporate observable inputs related to commodity spot prices and forward curves. Discounted cash flow models are also utilized to measure certain variable funding note swaps, which are backed by CLOs and 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 August 31, 2020 Equity Long/Short Hedge Funds (2) $ 322,020 $ — Equity Funds (3) 31,477 13,510 Commodity Fund (4) 16,204 — Multi-asset Funds (5) 558,452 — Other Funds (6) 65 — Total $ 928,218 $ 13,510 November 30, 2019 Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 44,576 14,621 Commodity Fund (4) 16,025 — Multi-asset Funds (5) 234,583 — Other Funds (6) 157 — Total $ 586,934 $ 14,621 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in both public and private equity securities in domestic and international markets. At August 31, 2020 and November 30, 2019, 6% and 6%, respectively, of investments in this category 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. 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 (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 August 31, 2020 and November 30, 2019, investments representing approximately 58% and 5%, respectively, of the fair value of investments in this category are redeemable monthly with 30 or 60 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by us and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. Investments at fair value also include our investment in The We Company. We invested $9.0 million in The We Company in 2013 and currently own less than 1% of The We Company. Our interest in The We Company is reflected in Financial instruments owned, at fair value of $9.6 million and $53.8 million at August 31, 2020 and November 30, 2019, respectively. Investment in FXCM Our investment in FXCM and associated companies consists of a senior secured term loan due February 15, 2021 ($71.6 million principal outstanding at August 31, 2020), a 50% voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM. Our investment in the FXCM term loan is reported within Financial instruments owned, at fair value in the Consolidated Statements of Financial Condition. We classify our equity investment in FXCM in the 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 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. Loans to and Investments in Associated Companies Corporate bonds are measured primarily using pricing data from external pricing services and are categorized within Level 2 of the fair value hierarchy. Non-exchange-traded equity warrants with no pricing from external pricing services are generally categorized within Level 3 of the fair value hierarchy. The warrants are measured using the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, interest rate curve, strike price and maturity date. Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell may include embedded call features. The valuation of these instruments is based on review of expected future cash flows, interest rates, funding spreads and the fair value of the underlying collateral. Securities purchased under agreements to resell are categorized within Level 3 of the fair value hierarchy due to limited observability of the embedded derivative and unobservable credit spreads. Other Secured Financings Other secured financings that are accounted for at fair value are classified within Level 3 of the fair value hierarchy. Fair value is based on estimates of future cash flows incorporating assumptions regarding recovery rates. Securities Received as Collateral/Obligations to Return Securities Received as Collateral In connection with securities-for-securities transactions in which we are the lender of securities and are permitted to sell or repledge the securities received as collateral, we report the fair value of the collateral received and the related obligation to return the collateral. Valuation is based on the price of the underlying security and is categorized within Level 1 of the fair value hierarchy. Short-term Borrowings and Long-term Debt Short-term borrowings that are accounted for at fair value include equity-linked notes, which are generally categorized within Level 2 of the fair value hierarchy, as the fair value is based on the price of the underlying equity security. Long-term debt includes variable rate, fixed-to-floating rate, constant maturity swap, digital and Bermudan structured notes. These are valued using various valuation models that incorporate 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. Nonrecurring Fair Value Measurements HomeFed has a 49% membership interest in the RedSky JZ Fulton Investors ("RedSky JZ Fulton Mall") joint venture, which owns a property in Brooklyn, New York. The property consists of 14 separate tax lots, divided into two development sites which may be redeveloped with buildings consisting of up to 540,000 square feet of floor area development rights. During the three months ended February 29, 2020, difficulties were encountered with attempts to refinance debt within the investment. We viewed this, combined with a softening of the Brooklyn, New York real estate market during the quarter, as a triggering event and evaluated HomeFed's equity method investment in RedSky JZ Fulton Mall to determine if there was an impairment. In connection with this evaluation, we obtained an appraisal which reflected a reduction in the value of the investment in comparison to an earlier appraisal obtained shortly before the beginning of the quarter. The appraisal was based off of Level 3 inputs consisting of prices of comparable properties and the appraisal indicated that the value of the property was worth less than the debt outstanding. HomeFed recorded an impairment charge of $55.6 million within Income (loss) related to associated companies during the nine months ended August 31, 2020, which represented all of its carrying value in the joint venture. Due to a decline in oil and gas prices during the second quarter of 2020, Vitesse Energy Finance performed impairment analyses on its proven oil and gas properties in the Denver-Julesburg Basin ("DJ Basin") of Wyoming and Colorado and the Bakken Shale oil field in North Dakota. Vitesse Energy Finance first determined the estimated undiscounted cash flows based on the reserves and costs utilized in its reserve report and then updated those cash flows based on strip pricing as of May 31, 2020. The expected undiscounted future net cash flows were then compared to the end of quarter net carrying value of the oil and gas properties. No impairment of the Bakken Shale oil field assets was necessary as the undiscounted future net cash flows significantly exceeded the carrying value of these assets. As undiscounted future net cash flows were lower than the carrying value of the DJ Basin properties, Vitesse Energy Finance then determined the estimated fair value of the proven properties. To measure the estimated fair value of its proven properties, Vitesse Energy Finance used unobservable Level 3 inputs, including a 10.0% discount rate and estimated future cash flows from its reserve report. The estimated fair value of Vitesse Energy Finance's proven oil and gas properties in the DJ Basin totaled $26.8 million, which was $13.2 million lower than the carrying value as of the end of the second quarter of 2020. As a result, an impairment charge of $13.2 million was recorded in Selling, general and other expenses during the nine months ended August 31, 2020. Due to a decline in oil and gas prices during the first quarter of 2020, JETX Energy performed an impairment analysis for its oil and gas properties in the East Eagle Ford. JETX Energy first determined the estimated undiscounted cash flows based on the reserves and costs utilized in its reserve report and then updated those cash flows based on strip pricing as of February 29, 2020. The expected undiscounted future net cash flows were then compared to the end of quarter net carrying value of the proven properties. As the undiscounted future net cash flows were lower than the carrying value, JETX Energy then determined the estimated fair value of the proven properties. To measure the est |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Aug. 31, 2020 | |
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 Financial instruments owned, at fair value and Financial instruments sold, not yet purchased, at fair value, 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, we enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks resulting from our trading activities. In addition, we apply hedge accounting to (1) 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 and (2) forward foreign exchange contracts designated as hedges to offset the change in the value of certain net investments in foreign operations. See Notes 3 and 19 for additional disclosures about derivative financial instruments. Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. We manage the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of our firm wide risk management policies. In connection with our derivative activities, we may enter into International Swaps and Derivatives Association, Inc. master netting agreements or similar agreements with counterparties. The following tables present the fair value and related number of derivative contracts at August 31, 2020 and November 30, 2019 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in 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 financial position (in thousands, except contract amounts). Assets Liabilities Fair Value Number of Fair Value Number of August 31, 2020 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 70,159 1 $ — — Foreign exchange contracts: Bilateral OTC — — 393 2 Total derivatives designated as accounting hedges 70,159 393 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 781 48,453 73 69,918 Cleared OTC 75,125 3,894 168,467 4,199 Bilateral OTC 689,581 1,480 316,196 621 Foreign exchange contracts: Exchange-traded — — — 245 Bilateral OTC 416,298 13,561 391,542 13,450 Equity contracts: Exchange-traded 507,083 906,465 517,384 775,309 Bilateral OTC 351,744 1,939 879,876 1,945 Commodity contracts: Exchange-traded — 2,073 — 1,503 Bilateral OTC 25,447 2,287 — — Credit contracts: Cleared OTC 3,165 15 5,567 13 Bilateral OTC 2,116 11 3,518 10 Total derivatives not designated as accounting hedges 2,071,340 2,282,623 Total gross derivative assets/liabilities: Exchange-traded 507,864 517,457 Cleared OTC 148,449 174,034 Bilateral OTC 1,485,186 1,591,525 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (504,400) (504,400) Cleared OTC (144,200) (145,706) Bilateral OTC (963,215) (1,149,575) Net amounts in the Consolidated Statement of Financial Condition (4) $ 529,684 $ 483,335 (continued) Assets Liabilities Fair Value Number of Fair Value Number of November 30, 2019 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 28,663 1 $ — — Total derivatives designated as accounting hedges 28,663 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,191 65,226 103 38,464 Cleared OTC 213,224 3,329 284,433 3,443 Bilateral OTC 421,700 1,325 258,857 738 Foreign exchange contracts: Exchange-traded — 256 — 199 Bilateral OTC 191,218 9,257 187,836 9,187 Equity contracts: Exchange-traded 717,494 1,714,538 962,535 1,481,388 Bilateral OTC 248,720 4,731 445,241 4,271 Commodity contracts: Exchange-traded — 5,524 — 4,646 Bilateral OTC 20,600 4,084 391 359 Credit contracts: Cleared OTC 2,514 13 5,768 12 Bilateral OTC 6,281 25 14,219 28 Total derivatives not designated as accounting hedges 1,822,942 2,159,383 Total gross derivative assets/liabilities: Exchange-traded 718,685 962,638 Cleared OTC 244,401 290,201 Bilateral OTC 888,519 906,544 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (688,871) (688,871) Cleared OTC (222,869) (266,900) Bilateral OTC (521,457) (676,407) Net amounts in the Consolidated Statement of Financial Condition (4) $ 418,408 $ 527,205 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in 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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Interest rate swaps $ 834 $ 28,052 $ 47,303 $ 69,843 Long-term debt 1,634 (28,519) (45,539) (72,288) Total $ 2,468 $ (467) $ 1,764 $ (2,445) The following table provides information related to gains (losses) on net investment hedges recognized in Net unrealized foreign exchange gains (losses), a component of Other comprehensive income (loss), in the Consolidated Statements of Comprehensive Income (Loss) (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Foreign exchange contracts $ (393) $ — $ (393) $ — Total $ (393) $ — $ (393) $ — 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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Interest rate contracts $ (35,462) $ (89,864) $ (40,630) $ (193,715) Foreign exchange contracts 4,418 (1,839) 2,534 269 Equity contracts (32,782) 2,236 113,253 (118,354) Commodity contracts (18,716) 2,285 42,049 4,057 Credit contracts (179) 2,687 14,205 11,600 Total $ (82,721) $ (84,495) $ 131,411 $ (296,143) The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at August 31, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than Cross- Total Commodity swaps, options and forwards $ 18,611 $ 6,836 $ — $ — $ 25,447 Equity options and forwards 21,437 44,672 15,160 (25,445) 55,824 Total return swaps 74,923 19,764 2,872 (14,666) 82,893 Foreign currency forwards, swaps and options 63,570 28,993 — (4,477) 88,086 Interest rate swaps, options and forwards 94,956 204,309 222,482 (45,025) 476,722 Total $ 273,497 $ 304,574 $ 240,514 $ (89,613) 728,972 Cross product counterparty netting (22,759) Total OTC derivative assets included in Financial instruments owned, at fair value $ 706,213 (1) At August 31, 2020, we held net exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $25.1 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 August 31, 2020, cash collateral received was $201.6 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than Cross-Maturity Total Equity options and forwards $ 15,474 $ 370,915 $ 156,839 $ (25,445) $ 517,783 Credit default swaps 12 1,108 — — 1,120 Total return swaps 58,888 103,567 — (14,666) 147,789 Foreign currency forwards, swaps and options 55,541 11,792 34 (4,477) 62,890 Fixed income forwards 1,404 — — — 1,404 Interest rate swaps, options and forwards 42,132 80,469 72,462 (45,025) 150,038 Total $ 173,451 $ 567,851 $ 229,335 $ (89,613) 881,024 Cross product counterparty netting (22,759) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased, at fair value $ 858,265 (1) At August 31, 2020, we held net exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $14.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition. At August 31, 2020, cash collateral pledged was $389.5 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 August 31, 2020, 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 $ 139,436 BBB- to BBB+ 15,949 BB+ or lower 353,564 Unrated 197,264 Total $ 706,213 (1) We utilize internal credit ratings determined by the 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 August 31, 2020 Credit protection sold: Index credit default swaps $ 2.0 $ 45.9 $ — $ 47.9 Single name credit default swaps — 6.2 0.2 6.4 November 30, 2019 Credit protection sold: Index credit default swaps $ 3.0 $ 32.0 $ — $ 35.0 Single name credit default swaps 3.4 29.0 1.5 33.9 Contingent Features Certain of Jefferies Group's derivative instruments contain provisions that require its 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 the 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 we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions). August 31, November 30, 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 191.4 $ 42.9 Collateral posted (120.6) (3.1) Collateral received 64.5 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 135.3 154.0 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. Other Derivatives Vitesse Energy Finance uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse Energy Finance accounts for the derivative instruments at fair value. The gains and losses associated with the change in fair value of the derivatives are recorded in Other revenues. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Aug. 31, 2020 | |
Collateralized Transactions [Abstract] | |
Collateralized Transactions | Collateralized TransactionsOur repurchase agreements and securities borrowing and lending arrangements are generally recorded at cost in the Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their short-term nature. We enter into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned, at fair value, and noted parenthetically as Securities pledged in the Consolidated Statements of Financial Condition. In instances where we receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities and are permitted to sell or repledge the securities received as collateral, the fair value of the collateral received and the related obligation to return the collateral is reported in the Consolidated Statements of Financial Condition. The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total August 31, 2020 Corporate equity securities $ 1,317,023 $ 176,221 $ 4,413 $ 1,497,657 Corporate debt securities 605,527 1,661,854 — 2,267,381 Mortgage-backed and asset-backed securities — 1,680,052 — 1,680,052 U.S. government and federal agency securities 7,187 12,187,529 — 12,194,716 Municipal securities — 180,837 — 180,837 Sovereign obligations — 2,636,878 — 2,636,878 Loans and other receivables — 1,313,667 — 1,313,667 Total $ 1,929,737 $ 19,837,038 $ 4,413 $ 21,771,188 November 30, 2019 Corporate equity securities $ 1,314,395 $ 129,558 $ — $ 1,443,953 Corporate debt securities 191,311 1,730,526 — 1,921,837 Mortgage-backed and asset-backed securities — 1,745,145 — 1,745,145 U.S. government and federal agency securities 19,434 10,863,997 9,500 10,892,931 Municipal securities — 498,202 — 498,202 Sovereign obligations — 3,016,563 — 3,016,563 Loans and other receivables — 772,926 — 772,926 Total $ 1,525,140 $ 18,756,917 $ 9,500 $ 20,291,557 Contractual Maturity Overnight and Continuous Up to 30 Days 31 to 90 Days Greater than 90 Days Total August 31, 2020 Securities lending arrangements $ 630,163 $ — $ 553,062 $ 746,512 $ 1,929,737 Repurchase agreements 10,606,433 1,695,229 4,243,474 3,291,902 19,837,038 Obligation to return securities received as collateral, at fair value 4,413 — — — 4,413 Total $ 11,241,009 $ 1,695,229 $ 4,796,536 $ 4,038,414 $ 21,771,188 November 30, 2019 Securities lending arrangements $ 694,821 $ — $ 672,969 $ 157,350 $ 1,525,140 Repurchase agreements 6,614,026 1,556,260 8,988,528 1,598,103 18,756,917 Obligation to return securities received as collateral, at fair value — — 9,500 — 9,500 Total $ 7,308,847 $ 1,556,260 $ 9,670,997 $ 1,755,453 $ 20,291,557 We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At August 31, 2020 and November 30, 2019, the approximate fair value of securities received as collateral by us that may be sold or repledged was $29.9 billion and $28.7 billion, respectively. At August 31, 2020 and November 30, 2019, a substantial portion of the securities received have been sold or repledged. Offsetting of Securities Financing Agreements To manage our exposure to credit risk associated with securities financing transactions, we may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions). The following table provides information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in 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 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 August 31, 2020 Securities borrowing arrangements $ 7,268,413 $ — $ 7,268,413 $ (429,615) $ (1,691,674) $ 5,147,124 Reverse repurchase agreements 17,905,457 (12,578,066) 5,327,391 (144,353) (5,141,297) 41,741 Securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Liabilities at August 31, 2020 Securities lending arrangements $ 1,929,737 $ — $ 1,929,737 $ (429,615) $ (1,467,230) $ 32,892 Repurchase agreements 19,837,038 (12,578,066) 7,258,972 (144,353) (6,622,623) 491,996 Obligation to return securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Assets at November 30, 2019 Securities borrowing arrangements $ 7,624,642 $ — $ 7,624,642 $ (361,394) $ (1,479,433) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247) 4,299,598 (291,316) (3,929,977) 78,305 Securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 Liabilities at November 30, 2019 Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394) $ (970,799) $ 192,947 Repurchase agreements 18,756,917 (11,252,247) 7,504,670 (291,316) (6,663,807) 549,547 Obligation to return securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty's outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty's default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty's rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At August 31, 2020, amounts include $5,089.0 million of securities borrowing arrangements, for which we have received securities collateral of $4,921.2 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $451.6 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. At November 30, 2019, amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations Cash and securities deposited with clearing and depository organizations and segregated in accordance with regulatory regulations totaled $986.1 million and $796.8 million at August 31, 2020 and November 30, 2019, respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies LLC as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers. |
Securitization Activities
Securitization Activities | 9 Months Ended |
Aug. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In our securitization transactions, we transfer these assets to special purpose entities ("SPEs") and act as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A significant portion of our securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of variable interest entities ("VIEs"); however, the SPEs are generally not consolidated as we are not considered the primary beneficiary for these SPEs. We account for our securitization transactions as sales, provided we have relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues in the Consolidated Statements of Operations prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. We generally receive cash proceeds in connection with the transfer of assets to an SPE. We may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage-backed and other asset-backed securities or CLOs). These securities are included in Financial instruments owned, at fair value in the 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 our securitizations that were accounted for as sales in which we had continuing involvement (in millions): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Transferred assets $ 983.9 $ 789.3 $ 4,794.3 $ 2,894.4 Proceeds on new securitizations 983.9 789.3 4,794.3 2,966.3 Cash flows received on retained interests 6.3 16.8 18.6 47.2 We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at August 31, 2020 and November 30, 2019. The following table summarizes our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): August 31, 2020 November 30, 2019 Securitization Type Total Retained Total Retained U.S. government agency residential mortgage-backed securities $ 928.7 $ 12.4 $ 10,671.7 $ 103.3 U.S. government agency commercial mortgage-backed securities 439.2 138.3 1,374.8 45.8 CLOs 3,419.9 41.8 3,006.7 58.4 Consumer and other loans 884.0 45.6 1,149.3 71.8 Total assets represent the unpaid principal amount of assets in the SPEs in which we have continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting our retained interests, and are not considered representative of the risk of potential loss. Assets retained in connection with a securitization transaction represent the fair value of the securities of one or more tranches issued by an SPE, including senior and subordinated tranches. Our risk of loss is limited to this fair value amount, which is included in total Financial instruments owned, at fair value in the Consolidated Statements of Financial Condition. Although not obligated, in connection with secondary market-making activities we may make a market in the securities issued by these SPEs. In these market-making transactions, we buy these securities from and sell these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent we purchased securities through these market-making activities and we are not deemed to be the primary beneficiary of the VIE, these securities are included in agency and non-agency mortgage-backed and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 7. 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 7 for further information on securitization activities and VIEs. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Aug. 31, 2020 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | Variable Interest Entities VIEs are entities in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. Our variable interests in VIEs include debt and equity interests, equity interests in associated companies, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from the following activities, but also includes other activities discussed below: • Purchases of securities in connection with our trading and secondary market-making activities; • Retained interests held as a result of securitization activities, including the resecuritization of mortgage-backed and other asset-backed securities and the securitization of mortgage, corporate and consumer loans; • Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; • Financing of agency and non-agency mortgage-backed and other asset-backed securities; • Warehouse funding arrangements for client-sponsored consumer and mortgage loan vehicles and CLOs through participation agreements, forward sale agreements and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE's most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE's purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE's initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE's significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the "power" criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the "power" criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about our consolidated VIEs (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. August 31, 2020 November 30, 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash (1) $ — $ 1.2 $ — $ 1.2 Financial instruments owned, at fair value — 3.6 — 0.3 Securities purchased under agreements to resell (2) 2,919.8 — 2,467.3 — Receivables 581.9 13.5 605.6 — Other 37.8 0.1 38.7 — Total assets $ 3,539.5 $ 18.4 $ 3,111.6 $ 1.5 Financial instruments sold, not yet purchased, at fair $ — $ 2.1 $ — $ — Other secured financings (3) 3,502.9 — 3,068.6 — Other liabilities (4) 3.7 0.4 20.1 0.2 Total liabilities $ 3,506.6 $ 2.5 $ 3,088.7 $ 0.2 (1) Approximately $0.6 million of the cash amount at August 31, 2020 represents cash on deposit with a related consolidated entity and is eliminated in consolidation. (2) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (3) Approximately $130.1 million of the other secured financings amount at August 31, 2020 is with related consolidated entities, which is eliminated in consolidation. (4) Includes $1.8 million and $17.9 million at August 31, 2020 and November 30, 2019, respectively, of intercompany payables that are eliminated in consolidation. Securitization Vehicles. We are the primary beneficiary of asset-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans and asset-backed securities pursuant to the terms of a master repurchase agreement. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement, which we manage, and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle's debt holders. At August 31, 2020 and November 30, 2019, Foursight Capital is the primary beneficiary of SPEs it utilized to securitize automobile loans receivable. Foursight Capital acts as the servicer for which it receives a fee, and owns an equity interest in the SPEs. The notes issued by the SPEs are secured solely by the assets of the SPEs and do not have recourse to Foursight Capital's general credit and the assets of the VIEs are not available to satisfy any other debt. During the nine months ended August 31, 2020, automobile loan receivables aggregating $223.3 million were securitized by Foursight Capital in connection with a secured borrowing offering. The majority of the proceeds from issuance of the secured borrowing were used to pay down Foursight Capital's two credit facilities. Other. We are the primary beneficiary of certain investment vehicles set up for the benefit of our employees. We manage and invest alongside our employees in these vehicles. The assets of these VIEs consist of private equity securities and are available for the benefit of the entities' equity holders. Our variable interests in these vehicles consist of equity securities. The creditors of these VIEs do not have recourse to our general credit and each such VIE's assets are not available to satisfy any other debt. Nonconsolidated VIEs The following table presents information about our variable interests in nonconsolidated VIEs (in millions): Carrying Amount Maximum VIE Assets Assets Liabilities August 31, 2020 CLOs $ 66.3 $ 1.4 $ 470.4 $ 6,509.5 Consumer loan and other asset-backed vehicles 308.4 — 435.0 2,300.4 Related party private equity vehicles 18.6 — 29.6 50.7 Other investment vehicles 853.9 — 1,053.4 16,210.4 Total $ 1,247.2 $ 1.4 $ 1,988.4 $ 25,071.0 November 30, 2019 CLOs $ 152.6 $ 0.6 $ 505.3 $ 7,845.0 Consumer loan and other asset-backed vehicles 358.3 — 490.6 2,354.8 Related party private equity vehicles 23.0 — 34.3 71.4 Other investment vehicles 574.0 — 766.1 9,255.0 Total $ 1,107.9 $ 0.6 $ 1,796.3 $ 19,526.2 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 our variable interests and is not reduced by the amount of collateral held as part of a transaction with a VIE. Collateralized Loan Obligations. Assets collateralizing the CLOs include bank loans, participation interests and sub-investment grade and senior secured U.S. loans. We underwrite securities issued in CLO transactions on behalf of sponsors and provide advisory services to the sponsors. We may also sell corporate loans to the CLOs. Our variable interests in connection with CLOs where we have been involved in providing underwriting and/or advisory services consist of the following: • Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs; • Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests; • Trading positions in securities issued in a CLO transaction; and • Investments in variable funding notes issued by CLOs. Asset-Backed Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities, forward purchase agreements and reverse repurchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer loans, mortgage loans and trade claims. In addition, we may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. We do not control the activities of these entities. Related Party Private Equity Vehicles. We committed to invest in private equity funds (the "JCP Funds", including Jefferies Group's interests in Jefferies Capital Partners V L.P. and the Jefferies SBI USA Fund L.P. (together, "JCP Fund V")) managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, we committed to invest in the general partners of the JCP Funds (the "JCP General Partners") and the JCP Manager. Our variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the "JCP Entities") consist of equity interests that, in total, provide us with limited and general partner investment returns of the JCP Funds, a portion of the carried interest earned by the JCP General Partners and a portion of the management fees earned by the JCP Manager. At August 31, 2020 and November 30, 2019, our total equity commitment in the JCP Entities was $133.0 million and $133.0 million, respectively, of which $122.0 million and $121.7 million, respectively, had been funded. The carrying value of our equity investments in the JCP Entities was $18.6 million and $23.0 million at August 31, 2020 and November 30, 2019, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments. Other Investment Vehicles. The carrying amount of our equity investment was $853.9 million and $574.0 million at August 31, 2020 and November 30, 2019, respectively. Our unfunded equity commitment related to these investments totaled $199.6 million and $192.1 million at August 31, 2020 and November 30, 2019, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These investment vehicles have assets primarily consisting of private and public equity investments, debt instruments, trade and insurance claims and various oil and gas assets. Mortgage-Backed and Other Asset-Backed Secured Funding Vehicles. In connection with our secondary trading and market-making activities, we buy and sell agency and non-agency mortgage-backed securities and other asset-backed securities, which are issued by third-party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, auto loans and student loans. These securities are accounted for at fair value and included in Financial instruments owned, at fair value in the Consolidated Statements of Financial Condition. We have no other involvement with the related SPEs and therefore do not consolidate these entities. We also engage in underwriting, placement and structuring activities for third-party-sponsored securitization trusts generally through agency (FNMA ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") or GNMA ("Ginnie Mae")) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and auto loans. We do not consolidate agency-sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of non-agency-sponsored securitizations and therefore do not have power to direct the most significant activities of the SPEs and accordingly, do not consolidate these entities. We may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs. At August 31, 2020 and November 30, 2019, we held $1,808.6 million and $1,453.5 million of agency mortgage-backed securities, respectively, and $130.8 million and $134.8 million of non-agency mortgage-backed and other asset-backed securities, respectively, as a result of our secondary trading and market-making activities, and underwriting, placement and structuring activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. These mortgage-backed and other asset-backed secured funding vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs. FXCM is considered a 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 ($56.5 million) and the investment in associated company ($80.3 million), which totaled $136.8 million at August 31, 2020. |
Loans to and Investments in Ass
Loans to and Investments in Associated Companies | 9 Months Ended |
Aug. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Loans to and Investments in Associated Companies | Loans to and Investments in Associated Companies A summary of Loans to and investments in associated companies accounted for under the equity method of accounting during the nine months ended August 31, 2020 and 2019 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) primarily 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 2020 Jefferies Finance $ 673,867 $ — $ (65,681) $ 10,107 $ — $ 618,293 Berkadia 268,949 — 40,373 (36,615) 510 273,217 FXCM (2) 70,223 9,956 — — 161 80,340 Linkem (3) 194,847 (21,754) — 35,103 (2,149) 206,047 Real estate associated companies (4) (5) 255,309 (50,910) — (34,505) — 169,894 Other (3) 189,762 (6,815) 3,026 (3,643) 9,235 191,565 Total $ 1,652,957 $ (69,523) $ (22,282) $ (29,553) $ 7,757 $ 1,539,356 2019 Jefferies Finance $ 728,560 $ — $ 1,035 $ (58,682) $ — $ 670,913 Berkadia 245,228 — 72,231 (47,682) 722 270,499 National Beef (6) 653,630 137,918 — (72,767) (10) 718,771 FXCM (2) 75,031 (5,589) — 3,500 (134) 72,808 Linkem 165,157 (20,696) — 82,178 (8,226) 218,413 HomeFed (4) 337,542 7,902 — — (345,444) — Real estate associated companies 87,074 1,536 — (3,054) 198,273 283,829 Other 125,110 695 (1,652) (13,958) 869 111,064 Total $ 2,417,332 $ 121,766 $ 71,614 $ (110,465) $ (153,950) $ 2,346,297 (1) Primarily classified in Other revenues. (2) 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 Financial instruments owned, at fair value in the Consolidated Statements of Financial Condition. (3) Loans to and investments in associated companies at August 31, 2020 and November 30, 2019 include loans and debt securities aggregating $100.2 million and $70.2 million, respectively, related to Linkem and Other. (4) During the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. From July 1, 2019, HomeFed's equity method investments are included in Real estate associated companies. (5) Income (loss) related to Real estate associated companies for the nine months ended August 31, 2020 includes a non-cash charge of $6.9 million to fully write-off the value of HomeFed's interest in the Brooklyn Renaissance Plaza hotel due to the significant impact of the global novel coronavirus ("COVID-19") during the second quarter of 2020 and a non-cash charge of $55.6 million to fully write-off the value of HomeFed's RedSky JZ Fulton Mall joint venture investment related to a softening of the Brooklyn real estate market. (6) On November 29, 2019, we sold our remaining equity interest in National Beef. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 National Beef $ — $ 75,867 $ — $ 137,918 FXCM 3,704 (573) 9,956 (5,589) Linkem (1,945) (12,115) (21,754) (20,696) HomeFed — 8,419 — 7,902 Real estate associated companies 2,532 464 (50,910) 1,536 Other 762 221 (6,815) 695 Total $ 5,053 $ 72,283 $ (69,523) $ 121,766 Income (losses) primarily related to Jefferies Group's associated companies (primarily classified in Other revenues) includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Jefferies Finance $ (17,731) $ (6,901) $ (65,681) $ 1,035 Berkadia 18,448 24,286 40,373 72,231 Other 3,137 (92) 3,026 (1,652) Total $ 3,854 $ 17,293 $ (22,282) $ 71,614 Jefferies Finance Through Jefferies Group, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), a joint venture entity pursuant to an agreement with Massachusetts Mutual Life Insurance Company ("MassMutual"). Jefferies Finance is a commercial finance company that structures, underwrites and arranges primarily senior secured loans to corporate borrowers. Loans are originated primarily through the investment banking efforts of Jefferies LLC. Jefferies Finance may also underwrite and arrange other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. In addition, Jefferies Finance is a registered investment advisor under the Investment Advisers Act of 1940 and, through two of its wholly-owned subsidiaries, Apex Credit Partners LLC and JFIN Asset Management LLC, acts as an investment advisor for various loan funds and CLOs managing direct lending and broadly syndicated loan products. At August 31, 2020, Jefferies Group and MassMutual each had equity commitments to Jefferies Finance of $750.0 million. At August 31, 2020, $652.4 million of Jefferies Group's commitment was funded. The investment commitment is scheduled to expire on March 1, 2021 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 August 31, 2020. Advances are shared equally between Jefferies Group and MassMutual. The facility is scheduled to mature on March 1, 2021 with automatic one year extensions absent a 60-day termination notice by either party. At August 31, 2020, $0.0 million of Jefferies Group's $250.0 million commitment was funded. Jefferies Group recognized interest income and unfunded commitment fees related to the facility of $0.4 million and $0.3 million during the three months ended August 31, 2020 and 2019, respectively, and $3.0 million and $0.9 million during the nine months ended August 31, 2020 and 2019, respectively. The following summarizes activity related to our other transactions with Jefferies Finance (in millions): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Origination and syndication fee revenues (1) $ 42.4 $ 44.6 $ 123.9 $ 135.8 Origination fee expenses (1) 3.8 8.2 12.4 21.8 CLO placement fee revenues (2) 1.3 1.0 1.7 2.3 Underwriting fees (3) — 2.9 0.3 3.9 Service fees (4) 13.5 12.3 49.4 50.6 (1) Jefferies Group engages in debt underwriting transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, Jefferies Group earned fees, 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, which are recognized in Selling, general and other expenses in the Consolidated Statements of Operations. (2) Jefferies Group acts as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees, which are included in Investment banking revenues in the Consolidated Statements of Operations. At August 31, 2020 and November 30, 2019, Jefferies Group held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) Jefferies Group acted as underwriter in connection with term loans issued by Jefferies Finance. (4) Under a service agreement, Jefferies Group charges Jefferies Finance for services provided. In connection with non-U.S. dollar loans originated by Jefferies Finance to borrowers who are investment banking clients of Jefferies Group, Jefferies Group has entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure. At August 31, 2020 and November 30, 2019, we had receivables from Jefferies Finance, included within Other assets in the Consolidated Statements of Financial Condition of $13.2 million and $17.2 million, respectively. At August 31, 2020 and November 30, 2019, we had payables to Jefferies Finance, related to cash deposited with Jefferies Group, included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition of $13.7 million and $13.7 million, respectively. At November 30, 2019, we had a payable to Jefferies Finance, related to its lending transactions, included in Payables, expense accruals and other liabilities in the Consolidated Statement of Financial Condition of $17.6 million. 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 were used in connection with Jefferies Group's investment banking loan syndication activities. Jefferies Group repaid Jefferies Finance the entire outstanding principal amount of this note on May 15, 2019. Interest paid on the note of $3.8 million is included in Interest expense of Jefferies Group within the Consolidated Statement of Operations for the nine months ended August 31, 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 advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. Berkadia uses all of the proceeds from the commercial paper sales of an affiliate of Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements. Repayment of the commercial paper is supported by a $1.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder. At August 31, 2020, 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. On November 29, 2019, we sold our remaining equity interest in National Beef. FXCM We have a 50% voting interest in FXCM, a provider of online foreign exchange trading services. 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 and tradename over their respective useful lives (weighted average life of 11 years). Linkem We own approximately 42% of the common shares of Linkem, the largest fixed wireless broadband services provider in Italy. In addition, we own convertible preferred stock, which is automatically convertible to common shares in 2022, and warrants. If all of our convertible preferred stock was converted and warrants were exercised, it would increase our ownership to approximately 56% of Linkem's common equity at August 31, 2020. We have approximately 48% of the total voting securities of Linkem. Additionally, we have made shareholder loans to Linkem with principal outstanding of $102.0 million at August 31, 2020. These shareholder loans bear interest at 5% per annum and are due June 30, 2024. We account for our equity interest in Linkem on a two month lag. HomeFed HomeFed develops and owns residential and mixed-use real estate properties. Through June 30, 2019, we owned an approximate 70% equity interest of HomeFed's outstanding common shares; however, we had contractually agreed to limit our voting rights such that we would 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 were voted. Since we did not control HomeFed, our investment in HomeFed was accounted for under the equity method as an investment in an associated company. We accounted for our equity interest in HomeFed on a two month lag. On July 1, 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. During the three months ended August 31, 2019, we recognized a $72.1 million non-cash pre-tax gain in Other revenues on the remeasurement of our prior 70% interest in HomeFed to fair value. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. Real Estate Associated Companies Real estate equity method investments primarily consist of HomeFed's interests in Brooklyn Renaissance Plaza and Hotel and 54 Madison. These equity interests are accounted for on a two month lag. Brooklyn Renaissance Plaza is comprised of a hotel operated by Marriott, an office building complex and a parking garage located in Brooklyn, New York. HomeFed owns a 25.8% equity interest in the hotel and a 61.25% equity interest in the office building and garage. Although HomeFed has a majority interest in the office building and garage, it does not have control, but only has the ability to exercise significant influence on this investment. As such, HomeFed accounts for the office building and garage under the equity method of accounting. We are amortizing our basis difference between the estimated fair value and the underlying book value of Brooklyn Renaissance office building and garage over the respective useful lives (weighted average life of 39 years). Due to the significant impact of COVID-19 during the second quarter of 2020, HomeFed recorded an impairment charge of $6.9 million within Income (loss) related to associated companies during the nine months ended August 31, 2020, which represented all of its carrying value in the Brooklyn Renaissance Plaza hotel. We own approximately 48.1% of 54 Madison, a fund that seeks long-term capital appreciation through investment in real estate development and similar projects. 54 Madison invests both in projects which they consolidate and projects where they have significant influence and utilize the equity method of accounting. Based on total committed capital of the 54 Madison fund, all projects of this fund have already been identified and launched. We have two of the four seats on the 54 Madison investment committee and have significant influence over the fund, including a number of protective rights such as the right to block material investments, divestitures and changes outside of agreed upon parameters. Other The following table provides required summarized data for certain equity method investments, including those accounted for under the fair value option. The table includes Berkadia for the nine months ended August 31, 2020 and 2019, and National Beef for the nine months ended August 31, 2019 (in thousands): For the Nine Months Ended August 31, 2020 August 31, 2019 Revenues $ 716,182 $ 6,972,754 Income from continuing operations before extraordinary items $ 89,716 $ 622,553 Net income $ 89,716 $ 622,553 |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 9 Months Ended |
Aug. 31, 2020 | |
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): August 31, November 30, 2019 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 7,874 $ 8,273 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $117,609 and $111,060 53,396 59,575 Trademarks and tradenames, net of accumulated amortization of $27,673 and $24,800 101,207 103,790 Other, net of accumulated amortization of $8,042 and $5,366 8,640 11,316 Total intangible assets, net 171,117 182,954 Goodwill: Investment Banking and Capital Markets (1) (2) 1,560,255 1,556,810 Asset Management (1) 143,000 143,000 Real estate 36,711 36,711 Other operations 3,459 3,459 Total goodwill 1,743,425 1,739,980 Total intangible assets, net and goodwill $ 1,914,542 $ 1,922,934 (1) As discussed further in Note 23, during the first quarter of 2020, we changed our internal structure with regard to our operating segments. As a result, we created a separate operating segment that consists of the asset management activity previously included within our Investment Banking, Capital Markets and Asset Management segment. In order to reallocate goodwill that was previously contained in our Investment Banking, Capital Markets and Asset Management segment to the newly created Investment Banking and Capital Markets segment and the Asset Management segment, we performed a fair value analysis of the components. Estimated fair values were determined based on valuation techniques that we believe market participants would use and included price-to-earnings, price-to-book multiples and discounted cash flow techniques. Based on the relative fair values of each of the components, $143.0 million of the total $1,699.8 million goodwill within the historical Investment Banking, Capital Markets and Asset Management segment was allocated to the new Asset Management segment. In order to compare results with prior periods, we have recast November 30, 2019 goodwill in the same manner. We performed an impairment test immediately before and after the reallocation of goodwill between the new segments and the results of the impairment test did not indicate any goodwill impairment. (2) The increase in Investment Banking and Capital Markets goodwill during the nine months ended August 31, 2020, primarily relates to translation adjustments. Amortization expense on intangible assets was $3.7 million and $4.0 million for the three months ended August 31, 2020 and 2019, respectively, and $11.5 million and $10.6 million for the nine months ended August 31, 2020 and 2019, respectively. The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 3,673 2021 14,457 2022 11,180 2023 9,945 2024 9,189 We performed our annual impairment testing of goodwill within the Investment Banking and Capital Markets, and Asset Management segments as of August 1, 2020. The quantitative goodwill impairment test is performed at our reporting unit level and consists of two steps. In the first step, the fair value of the reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit’s goodwill. The estimated fair value of both the Investment Banking and Capital Markets segment and the Asset Management segment are based on valuation techniques that we believe market participants would use, although the valuation process requires significant judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating fair value include price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. An independent valuation specialist was engaged to assist with the valuation process at August 1, 2020. The results of our annual goodwill impairment test for both the Investment Banking and Capital Markets segment and the Asset Management segment did not indicate any goodwill impairment. We performed our annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations within our Investment Banking and Capital Markets segment, at August 1, 2020. We also deemed it appropriate to consider the impact of the global novel coronavirus pandemic as a triggering event and performed an interim impairment test for our indefinite-lived intangible assets at May 31, 2020. At May 31, 2020 and August 1, 2020, we elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. Qualitative assessments were performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessment at both May 31, 2020 and August 1, 2020, we recognized immaterial impairment losses on certain exchange membership interests and registrations. With regard to our qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, we concluded that it is not more likely than not that the intangible assets are impaired. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Our short-term borrowings, which mature in one year or less, are as follows (in thousands): August 31, November 30, 2019 Bank loans (1) $ 776,752 $ 527,509 Floating rate puttable notes (1) 6,800 — Equity-linked notes (2) 21,829 20,981 Total short-term borrowings $ 805,381 $ 548,490 (1) These short-term borrowings are recorded at cost in the Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. (2) See Note 3 for further information on these notes. At August 31, 2020 and November 30, 2019, the weighted average interest rate on short-term borrowings outstanding was 1.83% and 3.24% per annum, respectively. During the nine months ended August 31, 2020, we issued floating rate puttable notes with a principal amount of $6.8 million and equity-linked notes with a principal amount of $5.0 million, and our equity-linked notes with a principal amount of $5.2 million matured on March 13, 2020. Subsequent to quarter-end, on October 7, 2020, our equity-linked notes with a principal amount of $15.1 million matured. One of Jefferies Group's subsidiaries has a credit facility agreement ("Jefferies Group Credit Facility") with JPMorgan Chase Bank, N.A. under which it has borrowed for a committed amount of $246.0 million at August 31, 2020, which is included in bank loans. Interest is based on an annual alternative base rate or an adjusted London Interbank Offered Rate ("LIBOR"), as defined in the 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 nine months ended August 31, 2020, Jefferies Group was in compliance with all debt covenants under the Jefferies Group Credit Facility. One of Jefferies Group's subsidiaries has a credit facility agreement with the Royal Bank of Canada ("RBC Credit Facility") for a committed amount of $200.0 million, which is included in bank loans. Interest is based on a rate per annum equal to LIBOR plus an applicable margin of 2.05%. The RBC 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 impose certain restrictions on the borrower's future indebtedness. At August 31, 2020, Jefferies Group was in compliance with all debt covenants under the RBC Credit Facility. The Bank of New York Mellon has agreed to make revolving intraday credit advances ("Intraday Credit Facility") to Jefferies Group for an aggregate committed amount of $150.0 million. The Intraday Credit Facility is structured so that advances are generally repaid before the end of each business day. However, if an advance is not repaid by the end of any business day, the advance is converted to an overnight loan. Intraday loans accrue interest at a rate of 0.12%. Interest is charged based on the number of minutes in a day the advance is outstanding. Overnight loans are charged interest at the base rate plus 3% on a daily basis. The base rate is the higher of the federal funds rate plus 0.50% or the prime rate in effect at that time. The Intraday Credit Facility contains financial covenants, which include a minimum regulatory net capital requirement for Jefferies Group. At August 31, 2020, Jefferies Group was in compliance with debt covenants under the Intraday Credit Facility. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [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): August 31, November 30, 2019 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 745,558 $ 744,606 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,814 246,772 Total long-term debt – Parent Company 992,372 991,378 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 2.375% Euro Medium Term Notes, due May 20, 2020, $0 and $550,875 principal — 550,622 6.875% Senior Notes, due April 15, 2021, $750,000 principal 761,430 774,738 2.25% Euro Medium Term Notes, due July 13, 2022, $4,774 and $4,407 principal 4,613 4,204 5.125% Senior Notes, due January 20, 2023, $750,000 and $600,000 principal 760,999 610,023 1.00% Euro Medium Term Notes, due July 19, 2024, $569,725 and $550,875 principal 594,965 548,880 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 814,873 768,931 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 369,662 371,426 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 989,342 988,662 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 510,943 511,260 6.50% Senior Notes, due January 20, 2043, $400,000 principal 419,931 420,239 Structured Notes (2) 1,522,105 1,215,285 Jefferies Group Revolving Credit Facility 189,571 189,088 Jefferies Group Secured Bank Loan 50,000 50,000 HomeFed EB-5 Program debt 189,335 140,739 HomeFed construction loan 45,638 — Foursight Capital Credit Facilities 99,802 98,260 Vitesse Energy Finance Revolving Credit Facility 104,256 103,050 Other — 276 Total long-term debt – subsidiaries 7,427,465 7,345,683 Long-term debt $ 8,419,837 $ 8,337,061 (1) Amount includes losses of $45.5 million and $72.3 million during the nine months ended August 31, 2020 and 2019, 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 (loss) and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. Subsidiary Debt : During the nine months ended August 31, 2020, Jefferies Group's 2.375% Euro Medium Term Notes matured and were repaid. Additionally, during the nine months ended August 31, 2020, structured notes with a total principal amount of approximately $244.4 million, net of retirements, and an additional $150.0 million principal amount of 5.125% Senior Notes due 2023 were issued by Jefferies Group. Subsequent to quarter-end, on October 7, 2020, Jefferies Group issued 2.75% Senior Notes with a principal amount of $500.0 million, due 2032. Jefferies Group has a senior secured revolving credit facility ("Jefferies Group Revolving Credit Facility") with a group of commercial banks for an aggregate principal amount of $190.0 million. The Jefferies Group Revolving Credit Facility contains certain covenants that, among other things, requires Jefferies Group LLC to maintain specified level of tangible net worth and liquidity amounts, and imposes certain restrictions on future indebtedness of and requires specified levels of regulated capital for certain of Jefferies Group's subsidiaries. Interest is based on an annual alternative base rate or an adjusted LIBOR, as defined in the Jefferies Group Revolving Credit Facility. The obligations of certain of Jefferies Group's subsidiaries under the Jefferies Group Revolving Credit Facility are secured by substantially all its assets. At August 31, 2020, Jefferies Group was in compliance with the debt covenants under the Jefferies Group Revolving Credit Facility. One of Jefferies Group's subsidiaries has a Loan and Security Agreement for a term loan with a principal amount of $50.0 million ("Jefferies Group Secured Bank Loan"). This Jefferies Group Secured Bank Loan matures on September 27, 2021 and is collateralized by certain trading securities. Interest on the Jefferies Group Secured Bank Loan is 1.25% plus LIBOR. The agreement contains certain covenants that, among other things, restrict lien or encumbrance upon any of the pledged collateral. At August 31, 2020, Jefferies Group was in compliance with all covenants under the Loan and Security Agreement. HomeFed funds certain of its real estate projects in part by raising funds under the Immigrant Investor Program administered by the U.S. Citizenship and Immigration Services pursuant to the Immigration and Nationality Act ("EB-5 Program"). This program was created to stimulate the U.S. economy through the creation of jobs and capital investments in U.S. companies by foreign investors. This debt is secured by certain real estate of HomeFed. At August 31, 2020, HomeFed was in compliance with all debt covenants which include, among other requirements, limitations on incurrence of debt, collateral requirements and restricted use of proceeds. Primarily all of HomeFed's debt matures in 2024 and 2025. At August 31, 2020, HomeFed has a construction loan agreement with an aggregate committed amount of $58.9 million. The proceeds are being used for construction at certain of its real estate projects. The outstanding principal amount of the loan bears interest based on the 30-day LIBOR plus 3.15%, subject to adjustment on the first of each calendar month and matures on March 1, 2021, with one 12-month extension subject to certain conditions as set forth in the loan agreement. The loan is collateralized by the property underlying the related project with a guarantee by HomeFed. At August 31, 2020, $45.8 million was outstanding under the construction loan agreement. At August 31, 2020, Foursight Capital's credit facilities consisted of two warehouse credit commitments aggregating $175.0 million, which mature in May 2021. One of the credit facilities bears interest based on the three month LIBOR plus a credit spread fixed through its maturity and the other credit facility bears interest based on the one month LIBOR plus a credit spread fixed through its maturity. As a condition of the credit facilities, Foursight Capital is obligated to maintain cash reserves to comply with 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 $124.0 million at August 31, 2020. At August 31, 2020 and November 30, 2019, $100.1 million and $98.7 million, respectively, was outstanding under Foursight Capital's credit facilities. Vitesse Energy Finance has a revolving credit facility with a syndicate of banks that matures in April 2023 and has a maximum borrowing base of $120.0 million at August 31, 2020. Amounts outstanding under the facility at August 31, 2020 and November 30, 2019 were $105.0 million and $104.0 million, respectively. Borrowings under the facility have been made as Eurodollar loans that bear interest at adjusted LIBOR plus a spread based on the borrowing base utilization percentage. The credit facility is guaranteed by Vitesse Energy Finance's subsidiaries and is collateralized with a minimum of 85% of Vitesse Energy Finance's proved reserve value of its oil and gas properties. Vitesse Energy Finance's borrowing base is subject to regular re-determination on or about April 1 and October 1 of each year based on proved oil and natural gas reserves, hedge positions and estimated future cash flows from these reserves calculated using future commodity pricing provided by Vitesse Energy Finance's lenders. |
Leases
Leases | 9 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We enter into lease and sublease agreements primarily for office space across our geographic locations. Finance lease ROU assets and finance lease liabilities are not material. Information related to operating leases in the Consolidated Statement of Financial Condition at August 31, 2020 is as follows (in thousands, except lease term and discount rate): Property, equipment and leasehold improvements, net - ROU assets $ 521,278 Weighted average: Remaining lease term (in years) 10.8 years Discount rate 2.9 % The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in the Consolidated Statement of Financial Condition at August 31, 2020 (in thousands): Lease Liabilities Remainder of 2020 $ 22,271 2021 76,932 2022 74,722 2023 65,220 2024 61,994 2025 and thereafter 403,809 Total undiscounted cash flows 704,948 Less: Difference between undiscounted and discounted cash flows (106,832) Operating leases amount in the Consolidated Statement of Financial Condition 598,116 Finance leases amount in the Consolidated Statement of Financial Condition 247 Total amount in the Consolidated Statement of Financial Condition $ 598,363 The following table presents our lease costs (in thousands): For the Three Months Ended August 31, 2020 For the Nine Months Ended August 31, 2020 Operating lease costs (1) $ 19,425 $ 57,994 Variable lease costs (2) 3,485 9,561 Less: Sublease income (1,973) (5,669) Total lease cost, net $ 20,937 $ 61,886 (1) Includes short-term leases, which are not material. (2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews. Consolidated Statement of Cash Flows supplemental information is as follows (in thousands): For the Nine Months Ended August 31, 2020 Cash outflows - lease liabilities $ 59,155 Non-cash - ROU assets recorded for new and modified leases $ 21,438 Minimum Future Lease Commitments (under Previous GAAP). As lessee, we lease certain premises and equipment under non-cancelable agreements expiring at various dates through 2039 which are operating leases. At November 30, 2019, future minimum annual lease payments under such leases (net of sublease income) were as follows (in thousands): 2020 $ 70,886 2021 73,374 2022 71,464 2023 62,552 2024 59,714 Thereafter 393,995 731,985 Less: sublease income (21,883) $ 710,102 |
Mezzanine Equity
Mezzanine Equity | 9 Months Ended |
Aug. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests At August 31, 2020 and November 30, 2019, redeemable noncontrolling interests include other redeemable noncontrolling interests of $24.3 million and $26.6 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 4,440,863 common shares, an effective conversion price of $28.15 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 first quarter of 2020, we increased our quarterly dividend from $0.125 to $0.15 per common share. This increased the preferred stock dividend from $3.8 million for the nine months ended August 31, 2019 to $4.2 million for the nine months ended August 31, 2020. Based on our current quarterly dividend of $0.15 per common share, the effective rate on these Preferred Shares is approximately 4.5%. The Preferred Shares are callable beginning in 2023 at a price of $1,000 per share plus accrued interest and are mandatorily redeemable in 2038. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Aug. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [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 Stock-Based Compensation Expense. S hare-based compensation expense relating to grants made under our share-based compensation plans was $8.9 million and $12.2 million for the three months ended August 31, 2020 and 2019, respectively, and $29.6 million and $37.0 million for the nine months ended August 31, 2020 and 2019, respectively. 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 $2.3 million and $3.0 million for the three months ended August 31, 2020 and 2019, respectively, and $7.5 million and $9.3 million for the nine months ended August 31, 2020 and 2019, respectively. At August 31, 2020, total unrecognized compensation cost related to nonvested share-based compensation plans was $52.4 million; this cost is expected to be recognized over a weighted average period of 2.0 years. At August 31, 2020, there were 1,749,000 shares of restricted stock outstanding with future service required, 4,183,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 18,449,000 RSUs outstanding with no future service required and 1,105,000 shares issuable under other plans. The maximum potential increase to common shares outstanding resulting from these outstanding awards is 23,737,000. 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 August 31, 2020, the remaining unamortized amount of the restricted cash awards was $606.2 million three |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Activity in accumulated other comprehensive income (loss) 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 (loss), net of taxes is as follows (in thousands): August 31, November 30, 2019 Net unrealized gains on available for sale securities $ 552 $ 141 Net unrealized foreign exchange losses (156,894) (192,709) Net unrealized gains (losses) on instrument specific credit risk 19,586 (18,889) Net minimum pension liability (59,651) (61,582) $ (196,407) $ (273,039) Amounts reclassified out of accumulated other comprehensive income (loss) to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Affected Line Item in the For the Nine Months Ended August 31, August 31, Net unrealized gains on available for sale securities, net of income tax provision (benefit) of $0 and $(545,054) $ — $ 543,178 Other revenues and Income tax provision Net unrealized gains (losses) on instrument specific credit risk, net of income tax provision (benefit) of $306 and $(166) 898 (493) Principal transactions revenues Net unrealized gains on cash flow hedges, net of income tax provision of $0 and $161 — 470 Other revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(658) and $(361) (1,931) (1,063) Selling, general and other expenses, which includes pension expense Total reclassifications for the period, net of tax $ (1,033) $ 542,092 During the second quarter of 2019, we completed the sale of our available for sale portfolio. In connection therewith, we recognized a tax benefit of $544.6 million during the nine months ended August 31, 2019. Unrealized gains and losses on available for sale securities, and their associated tax impacts, are recorded directly to equity as part of the Accumulated other comprehensive income (loss) balance. Following the portfolio approach, when unrealized gains and losses and their associated tax impacts are recorded at a then current tax rate, and then realized later at a different tax rate, the difference between the tax impact initially recorded in Accumulated other comprehensive income (loss) and the tax impact removed from Accumulated other comprehensive income (loss) upon realization remains in Accumulated other comprehensive income (loss) until the disposal of the portfolio and is referred to as a "lodged tax effect." Large changes in the fair value of our available for sale securities, primarily during 2008 through 2010, combined with fluctuations in our tax rate during those periods, generated a lodged tax benefit of $544.6 million. As a result of steps to improve our Corporate investment management efforts, we sold the remaining portion of our available for sale portfolio in the second quarter of 2019, which resulted in the realization of the $544.6 million tax benefit. While this realization did not impact total equity, it resulted in a tax benefit reflected in the Consolidated Statement of Operations of $544.6 million and, as a result, Retained earnings increased and Accumulated other comprehensive income (loss) decreased by corresponding amounts. The remaining net unrealized gains (losses) on available for sale securities at August 31, 2020 and November 30, 2019 represents Jefferies Group's share of Berkadia's net unrealized gains on available for sale securities recorded under the equity method of accounting. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Revenues from contracts with customers: Commissions and other fees $ 204,032 $ 171,000 $ 626,434 $ 493,560 Investment banking 615,837 410,796 1,595,330 1,126,479 Manufacturing revenues 119,751 82,565 282,737 248,227 Other 35,121 70,066 132,975 186,175 Total revenues from contracts with customers 974,741 734,427 2,637,476 2,054,441 Other sources of revenue: Principal transactions 623,283 (20,920) 1,421,485 465,451 Interest income 219,843 410,467 782,941 1,243,278 Other 7,632 99,182 53,392 165,369 Total revenues from other sources 850,758 488,729 2,257,818 1,874,098 Total revenues $ 1,825,499 $ 1,223,156 $ 4,895,294 $ 3,928,539 Revenues from contracts with customers are 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. We earn commission and other fee revenues 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. Commission revenues are generally paid on settlement date and we record a receivable between trade-date and payment on settlement date. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. We act as an agent in the soft dollar arrangements as the customer controls the use of the soft dollars and directs our payments to third-party service providers on our behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues in the Consolidated Statements of Operations. We earn account advisory and distribution fees in connection with wealth management services. Account advisory fees are recognized over time using the time-elapsed method as we determined that the customer simultaneously receives and consumes the benefits of investment advisory services as they are provided. Account advisory fees may be paid in advance of a specified service period or in arrears at the end of the specified service period (e.g., quarterly). Account advisory fees paid in advance are initially deferred within 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. We provide our clients with a full range of financial advisory and underwriting services. Revenues from financial advisory services primarily consist of fees generated in connection with merger, acquisition and restructuring transactions. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. Fees received prior to the completion of the transaction are deferred within 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 our clients simultaneously receive and consume the benefits of those services as they are provided. A significant portion of the fees we receive for our advisory services are considered variable as they are contingent upon a future event (e.g., completion of a transaction or third-party emergence from bankruptcy) and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Payment for advisory services are generally due promptly upon completion of a specified milestone or, for retainer fees, periodically over the course of the engagement. We recognize a receivable between the date of completion of the milestone and payment by the customer. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in the Consolidated Statements of Operations and any expenses reimbursed by our clients are recognized as Investment banking revenues. Underwriting services include underwriting and placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal bonds and mortgage-backed and asset-backed securities. Underwriting and placement agent revenues are recognized at a point in time on trade-date, as the client obtains the control and benefit of the underwriting offering at that point. Costs associated with underwriting transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis within underwriting costs in the Consolidated Statements of Operations as we are acting as a principal in the arrangement. Any expenses reimbursed by our clients are recognized as Investment banking revenues. Asset Management Fees. We earn management and performance fees in connection with investment advisory services provided to various funds and accounts, which are satisfied over time and measured using a time elapsed measure of progress as the customer receives the benefits of the services evenly throughout the term of the contract. Management and performance fees are considered variable as they are subject to fluctuation (e.g., changes in assets under management, market performance) and/or are contingent on a future event during the measurement period (e.g., meeting a specified benchmark) and are recognized only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. Management fees are generally based on month-end assets under management or an agreed upon notional amount and are included in the transaction price at the end of each month when the assets under management or notional amount is known. Performance fees are received when the return on assets under management for a specified performance period exceed certain benchmark returns, "high-water marks" or other performance targets. The performance period related to our performance fees is annual or semi-annual. Accordingly, performance fee revenue will generally be recognized only at the end of the performance period to the extent that the benchmark return has been met. 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 Investment Banking and Capital Markets (1) Asset Management (1) Merchant Banking (1) Corporate Consolidation Adjustments Total Three Months Ended August 31, 2020 Major Business Activity: Equities (2) $ 201,157 $ — $ — $ — $ (281) $ 200,876 Fixed Income (2) 3,156 — — — — 3,156 Investment Banking - Underwriting 444,399 — — — — 444,399 Investment Banking - Advisory 171,438 — — — — 171,438 Asset Management — 3,127 — — — 3,127 Manufacturing revenues — — 119,751 — — 119,751 Oil and gas revenues — — 20,946 — — 20,946 Other revenues — — 11,048 — — 11,048 Total revenues from contracts with customers $ 820,150 $ 3,127 $ 151,745 $ — $ (281) $ 974,741 Primary Geographic Region: Americas $ 684,441 $ 1,758 $ 151,085 $ — $ (281) $ 837,003 Europe, Middle East and Africa 90,132 1,369 644 — — 92,145 Asia 45,577 — 16 — — 45,593 Total revenues from contracts with customers $ 820,150 $ 3,127 $ 151,745 $ — $ (281) $ 974,741 Three Months Ended August 31, 2019 Major Business Activity: Equities (2) $ 167,528 $ — $ — $ — $ (3) $ 167,525 Fixed Income (2) 3,475 — — — — 3,475 Investment Banking - Underwriting 199,183 — — — (1,737) 197,446 Investment Banking - Advisory 213,350 — — — — 213,350 Asset Management — 4,647 — — — 4,647 Manufacturing revenues — — 82,565 — — 82,565 Oil and gas revenues — — 45,012 — — 45,012 Other revenues — — 20,407 — — 20,407 Total revenues from contracts with customers $ 583,536 $ 4,647 $ 147,984 $ — $ (1,740) $ 734,427 Primary Geographic Region: Americas $ 476,983 $ 3,244 $ 147,501 $ — $ (47) $ 627,681 Europe, Middle East and Africa 88,890 1,403 226 — (1,693) 88,826 Asia 17,663 — 257 — — 17,920 Total revenues from contracts with customers $ 583,536 $ 4,647 $ 147,984 $ — $ (1,740) $ 734,427 Reportable Segments Investment Banking and Capital Markets (1) Asset Management (1) Merchant Banking (1) Corporate Consolidation Adjustments Total Nine months ended August 31, 2020 Major Business Activity: Equities (2) $ 614,089 $ — $ — $ — $ (681) $ 613,408 Fixed Income (2) 13,026 — — — — 13,026 Investment Banking - Underwriting 898,653 — — — — 898,653 Investment Banking - Advisory 696,677 — — — — 696,677 Asset Management — 12,714 — — — 12,714 Manufacturing revenues — — 282,737 — — 282,737 Oil and gas revenues — — 78,704 — — 78,704 Other revenues — — 41,557 — — 41,557 Total revenues from contracts with customers $ 2,222,445 $ 12,714 $ 402,998 $ — $ (681) $ 2,637,476 Primary Geographic Region: Americas $ 1,858,137 $ 6,250 $ 401,484 $ — $ (681) $ 2,265,190 Europe, Middle East and Africa 237,652 6,464 1,303 — — 245,419 Asia 126,656 — 211 — — 126,867 Total revenues from contracts with customers $ 2,222,445 $ 12,714 $ 402,998 $ — $ (681) $ 2,637,476 Nine months ended August 31, 2019 Major Business Activity: Equities (2) $ 483,771 $ — $ — $ — $ (283) $ 483,488 Fixed Income (2) 10,072 — — — — 10,072 Investment Banking - Underwriting 555,830 — — — (1,737) 554,093 Investment Banking - Advisory 572,386 — — — — 572,386 Asset Management — 19,140 — — — 19,140 Manufacturing revenues — — 248,227 — — 248,227 Oil and gas revenues — — 129,029 — — 129,029 Other revenues — — 38,006 — — 38,006 Total revenues from contracts with customers $ 1,622,059 $ 19,140 $ 415,262 $ — $ (2,020) $ 2,054,441 Primary Geographic Region: Americas $ 1,288,046 $ 13,399 $ 414,259 $ — $ (327) $ 1,715,377 Europe, Middle East and Africa 280,605 5,741 683 — (1,693) 285,336 Asia 53,408 — 320 — — 53,728 Total revenues from contracts with customers $ 1,622,059 $ 19,140 $ 415,262 $ — $ (2,020) $ 2,054,441 (1) We now present Asset Management as a separate reporting segment. Prior year amounts have been reclassified to conform to current segment disclosure. See Note 23 for further information. (2) 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 August 31, 2020. Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at August 31, 2020. We recognized $15.6 million and $9.6 million during the three months ended August 31, 2020 and 2019, respectively, and $10.8 million and $27.2 million during the nine months ended August 31, 2020 and 2019, respectively, of revenues related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, we recognized $4.3 million and $6.0 million during the three months ended August 31, 2020 and 2019, respectively, and $14.4 million and $15.8 million during the nine months ended August 31, 2020 and 2019, respectively, of revenues primarily associated with distribution services, 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 we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. We had receivables related to revenues from contracts with customers of $321.4 million and $263.7 million at August 31, 2020 and November 30, 2019, respectively. We had no significant impairments related to these receivables during the three and nine months ended August 31, 2020 and 2019. Our deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Deferred revenues were $18.2 million and $12.8 million at August 31, 2020 and November 30, 2019, respectively, which are recorded as Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. During the three months ended August 31, 2020, we recognized $19.1 million of deferred revenue from the balance at May 31, 2020. During the three months ended August 31, 2019, we recognized $9.6 million of deferred revenue from the balance at May 31, 2019. During the nine months ended August 31, 2020, we recognized $9.3 million of deferred revenue from the balance at November 30, 2019. During the nine months ended August 31, 2019, we recognized $9.8 million of deferred revenue from the balance at November 30, 2018. Contract Costs We capitalize costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At August 31, 2020 and November 30, 2019, capitalized costs to fulfill a contract were $2.8 million and $4.8 million, respectively, which are recorded in Receivables in the Consolidated Statements of Financial Condition. We recognized expenses of $0.8 million and $1.6 million, during the three months ended August 31, 2020 and 2019, respectively, and $3.6 million and $3.8 million, during the nine months ended August 31, 2020 and 2019, 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 and nine months ended August 31, 2020 and 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions was $374.1 million (including $81.4 million for interest) at August 31, 2020, of which $233.2 million related to Jefferies Group, and was $327.3 million (including $67.2 million for interest) at November 30, 2019, of which $181.2 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 nine months ended August 31, 2020 and 2019. The net deferred tax asset was $312.6 million and $462.5 million at August 31, 2020 and November 30, 2019, respectively. The deferred tax asset is predominately attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, the largest component of which relates to compensation and benefits. The statute of limitations with respect to our federal income tax returns has expired for all years through 2015. We are currently under examination by various 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 by various major tax jurisdictions. We do not expect that resolution of these examinations will have a significant effect on the Consolidated Statements of Financial Condition, but could have a significant impact on the Consolidated Statements of Operations for the period in which resolution occurs. Our provision for income taxes for the nine months ended August 31, 2020 was $185.1 million, representing an effective tax rate of 28.7%. Our benefit for income taxes for the nine months ended August 31, 2019 was $522.6 million. During the second quarter of 2019, we completed the sale of our available for sale portfolio. In connection therewith, we recognized a tax benefit of $544.6 million during the nine months ended August 31, 2019. Unrealized gains and losses on available for sale securities, and their associated tax impacts, are recorded directly to equity as part of the Accumulated other comprehensive income (loss) balance. Following the portfolio approach, when unrealized gains and losses and their associated tax impacts are recorded at a then current tax rate, and then realized later at a different tax rate, the difference between the tax impact initially recorded in Accumulated other comprehensive income (loss) and the tax impact removed from Accumulated other comprehensive income (loss) upon realization remains in Accumulated other comprehensive income (loss) until the disposal of the portfolio and is referred to as a "lodged tax effect." Large changes in the fair value of our available for sale securities, primarily during 2008 through 2010, combined with fluctuations in our tax rate during those periods, generated a lodged tax benefit of $544.6 million. As a result of steps to improve our Corporate investment management efforts, we sold the remaining portion of our available for sale portfolio in the second quarter of 2019, which resulted in the realization of the $544.6 million tax benefit. While this realization did not impact total equity, it resulted in a tax benefit reflected in the Consolidated Statement of Operations of $544.6 million and, as a result, Retained earnings increased and Accumulated other comprehensive income (loss) decreased by corresponding amounts. |
Common Share and Earnings Per C
Common Share and Earnings Per Common Share | 9 Months Ended |
Aug. 31, 2020 | |
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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 304,409 $ 48,477 $ 462,338 $ 764,052 Allocation of earnings to participating securities (1) (1,945) (316) (2,921) (4,667) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 302,464 48,161 459,417 759,385 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 17 (7) 5 29 Mandatorily redeemable convertible preferred share dividends 1,404 — 4,230 3,827 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 303,885 $ 48,154 $ 463,652 $ 763,241 Denominator for earnings per share: Weighted average common shares outstanding 263,062 296,834 273,035 298,322 Weighted average shares of restricted stock outstanding with future service required (1,787) (2,008) (1,837) (1,903) Weighted average RSUs outstanding with no future service required 19,420 15,462 18,761 14,419 Denominator for basic earnings per share – weighted average shares 280,695 310,288 289,959 310,838 Stock options — — — — Senior executive compensation plan awards — 1,609 475 2,181 Mandatorily redeemable convertible preferred 4,441 — 4,441 4,162 Denominator for diluted earnings per share 285,136 311,897 294,875 317,181 (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 1,807,800 and 2,018,000 for the three months ended August 31, 2020 and 2019, respectively, and 1,851,900 and 1,910,700 for the nine months ended August 31, 2020 and 2019, respectively. Dividends declared on participating securities were not material during the three and nine months ended August 31, 2020 and 2019. 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 August 31, 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. Our Board of Directors from time to time has authorized the repurchase of our common shares. In January 2019, the Board of Directors approved a $500.0 million share repurchase authorization and in January 2020, the Board of Directors approved an increase of $250.0 million to the share repurchase authorization. Additionally, in connection with the HomeFed merger on July 1, 2019, our Board of Directors authorized the repurchase of an additional 9.25 million shares in the open market. In March 2020, the Board of Directors approved an additional share repurchase authorization of $100 million. In June 2020, the Board of Directors increased the share repurchase authorization by $176.7 million to $250.0 million. During the nine months ended August 31, 2020, we purchased a total of 32,659,910 of our common shares for an aggregate purchase price of $619.9 million, or an average price of $18.98 per share. At August 31, 2020, we had approximately $122.0 million available for future purchases. In September 2020, the Board of Directors increased the share repurchase authorization to $250.0 million, including the $122.0 million. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes commitments associated with certain business activities at August 31, 2020 (in millions): Expected Maturity Date 2020 2021 2022 2024 2026 Maximum Payout Equity commitments (1) $ 59.3 $ 161.9 $ 78.3 $ 11.1 $ 12.2 $ 322.8 Loan commitments (1) — 296.0 35.0 — — 331.0 Underwriting commitments 64.0 — — — — 64.0 Forward starting reverse repos (2) 6,184.5 — — — — 6,184.5 Forward starting repos (2) 3,870.8 100.0 — — — 3,970.8 Other unfunded commitments (1) — 136.4 — 5.1 — 141.5 $ 10,178.6 $ 694.3 $ 113.3 $ 16.2 $ 12.2 $ 11,014.6 (1) Equity commitments, loan commitments and other unfunded commitments are generally presented by contractual maturity date. The amounts are however mostly available on demand. (2) At August 31, 2020, $6,183.8 million within forward starting securities purchased under agreements to resell and $3,670.6 million within forward starting securities sold under agreements to repurchase settled within three Equity Commitments. Equity commitments include a commitment 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 August 31, 2020, Jefferies Group's outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $11.2 million. See Note 8 for additional information regarding Jefferies Group's investment in Jefferies Finance. Additionally, at August 31, 2020, we had other outstanding equity commitments to invest up to $214.0 million in various other investments. Loan Commitments. From time to time we make commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At August 31, 2020, we had $80.0 million of outstanding loan commitments to clients. Loan commitments outstanding at August 31, 2020 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 August 31, 2020, $0.0 million of Jefferies Group's $250.0 million commitment was funded. Underwriting Commitments . In connection with investment banking activities, we may from time to time provide underwriting commitments to our clients in connection with capital raising transactions. Forward Starting Reverse Repos and Repos. We enter into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities. Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes, warehouse financings and debt securities to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. 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. Our dealer activities cause us to make markets and trade in a variety of derivative instruments. Certain derivative contracts that we have entered into meet the accounting definition of a guarantee under GAAP, including credit default swaps, written foreign currency options and written equity put options. On certain of these contracts, such as written interest rate caps and foreign currency options, the maximum payout cannot be quantified since the increase in interest or foreign exchange rates are not contractually limited by the terms of the contract. As such, we have disclosed notional values as a measure of our maximum potential payout under these contracts. The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under GAAP at August 31, 2020 (in millions): Expected Maturity Date Guarantee Type 2020 2021 2022 2024 2026 Notional/ Derivative contracts – non-credit related $ 6,295.6 $ 4,149.9 $ 6,458.1 $ 1,345.6 $ 52.0 $ 18,301.2 Written derivative contracts – credit related — — 1.0 5.4 — 6.4 Total derivative contracts $ 6,295.6 $ 4,149.9 $ 6,459.1 $ 1,351.0 $ 52.0 $ 18,307.6 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). We substantially mitigate our exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and we manage the risk associated with these contracts in the context of our overall risk management framework. We believe notional amounts overstate our expected payout and that fair value of these contracts is a more relevant measure of our obligations. The fair value of derivative contracts meeting the definition of a guarantee is approximately $197.9 million at August 31, 2020. 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 August 31, 2020, the aggregate amount of commercial paper outstanding was $1.47 billion. HomeFed. For real estate development projects, HomeFed is generally required to obtain infrastructure improvement bonds at the beginning of construction work and warranty bonds upon completion of such improvements. These bonds are issued by surety companies to guarantee satisfactory completion of a project and provide funds primarily to a municipality in the event HomeFed is unable or unwilling to complete certain infrastructure improvements. As HomeFed develops the planned area and the municipality accepts the improvements, the bonds are released. Should the respective municipality or others draw on the bonds for any reason, certain of HomeFed's subsidiaries would be obligated to pay. At August 31, 2020, the aggregate amount of infrastructure improvement bonds outstanding was $67.6 million. Other Guarantees. We are members of various exchanges and clearing houses. In the normal course of business, we provide guarantees to securities clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. Our obligations under such guarantees could exceed the collateral amounts posted. Our maximum potential liability under these arrangements cannot be quantified; however, the potential for us to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. Additionally, we provide certain indemnifications in connection with third-party clearing and execution arrangements whereby a third party may clear and settle transactions on behalf of our clients. These indemnifications generally have standard contractual terms and are entered into in the ordinary course of business. Our obligations in respect of such transactions are secured by the assets in our client's account, as well as any proceeds received from the transactions cleared and settled on behalf of our client. However, we believe that it is unlikely we would have to make any material payments under these arrangements and no material liabilities related to these indemnifications have been recognized. Standby Letters of Credit. At August 31, 2020, we provided guarantees to certain counterparties in the form of standby letters of credit totaling $22.0 million. Standby letters of credit commit us to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary. Since commitments associated with these collateral instruments may expire unused, the amount shown does not necessarily reflect the actual future cash funding requirement. Primarily all letters of credit expire within one year. |
Net Capital Requirements
Net Capital Requirements | 9 Months Ended |
Aug. 31, 2020 | |
Brokers and Dealers [Abstract] | |
Net Capital Requirements | Net Capital Requirements Jefferies LLC operates as a broker-dealer registered with the SEC and a member firm of the Financial Industry Regulatory Authority ("FINRA"). Jefferies LLC is subject to the Securities and Exchange Commission Uniform Net Capital Rule ("Rule 15c3-1"), which requires the maintenance of minimum net capital and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S. broker-dealer and futures commission merchant ("FCM"), is also subject to Rule 1.17 of the 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 August 31, 2020 were $1,612.5 million and $1,531.9 million, respectively. FINRA is the designated examining authority for Jefferies LLC and the National Futures Association is the designated self-regulatory organization for Jefferies LLC as an FCM. Certain other U.S. and non-U.S. subsidiaries of Jefferies Group are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions, including Jefferies International Limited, which is authorized and regulated by the Financial Conduct Authority in the United Kingdom. The regulatory capital requirements referred to above may restrict our ability to withdraw capital from Jefferies Group's regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company. |
Other Fair Value Information
Other Fair Value Information | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [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): August 31, 2020 November 30, 2019 Carrying Fair Carrying Fair Receivables: Notes and loans receivable (1) $ 768,290 $ 783,476 $ 775,501 $ 784,053 Financial Liabilities: Short-term borrowings (2) $ 783,552 $ 783,552 $ 548,490 $ 548,490 Long-term debt (3) $ 6,897,732 $ 7,525,896 $ 7,121,776 $ 7,569,837 (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 carried at cost are estimated to be the carrying amount due to their short maturities. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. (3) Long-term debt: The fair values are estimated using quoted prices, pricing information obtained from external data providers and, for certain variable rate debt, is estimated to be the carrying amount. If measured at fair value in the financial statements, these financial instruments would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Aug. 31, 2020 | |
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 (including JCP Fund V), which are managed by a team led by our President and a Director ("Private Equity Related Funds"). Reflected in the Consolidated Statements of Financial Condition at August 31, 2020 and November 30, 2019 are Jefferies Group's equity investments in Private Equity Related Funds of $18.6 million and $23.0 million, respectively. Net gains (losses) from Jefferies Group's investment in JCP Fund V aggregating $2.0 million and $(2.5) million for the three months ended August 31, 2020 and 2019, respectively, $(3.5) million and $(1.9) million for the nine months ended August 31, 2020 and 2019, respectively, were recorded in Principal transactions revenues. Gains (losses) for other funds were not material. For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Notes 7 and 19 . Berkadia Commercial Mortgage, LLC. At August 31, 2020 and November 30, 2019, Jefferies Group has commitments to purchase $325.6 million and $360.4 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 $2.7 million and $9.9 million at August 31, 2020 and November 30, 2019, respectively, included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. Officers, Directors and Employees. We had $40.8 million and $44.8 million of loans outstanding to certain officers and employees (none of whom are an executive officer or director of the Company) at August 31, 2020 and November 30, 2019, 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. Jefferies Finance. During November 2019, we purchased $65.3 million of loan receivables from Jefferies Finance which settled during the nine months ended August 31, 2020. See Note 8 for additional information on transactions with Jefferies Finance. |
Segment Information
Segment Information | 9 Months Ended |
Aug. 31, 2020 | |
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. During the first quarter of 2020, we changed our internal structure with regard to our operating segments. Previously, our segments consisted of (1) Investment Banking, Capital Markets and Asset Management, which included all of the financial results of Jefferies Group; (2) Merchant Banking; and (3) Corporate. In the first quarter of 2020, we appointed co-Presidents of Asset Management and created a separate operating segment that consists of the asset management activity previously included in our Investment Banking, Capital Markets and Asset Management segment, together with asset management activity previously included in our Merchant Banking segment. In order to compare results with prior periods, we have recast our segment results for the three and nine months ended August 31, 2019. The Investment Banking and Capital Markets segment includes investment banking, capital markets and other related services. Investment banking provides underwriting and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Capital markets 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. Our Asset Management segment includes both the operations of LAM as well as the asset management operations within Jefferies Group. Within Asset Management, we manage, invest in and provide services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. Asset Management offers institutional clients an innovative range of investment strategies through its affiliated managers. Merchant Banking consists of our various merchant banking businesses and investments, primarily including Linkem, Vitesse Energy Finance and JETX Energy, real estate, Idaho Timber, FXCM and The We Company. Our Merchant Banking businesses and investments also included National Beef, prior to its sale in November 2019 and Spectrum Brands, prior to its distribution to shareholders in October 2019. Corporate assets primarily consist of cash and cash equivalents, financial instruments owned and the deferred tax asset (exclusive of Jefferies Group's deferred tax asset). Corporate revenues primarily include interest income. 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. For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 (In thousands) Net revenues: Reportable Segments: Investment Banking and Capital Markets $ 1,274,115 $ 757,362 $ 3,451,776 $ 2,274,884 Asset Management 118,558 20,341 146,278 95,448 Merchant Banking 220,887 73,754 532,608 391,825 Corporate 591 8,967 11,908 22,134 Total net revenues related to reportable 1,614,151 860,424 4,142,570 2,784,291 Consolidation adjustments 2,019 (3,646) 7,517 2,587 Total consolidated net revenues $ 1,616,170 $ 856,778 $ 4,150,087 $ 2,786,878 Income (loss) before income taxes: Reportable Segments: Investment Banking and Capital Markets $ 281,323 $ 86,194 $ 745,814 $ 283,892 Asset Management 87,604 (7,403) 25,122 2,011 Merchant Banking 70,747 (35,381) (57,592) 48,537 Corporate (15,618) (11,779) (36,226) (47,007) Income before income taxes related to reportable segments 424,056 31,631 677,118 287,433 Parent Company interest (14,114) (14,770) (39,773) (44,298) Consolidation adjustments 2,300 (3,598) 8,198 2,924 Total consolidated income before income taxes $ 412,242 $ 13,263 $ 645,543 $ 246,059 Depreciation and amortization expenses: Reportable Segments: Investment Banking and Capital Markets $ 22,225 $ 20,754 $ 61,322 $ 56,672 Asset Management 2,018 512 4,776 1,472 Merchant Banking 14,408 17,784 50,627 49,904 Corporate 869 830 2,631 2,552 Total consolidated depreciation and amortization expenses $ 39,520 $ 39,880 $ 119,356 $ 110,600 August 31, November 30, 2019 (In thousands) Identifiable Assets Employed: Reportable Segments: Investment Banking and Capital Markets $ 43,887,885 $ 40,523,223 Asset Management 3,192,277 3,313,716 Merchant Banking 3,225,735 3,285,671 Corporate 1,927,243 2,432,119 Identifiable assets employed related to 52,233,140 49,554,729 Consolidation adjustments (459,152) (94,495) Total consolidated assets $ 51,773,988 $ 49,460,234 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policy) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Lease Accounting | For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right of use ("ROU") asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives. The ROU assets are included in Property, equipment and leasehold improvements, net and the lease liabilities are included in Lease liabilities in the Consolidated Statement of Financial Condition.The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease's term and currency of payment. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Lease expense is generally recognized on a straight-line basis over the lease term and included in Selling, general and other expenses in the Consolidated Statement of Operations. |
Receivables | 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 between 620 and 679 and sub-prime with scores below 620. |
Capitalization of Interest | We capitalize interest on qualifying HomeFed real estate assets. |
Accounting Developments - Accounting Standards Adopted in Current Annual Reporting Period and to be Adopted in Future Periods | Accounting Developments - Accounting Standards Adopted in Current Annual Reporting Period Leases . We adopted the new lease standard on December 1, 2019 using a modified retrospective transition approach. Accordingly, reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. We elected not to reassess whether existing contracts are or contain leases, or the lease classification and initial direct costs of existing leases upon transition. At transition on December 1, 2019, the adoption of this standard resulted in the recognition of operating ROU assets of $545.8 million and operating lease liabilities of $614.9 million reflected in Property, equipment and leasehold improvements, net and Lease liabilities in the Consolidated Statement of Financial Condition, respectively. Finance lease ROU assets and finance lease liabilities were not material and are reflected in Property, equipment and leasehold improvements, net and Lease liabilities in the Consolidated Statement of Financial Condition, respectively. 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. We adopted the guidance in the first quarter of fiscal 2020 and the adoption did not have a material impact on our consolidated financial statements. Accounting Developments - Accounting Standards to be Adopted in Future Periods 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 which simplifies goodwill impairment testing. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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 postretirement plans. The guidance is effective in the first quarter of fiscal 2021. We do not believe the new guidance will have a material impact on our consolidated financial statements. 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. Income Taxes. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. The guidance is effective in the first quarter of fiscal 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements. Reference Rate Reform . In March 2020, the FASB issued new guidance which provides optional exceptions for applying GAAP to contracts, hedge accounting relationships or other transactions affected by reference rate reform. The optional exceptions can be elected through December 31, 2022. We are currently evaluating the impact of applying the optional exceptions on our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information For the Nine Months Ended August 31, 2020 August 31, 2019 (In thousands) Cash paid during the year for: Interest $ 880,853 $ 1,257,311 Income tax payments (refunds), net $ (13,514) $ 25,825 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on Recurring Basis at Fair Value | The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value ("NAV") of $928.2 million and $586.9 million at August 31, 2020 and November 30, 2019, respectively, by level within the fair value hierarchy (in thousands): August 31, 2020 Level 1 Level 2 Level 3 Counterparty Total Assets: Financial instruments owned, at fair value: Corporate equity securities $ 2,594,722 $ 63,256 $ 77,941 $ — $ 2,735,919 Corporate debt securities — 2,720,644 23,269 — 2,743,913 Collateralized debt obligations and collateralized loan obligations — 68,287 36,122 — 104,409 U.S. government and federal agency securities 3,164,472 92,036 — — 3,256,508 Municipal securities — 358,292 — — 358,292 Sovereign obligations 1,686,522 877,334 — — 2,563,856 Residential mortgage-backed securities — 975,166 28,317 — 1,003,483 Commercial mortgage-backed securities — 1,091,406 4,663 — 1,096,069 Other asset-backed securities — 48,734 63,337 — 112,071 Loans and other receivables — 2,117,162 162,941 — 2,280,103 Derivatives 2,897 2,086,407 52,195 (1,611,815) 529,684 Investments at fair value — 45,156 172,498 — 217,654 FXCM term loan — — 56,542 — 56,542 Total financial instruments owned, at fair value, excluding investments at fair value based on NAV $ 7,448,613 $ 10,543,880 $ 677,825 $ (1,611,815) $ 17,058,503 Loans to and investments in associated $ — $ 8,404 $ 34,688 $ — $ 43,092 Securities received as collateral, at fair value $ 4,413 $ — $ — $ — $ 4,413 Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 2,295,391 $ 12,533 $ 4,367 $ — $ 2,312,291 Corporate debt securities — 1,448,558 148 — 1,448,706 U.S. government and federal agency securities 2,722,907 — — — 2,722,907 Sovereign obligations 1,452,399 1,096,176 — — 2,548,575 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,432,113 46,594 — 1,478,707 Derivatives 1,031 2,207,365 74,620 (1,799,681) 483,335 Total financial instruments sold, not yet purchased, at fair value $ 6,471,728 $ 6,196,745 $ 125,764 $ (1,799,681) $ 10,994,556 Short-term borrowings $ — $ 21,829 $ — $ — $ 21,829 Other secured financings $ — $ — $ 3,402 $ — $ 3,402 Long-term debt $ — $ 891,845 $ 630,260 $ — $ 1,522,105 Obligation to return securities received as collateral, at fair value $ 4,413 $ — $ — $ — $ 4,413 November 30, 2019 Level 1 Level 2 Level 3 Counterparty Total Assets: Financial instruments owned, at fair value: Corporate equity securities $ 2,507,164 $ 218,403 $ 58,426 $ — $ 2,783,993 Corporate debt securities — 2,472,245 7,490 — 2,479,735 Collateralized debt obligations and collateralized loan obligations — 124,225 28,788 — 153,013 U.S. government and federal agency securities 2,101,624 158,618 — — 2,260,242 Municipal securities — 742,326 — — 742,326 Sovereign obligations 1,330,026 1,405,827 — — 2,735,853 Residential mortgage-backed securities — 1,069,066 17,740 — 1,086,806 Commercial mortgage-backed securities — 424,060 6,110 — 430,170 Other asset-backed securities — 303,847 42,563 — 346,410 Loans and other receivables — 2,460,551 114,080 — 2,574,631 Derivatives 2,809 1,833,907 14,889 (1,433,197) 418,408 Investments at fair value — 32,688 205,412 — 238,100 FXCM term loan — — 59,120 — 59,120 Total financial instruments owned, at fair value, excluding investments at fair value based on NAV $ 5,941,623 $ 11,245,763 $ 554,618 $ (1,433,197) $ 16,308,807 Securities purchased under agreements to resell $ — $ — $ 25,000 $ — $ 25,000 Securities received as collateral, at fair value $ 9,500 $ — $ — $ — $ 9,500 Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 2,755,601 $ 7,438 $ 4,487 $ — $ 2,767,526 Corporate debt securities — 1,471,142 340 — 1,471,482 U.S. government and federal agency securities 1,851,981 — — — 1,851,981 Sovereign obligations 1,363,475 941,065 — — 2,304,540 Commercial mortgage-backed securities — — 35 — 35 Loans — 1,600,228 9,463 — 1,609,691 Derivatives 871 2,066,455 92,057 (1,632,178) 527,205 Total financial instruments sold, not yet purchased, at fair value $ 5,971,928 $ 6,086,328 $ 106,382 $ (1,632,178) $ 10,532,460 Short-term borrowings $ — $ 20,981 $ — $ — $ 20,981 Long-term debt $ — $ 735,216 $ 480,069 $ — $ 1,215,285 Obligation to return securities received as collateral, at fair value $ 9,500 $ — $ — $ — $ 9,500 (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 August 31, 2020 Equity Long/Short Hedge Funds (2) $ 322,020 $ — Equity Funds (3) 31,477 13,510 Commodity Fund (4) 16,204 — Multi-asset Funds (5) 558,452 — Other Funds (6) 65 — Total $ 928,218 $ 13,510 November 30, 2019 Equity Long/Short Hedge Funds (2) $ 291,593 $ — Equity Funds (3) 44,576 14,621 Commodity Fund (4) 16,025 — Multi-asset Funds (5) 234,583 — Other Funds (6) 157 — Total $ 586,934 $ 14,621 (1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements. (2) This category includes investments in hedge funds that invest, long and short, primarily in both public and private equity securities in domestic and international markets. At August 31, 2020 and November 30, 2019, 6% and 6%, respectively, of investments in this category 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. 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 (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 August 31, 2020 and November 30, 2019, investments representing approximately 58% and 5%, respectively, of the fair value of investments in this category are redeemable monthly with 30 or 60 days prior written notice. (6) This category includes investments in a fund that invests in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt and private equity investments and there are no redemption provisions. This category also includes investments in a fund of funds that invests in various private equity funds that are managed by us and have no redemption provisions. Investments in the fund of funds are gradually being liquidated, however, the timing of when the proceeds will be received is uncertain. |
Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2020 (in thousands): Three Months Ended August 31, 2020 Balance, May 31, 2020 Total gains/ losses Purchases Sales Settlements Issuances Net transfers Balance, August 31, 2020 Changes in Assets: Financial instruments owned, at fair value: Corporate equity securities $ 76,140 $ (597) $ 779 $ — $ — $ — $ 1,619 $ 77,941 $ (597) Corporate debt securities 25,178 (889) 4 (394) — — (630) 23,269 (881) CDOs and CLOs 31,551 3,813 39 (7,539) (2,318) — 10,576 36,122 159 Residential mortgage-backed securities 22,339 1,240 — — (774) — 5,512 28,317 1,262 Commercial mortgage-backed securities 4,461 202 — — — — — 4,663 198 Other asset-backed securities 86,062 (1,585) 3,313 — (7,442) — (17,011) 63,337 (5,101) Loans and other receivables 121,129 13,109 18,492 (13,897) (355) — 24,463 162,941 13,440 Investments at fair value 154,238 24,179 7,183 — (13,102) — — 172,498 23,030 FXCM term loan 53,765 2,777 — — — — — 56,542 2,777 Loans to and investments in associated companies — — — — — — 34,688 34,688 — Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 4,190 $ (12) $ — $ — $ — $ — $ 189 $ 4,367 $ 12 Corporate debt securities 163 (15) — — — — — 148 15 Commercial mortgage-backed securities 140 — (140) 35 — — — 35 — Loans 10,674 6,636 (23,001) 3,558 — — 48,727 46,594 (6,591) Net derivatives (2) 45,131 (12,175) (1,404) 13,089 (648) — (21,568) 22,425 12,007 Other secured financings — (617) — — — 4,019 — 3,402 617 Long-term debt (1) 497,040 130,463 — — — 5,749 (2,992) 630,260 (42,163) (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 the 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 August 31, 2020 were losses of $88.3 million during the three months ended August 31, 2020. (2) Net derivatives represent Financial instruments owned, at fair value - Derivatives and Financial instruments sold, not yet purchased, at fair value - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2020 (in thousands): Nine Months Ended August 31, 2020 Balance, November 30, 2019 Total gains/ losses Purchases Sales Settlements Issuances Net transfers Balance, August 31, 2020 Changes in Assets: Financial instruments owned, at fair value: Corporate equity securities $ 58,426 $ (3,914) $ 3,406 $ (13,555) $ — $ — $ 33,578 $ 77,941 $ (775) Corporate debt securities 7,490 (162) 285 (489) (602) — 16,747 23,269 (591) CDOs and CLOs 28,788 (8,000) 10,883 (20,935) (6,847) — 32,233 36,122 (20,739) Residential mortgage-backed securities 17,740 (1,347) 7,625 — (496) — 4,795 28,317 (1,811) Commercial mortgage-backed securities 6,110 232 — — (1,785) — 106 4,663 807 Other asset-backed securities 42,563 (3,495) 29,096 (664) (22,125) — 17,962 63,337 (13,012) Loans and other receivables 114,080 966 309,982 (208,958) (57,371) — 4,242 162,941 1,291 Investments at fair value 205,412 (62,415) 42,771 (168) (13,102) — — 172,498 (64,263) FXCM term loan 59,120 (2,578) — — — — — 56,542 (2,578) Loans to and investments in associated companies — — — — — — 34,688 34,688 — Securities purchased under 25,000 — — — (25,000) — — — — Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 4,487 $ 258 $ (567) $ — $ — $ — $ 189 $ 4,367 $ 98 Corporate debt securities 340 (261) (325) 394 — — — 148 20 Commercial mortgage-backed securities 35 — (35) 35 — — — 35 — Loans 9,463 2,986 (5,760) 38,531 — — 1,374 46,594 (3,366) Net derivatives (2) 77,168 (63,367) (6,732) 26,656 (1,567) — (9,733) 22,425 60,257 Other secured financings — (617) — — — 4,019 — 3,402 617 Long-term debt (1) 480,069 10,851 — — (2,000) 202,046 (60,706) 630,260 (28,153) (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 the 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 August 31, 2020 were gains of $17.3 million during the nine months ended August 31, 2020. (2) Net derivatives represent Financial instruments owned, at fair value - Derivatives and Financial instruments sold, not yet purchased, at fair value - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2019 (in thousands): Three Months Ended August 31, 2019 Balance, May 31 2019 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into (out of) Level 3 Balance, August 31, 2019 Changes in Assets: Financial instruments owned, at fair value: Corporate equity securities $ 59,572 $ 12,547 $ 16,508 $ (17,502) $ — $ — $ (20,255) $ 50,870 $ 12,067 Corporate debt securities 8,346 (3,072) 1,175 (1,942) (85) — 4,866 9,288 (3,047) CDOs and CLOs 25,912 (1,499) — — (609) — 6,454 30,258 (2,097) Residential mortgage-backed securities 17,266 (1,917) — (65) (22) — 2,667 17,929 (1,435) Commercial mortgage-backed securities 12,530 (2,003) — (1,703) (3,362) — — 5,462 (3,143) Other asset-backed securities 43,185 (1,689) 13,497 (6,975) (5,500) — (7,920) 34,598 (1,068) Loans and other receivables 98,484 (2,847) 26,921 (33,409) (1,287) — (12,299) 75,563 (2,392) Investments at fair value 408,739 (152,162) 1,067 (296) — — 35,135 292,483 (152,162) FXCM term loan 56,600 2,293 — — (303) — — 58,590 2,293 Securities purchased under 25,000 — — — — — — 25,000 — Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ 221 $ 401 $ (221) $ — $ (190) $ — $ — $ 211 $ (35) Corporate debt securities 669 (650) (34) — (369) — 1,586 1,202 649 Commercial mortgage-backed securities — — — 35 — — — 35 — Loans 9,428 (520) (10,281) 5,384 — — 12,619 16,630 531 Net derivatives (2) 47,449 (19,519) — 6,766 (14) — 16,081 50,763 18,507 Long-term debt (1) 236,562 7,455 — — — 114,641 (10,595) 348,063 (8,162) (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 the 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 August 31, 2019 were gains of $0.7 million during the three months ended August 31, 2019. (2) Net derivatives represent Financial instruments owned, at fair value - Derivatives and Financial instruments sold, not yet purchased, at fair value - Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2019 (in thousands): Nine Months Ended August 31, 2019 Balance, November 30, 2018 Total gains/ losses Purchases Sales Settlements Issuances Net transfers Balance, August 31, 2019 Changes in Assets: Financial instruments owned, at fair value: Corporate equity securities $ 52,192 $ 15,499 $ 23,172 $ (25,431) $ (669) $ — $ (13,893) $ 50,870 $ 14,071 Corporate debt securities 9,484 (4,904) 6,080 (10,544) (553) — 9,725 9,288 (5,325) CDOs and CLOs 36,105 (4,320) 48,112 (43,230) (3,014) — (3,395) 30,258 (6,781) Residential mortgage-backed securities 19,603 (2,573) 2,166 (2,022) (171) — 926 17,929 (2,166) Commercial mortgage-backed securities 10,886 (2,196) 11 (2,023) (6,638) — 5,422 5,462 (4,326) Other asset-backed securities 53,175 (929) 14,698 (2,494) (30,623) — 771 34,598 (961) Loans and other receivables 46,985 3,933 178,069 (166,496) (8,379) — 21,451 75,563 682 Investments at fair value 396,254 (119,110) 42,579 (18,598) — — (8,642) 292,483 (119,110) FXCM term loan 73,150 (8,669) 1,500 — (7,391) — — 58,590 (8,669) Securities purchased under — — — — — 25,000 — 25,000 — Liabilities: Financial instruments sold, not yet purchased, at fair value: Corporate equity securities $ — $ 401 $ — $ — $ (190) $ — $ — $ 211 $ (35) Corporate debt securities 522 (867) — — (524) — 2,071 1,202 867 Commercial mortgage-backed securities — — — 35 — — — 35 — Loans 6,376 (1,342) (8,553) 9,929 — — 10,220 16,630 1,583 Net derivatives (2) 21,614 (48,746) (2,829) 16,313 1,609 — 62,802 50,763 40,052 Long-term debt (1) 200,745 (5,286) — — (11,250) 204,710 (40,856) 348,063 (4,517) (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 the 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 August 31, 2019 were gains of $9.8 million during the nine months ended August 31, 2019. (2) Net derivatives represent Financial instruments owned, at fair value - Derivatives and Financial instruments sold, not yet purchased, at fair value - Derivatives. |
Quantitative Information About Significant Unobservable Inputs Used in Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. August 31, 2020 Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Financial instruments owned, at fair value Corporate equity securities $ 77,442 Non-exchange-traded Market approach Price $1 to $213 $84 EBITDA multiple $3 to $4 $3 Corporate debt securities $ 23,269 Market approach Price $69 — Scenario analysis Estimated recovery percentage 22% — CDOs and CLOs $ 36,122 Discounted cash flows Constant prepayment rate 2 % to 20% 19 % Constant default rate 1 % to 2% 2 % Loss severity 25 % to 50% 28 % Discount rate/yield 6 % to 26% 17 % Scenario analysis Estimated recovery percentage 2 % to 35% 24 % Residential mortgage- $ 28,317 Discounted cash flows Cumulative loss rate 2 % to 32% 5 % Duration (years) 1.0 year to 13.0 years 9.7 years Discount rate/yield 4 % to 14% 5 % Commercial mortgage- $ 4,663 Scenario analysis Estimated recovery percentage 44% — Other asset-backed securities $ 63,337 Discounted cash flows Cumulative loss rate 7 % to 72% 18 % Duration (years) 0.3 years to 4.2 years 1.8 years Discount rate/yield 4 % to 15% 10 % Market approach Price $100 — Loans and other receivables $ 104,212 Market approach Price $6 to $100 $76 Scenario analysis Estimated recovery percentage 2 % to 100% 62 % Derivatives $ 50,637 Loans total return swaps Market approach Price $97 to $99 $98 Interest rate swaps Market approach Basis points upfront 3 to 20 9 Investments at fair value $ 76,654 Private equity securities Market approach Price $2 to $169 $42 Scenario analysis Estimated recovery percentage 33% — Discount rate/yield 19 % to 21% 20 % Revenue growth 0% — Investment in FXCM $ 56,542 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 1.5 years 1.5 years Loans to and investments in $ 34,688 Non-exchange-traded Market approach Underlying stock price $506 — Underlying stock price €15 to €18 €17 Volatility 23 % to 59% 25 % August 31, 2020 Fair Value (in thousands) Valuation Technique Significant Unobservable Input(s) Input/Range Weighted Average Financial instruments sold, not yet purchased, at fair value Corporate equity securities $ 4,367 Market approach Transaction level $1 — Corporate debt securities $ 148 Scenario analysis Estimated recovery percentage 22% — Loans $ 46,594 Market approach Price $31 to $97 $70 Scenario analysis Estimated recovery percentage 2% — Derivatives $ 69,615 Equity options Volatility benchmarking Volatility 32 % to 46% 39 % Interest rate swaps Market approach Basis points upfront 3 to 20 9 Unfunded commitments Price $97 to $99 $98 Other secured financings $ 3,402 Scenario analysis Estimated recovery percentage 60 % to 100% 79 % Long-term debt Structured notes $ 630,260 Market approach Price $77 to $105 $99 Price €69 to €107 €91 November 30, 2019 Fair Value Valuation Significant Input/Range Weighted Financial instruments owned, at fair value Corporate equity securities $ 29,017 Non-exchange-traded Market approach Price $1 to $140 $55 Underlying stock price $3 to $5 $4 Corporate debt securities $ 7,490 Scenario analysis Estimated recovery percentage 23 % to 85% 46 % Volatility 44% — Credit spread 750 — Underlying stock price £0.4 — CDOs and CLOs $ 28,788 Discounted cash flows Constant prepayment rate 20% — Constant default rate 1 % to 2% 2 % Loss severity 25 % to 37% 29 % Discount rate/yield 12 % to 21% 15 % Scenario analysis Estimated recovery percentage 3.25 % to 36.5% 25 % Residential mortgage- $ 17,740 Discounted cash flows Cumulative loss rate 2% — Duration (years) 6.3 years — Discount rate/yield 3% — Commercial mortgage- $ 6,110 Discounted cash flows Cumulative loss rate 7.3% — Duration (years) 0.2 years — Discount rate/yield 85% — Scenario analysis Estimated recovery percentage 44% — Other asset-backed securities $ 42,563 Discounted cash flows Cumulative loss rate 7 % to 31% 16 % Duration (years) 0.5 years to 3 years 1.5 years Discount rate/yield 7 % to 15% 11 % Loans and other receivables $ 112,574 Market approach Price $36 to $100 $90 Scenario analysis Estimated recovery percentage 87 % to 104% 99 % Discounted cash flows Term based on the pay off (years) 0 months to 0.1 years 0.1 years Derivatives $ 13,826 Interest rate swaps Market approach Basis points upfront 0 to 16 6 Unfunded commitments Price $88 — Equity options Volatility benchmarking Volatility 45% — Investments at fair value $ 157,504 Private equity securities Market approach Price $8 to $250 $80 Scenario analysis Discount rate/yield 19 % to 21% 20 % Revenue growth 0% — Investment in FXCM $ 59,120 Term loan Discounted cash flows Term based on the pay off (years) 0 months to 1.2 years 1.2 years Securities purchased under agreements to resell $ 25,000 Market approach Spread to 6 month LIBOR 500 — Duration (years) 1.5 years — November 30, 2019 Fair Value Valuation Significant Input/Range Weighted Financial instruments sold, not yet purchased, at fair value Corporate equity securities $ 4,487 Market approach Transaction level $1 — Loans $ 9,463 Market approach Price $50 to $100 $88 Scenario analysis Estimated recovery percentage 1% — Derivatives $ 92,057 Equity options Volatility benchmarking Volatility 21 % to 61% 43 % Interest rate swaps Market approach Basis points upfront 0 to 22 13 Cross currency swaps Basis points upfront 2 — Unfunded commitments Price $88 — Long-term debt Structured notes $ 480,069 Market approach Price $84 to $108 $96 Price €74 to €103 €91 |
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 gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on short-term borrowings, other secured financings and long-term debt measured at fair value under the fair value option (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Financial instruments owned, at fair value: Loans and other receivables $ 1,704 $ 2,040 $ (11,256) $ (5,458) Financial instruments sold, not yet purchased, at Loans $ 367 $ — $ (610) $ — Loan commitments 1,875 (443) 464 (1,200) Short-term borrowings: Changes in instrument specific credit risk (1) $ (23) $ — $ (92) $ — Other changes in fair value (2) (1,115) — (959) — Other secured financings: Other changes in fair value (2) $ 617 $ — $ 617 $ — Long-term debt: Changes in instrument specific credit risk (1) $ (177,801) $ 6,922 $ 49,369 $ 34,414 Other changes in fair value (2) (9,943) (46,003) (78,567) (93,311) (1) Changes in instrument specific credit risk related to structured notes are included in the Consolidated Statements of Comprehensive Income (Loss), net of tax. |
Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value Under Fair Value Option | The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables, long-term debt and short-term borrowings and other secured financings measured at fair value under the fair value option (in thousands): August 31, November 30, 2019 Financial instruments owned, at fair value: Loans and other receivables (1) $ 1,839,249 $ 1,546,516 Loans and other receivables on nonaccrual status and/or 90 days or greater past due (1) (2) 334,504 197,215 Long-term debt and short-term borrowings 74,197 74,408 Other secured financings 923 — (1) Interest income is recognized separately from other changes in fair value and is included in Interest income in the Consolidated Statements of Operations. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Related Number of Derivative Contracts Categorized by Predominant Risk Exposure | The following tables present the fair value and related number of derivative contracts at August 31, 2020 and November 30, 2019 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in 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 financial position (in thousands, except contract amounts). Assets Liabilities Fair Value Number of Fair Value Number of August 31, 2020 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 70,159 1 $ — — Foreign exchange contracts: Bilateral OTC — — 393 2 Total derivatives designated as accounting hedges 70,159 393 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 781 48,453 73 69,918 Cleared OTC 75,125 3,894 168,467 4,199 Bilateral OTC 689,581 1,480 316,196 621 Foreign exchange contracts: Exchange-traded — — — 245 Bilateral OTC 416,298 13,561 391,542 13,450 Equity contracts: Exchange-traded 507,083 906,465 517,384 775,309 Bilateral OTC 351,744 1,939 879,876 1,945 Commodity contracts: Exchange-traded — 2,073 — 1,503 Bilateral OTC 25,447 2,287 — — Credit contracts: Cleared OTC 3,165 15 5,567 13 Bilateral OTC 2,116 11 3,518 10 Total derivatives not designated as accounting hedges 2,071,340 2,282,623 Total gross derivative assets/liabilities: Exchange-traded 507,864 517,457 Cleared OTC 148,449 174,034 Bilateral OTC 1,485,186 1,591,525 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (504,400) (504,400) Cleared OTC (144,200) (145,706) Bilateral OTC (963,215) (1,149,575) Net amounts in the Consolidated Statement of Financial Condition (4) $ 529,684 $ 483,335 (continued) Assets Liabilities Fair Value Number of Fair Value Number of November 30, 2019 (1) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 28,663 1 $ — — Total derivatives designated as accounting hedges 28,663 — Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,191 65,226 103 38,464 Cleared OTC 213,224 3,329 284,433 3,443 Bilateral OTC 421,700 1,325 258,857 738 Foreign exchange contracts: Exchange-traded — 256 — 199 Bilateral OTC 191,218 9,257 187,836 9,187 Equity contracts: Exchange-traded 717,494 1,714,538 962,535 1,481,388 Bilateral OTC 248,720 4,731 445,241 4,271 Commodity contracts: Exchange-traded — 5,524 — 4,646 Bilateral OTC 20,600 4,084 391 359 Credit contracts: Cleared OTC 2,514 13 5,768 12 Bilateral OTC 6,281 25 14,219 28 Total derivatives not designated as accounting hedges 1,822,942 2,159,383 Total gross derivative assets/liabilities: Exchange-traded 718,685 962,638 Cleared OTC 244,401 290,201 Bilateral OTC 888,519 906,544 Amounts offset in Consolidated Statement of Financial Condition (3): Exchange-traded (688,871) (688,871) Cleared OTC (222,869) (266,900) Bilateral OTC (521,457) (676,407) Net amounts in the Consolidated Statement of Financial Condition (4) $ 418,408 $ 527,205 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables and Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in 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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Interest rate swaps $ 834 $ 28,052 $ 47,303 $ 69,843 Long-term debt 1,634 (28,519) (45,539) (72,288) Total $ 2,468 $ (467) $ 1,764 $ (2,445) The following table provides information related to gains (losses) on net investment hedges recognized in Net unrealized foreign exchange gains (losses), a component of Other comprehensive income (loss), in the Consolidated Statements of Comprehensive Income (Loss) (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Foreign exchange contracts $ (393) $ — $ (393) $ — Total $ (393) $ — $ (393) $ — 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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Interest rate contracts $ (35,462) $ (89,864) $ (40,630) $ (193,715) Foreign exchange contracts 4,418 (1,839) 2,534 269 Equity contracts (32,782) 2,236 113,253 (118,354) Commodity contracts (18,716) 2,285 42,049 4,057 Credit contracts (179) 2,687 14,205 11,600 Total $ (82,721) $ (84,495) $ 131,411 $ (296,143) |
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 August 31, 2020 (in thousands): OTC Derivative Assets (1) (2) (3) 0-12 Months 1-5 Years Greater Than Cross- Total Commodity swaps, options and forwards $ 18,611 $ 6,836 $ — $ — $ 25,447 Equity options and forwards 21,437 44,672 15,160 (25,445) 55,824 Total return swaps 74,923 19,764 2,872 (14,666) 82,893 Foreign currency forwards, swaps and options 63,570 28,993 — (4,477) 88,086 Interest rate swaps, options and forwards 94,956 204,309 222,482 (45,025) 476,722 Total $ 273,497 $ 304,574 $ 240,514 $ (89,613) 728,972 Cross product counterparty netting (22,759) Total OTC derivative assets included in Financial instruments owned, at fair value $ 706,213 (1) At August 31, 2020, we held net exchange-traded derivative assets, other derivative assets and other credit agreements with a fair value of $25.1 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 August 31, 2020, cash collateral received was $201.6 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0-12 Months 1-5 Years Greater Than Cross-Maturity Total Equity options and forwards $ 15,474 $ 370,915 $ 156,839 $ (25,445) $ 517,783 Credit default swaps 12 1,108 — — 1,120 Total return swaps 58,888 103,567 — (14,666) 147,789 Foreign currency forwards, swaps and options 55,541 11,792 34 (4,477) 62,890 Fixed income forwards 1,404 — — — 1,404 Interest rate swaps, options and forwards 42,132 80,469 72,462 (45,025) 150,038 Total $ 173,451 $ 567,851 $ 229,335 $ (89,613) 881,024 Cross product counterparty netting (22,759) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased, at fair value $ 858,265 (1) At August 31, 2020, we held net exchange-traded derivative liabilities, other derivative liabilities and other credit agreements with a fair value of $14.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition. At August 31, 2020, cash collateral pledged was $389.5 million. (3) Derivative fair values include counterparty netting within product category. |
Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets | At August 31, 2020, 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 $ 139,436 BBB- to BBB+ 15,949 BB+ or lower 353,564 Unrated 197,264 Total $ 706,213 (1) We utilize internal credit ratings determined by the 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 August 31, 2020 Credit protection sold: Index credit default swaps $ 2.0 $ 45.9 $ — $ 47.9 Single name credit default swaps — 6.2 0.2 6.4 November 30, 2019 Credit protection sold: Index credit default swaps $ 3.0 $ 32.0 $ — $ 35.0 Single name credit default swaps 3.4 29.0 1.5 33.9 |
Derivative Instruments with Contingent Features | The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts posted or received in the normal course of business and the potential collateral we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions). August 31, November 30, 2019 Derivative instrument liabilities with credit-risk-related contingent features $ 191.4 $ 42.9 Collateral posted (120.6) (3.1) Collateral received 64.5 114.1 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 135.3 154.0 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Collateralized Transactions [Abstract] | |
Schedule of Collateralized Financing Transactions | The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by class of collateral pledged and remaining contractual maturity (in thousands): Collateral Pledged Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total August 31, 2020 Corporate equity securities $ 1,317,023 $ 176,221 $ 4,413 $ 1,497,657 Corporate debt securities 605,527 1,661,854 — 2,267,381 Mortgage-backed and asset-backed securities — 1,680,052 — 1,680,052 U.S. government and federal agency securities 7,187 12,187,529 — 12,194,716 Municipal securities — 180,837 — 180,837 Sovereign obligations — 2,636,878 — 2,636,878 Loans and other receivables — 1,313,667 — 1,313,667 Total $ 1,929,737 $ 19,837,038 $ 4,413 $ 21,771,188 November 30, 2019 Corporate equity securities $ 1,314,395 $ 129,558 $ — $ 1,443,953 Corporate debt securities 191,311 1,730,526 — 1,921,837 Mortgage-backed and asset-backed securities — 1,745,145 — 1,745,145 U.S. government and federal agency securities 19,434 10,863,997 9,500 10,892,931 Municipal securities — 498,202 — 498,202 Sovereign obligations — 3,016,563 — 3,016,563 Loans and other receivables — 772,926 — 772,926 Total $ 1,525,140 $ 18,756,917 $ 9,500 $ 20,291,557 Contractual Maturity Overnight and Continuous Up to 30 Days 31 to 90 Days Greater than 90 Days Total August 31, 2020 Securities lending arrangements $ 630,163 $ — $ 553,062 $ 746,512 $ 1,929,737 Repurchase agreements 10,606,433 1,695,229 4,243,474 3,291,902 19,837,038 Obligation to return securities received as collateral, at fair value 4,413 — — — 4,413 Total $ 11,241,009 $ 1,695,229 $ 4,796,536 $ 4,038,414 $ 21,771,188 November 30, 2019 Securities lending arrangements $ 694,821 $ — $ 672,969 $ 157,350 $ 1,525,140 Repurchase agreements 6,614,026 1,556,260 8,988,528 1,598,103 18,756,917 Obligation to return securities received as collateral, at fair value — — 9,500 — 9,500 Total $ 7,308,847 $ 1,556,260 $ 9,670,997 $ 1,755,453 $ 20,291,557 |
Summary of Offsetting Assets | The following table provides information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in 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 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 August 31, 2020 Securities borrowing arrangements $ 7,268,413 $ — $ 7,268,413 $ (429,615) $ (1,691,674) $ 5,147,124 Reverse repurchase agreements 17,905,457 (12,578,066) 5,327,391 (144,353) (5,141,297) 41,741 Securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Liabilities at August 31, 2020 Securities lending arrangements $ 1,929,737 $ — $ 1,929,737 $ (429,615) $ (1,467,230) $ 32,892 Repurchase agreements 19,837,038 (12,578,066) 7,258,972 (144,353) (6,622,623) 491,996 Obligation to return securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Assets at November 30, 2019 Securities borrowing arrangements $ 7,624,642 $ — $ 7,624,642 $ (361,394) $ (1,479,433) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247) 4,299,598 (291,316) (3,929,977) 78,305 Securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 Liabilities at November 30, 2019 Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394) $ (970,799) $ 192,947 Repurchase agreements 18,756,917 (11,252,247) 7,504,670 (291,316) (6,663,807) 549,547 Obligation to return securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty's outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty's default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty's rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At August 31, 2020, amounts include $5,089.0 million of securities borrowing arrangements, for which we have received securities collateral of $4,921.2 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $451.6 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. At November 30, 2019, amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. |
Summary of Offsetting Liabilities | The following table provides information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in 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 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 August 31, 2020 Securities borrowing arrangements $ 7,268,413 $ — $ 7,268,413 $ (429,615) $ (1,691,674) $ 5,147,124 Reverse repurchase agreements 17,905,457 (12,578,066) 5,327,391 (144,353) (5,141,297) 41,741 Securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Liabilities at August 31, 2020 Securities lending arrangements $ 1,929,737 $ — $ 1,929,737 $ (429,615) $ (1,467,230) $ 32,892 Repurchase agreements 19,837,038 (12,578,066) 7,258,972 (144,353) (6,622,623) 491,996 Obligation to return securities received as collateral, at fair value 4,413 — 4,413 — — 4,413 Assets at November 30, 2019 Securities borrowing arrangements $ 7,624,642 $ — $ 7,624,642 $ (361,394) $ (1,479,433) $ 5,783,815 Reverse repurchase agreements 15,551,845 (11,252,247) 4,299,598 (291,316) (3,929,977) 78,305 Securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 Liabilities at November 30, 2019 Securities lending arrangements $ 1,525,140 $ — $ 1,525,140 $ (361,394) $ (970,799) $ 192,947 Repurchase agreements 18,756,917 (11,252,247) 7,504,670 (291,316) (6,663,807) 549,547 Obligation to return securities received as collateral, at fair value 9,500 — 9,500 — — 9,500 (1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty's outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty's default, but which are not netted in the Consolidated Statements of Financial Condition because other netting provisions of GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty's rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) At August 31, 2020, amounts include $5,089.0 million of securities borrowing arrangements, for which we have received securities collateral of $4,921.2 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $451.6 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. At November 30, 2019, amounts include $5,683.4 million of securities borrowing arrangements, for which we have received securities collateral of $5,523.6 million, and $439.7 million of repurchase agreements, for which we have pledged securities collateral of $447.5 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Activity Related to Securitizations Accounted for as Sales | The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Transferred assets $ 983.9 $ 789.3 $ 4,794.3 $ 2,894.4 Proceeds on new securitizations 983.9 789.3 4,794.3 2,966.3 Cash flows received on retained interests 6.3 16.8 18.6 47.2 |
Summary of Retained Interests in SPEs | The following table summarizes our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): August 31, 2020 November 30, 2019 Securitization Type Total Retained Total Retained U.S. government agency residential mortgage-backed securities $ 928.7 $ 12.4 $ 10,671.7 $ 103.3 U.S. government agency commercial mortgage-backed securities 439.2 138.3 1,374.8 45.8 CLOs 3,419.9 41.8 3,006.7 58.4 Consumer and other loans 884.0 45.6 1,149.3 71.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Schedule of VIEs | The following table presents information about our consolidated VIEs (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. August 31, 2020 November 30, 2019 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash (1) $ — $ 1.2 $ — $ 1.2 Financial instruments owned, at fair value — 3.6 — 0.3 Securities purchased under agreements to resell (2) 2,919.8 — 2,467.3 — Receivables 581.9 13.5 605.6 — Other 37.8 0.1 38.7 — Total assets $ 3,539.5 $ 18.4 $ 3,111.6 $ 1.5 Financial instruments sold, not yet purchased, at fair $ — $ 2.1 $ — $ — Other secured financings (3) 3,502.9 — 3,068.6 — Other liabilities (4) 3.7 0.4 20.1 0.2 Total liabilities $ 3,506.6 $ 2.5 $ 3,088.7 $ 0.2 (1) Approximately $0.6 million of the cash amount at August 31, 2020 represents cash on deposit with a related consolidated entity and is eliminated in consolidation. (2) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (3) Approximately $130.1 million of the other secured financings amount at August 31, 2020 is with related consolidated entities, which is eliminated in consolidation. (4) Includes $1.8 million and $17.9 million at August 31, 2020 and November 30, 2019, respectively, of intercompany payables that are eliminated in consolidation. The following table presents information about our variable interests in nonconsolidated VIEs (in millions): Carrying Amount Maximum VIE Assets Assets Liabilities August 31, 2020 CLOs $ 66.3 $ 1.4 $ 470.4 $ 6,509.5 Consumer loan and other asset-backed vehicles 308.4 — 435.0 2,300.4 Related party private equity vehicles 18.6 — 29.6 50.7 Other investment vehicles 853.9 — 1,053.4 16,210.4 Total $ 1,247.2 $ 1.4 $ 1,988.4 $ 25,071.0 November 30, 2019 CLOs $ 152.6 $ 0.6 $ 505.3 $ 7,845.0 Consumer loan and other asset-backed vehicles 358.3 — 490.6 2,354.8 Related party private equity vehicles 23.0 — 34.3 71.4 Other investment vehicles 574.0 — 766.1 9,255.0 Total $ 1,107.9 $ 0.6 $ 1,796.3 $ 19,526.2 |
Loans to and Investments in A_2
Loans to and Investments in Associated Companies (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Loans to and Investments in Associated Companies | A summary of Loans to and investments in associated companies accounted for under the equity method of accounting during the nine months ended August 31, 2020 and 2019 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) primarily 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 2020 Jefferies Finance $ 673,867 $ — $ (65,681) $ 10,107 $ — $ 618,293 Berkadia 268,949 — 40,373 (36,615) 510 273,217 FXCM (2) 70,223 9,956 — — 161 80,340 Linkem (3) 194,847 (21,754) — 35,103 (2,149) 206,047 Real estate associated companies (4) (5) 255,309 (50,910) — (34,505) — 169,894 Other (3) 189,762 (6,815) 3,026 (3,643) 9,235 191,565 Total $ 1,652,957 $ (69,523) $ (22,282) $ (29,553) $ 7,757 $ 1,539,356 2019 Jefferies Finance $ 728,560 $ — $ 1,035 $ (58,682) $ — $ 670,913 Berkadia 245,228 — 72,231 (47,682) 722 270,499 National Beef (6) 653,630 137,918 — (72,767) (10) 718,771 FXCM (2) 75,031 (5,589) — 3,500 (134) 72,808 Linkem 165,157 (20,696) — 82,178 (8,226) 218,413 HomeFed (4) 337,542 7,902 — — (345,444) — Real estate associated companies 87,074 1,536 — (3,054) 198,273 283,829 Other 125,110 695 (1,652) (13,958) 869 111,064 Total $ 2,417,332 $ 121,766 $ 71,614 $ (110,465) $ (153,950) $ 2,346,297 (1) Primarily classified in Other revenues. (2) 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 Financial instruments owned, at fair value in the Consolidated Statements of Financial Condition. (3) Loans to and investments in associated companies at August 31, 2020 and November 30, 2019 include loans and debt securities aggregating $100.2 million and $70.2 million, respectively, related to Linkem and Other. (4) During the third quarter of 2019, we completed a merger with HomeFed by which we acquired the remaining common stock of HomeFed. From July 1, 2019, the results of HomeFed are reflected on a consolidated basis. From July 1, 2019, HomeFed's equity method investments are included in Real estate associated companies. (5) Income (loss) related to Real estate associated companies for the nine months ended August 31, 2020 includes a non-cash charge of $6.9 million to fully write-off the value of HomeFed's interest in the Brooklyn Renaissance Plaza hotel due to the significant impact of the global novel coronavirus ("COVID-19") during the second quarter of 2020 and a non-cash charge of $55.6 million to fully write-off the value of HomeFed's RedSky JZ Fulton Mall joint venture investment related to a softening of the Brooklyn real estate market. (6) On November 29, 2019, we sold our remaining equity interest in National Beef. Income (losses) related to associated companies includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 National Beef $ — $ 75,867 $ — $ 137,918 FXCM 3,704 (573) 9,956 (5,589) Linkem (1,945) (12,115) (21,754) (20,696) HomeFed — 8,419 — 7,902 Real estate associated companies 2,532 464 (50,910) 1,536 Other 762 221 (6,815) 695 Total $ 5,053 $ 72,283 $ (69,523) $ 121,766 Income (losses) primarily related to Jefferies Group's associated companies (primarily classified in Other revenues) includes the following (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Jefferies Finance $ (17,731) $ (6,901) $ (65,681) $ 1,035 Berkadia 18,448 24,286 40,373 72,231 Other 3,137 (92) 3,026 (1,652) Total $ 3,854 $ 17,293 $ (22,282) $ 71,614 |
Schedule of Equity Method Investments | The following summarizes activity related to our other transactions with Jefferies Finance (in millions): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Origination and syndication fee revenues (1) $ 42.4 $ 44.6 $ 123.9 $ 135.8 Origination fee expenses (1) 3.8 8.2 12.4 21.8 CLO placement fee revenues (2) 1.3 1.0 1.7 2.3 Underwriting fees (3) — 2.9 0.3 3.9 Service fees (4) 13.5 12.3 49.4 50.6 (1) Jefferies Group engages in debt underwriting transactions with Jefferies Finance related to the originations and syndications of loans by Jefferies Finance. In connection with such services, Jefferies Group earned fees, 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, which are recognized in Selling, general and other expenses in the Consolidated Statements of Operations. (2) Jefferies Group acts as a placement agent for CLOs managed by Jefferies Finance, for which Jefferies Group recognized fees, which are included in Investment banking revenues in the Consolidated Statements of Operations. At August 31, 2020 and November 30, 2019, Jefferies Group held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value. (3) Jefferies Group acted as underwriter in connection with term loans issued by Jefferies Finance. (4) Under a service agreement, Jefferies Group charges Jefferies Finance for services provided. The following table provides required summarized data for certain equity method investments, including those accounted for under the fair value option. The table includes Berkadia for the nine months ended August 31, 2020 and 2019, and National Beef for the nine months ended August 31, 2019 (in thousands): For the Nine Months Ended August 31, 2020 August 31, 2019 Revenues $ 716,182 $ 6,972,754 Income from continuing operations before extraordinary items $ 89,716 $ 622,553 Net income $ 89,716 $ 622,553 |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
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): August 31, November 30, 2019 Indefinite-lived intangibles: Exchange and clearing organization membership interests and registrations $ 7,874 $ 8,273 Amortizable intangibles: Customer and other relationships, net of accumulated amortization of $117,609 and $111,060 53,396 59,575 Trademarks and tradenames, net of accumulated amortization of $27,673 and $24,800 101,207 103,790 Other, net of accumulated amortization of $8,042 and $5,366 8,640 11,316 Total intangible assets, net 171,117 182,954 Goodwill: Investment Banking and Capital Markets (1) (2) 1,560,255 1,556,810 Asset Management (1) 143,000 143,000 Real estate 36,711 36,711 Other operations 3,459 3,459 Total goodwill 1,743,425 1,739,980 Total intangible assets, net and goodwill $ 1,914,542 $ 1,922,934 (1) As discussed further in Note 23, during the first quarter of 2020, we changed our internal structure with regard to our operating segments. As a result, we created a separate operating segment that consists of the asset management activity previously included within our Investment Banking, Capital Markets and Asset Management segment. In order to reallocate goodwill that was previously contained in our Investment Banking, Capital Markets and Asset Management segment to the newly created Investment Banking and Capital Markets segment and the Asset Management segment, we performed a fair value analysis of the components. Estimated fair values were determined based on valuation techniques that we believe market participants would use and included price-to-earnings, price-to-book multiples and discounted cash flow techniques. Based on the relative fair values of each of the components, $143.0 million of the total $1,699.8 million goodwill within the historical Investment Banking, Capital Markets and Asset Management segment was allocated to the new Asset Management segment. In order to compare results with prior periods, we have recast November 30, 2019 goodwill in the same manner. We performed an impairment test immediately before and after the reallocation of goodwill between the new segments and the results of the impairment test did not indicate any goodwill impairment. |
Schedule of Estimated Aggregate Future Amortization Expense | The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows (in thousands): Remainder of current year $ 3,673 2021 14,457 2022 11,180 2023 9,945 2024 9,189 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Our short-term borrowings, which mature in one year or less, are as follows (in thousands): August 31, November 30, 2019 Bank loans (1) $ 776,752 $ 527,509 Floating rate puttable notes (1) 6,800 — Equity-linked notes (2) 21,829 20,981 Total short-term borrowings $ 805,381 $ 548,490 (1) These short-term borrowings are recorded at cost in the Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. (2) See Note 3 for further information on these notes. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [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): August 31, November 30, 2019 Parent Company Debt: Senior Notes: 5.50% Senior Notes due October 18, 2023, $750,000 principal $ 745,558 $ 744,606 6.625% Senior Notes due October 23, 2043, $250,000 principal 246,814 246,772 Total long-term debt – Parent Company 992,372 991,378 Subsidiary Debt (non-recourse to Parent Company): Jefferies Group: 2.375% Euro Medium Term Notes, due May 20, 2020, $0 and $550,875 principal — 550,622 6.875% Senior Notes, due April 15, 2021, $750,000 principal 761,430 774,738 2.25% Euro Medium Term Notes, due July 13, 2022, $4,774 and $4,407 principal 4,613 4,204 5.125% Senior Notes, due January 20, 2023, $750,000 and $600,000 principal 760,999 610,023 1.00% Euro Medium Term Notes, due July 19, 2024, $569,725 and $550,875 principal 594,965 548,880 4.85% Senior Notes, due January 15, 2027, $750,000 principal (1) 814,873 768,931 6.45% Senior Debentures, due June 8, 2027, $350,000 principal 369,662 371,426 4.15% Senior Notes, due January 23, 2030, $1,000,000 principal 989,342 988,662 6.25% Senior Debentures, due January 15, 2036, $500,000 principal 510,943 511,260 6.50% Senior Notes, due January 20, 2043, $400,000 principal 419,931 420,239 Structured Notes (2) 1,522,105 1,215,285 Jefferies Group Revolving Credit Facility 189,571 189,088 Jefferies Group Secured Bank Loan 50,000 50,000 HomeFed EB-5 Program debt 189,335 140,739 HomeFed construction loan 45,638 — Foursight Capital Credit Facilities 99,802 98,260 Vitesse Energy Finance Revolving Credit Facility 104,256 103,050 Other — 276 Total long-term debt – subsidiaries 7,427,465 7,345,683 Long-term debt $ 8,419,837 $ 8,337,061 (1) Amount includes losses of $45.5 million and $72.3 million during the nine months ended August 31, 2020 and 2019, respectively, associated with an interest rate swap based on its designation as a fair value hedge. See Note 4 for further information. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Lease Costs | Information related to operating leases in the Consolidated Statement of Financial Condition at August 31, 2020 is as follows (in thousands, except lease term and discount rate): Property, equipment and leasehold improvements, net - ROU assets $ 521,278 Weighted average: Remaining lease term (in years) 10.8 years Discount rate 2.9 % The following table presents our lease costs (in thousands): For the Three Months Ended August 31, 2020 For the Nine Months Ended August 31, 2020 Operating lease costs (1) $ 19,425 $ 57,994 Variable lease costs (2) 3,485 9,561 Less: Sublease income (1,973) (5,669) Total lease cost, net $ 20,937 $ 61,886 (1) Includes short-term leases, which are not material. (2) Includes property taxes, insurance costs, common area maintenance, utilities, and other costs that are not fixed. The amount also includes rent increases resulting from inflation indices and periodic market rent reviews. Consolidated Statement of Cash Flows supplemental information is as follows (in thousands): For the Nine Months Ended August 31, 2020 Cash outflows - lease liabilities $ 59,155 Non-cash - ROU assets recorded for new and modified leases $ 21,438 |
Maturity of Operating Lease Liability | The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in the Consolidated Statement of Financial Condition at August 31, 2020 (in thousands): Lease Liabilities Remainder of 2020 $ 22,271 2021 76,932 2022 74,722 2023 65,220 2024 61,994 2025 and thereafter 403,809 Total undiscounted cash flows 704,948 Less: Difference between undiscounted and discounted cash flows (106,832) Operating leases amount in the Consolidated Statement of Financial Condition 598,116 Finance leases amount in the Consolidated Statement of Financial Condition 247 Total amount in the Consolidated Statement of Financial Condition $ 598,363 |
Schedule of Future Minimum Rental Payments for Operating Leases | At November 30, 2019, future minimum annual lease payments under such leases (net of sublease income) were as follows (in thousands): 2020 $ 70,886 2021 73,374 2022 71,464 2023 62,552 2024 59,714 Thereafter 393,995 731,985 Less: sublease income (21,883) $ 710,102 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss), Net of Taxes | A summary of accumulated other comprehensive income (loss), net of taxes is as follows (in thousands): August 31, November 30, 2019 Net unrealized gains on available for sale securities $ 552 $ 141 Net unrealized foreign exchange losses (156,894) (192,709) Net unrealized gains (losses) on instrument specific credit risk 19,586 (18,889) Net minimum pension liability (59,651) (61,582) $ (196,407) $ (273,039) |
Schedule of Accumulated Other Comprehensive Income (Loss) Reclassification | Amounts reclassified out of accumulated other comprehensive income (loss) to net income are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Affected Line Item in the For the Nine Months Ended August 31, August 31, Net unrealized gains on available for sale securities, net of income tax provision (benefit) of $0 and $(545,054) $ — $ 543,178 Other revenues and Income tax provision Net unrealized gains (losses) on instrument specific credit risk, net of income tax provision (benefit) of $306 and $(166) 898 (493) Principal transactions revenues Net unrealized gains on cash flow hedges, net of income tax provision of $0 and $161 — 470 Other revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $(658) and $(361) (1,931) (1,063) Selling, general and other expenses, which includes pension expense Total reclassifications for the period, net of tax $ (1,033) $ 542,092 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Revenues from contracts with customers: Commissions and other fees $ 204,032 $ 171,000 $ 626,434 $ 493,560 Investment banking 615,837 410,796 1,595,330 1,126,479 Manufacturing revenues 119,751 82,565 282,737 248,227 Other 35,121 70,066 132,975 186,175 Total revenues from contracts with customers 974,741 734,427 2,637,476 2,054,441 Other sources of revenue: Principal transactions 623,283 (20,920) 1,421,485 465,451 Interest income 219,843 410,467 782,941 1,243,278 Other 7,632 99,182 53,392 165,369 Total revenues from other sources 850,758 488,729 2,257,818 1,874,098 Total revenues $ 1,825,499 $ 1,223,156 $ 4,895,294 $ 3,928,539 The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Reportable Segments Investment Banking and Capital Markets (1) Asset Management (1) Merchant Banking (1) Corporate Consolidation Adjustments Total Three Months Ended August 31, 2020 Major Business Activity: Equities (2) $ 201,157 $ — $ — $ — $ (281) $ 200,876 Fixed Income (2) 3,156 — — — — 3,156 Investment Banking - Underwriting 444,399 — — — — 444,399 Investment Banking - Advisory 171,438 — — — — 171,438 Asset Management — 3,127 — — — 3,127 Manufacturing revenues — — 119,751 — — 119,751 Oil and gas revenues — — 20,946 — — 20,946 Other revenues — — 11,048 — — 11,048 Total revenues from contracts with customers $ 820,150 $ 3,127 $ 151,745 $ — $ (281) $ 974,741 Primary Geographic Region: Americas $ 684,441 $ 1,758 $ 151,085 $ — $ (281) $ 837,003 Europe, Middle East and Africa 90,132 1,369 644 — — 92,145 Asia 45,577 — 16 — — 45,593 Total revenues from contracts with customers $ 820,150 $ 3,127 $ 151,745 $ — $ (281) $ 974,741 Three Months Ended August 31, 2019 Major Business Activity: Equities (2) $ 167,528 $ — $ — $ — $ (3) $ 167,525 Fixed Income (2) 3,475 — — — — 3,475 Investment Banking - Underwriting 199,183 — — — (1,737) 197,446 Investment Banking - Advisory 213,350 — — — — 213,350 Asset Management — 4,647 — — — 4,647 Manufacturing revenues — — 82,565 — — 82,565 Oil and gas revenues — — 45,012 — — 45,012 Other revenues — — 20,407 — — 20,407 Total revenues from contracts with customers $ 583,536 $ 4,647 $ 147,984 $ — $ (1,740) $ 734,427 Primary Geographic Region: Americas $ 476,983 $ 3,244 $ 147,501 $ — $ (47) $ 627,681 Europe, Middle East and Africa 88,890 1,403 226 — (1,693) 88,826 Asia 17,663 — 257 — — 17,920 Total revenues from contracts with customers $ 583,536 $ 4,647 $ 147,984 $ — $ (1,740) $ 734,427 Reportable Segments Investment Banking and Capital Markets (1) Asset Management (1) Merchant Banking (1) Corporate Consolidation Adjustments Total Nine months ended August 31, 2020 Major Business Activity: Equities (2) $ 614,089 $ — $ — $ — $ (681) $ 613,408 Fixed Income (2) 13,026 — — — — 13,026 Investment Banking - Underwriting 898,653 — — — — 898,653 Investment Banking - Advisory 696,677 — — — — 696,677 Asset Management — 12,714 — — — 12,714 Manufacturing revenues — — 282,737 — — 282,737 Oil and gas revenues — — 78,704 — — 78,704 Other revenues — — 41,557 — — 41,557 Total revenues from contracts with customers $ 2,222,445 $ 12,714 $ 402,998 $ — $ (681) $ 2,637,476 Primary Geographic Region: Americas $ 1,858,137 $ 6,250 $ 401,484 $ — $ (681) $ 2,265,190 Europe, Middle East and Africa 237,652 6,464 1,303 — — 245,419 Asia 126,656 — 211 — — 126,867 Total revenues from contracts with customers $ 2,222,445 $ 12,714 $ 402,998 $ — $ (681) $ 2,637,476 Nine months ended August 31, 2019 Major Business Activity: Equities (2) $ 483,771 $ — $ — $ — $ (283) $ 483,488 Fixed Income (2) 10,072 — — — — 10,072 Investment Banking - Underwriting 555,830 — — — (1,737) 554,093 Investment Banking - Advisory 572,386 — — — — 572,386 Asset Management — 19,140 — — — 19,140 Manufacturing revenues — — 248,227 — — 248,227 Oil and gas revenues — — 129,029 — — 129,029 Other revenues — — 38,006 — — 38,006 Total revenues from contracts with customers $ 1,622,059 $ 19,140 $ 415,262 $ — $ (2,020) $ 2,054,441 Primary Geographic Region: Americas $ 1,288,046 $ 13,399 $ 414,259 $ — $ (327) $ 1,715,377 Europe, Middle East and Africa 280,605 5,741 683 — (1,693) 285,336 Asia 53,408 — 320 — — 53,728 Total revenues from contracts with customers $ 1,622,059 $ 19,140 $ 415,262 $ — $ (2,020) $ 2,054,441 (1) We now present Asset Management as a separate reporting segment. Prior year amounts have been reclassified to conform to current segment disclosure. See Note 23 for further information. (2) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Common Share and Earnings Per_2
Common Share and Earnings Per Common Share (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
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 For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Numerator for earnings per share: Net income attributable to Jefferies Financial Group Inc. common shareholders $ 304,409 $ 48,477 $ 462,338 $ 764,052 Allocation of earnings to participating securities (1) (1,945) (316) (2,921) (4,667) Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 302,464 48,161 459,417 759,385 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 17 (7) 5 29 Mandatorily redeemable convertible preferred share dividends 1,404 — 4,230 3,827 Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 303,885 $ 48,154 $ 463,652 $ 763,241 Denominator for earnings per share: Weighted average common shares outstanding 263,062 296,834 273,035 298,322 Weighted average shares of restricted stock outstanding with future service required (1,787) (2,008) (1,837) (1,903) Weighted average RSUs outstanding with no future service required 19,420 15,462 18,761 14,419 Denominator for basic earnings per share – weighted average shares 280,695 310,288 289,959 310,838 Stock options — — — — Senior executive compensation plan awards — 1,609 475 2,181 Mandatorily redeemable convertible preferred 4,441 — 4,441 4,162 Denominator for diluted earnings per share 285,136 311,897 294,875 317,181 (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 1,807,800 and 2,018,000 for the three months ended August 31, 2020 and 2019, respectively, and 1,851,900 and 1,910,700 for the nine months ended August 31, 2020 and 2019, respectively. Dividends declared on participating securities were not material during the three and nine months ended August 31, 2020 and 2019. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The following table summarizes commitments associated with certain business activities at August 31, 2020 (in millions): Expected Maturity Date 2020 2021 2022 2024 2026 Maximum Payout Equity commitments (1) $ 59.3 $ 161.9 $ 78.3 $ 11.1 $ 12.2 $ 322.8 Loan commitments (1) — 296.0 35.0 — — 331.0 Underwriting commitments 64.0 — — — — 64.0 Forward starting reverse repos (2) 6,184.5 — — — — 6,184.5 Forward starting repos (2) 3,870.8 100.0 — — — 3,970.8 Other unfunded commitments (1) — 136.4 — 5.1 — 141.5 $ 10,178.6 $ 694.3 $ 113.3 $ 16.2 $ 12.2 $ 11,014.6 (1) Equity commitments, loan commitments and other unfunded commitments are generally presented by contractual maturity date. The amounts are however mostly available on demand. (2) At August 31, 2020, $6,183.8 million within forward starting securities purchased under agreements to resell and $3,670.6 million within forward starting securities sold under agreements to repurchase settled within three |
Schedule of Notional Amounts Associated with Derivative Contracts Meeting Definition of Guarantee | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under GAAP at August 31, 2020 (in millions): Expected Maturity Date Guarantee Type 2020 2021 2022 2024 2026 Notional/ Derivative contracts – non-credit related $ 6,295.6 $ 4,149.9 $ 6,458.1 $ 1,345.6 $ 52.0 $ 18,301.2 Written derivative contracts – credit related — — 1.0 5.4 — 6.4 Total derivative contracts $ 6,295.6 $ 4,149.9 $ 6,459.1 $ 1,351.0 $ 52.0 $ 18,307.6 |
Other Fair Value Information (T
Other Fair Value Information (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [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): August 31, 2020 November 30, 2019 Carrying Fair Carrying Fair Receivables: Notes and loans receivable (1) $ 768,290 $ 783,476 $ 775,501 $ 784,053 Financial Liabilities: Short-term borrowings (2) $ 783,552 $ 783,552 $ 548,490 $ 548,490 Long-term debt (3) $ 6,897,732 $ 7,525,896 $ 7,121,776 $ 7,569,837 (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 carried at cost 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. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
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. For the Three Months Ended For the Nine Months Ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 (In thousands) Net revenues: Reportable Segments: Investment Banking and Capital Markets $ 1,274,115 $ 757,362 $ 3,451,776 $ 2,274,884 Asset Management 118,558 20,341 146,278 95,448 Merchant Banking 220,887 73,754 532,608 391,825 Corporate 591 8,967 11,908 22,134 Total net revenues related to reportable 1,614,151 860,424 4,142,570 2,784,291 Consolidation adjustments 2,019 (3,646) 7,517 2,587 Total consolidated net revenues $ 1,616,170 $ 856,778 $ 4,150,087 $ 2,786,878 Income (loss) before income taxes: Reportable Segments: Investment Banking and Capital Markets $ 281,323 $ 86,194 $ 745,814 $ 283,892 Asset Management 87,604 (7,403) 25,122 2,011 Merchant Banking 70,747 (35,381) (57,592) 48,537 Corporate (15,618) (11,779) (36,226) (47,007) Income before income taxes related to reportable segments 424,056 31,631 677,118 287,433 Parent Company interest (14,114) (14,770) (39,773) (44,298) Consolidation adjustments 2,300 (3,598) 8,198 2,924 Total consolidated income before income taxes $ 412,242 $ 13,263 $ 645,543 $ 246,059 Depreciation and amortization expenses: Reportable Segments: Investment Banking and Capital Markets $ 22,225 $ 20,754 $ 61,322 $ 56,672 Asset Management 2,018 512 4,776 1,472 Merchant Banking 14,408 17,784 50,627 49,904 Corporate 869 830 2,631 2,552 Total consolidated depreciation and amortization expenses $ 39,520 $ 39,880 $ 119,356 $ 110,600 August 31, November 30, 2019 (In thousands) Identifiable Assets Employed: Reportable Segments: Investment Banking and Capital Markets $ 43,887,885 $ 40,523,223 Asset Management 3,192,277 3,313,716 Merchant Banking 3,225,735 3,285,671 Corporate 1,927,243 2,432,119 Identifiable assets employed related to 52,233,140 49,554,729 Consolidation adjustments (459,152) (94,495) Total consolidated assets $ 51,773,988 $ 49,460,234 |
Nature of Operations (Details)
Nature of Operations (Details) $ in Millions | 9 Months Ended | |
Aug. 31, 2020USD ($)Segment | Jun. 30, 2019 | |
HomeFed | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 70.00% | |
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% | |
HomeFed | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 100.00% | |
Idaho Timber | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 100.00% | |
Linkem | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 42.00% | |
Percentage of ownership upon conversion of preferred shares | 56.00% | |
Investment in FXCM | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Senior secured term loan receivable, principal outstanding | $ 71.6 | |
Jefferies Group | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of business segments | Segment | 2 | |
FXCM | ||
Schedule of Equity Method Investments [Line Items] | ||
Senior secured term loan receivable, principal outstanding | $ 71.6 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 | Jun. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Dec. 01, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Receivables from brokers, dealers and clearing organizations | $ 2,755,800 | $ 3,011,000 | $ 2,755,800 | $ 2,755,800 | ||||
Receivables from customers of securities operations | 956,800 | 1,490,900 | 956,800 | 956,800 | ||||
Other investments with fair values not readily determinable | 104,800 | 172,800 | 104,800 | 104,800 | ||||
Impairment losses on investments | 300 | $ 2,300 | 20,900 | $ 2,300 | ||||
Capitalized interest | 1,600 | 6,400 | ||||||
Payables to brokers, dealers and clearing organizations | 2,546,500 | 2,621,700 | 2,546,500 | 2,546,500 | ||||
Payables to customers of securities operations | 3,936,800 | 3,808,600 | 3,936,800 | 3,936,800 | ||||
Cash paid during the year for: | ||||||||
Interest | 880,853 | 1,257,311 | ||||||
Income tax payments (refunds), net | (13,514) | 25,825 | ||||||
Operating lease, ROU assets | $ 545,800 | |||||||
Lease liabilities | 598,116 | 598,116 | $ 598,116 | $ 614,900 | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Iowa Premium | ||||||||
Cash paid during the year for: | ||||||||
Membership interest purchase agreement, aggregate ownership interests to purchase | 100.00% | |||||||
National Beef | ||||||||
Cash paid during the year for: | ||||||||
Membership interest purchase agreement, proportionate share | $ 49,000 | |||||||
HomeFed | ||||||||
Cash paid during the year for: | ||||||||
Non-cash investing activities, issuance of common stock related to acquisition | $ 178,800 | |||||||
Foursight Capital | Automobile Loan | ||||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Loans receivable | $ 734,500 | $ 741,200 | 734,500 | $ 734,500 | ||||
Foursight Capital | Automobile Loan | Credit concentration risk | Loans receivable | Prime | ||||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Concentration risk, percentage | 14.00% | 15.00% | ||||||
Foursight Capital | Automobile Loan | Credit concentration risk | Loans receivable | Near-Prime | ||||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Concentration risk, percentage | 52.00% | 53.00% | ||||||
Foursight Capital | Automobile Loan | Credit concentration risk | Loans receivable | Subprime | ||||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Concentration risk, percentage | 34.00% | 32.00% | ||||||
Foursight Capital | Securitized Vehicles | ||||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||||
Loans receivable | $ 600,500 | $ 621,200 | $ 600,500 | $ 600,500 |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule of Assets and Liabilities Measured on Recurring Basis at Fair Value) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | $ 17,058,503 | $ 16,308,807 |
Counterparty and cash collateral netting, assets | (1,611,815) | (1,433,197) |
Loans to and investments in associated companies | 43,092 | |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral, at fair value | 4,413 | 9,500 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 10,994,556 | 10,532,460 |
Counterparty and cash collateral netting, liabilities | (1,799,681) | (1,632,178) |
Short-term borrowings | 21,829 | 20,981 |
Other secured financings | 3,402 | |
Long-term debt | 1,522,105 | 1,215,285 |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 |
Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 7,448,613 | 5,941,623 |
Loans to and investments in associated companies | 0 | |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral, at fair value | 4,413 | 9,500 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 6,471,728 | 5,971,928 |
Short-term borrowings | 0 | 0 |
Other secured financings | 0 | |
Long-term debt | 0 | 0 |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 |
Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 10,543,880 | 11,245,763 |
Loans to and investments in associated companies | 8,404 | |
Securities purchased under agreements to resell | 0 | |
Securities received as collateral, at fair value | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 6,196,745 | 6,086,328 |
Short-term borrowings | 21,829 | 20,981 |
Other secured financings | 0 | |
Long-term debt | 891,845 | 735,216 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 677,825 | 554,618 |
Loans to and investments in associated companies | 34,688 | |
Securities purchased under agreements to resell | 25,000 | |
Securities received as collateral, at fair value | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 125,764 | 106,382 |
Short-term borrowings | 0 | 0 |
Other secured financings | 3,402 | |
Long-term debt | 630,260 | 480,069 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Fair value measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Alternative investments | 928,218 | 586,934 |
Corporate equity securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,735,919 | 2,783,993 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,312,291 | 2,767,526 |
Obligation to return securities received as collateral, at fair value | 4,413 | 0 |
Corporate equity securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,594,722 | 2,507,164 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,295,391 | 2,755,601 |
Corporate equity securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 63,256 | 218,403 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 12,533 | 7,438 |
Corporate equity securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 77,941 | 58,426 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 4,367 | 4,487 |
Corporate debt securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,743,913 | 2,479,735 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,448,706 | 1,471,482 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Corporate debt securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Corporate debt securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,720,644 | 2,472,245 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,448,558 | 1,471,142 |
Corporate debt securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 23,269 | 7,490 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 148 | 340 |
Collateralized debt obligations and collateralized loan obligations | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 104,409 | 153,013 |
Collateralized debt obligations and collateralized loan obligations | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Collateralized debt obligations and collateralized loan obligations | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 68,287 | 124,225 |
Collateralized debt obligations and collateralized loan obligations | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 36,122 | 28,788 |
U.S. government and federal agency securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 3,256,508 | 2,260,242 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,722,907 | 1,851,981 |
U.S. government and federal agency securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 3,164,472 | 2,101,624 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,722,907 | 1,851,981 |
U.S. government and federal agency securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 92,036 | 158,618 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
U.S. government and federal agency securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Municipal securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 358,292 | 742,326 |
Liabilities: | ||
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Municipal securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Municipal securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 358,292 | 742,326 |
Municipal securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Sovereign obligations | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,563,856 | 2,735,853 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,548,575 | 2,304,540 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Sovereign obligations | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 1,686,522 | 1,330,026 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,452,399 | 1,363,475 |
Sovereign obligations | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 877,334 | 1,405,827 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,096,176 | 941,065 |
Sovereign obligations | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Residential mortgage-backed securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 1,003,483 | 1,086,806 |
Residential mortgage-backed securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 975,166 | 1,069,066 |
Residential mortgage-backed securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 28,317 | 17,740 |
Commercial mortgage-backed securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 1,096,069 | 430,170 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 35 | 35 |
Commercial mortgage-backed securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 1,091,406 | 424,060 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Commercial mortgage-backed securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 4,663 | 6,110 |
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 35 | 35 |
Other asset-backed securities | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 112,071 | 346,410 |
Other asset-backed securities | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Other asset-backed securities | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 48,734 | 303,847 |
Other asset-backed securities | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 63,337 | 42,563 |
Loans and other receivables | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,280,103 | 2,574,631 |
Liabilities: | ||
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Loans and other receivables | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Loans and other receivables | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,117,162 | 2,460,551 |
Loans and other receivables | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 162,941 | 114,080 |
Derivatives, assets | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 529,684 | 418,408 |
Derivatives, assets | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,897 | 2,809 |
Derivatives, assets | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 2,086,407 | 1,833,907 |
Derivatives, assets | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 52,195 | 14,889 |
Investments at fair value | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 217,654 | 238,100 |
Investments at fair value | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
Investments at fair value | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 45,156 | 32,688 |
Investments at fair value | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 172,498 | 205,412 |
FXCM term loan | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 56,542 | 59,120 |
FXCM term loan | Level 1 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
FXCM term loan | Level 2 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 0 | 0 |
FXCM term loan | Level 3 | ||
Assets: | ||
Financial instruments owned, at fair value, excluding investments at fair value based on NAV | 56,542 | 59,120 |
Loans | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,478,707 | 1,609,691 |
Loans | Level 1 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 0 | 0 |
Loans | Level 2 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,432,113 | 1,600,228 |
Loans | Level 3 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 46,594 | 9,463 |
Derivatives, liabilities | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 483,335 | 527,205 |
Derivatives, liabilities | Level 1 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 1,031 | 871 |
Derivatives, liabilities | Level 2 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | 2,207,365 | 2,066,455 |
Derivatives, liabilities | Level 3 | ||
Liabilities: | ||
Financial instruments sold, not yet purchased, at fair value: | $ 74,620 | $ 92,057 |
Fair Value Disclosures (Investm
Fair Value Disclosures (Investments at Fair Value) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Nov. 30, 2019 | Dec. 31, 2013 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 13,510 | $ 14,621 | |
Financial instruments owned, at fair value | 17,986,721 | 16,895,741 | |
The We Company | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Payments to acquire investments | $ 9,000 | ||
Financial instruments owned, at fair value | $ 9,600 | 53,800 | |
Maximum | The We Company | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Ownership percentage | 1.00% | ||
Equity Long/Short Hedge Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Equity Long/Short Hedge Funds | 60 days prior written notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of investments redeemable | 6.00% | 6.00% | |
Notice period redemption of investments prior written notice period | 60 days | 60 days | |
Equity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 13,510 | $ 14,621 | |
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 | 8 years | 8 years | |
Commodity Fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Commodity Fund | 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 | |
Multi-asset Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Multi-asset Funds | 60 days prior written notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of investments redeemable | 58.00% | 5.00% | |
Notice period redemption of investments prior written notice period | 60 days | 60 days | |
Multi-asset Funds | 30 days prior written notice | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percentage of investments redeemable | 58.00% | 5.00% | |
Notice period redemption of investments prior written notice period | 30 days | 30 days | |
Other Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Unfunded Commitments | $ 0 | $ 0 | |
Fair value measured at NAV | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 928,218 | 586,934 | |
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 | 322,020 | 291,593 | |
Fair value measured at NAV | Equity Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 31,477 | 44,576 | |
Fair value measured at NAV | Commodity Fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 16,204 | 16,025 | |
Fair value measured at NAV | Multi-asset Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | 558,452 | 234,583 | |
Fair value measured at NAV | Other Funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair Value | $ 65 | $ 157 |
Fair Value Disclosures (Inves_2
Fair Value Disclosures (Investment in FXCM, Narrative) (Details) - Investment in FXCM $ in Millions | Aug. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior secured term loan receivable, principal outstanding | $ 71.6 |
Equity method investment, ownership percentage | 50.00% |
Fair Value Disclosures (Nonrecu
Fair Value Disclosures (Nonrecurring Fair Value Measurements, Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Aug. 31, 2020USD ($)ft²SitesTaxlot | |
Vitesse Energy Finance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of oil and gas properties | $ 13.2 | $ 13.2 | |
Vitesse Energy Finance | Oil and Gas Properties | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of proven oil and gas properties | $ 26.8 | ||
Vitesse Energy Finance | Discount Rate | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value measurement input | 0.100 | ||
JETX Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of oil and gas properties | $ 33 | $ 33 | |
JETX Energy | Oil and Gas Properties | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of proven oil and gas properties | $ 9.6 | ||
JETX Energy | Discount Rate | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value measurement input | 0.100 | ||
HomeFed | RedSky JZ Fulton Mall | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of separate tax lots | Taxlot | 14 | ||
Number of premier development sites | Sites | 2 | ||
Area of property (up to) | ft² | 540,000 | ||
Equity method investment, other than temporary impairment | $ 55.6 | ||
HomeFed | RedSky JZ Fulton Mall | Development site | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 49.00% |
Fair Value Disclosures (Level 3
Fair Value Disclosures (Level 3 Rollforwards) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Assets: | ||||
Total gains (losses) (realized and unrealized) | $ 42,200 | $ (150,300) | $ (80,700) | $ (123,300) |
Liabilities: | ||||
Total gains/ losses (realized and unrealized) | 124,300 | (12,800) | (50,100) | (55,800) |
Fair value, Liabilities, change in unrealized gains/(losses) included in other comprehensive income relating to instruments still held | (88,300) | 700 | 17,300 | 9,800 |
Corporate equity securities | ||||
Assets: | ||||
Beginning Balance | 76,140 | 59,572 | 58,426 | 52,192 |
Total gains (losses) (realized and unrealized) | (597) | 12,547 | (3,914) | 15,499 |
Purchases | 779 | 16,508 | 3,406 | 23,172 |
Sales | 0 | (17,502) | (13,555) | (25,431) |
Settlements | 0 | 0 | 0 | (669) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 1,619 | (20,255) | 33,578 | (13,893) |
Ending Balance | 77,941 | 50,870 | 77,941 | 50,870 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | (597) | 12,067 | (775) | 14,071 |
Liabilities: | ||||
Beginning Balance | 4,190 | 221 | 4,487 | 0 |
Total gains/ losses (realized and unrealized) | (12) | 401 | 258 | 401 |
Purchases | 0 | (221) | (567) | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | (190) | 0 | (190) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 189 | 0 | 189 | 0 |
Ending Balance | 4,367 | 211 | 4,367 | 211 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 12 | (35) | 98 | (35) |
Corporate debt securities | ||||
Assets: | ||||
Beginning Balance | 25,178 | 8,346 | 7,490 | 9,484 |
Total gains (losses) (realized and unrealized) | (889) | (3,072) | (162) | (4,904) |
Purchases | 4 | 1,175 | 285 | 6,080 |
Sales | (394) | (1,942) | (489) | (10,544) |
Settlements | 0 | (85) | (602) | (553) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (630) | 4,866 | 16,747 | 9,725 |
Ending Balance | 23,269 | 9,288 | 23,269 | 9,288 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | (881) | (3,047) | (591) | (5,325) |
Liabilities: | ||||
Beginning Balance | 163 | 669 | 340 | 522 |
Total gains/ losses (realized and unrealized) | (15) | (650) | (261) | (867) |
Purchases | 0 | (34) | (325) | 0 |
Sales | 0 | 0 | 394 | 0 |
Settlements | 0 | (369) | 0 | (524) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 1,586 | 0 | 2,071 |
Ending Balance | 148 | 1,202 | 148 | 1,202 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 15 | 649 | 20 | 867 |
CDOs and CLOs | ||||
Assets: | ||||
Beginning Balance | 31,551 | 25,912 | 28,788 | 36,105 |
Total gains (losses) (realized and unrealized) | 3,813 | (1,499) | (8,000) | (4,320) |
Purchases | 39 | 0 | 10,883 | 48,112 |
Sales | (7,539) | 0 | (20,935) | (43,230) |
Settlements | (2,318) | (609) | (6,847) | (3,014) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 10,576 | 6,454 | 32,233 | (3,395) |
Ending Balance | 36,122 | 30,258 | 36,122 | 30,258 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 159 | (2,097) | (20,739) | (6,781) |
Residential mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 22,339 | 17,266 | 17,740 | 19,603 |
Total gains (losses) (realized and unrealized) | 1,240 | (1,917) | (1,347) | (2,573) |
Purchases | 0 | 0 | 7,625 | 2,166 |
Sales | 0 | (65) | 0 | (2,022) |
Settlements | (774) | (22) | (496) | (171) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 5,512 | 2,667 | 4,795 | 926 |
Ending Balance | 28,317 | 17,929 | 28,317 | 17,929 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 1,262 | (1,435) | (1,811) | (2,166) |
Commercial mortgage-backed securities | ||||
Assets: | ||||
Beginning Balance | 4,461 | 12,530 | 6,110 | 10,886 |
Total gains (losses) (realized and unrealized) | 202 | (2,003) | 232 | (2,196) |
Purchases | 0 | 0 | 0 | 11 |
Sales | 0 | (1,703) | 0 | (2,023) |
Settlements | 0 | (3,362) | (1,785) | (6,638) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 106 | 5,422 |
Ending Balance | 4,663 | 5,462 | 4,663 | 5,462 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 198 | (3,143) | 807 | (4,326) |
Liabilities: | ||||
Beginning Balance | 140 | 0 | 35 | 0 |
Total gains/ losses (realized and unrealized) | 0 | 0 | 0 | 0 |
Purchases | (140) | 0 | (35) | 0 |
Sales | 35 | 35 | 35 | 35 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 35 | 35 | 35 | 35 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 0 | 0 | 0 | 0 |
Other asset-backed securities | ||||
Assets: | ||||
Beginning Balance | 86,062 | 43,185 | 42,563 | 53,175 |
Total gains (losses) (realized and unrealized) | (1,585) | (1,689) | (3,495) | (929) |
Purchases | 3,313 | 13,497 | 29,096 | 14,698 |
Sales | 0 | (6,975) | (664) | (2,494) |
Settlements | (7,442) | (5,500) | (22,125) | (30,623) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (17,011) | (7,920) | 17,962 | 771 |
Ending Balance | 63,337 | 34,598 | 63,337 | 34,598 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | (5,101) | (1,068) | (13,012) | (961) |
Loans and other receivables | ||||
Assets: | ||||
Beginning Balance | 121,129 | 98,484 | 114,080 | 46,985 |
Total gains (losses) (realized and unrealized) | 13,109 | (2,847) | 966 | 3,933 |
Purchases | 18,492 | 26,921 | 309,982 | 178,069 |
Sales | (13,897) | (33,409) | (208,958) | (166,496) |
Settlements | (355) | (1,287) | (57,371) | (8,379) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 24,463 | (12,299) | 4,242 | 21,451 |
Ending Balance | 162,941 | 75,563 | 162,941 | 75,563 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 13,440 | (2,392) | 1,291 | 682 |
Investments at fair value | ||||
Assets: | ||||
Beginning Balance | 154,238 | 408,739 | 205,412 | 396,254 |
Total gains (losses) (realized and unrealized) | 24,179 | (152,162) | (62,415) | (119,110) |
Purchases | 7,183 | 1,067 | 42,771 | 42,579 |
Sales | 0 | (296) | (168) | (18,598) |
Settlements | (13,102) | 0 | (13,102) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 35,135 | 0 | (8,642) |
Ending Balance | 172,498 | 292,483 | 172,498 | 292,483 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 23,030 | (152,162) | (64,263) | (119,110) |
FXCM term loan | ||||
Assets: | ||||
Beginning Balance | 53,765 | 56,600 | 59,120 | 73,150 |
Total gains (losses) (realized and unrealized) | 2,777 | 2,293 | (2,578) | (8,669) |
Purchases | 0 | 0 | 0 | 1,500 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | (303) | 0 | (7,391) |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Ending Balance | 56,542 | 58,590 | 56,542 | 58,590 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 2,777 | 2,293 | (2,578) | (8,669) |
Loans to and investments in associated companies | ||||
Assets: | ||||
Beginning Balance | 0 | 0 | ||
Total gains (losses) (realized and unrealized) | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 0 | 0 | ||
Net transfers into (out of) Level 3 | 34,688 | 34,688 | ||
Ending Balance | 34,688 | 34,688 | ||
Changes in unrealized gains/losses included in earnings relating to instruments still held | 0 | 0 | ||
Securities purchased under agreements to resell | ||||
Assets: | ||||
Beginning Balance | 25,000 | 25,000 | 0 | |
Total gains (losses) (realized and unrealized) | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Settlements | 0 | (25,000) | 0 | |
Issuances | 0 | 0 | 25,000 | |
Net transfers into (out of) Level 3 | 0 | 0 | 0 | |
Ending Balance | 0 | 25,000 | 0 | 25,000 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 0 | 0 | 0 | |
Loans | ||||
Liabilities: | ||||
Beginning Balance | 10,674 | 9,428 | 9,463 | 6,376 |
Total gains/ losses (realized and unrealized) | 6,636 | (520) | 2,986 | (1,342) |
Purchases | (23,001) | (10,281) | (5,760) | (8,553) |
Sales | 3,558 | 5,384 | 38,531 | 9,929 |
Settlements | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | 48,727 | 12,619 | 1,374 | 10,220 |
Ending Balance | 46,594 | 16,630 | 46,594 | 16,630 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | (6,591) | 531 | (3,366) | 1,583 |
Net derivatives | ||||
Liabilities: | ||||
Beginning Balance | 45,131 | 47,449 | 77,168 | 21,614 |
Total gains/ losses (realized and unrealized) | (12,175) | (19,519) | (63,367) | (48,746) |
Purchases | (1,404) | 0 | (6,732) | (2,829) |
Sales | 13,089 | 6,766 | 26,656 | 16,313 |
Settlements | (648) | (14) | (1,567) | 1,609 |
Issuances | 0 | 0 | 0 | 0 |
Net transfers into (out of) Level 3 | (21,568) | 16,081 | (9,733) | 62,802 |
Ending Balance | 22,425 | 50,763 | 22,425 | 50,763 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | 12,007 | 18,507 | 60,257 | 40,052 |
Other secured financings | ||||
Liabilities: | ||||
Beginning Balance | 0 | 0 | ||
Total gains/ losses (realized and unrealized) | (617) | (617) | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Issuances | 4,019 | 4,019 | ||
Net transfers into (out of) Level 3 | 0 | 0 | ||
Ending Balance | 3,402 | 3,402 | ||
Changes in unrealized gains/losses included in earnings relating to instruments still held | 617 | 617 | ||
Long-term debt | ||||
Liabilities: | ||||
Beginning Balance | 497,040 | 236,562 | 480,069 | 200,745 |
Total gains/ losses (realized and unrealized) | 130,463 | 7,455 | 10,851 | (5,286) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (2,000) | (11,250) |
Issuances | 5,749 | 114,641 | 202,046 | 204,710 |
Net transfers into (out of) Level 3 | (2,992) | (10,595) | (60,706) | (40,856) |
Ending Balance | 630,260 | 348,063 | 630,260 | 348,063 |
Changes in unrealized gains/losses included in earnings relating to instruments still held | $ (42,163) | $ (8,162) | $ (28,153) | $ (4,517) |
Fair Value Disclosures (Analysi
Fair Value Disclosures (Analysis of Level 3 Assets and Liabilities, Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | $ 64,500 | $ 79,000 | $ 132,000 | $ 60,200 | |
Transfers of assets from Level 3 to Level 2 | 39,900 | 70,300 | 22,300 | 47,800 | |
Transfers of liabilities from Level 2 to Level 3 | 54,400 | 43,500 | 37,300 | 98,300 | |
Transfers of liabilities from Level 3 to Level 2 | 30,000 | 23,800 | 106,200 | 64,100 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | 42,200 | (150,300) | (80,700) | (123,300) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (124,300) | 12,800 | 50,100 | 55,800 | |
Excluded assets from unobservable quantitative information | 156,600 | 156,600 | $ 79,900 | ||
Excluded liabilities from unobservable quantitative information | 5,000 | 5,000 | $ 400 | ||
Loans and other receivables | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 31,800 | 23,700 | 13,400 | 30,600 | |
Transfers of assets from Level 3 to Level 2 | 7,400 | 36,000 | 9,200 | 9,200 | |
Net gains (losses) on Level 3 assets (realized and unrealized) | 13,109 | (2,847) | 966 | 3,933 | |
CDOs and CLOs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 19,500 | 34,100 | |||
Transfers of assets from Level 3 to Level 2 | 8,900 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | 3,813 | (1,499) | (8,000) | (4,320) | |
Other asset-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 5,800 | 23,500 | 10,800 | ||
Transfers of assets from Level 3 to Level 2 | 22,900 | 5,600 | 10,000 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (1,585) | (1,689) | (3,495) | (929) | |
Residential mortgage-backed securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 5,500 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | 1,240 | (1,917) | (1,347) | (2,573) | |
Loans to and investments in associated companies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 34,700 | 34,700 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | 0 | 0 | |||
Investments at fair value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 35,100 | ||||
Transfers of assets from Level 3 to Level 2 | 8,600 | ||||
Net gains (losses) on Level 3 assets (realized and unrealized) | 24,179 | (152,162) | (62,415) | (119,110) | |
Corporate equity securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 36,600 | ||||
Transfers of assets from Level 3 to Level 2 | 22,100 | 3,100 | 14,800 | ||
Net gains (losses) on Level 3 assets (realized and unrealized) | (597) | 12,547 | (3,914) | 15,499 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 12 | (401) | (258) | (401) | |
Corporate debt securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of assets from Level 2 to Level 3 | 18,600 | 10,500 | |||
Net gains (losses) on Level 3 assets (realized and unrealized) | (889) | (3,072) | (162) | (4,904) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 15 | 650 | 261 | 867 | |
Net derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 4,100 | 17,600 | 35,200 | 64,500 | |
Transfers of liabilities from Level 3 to Level 2 | 25,600 | 45,000 | |||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 12,175 | 19,519 | 63,367 | 48,746 | |
Structured notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 11,000 | 20,800 | |||
Transfers of liabilities from Level 3 to Level 2 | 3,000 | 21,600 | 60,700 | 61,700 | |
Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers of liabilities from Level 2 to Level 3 | 50,100 | 13,300 | |||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | $ (6,636) | $ 520 | $ (2,986) | $ 1,342 |
Fair Value Disclosures (Quantit
Fair Value Disclosures (Quantitative Information About Significant Unobservable Inputs Used in Level 3 Fair Value Measurements) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2020USD ($) | Nov. 30, 2019USD ($) | Aug. 31, 2020$ / shares | Aug. 31, 2020$ / Bond | Aug. 31, 2020 | Aug. 31, 2020€ / shares | Aug. 31, 2020€ / Bond | Nov. 30, 2019$ / shares | Nov. 30, 2019$ / Bond | Nov. 30, 2019 | Nov. 30, 2019€ / Bond | Nov. 30, 2019gbpPerShare | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 17,058,503 | $ 16,308,807 | ||||||||||
Loans to and investments in associated companies | 43,092 | |||||||||||
Derivative assets | 529,684 | 418,408 | ||||||||||
Securities purchased under agreements to resell | 25,000 | |||||||||||
Financial instruments sold, not yet purchased, at fair value | 10,994,556 | 10,532,460 | ||||||||||
Derivative liability | 483,335 | 527,205 | ||||||||||
Other secured financings | 3,402 | |||||||||||
Long-term debt, fair value | 1,522,105 | 1,215,285 | ||||||||||
Corporate debt securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 2,743,913 | 2,479,735 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 1,448,706 | 1,471,482 | ||||||||||
CDOs and CLOs | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 104,409 | 153,013 | ||||||||||
Residential mortgage-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 1,003,483 | 1,086,806 | ||||||||||
Commercial mortgage-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 1,096,069 | 430,170 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 35 | 35 | ||||||||||
Other asset-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 112,071 | 346,410 | ||||||||||
Loans and other receivables | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 2,280,103 | 2,574,631 | ||||||||||
Corporate equity securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 2,735,919 | 2,783,993 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 2,312,291 | 2,767,526 | ||||||||||
Loans | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | 1,478,707 | 1,609,691 | ||||||||||
Level 3 | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 677,825 | 554,618 | ||||||||||
Loans to and investments in associated companies | 34,688 | |||||||||||
Derivative assets | 50,637 | 13,826 | ||||||||||
Securities purchased under agreements to resell | 25,000 | |||||||||||
Financial instruments sold, not yet purchased, at fair value | 125,764 | 106,382 | ||||||||||
Derivative liability | 69,615 | 92,057 | ||||||||||
Other secured financings | 3,402 | |||||||||||
Long-term debt, fair value | 630,260 | 480,069 | ||||||||||
Level 3 | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt, measurement input | 77 | 69 | 84 | 74 | ||||||||
Level 3 | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt, measurement input | 105 | 107 | 108 | 103 | ||||||||
Level 3 | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt, measurement input | 99 | 91 | 96 | 91 | ||||||||
Level 3 | Non-exchange-traded securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 77,442 | 29,017 | ||||||||||
Level 3 | Non-exchange-traded securities | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 1 | 1 | ||||||||||
Level 3 | Non-exchange-traded securities | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 213 | 140 | ||||||||||
Level 3 | Non-exchange-traded securities | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 84 | 55 | ||||||||||
Level 3 | Non-exchange-traded securities | EBITDA multiple | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 3 | |||||||||||
Level 3 | Non-exchange-traded securities | EBITDA multiple | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 4 | |||||||||||
Level 3 | Non-exchange-traded securities | EBITDA multiple | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 3 | |||||||||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 3 | |||||||||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 5 | |||||||||||
Level 3 | Non-exchange-traded securities | Underlying stock price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 4 | |||||||||||
Level 3 | Corporate debt securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 23,269 | 7,490 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 148 | 340 | ||||||||||
Level 3 | Corporate debt securities | Price | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / Bond | 69 | |||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.22 | |||||||||||
Financial instruments sold, not yet purchased, measurement input | 0.22 | |||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.23 | |||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.85 | |||||||||||
Level 3 | Corporate debt securities | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.46 | |||||||||||
Level 3 | Corporate debt securities | Volatility | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.44 | |||||||||||
Level 3 | Corporate debt securities | Underlying stock price | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | gbpPerShare | 0.4 | |||||||||||
Level 3 | Corporate debt securities | Credit spread | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 750 | |||||||||||
Level 3 | CDOs and CLOs | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 36,122 | 28,788 | ||||||||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.02 | 0.0325 | ||||||||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.35 | 0.365 | ||||||||||
Level 3 | CDOs and CLOs | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.24 | 0.25 | ||||||||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.20 | |||||||||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.02 | |||||||||||
Level 3 | CDOs and CLOs | Constant prepayment rate | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 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] | ||||||||||||
Financial instrument owned, measurement input | 0.19 | |||||||||||
Level 3 | CDOs and CLOs | Constant default rate | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, 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] | ||||||||||||
Financial instrument owned, 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] | ||||||||||||
Financial instrument owned, 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] | ||||||||||||
Financial instrument owned, 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] | ||||||||||||
Financial instrument owned, measurement input | 0.50 | 0.37 | ||||||||||
Level 3 | CDOs and CLOs | Loss severity | Discounted cash flows | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.28 | 0.29 | ||||||||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.06 | 0.12 | ||||||||||
Level 3 | CDOs and CLOs | Discount rate/yield | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.26 | 0.21 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.17 | 0.15 | ||||||||||
Level 3 | Residential mortgage-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 28,317 | $ 17,740 | ||||||||||
Level 3 | Residential mortgage-backed securities | Discount rate/yield | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, 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] | ||||||||||||
Financial instrument owned, measurement input | 0.04 | |||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.14 | |||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.05 | |||||||||||
Level 3 | Residential mortgage-backed securities | Cumulative loss rate | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.02 | |||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.02 | |||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.32 | |||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.05 | |||||||||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 6 years 3 months 18 days | |||||||||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 1 year | |||||||||||
Level 3 | Residential mortgage-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 13 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] | ||||||||||||
Financial instrument owned, measurement input, term | 9 years 8 months 12 days | |||||||||||
Level 3 | Commercial mortgage-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 4,663 | $ 6,110 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 35 | $ 35 | ||||||||||
Level 3 | Commercial mortgage-backed securities | Estimated recovery percentage | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.44 | 0.44 | ||||||||||
Level 3 | Commercial mortgage-backed securities | Discount rate/yield | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.85 | |||||||||||
Level 3 | Commercial mortgage-backed securities | Cumulative loss rate | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.073 | |||||||||||
Level 3 | Commercial mortgage-backed securities | Duration (years) | Discounted cash flows | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 2 months 12 days | |||||||||||
Level 3 | Other asset-backed securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 63,337 | $ 42,563 | ||||||||||
Level 3 | Other asset-backed securities | Price | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / Bond | 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] | ||||||||||||
Financial instrument owned, measurement input | 0.04 | 0.07 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.15 | 0.15 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.10 | 0.11 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.07 | 0.07 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.72 | 0.31 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.18 | 0.16 | ||||||||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 3 months 18 days | 6 months | ||||||||||
Level 3 | Other asset-backed securities | Duration (years) | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 4 years 2 months 12 days | 3 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] | ||||||||||||
Financial instrument owned, measurement input, term | 1 year 9 months 18 days | 1 year 6 months | ||||||||||
Level 3 | Loans and other receivables | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 162,941 | $ 114,080 | ||||||||||
Level 3 | Loans and other receivables | Market Approach and Scenario Analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 104,212 | $ 112,574 | ||||||||||
Level 3 | Loans and other receivables | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / Bond | 6 | 36 | ||||||||||
Level 3 | Loans and other receivables | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / Bond | 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] | ||||||||||||
Financial instrument owned, measurement input | $ / Bond | 76 | 90 | ||||||||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.02 | 0.87 | ||||||||||
Level 3 | Loans and other receivables | Estimated recovery percentage | Scenario analysis | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 1 | 1.04 | ||||||||||
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] | ||||||||||||
Financial instrument owned, measurement input | 0.62 | 0.99 | ||||||||||
Level 3 | Loans and other receivables | Term based on the pay off (years) | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 0 months | |||||||||||
Level 3 | Loans and other receivables | Term based on the pay off (years) | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 1 month 6 days | |||||||||||
Level 3 | Loans and other receivables | Term based on the pay off (years) | Discounted cash flows | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 1 month 6 days | |||||||||||
Level 3 | Total return swaps | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 97 | |||||||||||
Level 3 | Total return swaps | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 99 | |||||||||||
Level 3 | Total return swaps | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 98 | |||||||||||
Level 3 | Equity options | Volatility | Volatility benchmarking | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 0.45 | |||||||||||
Level 3 | Equity options | Volatility | Volatility benchmarking | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.32 | 0.21 | ||||||||||
Level 3 | Equity options | Volatility | Volatility benchmarking | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.46 | 0.61 | ||||||||||
Level 3 | Equity options | Volatility | Volatility benchmarking | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.39 | 0.43 | ||||||||||
Level 3 | Interest rate swaps | Basis points upfront | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 3 | 0 | ||||||||||
Derivative liability, measurement input | 3 | 0 | ||||||||||
Level 3 | Interest rate swaps | Basis points upfront | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 20 | 16 | ||||||||||
Derivative liability, measurement input | 20 | 22 | ||||||||||
Level 3 | Interest rate swaps | Basis points upfront | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 9 | 6 | ||||||||||
Derivative liability, measurement input | 9 | 13 | ||||||||||
Level 3 | Unfunded commitments | Price | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | $ / Bond | 88 | |||||||||||
Derivative liability, measurement input | $ / Bond | 88 | |||||||||||
Level 3 | Unfunded commitments | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | $ / Bond | 97 | |||||||||||
Level 3 | Unfunded commitments | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | $ / Bond | 99 | |||||||||||
Level 3 | Unfunded commitments | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | $ / Bond | 98 | |||||||||||
Level 3 | Private equity securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 76,654 | $ 157,504 | ||||||||||
Level 3 | Private equity securities | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 2 | 8 | ||||||||||
Level 3 | Private equity securities | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 169 | 250 | ||||||||||
Level 3 | Private equity securities | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | $ / shares | 42 | 80 | ||||||||||
Level 3 | Private equity securities | Estimated recovery percentage | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.33 | |||||||||||
Level 3 | Private equity securities | Discount rate/yield | Scenario analysis | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.19 | 0.19 | ||||||||||
Level 3 | Private equity securities | Discount rate/yield | Scenario analysis | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.21 | 0.21 | ||||||||||
Level 3 | Private equity securities | Discount rate/yield | Scenario analysis | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0.20 | 0.20 | ||||||||||
Level 3 | Private equity securities | Revenue growth | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input | 0 | 0 | ||||||||||
Level 3 | FXCM term loan | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 56,542 | $ 59,120 | ||||||||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Discounted cash flows | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 0 months | 0 months | ||||||||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Discounted cash flows | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 1 year 6 months | 1 year 2 months 12 days | ||||||||||
Level 3 | FXCM term loan | Term based on the pay off (years) | Discounted cash flows | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instrument owned, measurement input, term | 1 year 6 months | 1 year 2 months 12 days | ||||||||||
Level 3 | Non-exchange-traded warrants | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies | $ 34,688 | |||||||||||
Level 3 | Non-exchange-traded warrants | Volatility | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | 0.23 | |||||||||||
Level 3 | Non-exchange-traded warrants | Volatility | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | 0.59 | |||||||||||
Level 3 | Non-exchange-traded warrants | Volatility | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | 0.25 | |||||||||||
Level 3 | Non-exchange-traded warrants | Underlying stock price | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | $ / shares | 506 | |||||||||||
Level 3 | Non-exchange-traded warrants | Underlying stock price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | € / shares | 15 | |||||||||||
Level 3 | Non-exchange-traded warrants | Underlying stock price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | € / shares | 18 | |||||||||||
Level 3 | Non-exchange-traded warrants | Underlying stock price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans to and investments in associated companies, measurement input | € / shares | 17 | |||||||||||
Level 3 | Securities purchased under agreements to resell | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Securities purchased under agreements to resell | $ 25,000 | |||||||||||
Level 3 | Securities purchased under agreements to resell | Duration (years) | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Securities purchased under agreements to resell, measurement input, term | 1 year 6 months | |||||||||||
Level 3 | Securities purchased under agreements to resell | Spread to 6 month LIBOR | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Securities purchased under agreements to resell, measurement input | 500 | |||||||||||
Level 3 | Corporate equity securities | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 77,941 | $ 58,426 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 4,367 | 4,487 | ||||||||||
Level 3 | Corporate equity securities | Transaction level | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 1 | 1 | ||||||||||
Level 3 | Loans | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | $ 46,594 | $ 9,463 | ||||||||||
Level 3 | Loans | Price | Market approach | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / Bond | 31 | 50 | ||||||||||
Level 3 | Loans | Price | Market approach | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / Bond | 97 | 100 | ||||||||||
Level 3 | Loans | Price | Market approach | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / Bond | 70 | 88 | ||||||||||
Level 3 | Loans | Estimated recovery percentage | Scenario analysis | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | 0.02 | 0.01 | ||||||||||
Level 3 | Cross currency swaps | Basis points upfront | Market approach | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 2 | |||||||||||
Level 3 | Other secured financings | Estimated recovery percentage | Scenario analysis | Minimum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings, measurement input | 0.60 | |||||||||||
Level 3 | Other secured financings | Estimated recovery percentage | Scenario analysis | Maximum | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings, measurement input | 1 | |||||||||||
Level 3 | Other secured financings | Estimated recovery percentage | Scenario analysis | Weighted Average | ||||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings, measurement input | 0.79 |
Fair Value Disclosures (Summary
Fair Value Disclosures (Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk on Loans, Other Receivables and Debt Instruments Measured at Fair Value Under Fair Value Option) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Loans and other receivables | $ 1,704 | $ 2,040 | $ (11,256) | $ (5,458) |
Loans | 367 | 0 | (610) | 0 |
Loan commitments | 1,875 | (443) | 464 | (1,200) |
Changes in instrument specific credit risk | (656) | 0 | 898 | (493) |
Short-term borrowings | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in instrument specific credit risk | (23) | 0 | (92) | 0 |
Other changes in fair value | (1,115) | 0 | (959) | 0 |
Other secured financings | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Other changes in fair value | 617 | 0 | 617 | 0 |
Long-term debt | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in instrument specific credit risk | (177,801) | 6,922 | 49,369 | 34,414 |
Other changes in fair value | $ (9,943) | $ (46,003) | $ (78,567) | $ (93,311) |
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 | Aug. 31, 2020 | Nov. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Loans and other receivables | $ 1,839,249 | $ 1,546,516 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 334,504 | 197,215 |
Long-term debt and short-term borrowings | 74,197 | 74,408 |
Other secured financings | 923 | 0 |
All loans and other receivables 90 days or greater past due | $ 29,000 | $ 22,200 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Option Election, Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2019 | Aug. 31, 2020 | Nov. 30, 2019 | Sep. 16, 2019 | Nov. 30, 2018 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | $ 162.6 | $ 127 | ||||
Loans and other receivables 90 days or greater past due | $ 13.3 | $ 24.8 | ||||
Spectrum Brands | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Shares owned, number | 7,514,477 | |||||
Ownership percentage | 15.00% | |||||
Changes in fair value of investments reflected as principal transactions | $ 24 | $ 48.8 | ||||
Dividends payable | $ 451.1 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Instruments Not Measured at Fair Value, Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and securities segregated under federal and other regulations | $ 986,117 | $ 796,797 |
US treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and securities segregated under federal and other regulations | $ 55,900 | $ 35,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value and Related Number of Derivative Contracts Categorized by Predominant Risk Exposure) (Details) $ in Thousands | Aug. 31, 2020USD ($)Contract | Nov. 30, 2019USD ($)Contract |
Derivatives, Fair Value [Line Items] | ||
Net amounts per consolidated statement of financial condition, assets | $ 529,684 | $ 418,408 |
Net amounts per consolidated statement of financial condition, liabilities | 483,335 | 527,205 |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 148,449 | 244,401 |
Fair value, liabilities | 174,034 | 290,201 |
Amounts offset in consolidated statement of financial condition, assets | (144,200) | (222,869) |
Amounts offset in consolidated statement of financial condition, liabilities | (145,706) | (266,900) |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 507,864 | 718,685 |
Fair value, liabilities | 517,457 | 962,638 |
Amounts offset in consolidated statement of financial condition, assets | (504,400) | (688,871) |
Amounts offset in consolidated statement of financial condition, liabilities | (504,400) | (688,871) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 1,485,186 | 888,519 |
Fair value, liabilities | 1,591,525 | 906,544 |
Amounts offset in consolidated statement of financial condition, assets | (963,215) | (521,457) |
Amounts offset in consolidated statement of financial condition, liabilities | (1,149,575) | (676,407) |
Designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 70,159 | 28,663 |
Fair value, liabilities | 393 | 0 |
Designated as accounting hedges | Cleared OTC | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 70,159 | $ 28,663 |
Number of contracts, assets | Contract | 1 | 1 |
Fair value, liabilities | $ 0 | $ 0 |
Number of contracts, liabilities | Contract | 0 | 0 |
Designated as accounting hedges | Bilateral OTC | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | |
Number of contracts, assets | Contract | 0 | |
Fair value, liabilities | $ 393 | |
Number of contracts, liabilities | Contract | 2 | |
Not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 2,071,340 | $ 1,822,942 |
Fair value, liabilities | 2,282,623 | 2,159,383 |
Not designated as accounting hedges | Cleared OTC | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 75,125 | $ 213,224 |
Number of contracts, assets | Contract | 3,894 | 3,329 |
Fair value, liabilities | $ 168,467 | $ 284,433 |
Number of contracts, liabilities | Contract | 4,199 | 3,443 |
Not designated as accounting hedges | Cleared OTC | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 3,165 | $ 2,514 |
Number of contracts, assets | Contract | 15 | 13 |
Fair value, liabilities | $ 5,567 | $ 5,768 |
Number of contracts, liabilities | Contract | 13 | 12 |
Not designated as accounting hedges | Exchange-traded | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 781 | $ 1,191 |
Number of contracts, assets | Contract | 48,453 | 65,226 |
Fair value, liabilities | $ 73 | $ 103 |
Number of contracts, liabilities | Contract | 69,918 | 38,464 |
Not designated as accounting hedges | Exchange-traded | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | $ 0 |
Number of contracts, assets | Contract | 0 | 256 |
Fair value, liabilities | $ 0 | $ 0 |
Number of contracts, liabilities | Contract | 245 | 199 |
Not designated as accounting hedges | Exchange-traded | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 507,083 | $ 717,494 |
Number of contracts, assets | Contract | 906,465 | 1,714,538 |
Fair value, liabilities | $ 517,384 | $ 962,535 |
Number of contracts, liabilities | Contract | 775,309 | 1,481,388 |
Not designated as accounting hedges | Exchange-traded | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | $ 0 |
Number of contracts, assets | Contract | 2,073 | 5,524 |
Fair value, liabilities | $ 0 | $ 0 |
Number of contracts, liabilities | Contract | 1,503 | 4,646 |
Not designated as accounting hedges | Bilateral OTC | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 689,581 | $ 421,700 |
Number of contracts, assets | Contract | 1,480 | 1,325 |
Fair value, liabilities | $ 316,196 | $ 258,857 |
Number of contracts, liabilities | Contract | 621 | 738 |
Not designated as accounting hedges | Bilateral OTC | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 416,298 | $ 191,218 |
Number of contracts, assets | Contract | 13,561 | 9,257 |
Fair value, liabilities | $ 391,542 | $ 187,836 |
Number of contracts, liabilities | Contract | 13,450 | 9,187 |
Not designated as accounting hedges | Bilateral OTC | Equity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 351,744 | $ 248,720 |
Number of contracts, assets | Contract | 1,939 | 4,731 |
Fair value, liabilities | $ 879,876 | $ 445,241 |
Number of contracts, liabilities | Contract | 1,945 | 4,271 |
Not designated as accounting hedges | Bilateral OTC | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 25,447 | $ 20,600 |
Number of contracts, assets | Contract | 2,287 | 4,084 |
Fair value, liabilities | $ 0 | $ 391 |
Number of contracts, liabilities | Contract | 0 | 359 |
Not designated as accounting hedges | Bilateral OTC | Credit contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 2,116 | $ 6,281 |
Number of contracts, assets | Contract | 11 | 25 |
Fair value, liabilities | $ 3,518 | $ 14,219 |
Number of contracts, liabilities | Contract | 10 | 28 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Unrealized and Realized Gains (Losses) on Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense of Jefferies Group | $ 2,468 | $ (467) | $ 1,764 | $ (2,445) |
Unrealized and realized gains (losses) | (82,721) | (84,495) | 131,411 | (296,143) |
Net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on net investment hedges recognized in other comprehensive income (loss) | (393) | 0 | (393) | 0 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (35,462) | (89,864) | (40,630) | (193,715) |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | 4,418 | (1,839) | 2,534 | 269 |
Foreign exchange contracts | Net investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on net investment hedges recognized in other comprehensive income (loss) | (393) | 0 | (393) | 0 |
Equity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (32,782) | 2,236 | 113,253 | (118,354) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (18,716) | 2,285 | 42,049 | 4,057 |
Credit contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized and realized gains (losses) | (179) | 2,687 | 14,205 | 11,600 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense of Jefferies Group | 834 | 28,052 | 47,303 | 69,843 |
Long-term debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in Interest expense of Jefferies Group | $ 1,634 | $ (28,519) | $ (45,539) | $ (72,288) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities) (Details) $ in Thousands | Aug. 31, 2020USD ($) |
OTC Derivative Assets | |
0-12 Months | $ 273,497 |
1-5 Years | 304,574 |
Greater Than 5 Years | 240,514 |
Cross- maturity netting | (89,613) |
Total OTC derivative assets, net of cross-maturity netting | 728,972 |
Cross product counterparty netting | (22,759) |
Total OTC derivative assets included in Financial instruments owned, at fair value | 706,213 |
OTC Derivative Liabilities | |
0-12 Months | 173,451 |
1-5 Years | 567,851 |
Greater Than 5 Years | 229,335 |
Cross-maturity netting | (89,613) |
Total | 881,024 |
Cross product counterparty netting | (22,759) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased, at fair value | 858,265 |
Exchange traded derivative assets and other credit agreements | 25,100 |
Cash collateral received | 201,600 |
Exchange traded derivative liabilities and other credit agreements | 14,500 |
Cash collateral pledged | 389,500 |
Commodity swaps, options and forwards | |
OTC Derivative Assets | |
0-12 Months | 18,611 |
1-5 Years | 6,836 |
Greater Than 5 Years | 0 |
Cross- maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 25,447 |
Equity options and forwards | |
OTC Derivative Assets | |
0-12 Months | 21,437 |
1-5 Years | 44,672 |
Greater Than 5 Years | 15,160 |
Cross- maturity netting | (25,445) |
Total OTC derivative assets, net of cross-maturity netting | 55,824 |
OTC Derivative Liabilities | |
0-12 Months | 15,474 |
1-5 Years | 370,915 |
Greater Than 5 Years | 156,839 |
Cross-maturity netting | (25,445) |
Total | 517,783 |
Credit default swaps | |
OTC Derivative Liabilities | |
0-12 Months | 12 |
1-5 Years | 1,108 |
Greater Than 5 Years | 0 |
Cross-maturity netting | 0 |
Total | 1,120 |
Total return swaps | |
OTC Derivative Assets | |
0-12 Months | 74,923 |
1-5 Years | 19,764 |
Greater Than 5 Years | 2,872 |
Cross- maturity netting | (14,666) |
Total OTC derivative assets, net of cross-maturity netting | 82,893 |
OTC Derivative Liabilities | |
0-12 Months | 58,888 |
1-5 Years | 103,567 |
Greater Than 5 Years | 0 |
Cross-maturity netting | (14,666) |
Total | 147,789 |
Foreign currency forwards, swaps and options | |
OTC Derivative Assets | |
0-12 Months | 63,570 |
1-5 Years | 28,993 |
Greater Than 5 Years | 0 |
Cross- maturity netting | (4,477) |
Total OTC derivative assets, net of cross-maturity netting | 88,086 |
OTC Derivative Liabilities | |
0-12 Months | 55,541 |
1-5 Years | 11,792 |
Greater Than 5 Years | 34 |
Cross-maturity netting | (4,477) |
Total | 62,890 |
Fixed income forwards | |
OTC Derivative Liabilities | |
0-12 Months | 1,404 |
1-5 Years | 0 |
Greater Than 5 Years | 0 |
Cross-maturity netting | 0 |
Total | 1,404 |
Interest rate swaps, options and forwards | |
OTC Derivative Assets | |
0-12 Months | 94,956 |
1-5 Years | 204,309 |
Greater Than 5 Years | 222,482 |
Cross- maturity netting | (45,025) |
Total OTC derivative assets, net of cross-maturity netting | 476,722 |
OTC Derivative Liabilities | |
0-12 Months | 42,132 |
1-5 Years | 80,469 |
Greater Than 5 Years | 72,462 |
Cross-maturity netting | (45,025) |
Total | $ 150,038 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets) (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 139,436 |
BBB- to BBB+ | 15,949 |
BB+ or lower | 353,564 |
Unrated | 197,264 |
Total OTC derivative assets included in Financial instruments owned, at fair value | $ 706,213 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Credit Related Derivative Contracts) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 47.9 | $ 35 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 6.4 | 33.9 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 2 | 3 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 3.4 |
Non-investment grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 45.9 | 32 |
Non-investment grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 6.2 | 29 |
Unrated | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Unrated | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 0.2 | $ 1.5 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Contingent Features) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 191.4 | $ 42.9 |
Collateral posted | (120.6) | (3.1) |
Collateral received | 64.5 | 114.1 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 135.3 | $ 154 |
Collateralized Transactions (Co
Collateralized Transactions (Collateral Pledged) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 1,929,737 | $ 1,525,140 |
Repurchase agreements | 19,837,038 | 18,756,917 |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 |
Total | 21,771,188 | 20,291,557 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 1,317,023 | 1,314,395 |
Repurchase agreements | 176,221 | 129,558 |
Obligation to return securities received as collateral, at fair value | 4,413 | 0 |
Total | 1,497,657 | 1,443,953 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 605,527 | 191,311 |
Repurchase agreements | 1,661,854 | 1,730,526 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | 2,267,381 | 1,921,837 |
Mortgage-backed and asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 1,680,052 | 1,745,145 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | 1,680,052 | 1,745,145 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 7,187 | 19,434 |
Repurchase agreements | 12,187,529 | 10,863,997 |
Obligation to return securities received as collateral, at fair value | 0 | 9,500 |
Total | 12,194,716 | 10,892,931 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 180,837 | 498,202 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | 180,837 | 498,202 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 2,636,878 | 3,016,563 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | 2,636,878 | 3,016,563 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 1,313,667 | 772,926 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | $ 1,313,667 | $ 772,926 |
Collateralized Transactions (_2
Collateralized Transactions (Contractual Maturity) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | $ 1,929,737 | $ 1,525,140 |
Repurchase agreements | 19,837,038 | 18,756,917 |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 |
Total | 21,771,188 | 20,291,557 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 630,163 | 694,821 |
Repurchase agreements | 10,606,433 | 6,614,026 |
Obligation to return securities received as collateral, at fair value | 4,413 | 0 |
Total | 11,241,009 | 7,308,847 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 0 | 0 |
Repurchase agreements | 1,695,229 | 1,556,260 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | 1,695,229 | 1,556,260 |
31 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 553,062 | 672,969 |
Repurchase agreements | 4,243,474 | 8,988,528 |
Obligation to return securities received as collateral, at fair value | 0 | 9,500 |
Total | 4,796,536 | 9,670,997 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending arrangements | 746,512 | 157,350 |
Repurchase agreements | 3,291,902 | 1,598,103 |
Obligation to return securities received as collateral, at fair value | 0 | 0 |
Total | $ 4,038,414 | $ 1,755,453 |
Collateralized Transactions (Na
Collateralized Transactions (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Collateralized Transactions [Abstract] | ||
Fair value of securities received as collateral that may be sold or repledged | $ 29,900,000 | $ 28,700,000 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 986,117 | $ 796,797 |
Collateralized Transactions (Of
Collateralized Transactions (Offsetting of Securities Financing Agreements) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Securities borrowing arrangements, Assets | ||
Gross Amounts | $ 7,268,413 | $ 7,624,642 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 7,268,413 | 7,624,642 |
Additional Amounts Available for Setoff | (429,615) | (361,394) |
Available Collateral | (1,691,674) | (1,479,433) |
Net Amount | 5,147,124 | 5,783,815 |
Reverse repurchase agreements, Assets | ||
Gross Amounts | 17,905,457 | 15,551,845 |
Netting in Consolidated Statements of Financial Condition | (12,578,066) | (11,252,247) |
Net Amounts in Consolidated Statements of Financial Condition | 5,327,391 | 4,299,598 |
Additional Amounts Available for Setoff | (144,353) | (291,316) |
Available Collateral | (5,141,297) | (3,929,977) |
Net Amount | 41,741 | 78,305 |
Securities received as collateral, at fair value | 4,413 | 9,500 |
Securities lending arrangements, Liabilities | ||
Gross Amounts | 1,929,737 | 1,525,140 |
Netting in Consolidated Statements of Financial Condition | 0 | 0 |
Net Amounts in Consolidated Statements of Financial Condition | 1,929,737 | 1,525,140 |
Additional Amounts Available for Setoff | (429,615) | (361,394) |
Available Collateral | (1,467,230) | (970,799) |
Net Amount | 32,892 | 192,947 |
Repurchase agreements, Liabilities | ||
Gross Amounts | 19,837,038 | 18,756,917 |
Netting in Consolidated Statements of Financial Condition | (12,578,066) | (11,252,247) |
Net Amounts in Consolidated Statements of Financial Condition | 7,258,972 | 7,504,670 |
Additional Amounts Available for Setoff | (144,353) | (291,316) |
Available Collateral | (6,622,623) | (6,663,807) |
Net Amount | 491,996 | 549,547 |
Obligation to return securities received as collateral, at fair value | 4,413 | 9,500 |
Securities borrowing agreement, collateral received, subject to review | 4,921,200 | 5,523,600 |
Repurchase agreement, net amount, subject to review | 439,700 | 439,700 |
Securities borrowing agreement, subject to review | 5,089,000 | 5,683,400 |
Repurchase agreements, collateral pledged, subject to review | $ 451,600 | $ 447,500 |
Securitization Activities (Acti
Securitization Activities (Activity Related to Securitizations Accounted for as Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Transfers and Servicing [Abstract] | ||||
Transferred assets | $ 983.9 | $ 789.3 | $ 4,794.3 | $ 2,894.4 |
Proceeds on new securitizations | 983.9 | 789.3 | 4,794.3 | 2,966.3 |
Cash flows received on retained interests | $ 6.3 | $ 16.8 | $ 18.6 | $ 47.2 |
Securitization Activities (Summ
Securitization Activities (Summary of Retained Interests in SPEs) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 |
U.S. government agency residential mortgage-backed securities | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
U.S. government agency residential mortgage-backed securities | $ 928.7 | $ 10,671.7 |
Retained Interests | 12.4 | 103.3 |
U.S. government agency commercial mortgage-backed securities | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
U.S. government agency commercial mortgage-backed securities | 439.2 | 1,374.8 |
Retained Interests | 138.3 | 45.8 |
CLOs | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
CLOs | 3,419.9 | 3,006.7 |
Retained Interests | 41.8 | 58.4 |
Consumer and other loans | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ||
Consumer and other loans | 884 | 1,149.3 |
Retained Interests | $ 45.6 | $ 71.8 |
Variable Interest Entities (Sch
Variable Interest Entities (Schedule of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 51,773,988 | $ 49,460,234 |
Liabilities | [1] | 42,180,264 | 39,706,945 |
Variable interest entities, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 637,500 | 645,800 | |
Liabilities | 3,377,300 | 3,071,100 | |
Variable interest entities, primary beneficiary | Cash | |||
Variable Interest Entity [Line Items] | |||
VIE assets, eliminated in consolidation | 600 | ||
Variable interest entities, primary beneficiary | Other secured financings | |||
Variable Interest Entity [Line Items] | |||
VIE liabilities, eliminated in consolidation | 130,100 | ||
Variable interest entities, primary beneficiary | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
VIE liabilities, eliminated in consolidation | 1,800 | 17,900 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | |||
Variable Interest Entity [Line Items] | |||
Assets | 3,539,500 | 3,111,600 | |
Liabilities | 3,506,600 | 3,088,700 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Cash | |||
Variable Interest Entity [Line Items] | |||
Assets | 0 | 0 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Financial instruments owned, at fair value | |||
Variable Interest Entity [Line Items] | |||
Assets | 0 | 0 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Securities purchased under agreements to resell | |||
Variable Interest Entity [Line Items] | |||
Assets | 2,919,800 | 2,467,300 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Receivables | |||
Variable Interest Entity [Line Items] | |||
Assets | 581,900 | 605,600 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Other | |||
Variable Interest Entity [Line Items] | |||
Assets | 37,800 | 38,700 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Financial instruments sold, not yet purchased, at fair value | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 0 | 0 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Other secured financings | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 3,502,900 | 3,068,600 | |
Variable interest entities, primary beneficiary | Secured Funding Vehicles | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 3,700 | 20,100 | |
Variable interest entities, primary beneficiary | Other | |||
Variable Interest Entity [Line Items] | |||
Assets | 18,400 | 1,500 | |
Liabilities | 2,500 | 200 | |
Variable interest entities, primary beneficiary | Other | Cash | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,200 | 1,200 | |
Variable interest entities, primary beneficiary | Other | Financial instruments owned, at fair value | |||
Variable Interest Entity [Line Items] | |||
Assets | 3,600 | 300 | |
Variable interest entities, primary beneficiary | Other | Securities purchased under agreements to resell | |||
Variable Interest Entity [Line Items] | |||
Assets | 0 | 0 | |
Variable interest entities, primary beneficiary | Other | Receivables | |||
Variable Interest Entity [Line Items] | |||
Assets | 13,500 | 0 | |
Variable interest entities, primary beneficiary | Other | Other | |||
Variable Interest Entity [Line Items] | |||
Assets | 100 | 0 | |
Variable interest entities, primary beneficiary | Other | Financial instruments sold, not yet purchased, at fair value | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 2,100 | 0 | |
Variable interest entities, primary beneficiary | Other | Other secured financings | |||
Variable Interest Entity [Line Items] | |||
Liabilities | 0 | 0 | |
Variable interest entities, primary beneficiary | Other | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Liabilities | $ 400 | $ 200 | |
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2018 | ||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | $ 51,773,988 | $ 49,460,234 | ||
Investment in associated company | 1,539,356 | 1,652,957 | $ 2,346,297 | $ 2,417,332 | |
Investment in FXCM | |||||
Variable Interest Entity [Line Items] | |||||
Fair value of senior secured term loan receivable | 56,500 | ||||
Investment in associated company | 80,300 | ||||
Senior secured term loan receivable and investments in associated companies | 136,800 | ||||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 1,247,200 | 1,107,900 | |||
Related party private equity vehicles | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 18,600 | 23,000 | |||
Other investment vehicles | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of equity investment | 853,900 | 574,000 | |||
Unfunded equity commitment related to investments | 199,600 | 192,100 | |||
Other investment vehicles | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 853,900 | 574,000 | |||
Agency mortgage-backed securities | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 1,808,600 | 1,453,500 | |||
Non agency mortgage- and asset-backed securities | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 130,800 | 134,800 | |||
JCP Entities | Related party private equity vehicles | |||||
Variable Interest Entity [Line Items] | |||||
Equity commitments | 133,000 | 133,000 | |||
Funded equity commitments | 122,000 | 121,700 | |||
Carrying amount of equity investment | 18,600 | 23,000 | |||
Variable interest entities, primary beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Automobile loan receivables securitized | 223,300 | ||||
Assets | $ 637,500 | $ 645,800 | |||
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Variable Interest Entities (S_2
Variable Interest Entities (Schedule of Nonconsolidated VIEs) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 51,773,988 | $ 49,460,234 |
Liabilities | [1] | 42,180,264 | 39,706,945 |
Maximum Exposure to Loss | 1,988,400 | 1,796,300 | |
VIE Assets | 25,071,000 | 19,526,200 | |
VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,247,200 | 1,107,900 | |
Liabilities | 1,400 | 600 | |
CLOs | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 470,400 | 505,300 | |
VIE Assets | 6,509,500 | 7,845,000 | |
CLOs | VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 66,300 | 152,600 | |
Liabilities | 1,400 | 600 | |
Consumer loan and other asset-backed vehicles | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 435,000 | 490,600 | |
VIE Assets | 2,300,400 | 2,354,800 | |
Consumer loan and other asset-backed vehicles | VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 308,400 | 358,300 | |
Liabilities | 0 | 0 | |
Related party private equity vehicles | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 29,600 | 34,300 | |
VIE Assets | 50,700 | 71,400 | |
Related party private equity vehicles | VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 18,600 | 23,000 | |
Liabilities | 0 | 0 | |
Other investment vehicles | |||
Variable Interest Entity [Line Items] | |||
Maximum Exposure to Loss | 1,053,400 | 766,100 | |
VIE Assets | 16,210,400 | 9,255,000 | |
Other investment vehicles | VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 853,900 | 574,000 | |
Liabilities | $ 0 | $ 0 | |
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Loans to and Investments in A_3
Loans to and Investments in Associated Companies (Schedule of Loans to and Investments In Associated Companies) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | $ 1,652,957 | $ 2,417,332 | ||
Income (losses) related to associated companies | $ 5,053 | $ 72,283 | (69,523) | 121,766 |
Income (losses) related to Jefferies associated companies | 3,854 | 17,293 | (22,282) | 71,614 |
Contributions to (distributions from) associated companies, net | (29,553) | (110,465) | ||
Other | 7,757 | (153,950) | ||
Loans to and investments in associated companies as of end of period | 1,539,356 | 2,346,297 | 1,539,356 | 2,346,297 |
Jefferies Finance | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 673,867 | 728,560 | ||
Income (losses) related to associated companies | 0 | 0 | ||
Income (losses) related to Jefferies associated companies | (17,731) | (6,901) | (65,681) | 1,035 |
Contributions to (distributions from) associated companies, net | 10,107 | (58,682) | ||
Other | 0 | 0 | ||
Loans to and investments in associated companies as of end of period | 618,293 | 670,913 | 618,293 | 670,913 |
Berkadia | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 268,949 | 245,228 | ||
Income (losses) related to associated companies | 0 | 0 | ||
Income (losses) related to Jefferies associated companies | 18,448 | 24,286 | 40,373 | 72,231 |
Contributions to (distributions from) associated companies, net | (36,615) | (47,682) | ||
Other | 510 | 722 | ||
Loans to and investments in associated companies as of end of period | 273,217 | 270,499 | 273,217 | 270,499 |
National Beef | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 653,630 | |||
Income (losses) related to associated companies | 0 | 75,867 | 0 | 137,918 |
Income (losses) related to Jefferies associated companies | 0 | |||
Contributions to (distributions from) associated companies, net | (72,767) | |||
Other | (10) | |||
Loans to and investments in associated companies as of end of period | 718,771 | 718,771 | ||
FXCM | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 70,223 | 75,031 | ||
Income (losses) related to associated companies | 3,704 | (573) | 9,956 | (5,589) |
Income (losses) related to Jefferies associated companies | 0 | 0 | ||
Contributions to (distributions from) associated companies, net | 0 | 3,500 | ||
Other | 161 | (134) | ||
Loans to and investments in associated companies as of end of period | 80,340 | 72,808 | 80,340 | 72,808 |
Linkem | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 194,847 | 165,157 | ||
Income (losses) related to associated companies | (1,945) | (12,115) | (21,754) | (20,696) |
Income (losses) related to Jefferies associated companies | 0 | 0 | ||
Contributions to (distributions from) associated companies, net | 35,103 | 82,178 | ||
Other | (2,149) | (8,226) | ||
Loans to and investments in associated companies as of end of period | 206,047 | 218,413 | 206,047 | 218,413 |
HomeFed | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 337,542 | |||
Income (losses) related to associated companies | 0 | 8,419 | 0 | 7,902 |
Income (losses) related to Jefferies associated companies | 0 | |||
Contributions to (distributions from) associated companies, net | 0 | |||
Other | (345,444) | |||
Loans to and investments in associated companies as of end of period | 0 | 0 | ||
Real estate associated companies | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 255,309 | 87,074 | ||
Income (losses) related to associated companies | 2,532 | 464 | (50,910) | 1,536 |
Income (losses) related to Jefferies associated companies | 0 | 0 | ||
Contributions to (distributions from) associated companies, net | (34,505) | (3,054) | ||
Other | 0 | 198,273 | ||
Loans to and investments in associated companies as of end of period | 169,894 | 283,829 | 169,894 | 283,829 |
Other | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 189,762 | 125,110 | ||
Income (losses) related to associated companies | 762 | 221 | (6,815) | 695 |
Income (losses) related to Jefferies associated companies | 3,137 | (92) | 3,026 | (1,652) |
Contributions to (distributions from) associated companies, net | (3,643) | (13,958) | ||
Other | 9,235 | 869 | ||
Loans to and investments in associated companies as of end of period | 191,565 | $ 111,064 | 191,565 | $ 111,064 |
Linkem and Other | Loans and debt securities | ||||
Equity Method Investment [Roll Forward] | ||||
Loans to and investments in associated companies as of beginning of period | 70,200 | |||
Loans to and investments in associated companies as of end of period | $ 100,200 | 100,200 | ||
Brooklyn Renaissance Plaza and Hotel | HomeFed | ||||
Equity Method Investment [Roll Forward] | ||||
Equity method investment, other than temporary impairment | 6,900 | |||
RedSky JZ Fulton Mall | HomeFed | ||||
Equity Method Investment [Roll Forward] | ||||
Equity method investment, other than temporary impairment | $ 55,600 |
Loans to and Investments in A_4
Loans to and Investments in Associated Companies (Jefferies Finance, Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | Mar. 28, 2019 | |
Investments In Associated Companies [Line Items] | ||||||
Other assets | $ 2,375,171,000 | $ 2,375,171,000 | $ 2,450,109,000 | |||
Payables, expense accruals and other liabilities | 8,792,748,000 | 8,792,748,000 | 8,179,013,000 | |||
Interest expense | 21,512,000 | $ 23,663,000 | 64,226,000 | $ 69,819,000 | ||
Jefferies Finance | ||||||
Investments In Associated Companies [Line Items] | ||||||
Equity commitment | 750,000,000 | 750,000,000 | ||||
Funded equity commitments | 652,400,000 | $ 652,400,000 | ||||
Investment commitment extension | 1 year | |||||
Investment commitment termination notice period | 60 days | |||||
Total line of credit facility commitment under joint venture | 500,000,000 | $ 500,000,000 | ||||
Termination notice | 60 days | |||||
Line of credit facility, commitment of Jefferies, funded | 0 | $ 0 | ||||
Line of credit facility commitment of Jefferies | 250,000,000 | 250,000,000 | ||||
Jefferies Group | ||||||
Investments In Associated Companies [Line Items] | ||||||
Interest expense | $ 209,329,000 | 366,378,000 | $ 745,207,000 | 1,141,661,000 | ||
Jefferies Group | Promissory Note | ||||||
Investments In Associated Companies [Line Items] | ||||||
Debt principal amount | $ 1,000,000,000 | |||||
Interest expense | 3,800,000 | |||||
Jefferies Finance | ||||||
Investments In Associated Companies [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||
Extension period | 1 year | |||||
Other assets | $ 13,200,000 | $ 13,200,000 | 17,200,000 | |||
Payables, expense accruals and other liabilities | 13,700,000 | 13,700,000 | 13,700,000 | |||
Jefferies Finance | Lending Transactions | ||||||
Investments In Associated Companies [Line Items] | ||||||
Payables, expense accruals and other liabilities | $ 17,600,000 | |||||
Jefferies Finance | Jefferies Group | ||||||
Investments In Associated Companies [Line Items] | ||||||
Interest income and unfunded commitment fees related to facility commitment | $ 400,000 | $ 300,000 | $ 3,000,000 | $ 900,000 |
Loans to and Investments in A_5
Loans to and Investments in Associated Companies (Activity Related to Other Transactions with Jefferies Finance) (Details) - Jefferies Finance - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Investments In Associated Companies [Line Items] | ||||
Origination and syndication fee revenues | $ 42.4 | $ 44.6 | $ 123.9 | $ 135.8 |
Origination fee expenses | 3.8 | 8.2 | 12.4 | 21.8 |
CLO placement fee revenues | 1.3 | 1 | 1.7 | 2.3 |
Underwriting fees | 0 | 2.9 | 0.3 | 3.9 |
Service fees | $ 13.5 | $ 12.3 | $ 49.4 | $ 50.6 |
Loans to and Investments in A_6
Loans to and Investments in Associated Companies (Berkadia, Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2009 | Aug. 31, 2020 | |
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_7
Loans to and Investments in Associated Companies (FXCM, Narrative) (Details) - Investment in FXCM | 9 Months Ended |
Aug. 31, 2020 | |
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 (Linkem, Narrative) (Details) - Linkem $ in Millions | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 42.00% |
Percentage of ownership upon conversion of preferred shares | 56.00% |
Percentage of total voting securities | 48.00% |
Shareholder loans principal outstanding | $ 102 |
Equity method investee | |
Investments In Associated Companies [Line Items] | |
Shareholder loans interest rate | 5.00% |
Loans to and Investments in A_9
Loans to and Investments in Associated Companies (HomeFed, Narrative) (Details) - HomeFed - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2019 | Jun. 30, 2019 | |
Investments In Associated Companies [Line Items] | ||
Equity method investment, ownership percentage | 70.00% | |
Maximum voting rights as a percentage of total voting securities voting | 45.00% | |
Non-cash pre-tax gain on remeasurement of interest | $ 72.1 |
Loans to and Investments in _10
Loans to and Investments in Associated Companies (Real Estate Associated Companies, Narrative) (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2020USD ($)Seat | |
54 Madison | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 48.10% |
Number of seats in investment committee retained by Company | 2 |
Number of seats in investment committee | 4 |
HomeFed | Brooklyn Renaissance Plaza and Hotel | |
Investments In Associated Companies [Line Items] | |
Equity method investment, other than temporary impairment | $ | $ 6.9 |
HomeFed | Brooklyn Renaissance Plaza and Hotel | Hotel | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 25.80% |
HomeFed | Brooklyn Renaissance Plaza Office | Office Building | |
Investments In Associated Companies [Line Items] | |
Equity method investment, ownership percentage | 61.25% |
Weighted average useful life | 39 years |
Loans to and Investments in _11
Loans to and Investments in Associated Companies (Other) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 1,825,499 | $ 1,223,156 | $ 4,895,294 | $ 3,928,539 |
Net income | $ 304,839 | $ 49,394 | 460,405 | 768,685 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 716,182 | 6,972,754 | ||
Income from continuing operations before extraordinary items | 89,716 | 622,553 | ||
Net income | $ 89,716 | $ 622,553 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill (Schedule of Intangible Assets, Net And Goodwill) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | $ 171,117 | $ 182,954 |
Goodwill | 1,743,425 | 1,739,980 |
Total intangible assets, net and goodwill | 1,914,542 | 1,922,934 |
Real estate | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill | 36,711 | 36,711 |
Other operations | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill | 3,459 | 3,459 |
Investment Banking and Capital Markets | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill | 1,560,255 | 1,556,810 |
Asset Management | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill | 143,000 | 143,000 |
Historical Investment Banking, Capital Markets and Asset Management Segment | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Goodwill | 1,699,800 | |
Customer and other relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 53,396 | 59,575 |
Intangible assets, accumulated amortization | 117,609 | 111,060 |
Trademarks and tradenames | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 101,207 | 103,790 |
Intangible assets, accumulated amortization | 27,673 | 24,800 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles | 8,640 | 11,316 |
Intangible assets, accumulated amortization | 8,042 | 5,366 |
Exchange and clearing organization membership interests and registrations | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangibles | $ 7,874 | $ 8,273 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 3.7 | $ 4 | $ 11.5 | $ 10.6 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill (Schedule of Estimated Future Amortization Expense) (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of current year | $ 3,673 |
2021 | 14,457 |
2022 | 11,180 |
2023 | 9,945 |
2024 | $ 9,189 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | Oct. 07, 2020 | Mar. 13, 2020 | Aug. 31, 2020 | Nov. 30, 2019 |
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 805,381,000 | $ 548,490,000 | ||
Interest rates on short-term borrowings outstanding | 1.83% | 3.24% | ||
Floating rate puttable notes | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 6,800,000 | $ 0 | ||
Principal amount of short-term debt issued | 6,800,000 | |||
Equity-linked notes | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | 21,829,000 | 20,981,000 | ||
Principal amount of short-term debt issued | 5,000,000 | |||
Short-term debt matured | $ 5,200,000 | |||
Equity-linked notes | Subsequent Event | ||||
Short-term Debt [Line Items] | ||||
Short-term debt matured | $ 15,100,000 | |||
Jefferies Group credit facility | Line of Credit | JPMorgan Chase Bank, N.A. | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | 246,000,000 | |||
RBC Credit Facility | Royal Bank of Canada | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||
RBC Credit Facility | Royal Bank of Canada | LIBOR | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.05% | |||
Intraday Credit Facility | Revolving Credit Facility | ||||
Short-term Debt [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 150,000,000 | |||
Debt instrument, interest rate | 0.12% | |||
Intraday Credit Facility | Revolving Credit Facility | Base rate | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate (as a percent) | 3.00% | |||
Intraday Credit Facility | Revolving Credit Facility | Federal funds effective rate | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.50% | |||
Bank loans | ||||
Short-term Debt [Line Items] | ||||
Short-term borrowings | $ 776,752,000 | $ 527,509,000 |
Long-Term Debt (Schedule of Deb
Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 8,419,837 | $ 8,419,837 | $ 8,337,061 | ||
Losses associated with an interest rate swap based on its designation as a fair value hedge | (2,468) | $ 467 | (1,764) | $ 2,445 | |
Parent Company | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 992,372 | 992,372 | 991,378 | ||
Parent Company | 5.50% Senior Notes due October 18, 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 745,558 | $ 745,558 | $ 744,606 | ||
Interest rate | 5.50% | 5.50% | 5.50% | ||
Principal outstanding | $ 750,000 | $ 750,000 | $ 750,000 | ||
Parent Company | 6.625% Senior Notes due October 23, 2043 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 246,814 | $ 246,814 | $ 246,772 | ||
Interest rate | 6.625% | 6.625% | 6.625% | ||
Principal outstanding | $ 250,000 | $ 250,000 | $ 250,000 | ||
Subsidiaries | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 7,427,465 | 7,427,465 | 7,345,683 | ||
Subsidiaries | 2.375% Euro Medium Term Notes, due May 20, 2020 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 0 | $ 550,622 | ||
Interest rate | 2.375% | ||||
Principal outstanding | 0 | 0 | $ 550,875 | ||
Subsidiaries | 6.875% Senior Notes, due April 15, 2021 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 761,430 | $ 761,430 | $ 774,738 | ||
Interest rate | 6.875% | 6.875% | 6.875% | ||
Principal outstanding | $ 750,000 | $ 750,000 | $ 750,000 | ||
Subsidiaries | 2.25% Euro Medium Term Notes, due July 13, 2022 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 4,613 | $ 4,613 | $ 4,204 | ||
Interest rate | 2.25% | 2.25% | 2.25% | ||
Principal outstanding | $ 4,774 | $ 4,774 | $ 4,407 | ||
Subsidiaries | 5.125% Senior Notes, due January 20, 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 760,999 | $ 760,999 | $ 610,023 | ||
Interest rate | 5.125% | 5.125% | 5.125% | ||
Principal outstanding | $ 750,000 | $ 750,000 | $ 600,000 | ||
Subsidiaries | 1.00% Euro Medium Term Notes, due July 19, 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 594,965 | $ 594,965 | $ 548,880 | ||
Interest rate | 1.00% | 1.00% | 1.00% | ||
Principal outstanding | $ 596,725 | $ 596,725 | $ 550,875 | ||
Subsidiaries | 4.85% Senior Notes, due January 15, 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 814,873 | $ 814,873 | $ 768,931 | ||
Interest rate | 4.85% | 4.85% | 4.85% | ||
Principal outstanding | $ 750,000 | $ 750,000 | $ 750,000 | ||
Subsidiaries | 6.45% Senior Debentures, due June 8, 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 369,662 | $ 369,662 | $ 371,426 | ||
Interest rate | 6.45% | 6.45% | 6.45% | ||
Principal outstanding | $ 350,000 | $ 350,000 | $ 350,000 | ||
Subsidiaries | 4.15% Senior Notes, due January 23, 2030 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 989,342 | $ 989,342 | $ 988,662 | ||
Interest rate | 4.15% | 4.15% | 4.15% | ||
Principal outstanding | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Subsidiaries | 6.25% Senior Debentures, due January 15, 2036 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 510,943 | $ 510,943 | $ 511,260 | ||
Interest rate | 6.25% | 6.25% | 6.25% | ||
Principal outstanding | $ 500,000 | $ 500,000 | $ 500,000 | ||
Subsidiaries | 6.50% Senior Notes, due January 20, 2043 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 419,931 | $ 419,931 | $ 420,239 | ||
Interest rate | 6.50% | 6.50% | 6.50% | ||
Principal outstanding | $ 400,000 | $ 400,000 | $ 400,000 | ||
Subsidiaries | Structured Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,522,105 | 1,522,105 | 1,215,285 | ||
Subsidiaries | HomeFed EB-5 Program debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 189,335 | 189,335 | 140,739 | ||
Subsidiaries | HomeFed construction loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 45,638 | 45,638 | 0 | ||
Subsidiaries | Foursight Capital Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 99,802 | 99,802 | 98,260 | ||
Subsidiaries | Vitesse Energy Finance Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 104,256 | 104,256 | 103,050 | ||
Subsidiaries | Other | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 0 | 276 | ||
Subsidiaries | Jefferies Group | Jefferies Group Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 189,571 | 189,571 | 189,088 | ||
Subsidiaries | Jefferies Group | Jefferies Group Secured Bank Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 50,000 | 50,000 | $ 50,000 | ||
Subsidiaries | Interest rate swaps | 4.85% Senior Notes, due January 15, 2027 | |||||
Debt Instrument [Line Items] | |||||
Losses associated with an interest rate swap based on its designation as a fair value hedge | $ 45,500 | $ 72,300 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 9 Months Ended | ||
Aug. 31, 2020USD ($)numberOfDebtExtensionsContract | Oct. 07, 2020USD ($) | Nov. 30, 2019USD ($) | |
Structured notes | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Debt issued during period, principal amount, net of retirements | $ 244,400,000 | ||
Jefferies Group Revolving Credit Facility | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Debt principal amount | 190,000,000 | ||
Bank loan obligations | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Debt principal amount | 50,000,000 | ||
HomeFed construction loan | HomeFed | |||
Debt Instrument [Line Items] | |||
Construction loan, maximum borrowing amount | $ 58,900,000 | ||
Number of debt extensions | numberOfDebtExtensions | 1 | ||
Debt extension period | 12 months | ||
Long-term debt | $ 45,800,000 | ||
Foursight Capital Credit Facilities | |||
Debt Instrument [Line Items] | |||
Number of warehouse credit commitments | Contract | 2 | ||
Maximum borrowing capacity | $ 175,000,000 | ||
Vitesse Energy Finance Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 105,000,000 | $ 104,000,000 | |
Maximum borrowing capacity | $ 120,000,000 | ||
Vitesse Energy Finance Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Percentage of proved reserve value of oil and gas properties (minimum) | 85.00% | ||
LIBOR | Bank loan obligations | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 1.25% | ||
LIBOR | HomeFed construction loan | HomeFed | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.15% | ||
Medium-term Notes | 2.375% Euro Medium Term Notes, due May 20, 2020 | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.375% | ||
Senior Notes | 5.125% Senior Notes, due January 20, 2023 | Jefferies Group | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.125% | ||
Additional principal amount issued | $ 150,000,000 | ||
Senior Notes | 2.75% Senior Notes, due 2032 | Jefferies Group | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.75% | ||
Debt principal amount | $ 500,000,000 | ||
Line of Credit | Foursight Capital Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 100,100,000 | $ 98,700,000 | |
Line of Credit | Foursight Capital Credit Facilities | Foursight Capital | |||
Debt Instrument [Line Items] | |||
Assets pledged for indebtedness | $ 124,000,000 |
Leases (Information Related to
Leases (Information Related to Leases in Consolidated Statement of Financial Condition) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Dec. 01, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, net - ROU assets | $ 545,800 | |
Weighted average remaining lease term (in years) | 10 years 9 months 18 days | |
Weighted average discount rate | 2.90% | |
Premises and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, net - ROU assets | $ 521,278 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Dec. 01, 2019 | Nov. 30, 2019 |
Leases [Abstract] | |||
Remainder of 2020 | $ 22,271 | ||
2021 | 76,932 | ||
2022 | 74,722 | ||
2023 | 65,220 | ||
2024 | 61,994 | ||
2025 and thereafter | 403,809 | ||
Total undiscounted cash flows | 704,948 | ||
Less: Difference between undiscounted and discounted cash flows | (106,832) | ||
Operating leases amount in the Consolidated Statement of Financial Condition | 598,116 | $ 614,900 | |
Finance leases amount in the Consolidated Statement of Financial Condition | 247 | ||
Total amount in the Consolidated Statement of Financial Condition | $ 598,363 | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2019 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Rental expense, net of sublease rental income | $ 55.7 | $ 65.6 | $ 60.2 |
Leases (Lease Costs) (Details)
Leases (Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Aug. 31, 2020 | Aug. 31, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 19,425 | $ 57,994 |
Variable lease costs | 3,485 | 9,561 |
Less: Sublease income | (1,973) | (5,669) |
Total lease cost, net | $ 20,937 | $ 61,886 |
Leases (Schedule of Cash Flows
Leases (Schedule of Cash Flows Supplemental Information Related to Leases) (Details) $ in Thousands | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Leases [Abstract] | |
Cash outflows - lease liabilities | $ 59,155 |
Non-cash - ROU assets recorded for new and modified leases | $ 21,438 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Annual Lease Payments) (Details) $ in Thousands | Nov. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 70,886 |
2021 | 73,374 |
2022 | 71,464 |
2023 | 62,552 |
2024 | 59,714 |
Thereafter | 393,995 |
Future minimum payments due | 731,985 |
Less: sublease income | (21,883) |
Future minimum payments due, net of sublease income | $ 710,102 |
Mezzanine Equity (Details)
Mezzanine Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2013 | Aug. 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Purchase Requirement [Line Items] | |||||||
Redeemable noncontrolling interests | $ 24,300,000 | $ 26,600,000 | $ 24,300,000 | ||||
Dividend rate on preferred stock | 3.25% | ||||||
Mandatorily redeemable convertible preferred shares redemption value | 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||
Dividends per common share (in dollars per share) | $ 0.15 | $ 0.125 | $ 0.15 | ||||
Increase of preferred stock dividend | 1,404,000 | $ 1,275,000 | $ 4,230,000 | $ 3,827,000 | |||
Cumulative convertible preferred shares | |||||||
Purchase Requirement [Line Items] | |||||||
Dividend rate on preferred stock | 3.25% | 3.25% | |||||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | |||||
Mandatorily redeemable preferred stock, number of shares in conversion (in shares) | 4,440,863 | 4,440,863 | |||||
Mandatorily redeemable preferred stock, effective conversion price per share (in dollars per share) | $ 28.15 | $ 28.15 | |||||
Minimum dividend considered for additional quarterly payments (in dollars per share) | 0.0625 | $ 0.0625 | |||||
Increase of preferred stock dividend | $ 4,200,000 | $ 3,800,000 | |||||
Preferred stock, effective dividend rate, percentage | 4.50% | ||||||
Mandatorily redeemable preferred shares callable price per share (in dollars per share) | $ 1,000 | $ 1,000 |
Compensation Plans (Details)
Compensation Plans (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 8,900 | $ 12,200 | $ 29,554 | $ 37,036 |
Tax benefit for issuance of share-based awards | 2,300 | $ 3,000 | 7,500 | $ 9,300 |
Total unrecognized compensation costs related to nonvested share-based compensation plans | $ 52,400 | $ 52,400 | ||
Total unrecognized compensation costs related to nonvested share-based compensation plans, period for recognition | 2 years | |||
Other shares issuable (in shares) | 1,105 | 1,105 | ||
Potential maximum increase to common shares outstanding from restricted stock and other shares (in shares) | 23,737 | 23,737 | ||
Restricted cash awards, cost expected to be recognized | $ 606,200 | $ 606,200 | ||
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] | ||||
Vesting period for award granted | 4 years | |||
Award amortization period | 4 years | |||
Restricted stock with future service required | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option equity instruments, outstanding (in shares) | 1,749 | 1,749 | ||
Restricted stock units with future service required | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option equity instruments, outstanding (in shares) | 4,183 | 4,183 | ||
Restricted stock units with no future service required | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option equity instruments, outstanding (in shares) | 18,449 | 18,449 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Summary of Accumulated Other Comprehensive Income (Loss), Net of Taxes) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Nov. 30, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | $ 9,444,451 | $ 9,361,113 | $ 9,601,684 | $ 10,047,781 | $ 9,877,361 | $ 10,079,257 |
Net unrealized gains on available for sale securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | 552 | 141 | ||||
Net unrealized foreign exchange losses | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | (156,894) | (192,709) | ||||
Net unrealized gains (losses) on instrument specific credit risk | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | 19,586 | (18,889) | ||||
Net minimum pension liability | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | (59,651) | (61,582) | ||||
AOCI including portion attributable to noncontrolling interest | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Equity | $ (196,407) | $ (273,039) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss) Reclassification) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 1,825,499 | $ 1,223,156 | $ 4,895,294 | $ 3,928,539 |
Selling, general and other expenses | (237,712) | (268,742) | (784,668) | (718,910) |
Net unrealized gains on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 0 | (545,054) | ||
Net unrealized gains (losses) on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 306 | (166) | ||
Net unrealized gains on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | 0 | 161 | ||
Amortization of defined benefit pension plan actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification for the period, tax | (658) | (361) | ||
Other | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 42,753 | 169,248 | 186,367 | 351,544 |
Principal transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 623,283 | $ (20,920) | 1,421,485 | 465,451 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (1,033) | 542,092 | ||
Reclassification out of Accumulated Other Comprehensive Income | Amortization of defined benefit pension plan actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and other expenses | (1,931) | (1,063) | ||
Reclassification out of Accumulated Other Comprehensive Income | Other | Net unrealized gains on available for sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other revenues and Income tax provision (benefit) | 0 | 543,178 | ||
Reclassification out of Accumulated Other Comprehensive Income | Other | Net unrealized gains on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 0 | 470 | ||
Reclassification out of Accumulated Other Comprehensive Income | Principal transactions | Net unrealized gains (losses) on instrument specific credit risk | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 898 | $ (493) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Recognition of accumulated other comprehensive income lodged taxes | $ 544,600 | $ 0 | $ 544,583 |
Lodged tax effect | $ 544,600 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Schedule of Components of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 974,741 | $ 734,427 | $ 2,637,476 | $ 2,054,441 |
Other sources of revenue | 850,758 | 488,729 | 2,257,818 | 1,874,098 |
Total revenues | 1,825,499 | 1,223,156 | 4,895,294 | 3,928,539 |
Commissions and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 204,032 | 171,000 | 626,434 | 493,560 |
Total revenues | 204,032 | 171,000 | 626,434 | 493,560 |
Investment banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 615,837 | 410,796 | 1,595,330 | 1,126,479 |
Total revenues | 615,837 | 410,796 | 1,595,330 | 1,126,479 |
Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 119,751 | 82,565 | 282,737 | 248,227 |
Total revenues | 119,751 | 82,565 | 282,737 | 248,227 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 35,121 | 70,066 | 132,975 | 186,175 |
Principal transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Other sources of revenue | 623,283 | (20,920) | 1,421,485 | 465,451 |
Total revenues | 623,283 | (20,920) | 1,421,485 | 465,451 |
Interest income | ||||
Disaggregation of Revenue [Line Items] | ||||
Other sources of revenue | 219,843 | 410,467 | 782,941 | 1,243,278 |
Total revenues | 219,843 | 410,467 | 782,941 | 1,243,278 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Other sources of revenue | $ 7,632 | $ 99,182 | $ 53,392 | $ 165,369 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 974,741 | $ 734,427 | $ 2,637,476 | $ 2,054,441 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 837,003 | 627,681 | 2,265,190 | 1,715,377 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 92,145 | 88,826 | 245,419 | 285,336 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45,593 | 17,920 | 126,867 | 53,728 |
Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 820,150 | 583,536 | 2,222,445 | 1,622,059 |
Reportable Segments | Investment Banking and Capital Markets | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 684,441 | 476,983 | 1,858,137 | 1,288,046 |
Reportable Segments | Investment Banking and Capital Markets | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 90,132 | 88,890 | 237,652 | 280,605 |
Reportable Segments | Investment Banking and Capital Markets | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45,577 | 17,663 | 126,656 | 53,408 |
Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,127 | 4,647 | 12,714 | 19,140 |
Reportable Segments | Asset Management | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,758 | 3,244 | 6,250 | 13,399 |
Reportable Segments | Asset Management | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,369 | 1,403 | 6,464 | 5,741 |
Reportable Segments | Asset Management | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 151,745 | 147,984 | 402,998 | 415,262 |
Reportable Segments | Merchant Banking | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 151,085 | 147,501 | 401,484 | 414,259 |
Reportable Segments | Merchant Banking | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 644 | 226 | 1,303 | 683 |
Reportable Segments | Merchant Banking | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 16 | 257 | 211 | 320 |
Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Reportable Segments | Corporate | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (281) | (1,740) | (681) | (2,020) |
Consolidation adjustments | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (281) | (47) | (681) | (327) |
Consolidation adjustments | Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | (1,693) | 0 | (1,693) |
Consolidation adjustments | Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 200,876 | 167,525 | 613,408 | 483,488 |
Equities | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 201,157 | 167,528 | 614,089 | 483,771 |
Equities | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Equities | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (281) | (3) | (681) | (283) |
Fixed Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,156 | 3,475 | 13,026 | 10,072 |
Fixed Income | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,156 | 3,475 | 13,026 | 10,072 |
Fixed Income | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Fixed Income | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Fixed Income | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Fixed Income | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Underwriting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 444,399 | 197,446 | 898,653 | 554,093 |
Investment Banking - Underwriting | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 444,399 | 199,183 | 898,653 | 555,830 |
Investment Banking - Underwriting | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Underwriting | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Underwriting | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Underwriting | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | (1,737) | 0 | (1,737) |
Investment Banking - Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 171,438 | 213,350 | 696,677 | 572,386 |
Investment Banking - Advisory | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 171,438 | 213,350 | 696,677 | 572,386 |
Investment Banking - Advisory | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Advisory | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Advisory | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Investment Banking - Advisory | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,127 | 4,647 | 12,714 | 19,140 |
Asset Management | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,127 | 4,647 | 12,714 | 19,140 |
Asset Management | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 119,751 | 82,565 | 282,737 | 248,227 |
Manufacturing revenues | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 119,751 | 82,565 | 282,737 | 248,227 |
Manufacturing revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Manufacturing revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 20,946 | 45,012 | 78,704 | 129,029 |
Oil and gas revenues | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 20,946 | 45,012 | 78,704 | 129,029 |
Oil and gas revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Oil and gas revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11,048 | 20,407 | 41,557 | 38,006 |
Other revenues | Reportable Segments | Investment Banking and Capital Markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | Reportable Segments | Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | Reportable Segments | Merchant Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11,048 | 20,407 | 41,557 | 38,006 |
Other revenues | Reportable Segments | Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other revenues | Consolidation adjustments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Revenue related to performance obligation satisfied | $ 15.6 | $ 9.6 | $ 10.8 | $ 27.2 | |
Revenue associated with distribution services, a portion of which related to prior period | 4.3 | 6 | 14.4 | 15.8 | |
Receivables related to revenue from contracts with customers | 321.4 | 321.4 | $ 263.7 | ||
Deferred revenue | 18.2 | 18.2 | 12.8 | ||
Deferred revenue, revenue recognized | 19.1 | 9.6 | 9.3 | 9.8 | |
Capitalized contract cost | 2.8 | 2.8 | $ 4.8 | ||
Expenses related to capitalized costs to fulfill a contract | $ 0.8 | $ 1.6 | $ 3.6 | $ 3.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | $ 374,100 | $ 374,100 | $ 327,300 | |||
Interest included in unrecognized tax benefits | 81,400 | 81,400 | 67,200 | |||
Net deferred tax asset | 312,600 | 312,600 | 462,500 | |||
Income tax provision (benefit) | 107,403 | $ (36,131) | $ 185,138 | $ (522,626) | ||
Effective income tax rate | 28.70% | |||||
Recognition of accumulated other comprehensive income lodged taxes | $ 544,600 | $ 0 | $ 544,583 | |||
Lodged tax effect | $ 544,600 | |||||
Jefferies Group | ||||||
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | $ 233,200 | $ 233,200 | $ 181,200 |
Common Share and Earnings Per_3
Common Share and Earnings Per Common Share (Earnings Per Share Computation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Numerator for earnings per share: | ||||
Net income attributable to Jefferies Financial Group Inc. common shareholders | $ 304,409 | $ 48,477 | $ 462,338 | $ 764,052 |
Allocation of earnings to participating securities | (1,945) | (316) | (2,921) | (4,667) |
Net income attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 302,464 | 48,161 | 459,417 | 759,385 |
Adjustment to allocation of earnings to participating securities related to diluted shares | 17 | (7) | 5 | 29 |
Mandatorily redeemable convertible preferred share dividends | 1,404 | 0 | 4,230 | 3,827 |
Net income attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 303,885 | $ 48,154 | $ 463,652 | $ 763,241 |
Denominator for earnings per share: | ||||
Weighted average common shares outstanding (in shares) | 263,062,000 | 296,834,000 | 273,035,000 | 298,322,000 |
Denominator for basic earnings per share – weighted average shares (in shares) | 280,695,000 | 310,288,000 | 289,959,000 | 310,838,000 |
Mandatorily redeemable convertible preferred shares (in shares) | 4,441,000 | 0 | 4,441,000 | 4,162,000 |
Denominator for diluted earnings per share (in shares) | 285,136,000 | 311,897,000 | 294,875,000 | 317,181,000 |
Weighted average shares of participating securities (in shares) | 1,807,800 | 2,018,000 | 1,851,900 | 1,910,700 |
Restricted stock with future service required | ||||
Denominator for earnings per share: | ||||
Weighted average shares of restricted stock outstanding with future service required (in shares) | (1,787,000) | (2,008,000) | (1,837,000) | (1,903,000) |
Restricted stock units with no future service required | ||||
Denominator for earnings per share: | ||||
Weighted average RSUs outstanding with no future service required (in shares) | 19,420,000 | 15,462,000 | 18,761,000 | 14,419,000 |
Stock options | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 0 | 0 | 0 | 0 |
Restricted stock units | Senior executive compensation plan awards | ||||
Denominator for earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 0 | 1,609,000 | 475,000 | 2,181,000 |
Common Share and Earnings Per_4
Common Share and Earnings Per Common Share (Narrative) (Details) - USD ($) | 9 Months Ended | ||||||
Aug. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Jul. 01, 2019 | Jan. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Share repurchase program, authorized amount | $ 250,000,000 | $ 100,000,000 | $ 250,000,000 | $ 500,000,000 | |||
Number of shares authorized to be repurchased (in shares) | 9,250,000 | ||||||
Increase in share repurchase authorization | $ 176,700,000 | ||||||
Stock repurchased during period (in shares) | 32,659,910 | ||||||
Stock repurchased during period | $ 619,900,000 | ||||||
Average repurchase price per share (in dollars per share) | $ 18.98 | ||||||
Remaining authorized repurchase amount | $ 122,000,000 | ||||||
Subsequent Event | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Share repurchase program, authorized amount | $ 250,000,000 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Commitments and Contingencies) (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Guarantor Obligations [Line Items] | |
2020 | $ 10,178.6 |
2021 | 694.3 |
2022 and 2023 | 113.3 |
2024 and 2025 | 16.2 |
2026 and Later | 12.2 |
Maximum Payout | $ 11,014.6 |
Guarantor obligation settled period | 3 days |
Equity commitments | |
Guarantor Obligations [Line Items] | |
2020 | $ 59.3 |
2021 | 161.9 |
2022 and 2023 | 78.3 |
2024 and 2025 | 11.1 |
2026 and Later | 12.2 |
Maximum Payout | 322.8 |
Loan commitments | |
Guarantor Obligations [Line Items] | |
2020 | 0 |
2021 | 296 |
2022 and 2023 | 35 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 331 |
Underwriting commitments | |
Guarantor Obligations [Line Items] | |
2020 | 64 |
2021 | 0 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 64 |
Forward starting reverse repos | |
Guarantor Obligations [Line Items] | |
2020 | 6,184.5 |
2021 | 0 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 6,184.5 |
Forward starting repos | |
Guarantor Obligations [Line Items] | |
2020 | 3,870.8 |
2021 | 100 |
2022 and 2023 | 0 |
2024 and 2025 | 0 |
2026 and Later | 0 |
Maximum Payout | 3,970.8 |
Other unfunded commitments | |
Guarantor Obligations [Line Items] | |
2020 | 0 |
2021 | 136.4 |
2022 and 2023 | 0 |
2024 and 2025 | 5.1 |
2026 and Later | 0 |
Maximum Payout | 141.5 |
Forward starting securities purchased under agreements to resell settled | |
Guarantor Obligations [Line Items] | |
Maximum Payout | 6,183.8 |
Forward starting securities sold under agreements to repurchase settled | |
Guarantor Obligations [Line Items] | |
Maximum Payout | $ 3,670.6 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees (Narrative) (Details) | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | $ 80,000,000 |
Fair value of derivative contracts meeting the definition of a guarantee | 197,900,000 |
Standby letters of credit | |
Loss Contingencies [Line Items] | |
Letters of credit | $ 22,000,000 |
Expiration period maximum | 1 year |
Jefferies Finance | |
Loss Contingencies [Line Items] | |
Line of credit commitment to associated companies, funded portion | $ 0 |
Line of credit facility commitment of Jefferies | 250,000,000 |
Berkadia | |
Loss Contingencies [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 |
HomeFed | |
Loss Contingencies [Line Items] | |
Aggregate amount of infrastructure improvement bonds outstanding | 67,600,000 |
Jefferies Capital Partners LLC and its private equity funds | |
Loss Contingencies [Line Items] | |
Equity commitments | 11,200,000 |
Other Investments | |
Loss Contingencies [Line Items] | |
Equity commitments | $ 214,000,000 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees (Guarantees) (Details) - Derivative Notional Amount $ in Millions | Aug. 31, 2020USD ($) |
Derivative contracts – non-credit related | |
Guarantor Obligations [Line Items] | |
2020 | $ 6,295.6 |
2021 | 4,149.9 |
2022 and 2023 | 6,458.1 |
2024 and 2025 | 1,345.6 |
2026 and Later | 52 |
Notional/ Maximum Payout | 18,301.2 |
Written derivative contracts – credit related | |
Guarantor Obligations [Line Items] | |
2020 | 0 |
2021 | 0 |
2022 and 2023 | 1 |
2024 and 2025 | 5.4 |
2026 and Later | 0 |
Notional/ Maximum Payout | 6.4 |
Total derivative contracts | |
Guarantor Obligations [Line Items] | |
2020 | 6,295.6 |
2021 | 4,149.9 |
2022 and 2023 | 6,459.1 |
2024 and 2025 | 1,351 |
2026 and Later | 52 |
Notional/ Maximum Payout | $ 18,307.6 |
Net Capital Requirements (Detai
Net Capital Requirements (Details) - Jefferies LLC $ in Millions | Aug. 31, 2020USD ($) |
Net Capital Requirements [Line Items] | |
Net capital | $ 1,612.5 |
Excess net capital | $ 1,531.9 |
Other Fair Value Information (D
Other Fair Value Information (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Nov. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term borrowings | $ 805,381 | $ 548,490 |
Long-term debt | 8,419,837 | 8,337,061 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 768,290 | 775,501 |
Short-term borrowings | 783,552 | 548,490 |
Long-term debt | 6,897,732 | 7,121,776 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes and loans receivable | 783,476 | 784,053 |
Short-term borrowings | 783,552 | 548,490 |
Long-term debt | $ 7,525,896 | $ 7,569,837 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Private Equity Related Funds | |||||
Related Party Transaction [Line Items] | |||||
Loans to and/or equity investments in related funds | $ 23 | $ 18.6 | $ 18.6 | ||
JCP Fund V | |||||
Related Party Transaction [Line Items] | |||||
Net gains (losses) from private equity related funds | 2 | $ (2.5) | (3.5) | $ (1.9) | |
Officers and Employees | |||||
Related Party Transaction [Line Items] | |||||
Loans outstanding to related party | 44.8 | 40.8 | 40.8 | ||
Berkadia | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
Purchase commitment | 360.4 | 325.6 | 325.6 | ||
Jefferies Finance | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Purchases of loan receivables | 65.3 | ||||
Payables, expense accruals and other liabilities | FXCM | Affiliated Entity | Jefferies Group | |||||
Related Party Transaction [Line Items] | |||||
OTC foreign exchange contracts | $ 9.9 | $ 2.7 | $ 2.7 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | ||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 1,616,170 | $ 856,778 | $ 4,150,087 | $ 2,786,878 | ||
Income (loss) before income taxes | 412,242 | 13,263 | 645,543 | 246,059 | ||
Depreciation and amortization expenses | 39,520 | 39,880 | 119,356 | 110,600 | ||
Assets | [1] | 51,773,988 | 51,773,988 | $ 49,460,234 | ||
Parent Company interest | ||||||
Segment Reporting Information [Line Items] | ||||||
Income (loss) before income taxes | (14,114) | (14,770) | (39,773) | (44,298) | ||
Reportable Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 1,614,151 | 860,424 | 4,142,570 | 2,784,291 | ||
Income (loss) before income taxes | 424,056 | 31,631 | 677,118 | 287,433 | ||
Assets | 52,233,140 | 52,233,140 | 49,554,729 | |||
Reportable Segments | Investment Banking and Capital Markets | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 1,274,115 | 757,362 | 3,451,776 | 2,274,884 | ||
Income (loss) before income taxes | 281,323 | 86,194 | 745,814 | 283,892 | ||
Depreciation and amortization expenses | 22,225 | 20,754 | 61,322 | 56,672 | ||
Assets | 43,887,885 | 43,887,885 | 40,523,223 | |||
Reportable Segments | Asset Management | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 118,558 | 20,341 | 146,278 | 95,448 | ||
Income (loss) before income taxes | 87,604 | (7,403) | 25,122 | 2,011 | ||
Depreciation and amortization expenses | 2,018 | 512 | 4,776 | 1,472 | ||
Assets | 3,192,277 | 3,192,277 | 3,313,716 | |||
Reportable Segments | Merchant Banking | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 220,887 | 73,754 | 532,608 | 391,825 | ||
Income (loss) before income taxes | 70,747 | (35,381) | (57,592) | 48,537 | ||
Depreciation and amortization expenses | 14,408 | 17,784 | 50,627 | 49,904 | ||
Assets | 3,225,735 | 3,225,735 | 3,285,671 | |||
Reportable Segments | Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 591 | 8,967 | 11,908 | 22,134 | ||
Income (loss) before income taxes | (15,618) | (11,779) | (36,226) | (47,007) | ||
Depreciation and amortization expenses | 869 | 830 | 2,631 | 2,552 | ||
Assets | 1,927,243 | 1,927,243 | 2,432,119 | |||
Consolidation adjustments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 2,019 | (3,646) | 7,517 | 2,587 | ||
Income (loss) before income taxes | 2,300 | $ (3,598) | 8,198 | $ 2,924 | ||
Assets | $ (459,152) | $ (459,152) | $ (94,495) | |||
[1] | Total assets include assets related to variable interest entities of $637.5 million and $645.8 million at August 31, 2020 and November 30, 2019, respectively, and Total liabilities include liabilities related to variable interest entities of $3,377.3 million and $3,071.1 million at August 31, 2020 and November 30, 2019, respectively. See Note 7 for additional information related to variable interest entities. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Interest expense | $ 21,512 | $ 23,663 | $ 64,226 | $ 69,819 |
Reportable Segments | Merchant Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | 7,400 | 8,900 | 24,500 | 25,500 |
Parent Company interest | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | $ 14,100 | $ 14,800 | $ 39,800 | $ 44,300 |