Cover
Cover - USD ($) | 12 Months Ended | ||
Nov. 30, 2022 | Jan. 19, 2023 | May 31, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Nov. 30, 2022 | ||
Current Fiscal Year End Date | --11-30 | ||
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 | -2300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,658,740,985 | ||
Entity Common Stock, Shares Outstanding | 226,162,081 | ||
Entity Central Index Key | 0000096223 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Shares, par value $1 per share | ||
Trading Symbol | JEF | ||
Security Exchange Name | NYSE | ||
4.850% Senior Notes | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.850% Senior Notes Due 2027 | ||
Trading Symbol | JEF 27A | ||
Security Exchange Name | NYSE | ||
2.750% Senior Notes | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.750% Senior Notes Due 2032 | ||
Trading Symbol | JEF 32A | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Nov. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 34 |
Cover_2
Cover | 12 Months Ended |
Nov. 30, 2022 | |
Cover [Abstract] | |
Documents Incorporated by Reference [Text Block] | Certain portions of the registrant's Definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934 in connection with the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 9,703,109 | $ 10,755,133 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 957,302 | 1,015,107 | |
Financial instruments owned, at fair value (includes securities pledged of $14,099,136 and $12,723,502 at November 30, 2022 and 2021, respectively) | 18,666,296 | 18,024,621 | |
Investments in and loans to related parties | 1,426,817 | 1,587,409 | |
Securities borrowed | 5,831,148 | 6,409,420 | |
Securities purchased under agreements to resell | 4,546,691 | 7,642,484 | |
Securities received as collateral | 100,362 | 7,289 | |
Receivables: | |||
Brokers, dealers and clearing organizations | 1,792,937 | 2,454,918 | |
Customers | 1,225,137 | 1,615,822 | |
Fees, interest and other | 568,921 | 582,756 | |
Premises and equipment | 906,864 | 911,230 | |
Goodwill | 1,736,114 | 1,745,098 | |
Other Assets | 3,595,985 | 3,356,024 | |
Total assets | 51,057,683 | 56,107,311 | |
LIABILITIES AND EQUITY | |||
Short-term borrowings | 528,392 | 221,863 | |
Financial instruments sold, not yet purchased, at fair value | 11,056,477 | 9,267,090 | |
Securities loaned | 1,366,025 | 1,525,721 | |
Securities sold under agreements to repurchase | 7,452,342 | 8,446,099 | |
Other secured financings (includes $1,712 and $102,788 at fair value at November 30, 2022 and 2021, respectively) | 2,037,843 | 4,487,224 | |
Obligation to return securities received as collateral, at fair value | 100,362 | 7,289 | |
Payables: | |||
Brokers, dealers and clearing organizations | 2,628,727 | 3,952,093 | |
Customers | 3,578,854 | 4,461,481 | |
Lease liabilities | 533,708 | 548,295 | |
Accrued expenses and other liabilities | 2,573,927 | 3,334,371 | |
Long-term debt (includes $1,583,828 and $1,843,598 at fair value at November 30, 2022 and 2021, respectively) | 8,774,086 | 9,125,745 | |
Total liabilities | 40,630,743 | 45,377,271 | |
MEZZANINE EQUITY | |||
Redeemable noncontrolling interests | 6,461 | 25,400 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 226,129,626 and 243,541,431 shares issued and outstanding, after deducting 90,334,082 and 72,922,277 shares held in treasury | 226,130 | 243,541 | |
Additional paid-in capital | 1,967,781 | 2,742,244 | |
Accumulated other comprehensive loss | (379,419) | (372,143) | |
Retained earnings | 8,418,354 | 7,940,113 | |
Total Jefferies Financial Group Inc. common shareholders’ equity | 10,232,846 | 10,553,755 | |
Noncontrolling interests | 62,633 | 25,885 | |
Total equity | 10,295,479 | 10,579,640 | |
Total liabilities and equity | $ 51,057,683 | $ 56,107,311 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Financial instruments owned | $ 18,666,296 | $ 18,024,621 | [1] |
Other assets | 3,595,985 | 3,356,024 | [1] |
LIABILITIES AND EQUITY | |||
Long term debt, at fair value | $ 1,583,828 | $ 1,843,598 | |
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 after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 | |
Common shares, outstanding after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 | |
Treasury stock, shares (in shares) | 90,334,082 | 72,922,277 | |
Variable interest entities | |||
Other secured financings | $ 1,712 | $ 102,788 | |
Other assets | 1,032,353 | 990,389 | |
Asset Pledged as Collateral | |||
Financial instruments owned | $ 14,099,136 | $ 12,723,502 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | [1] | Nov. 30, 2020 | [1] | |
Revenues | |||||
Revenues | $ 7,149,263 | $ 8,945,464 | $ 6,880,447 | ||
Interest expense | 1,170,425 | 931,638 | 1,029,926 | ||
Net revenues | 5,978,838 | 8,013,826 | 5,850,521 | ||
Non-interest expenses | |||||
Compensation and benefits | 2,589,044 | 3,554,760 | 2,944,071 | ||
Floor brokerage and clearing fees | 347,805 | 301,860 | 266,592 | ||
Underwriting costs | 42,067 | 117,572 | 95,636 | ||
Technology and communications | 444,011 | 388,134 | 335,065 | ||
Occupancy and equipment rental | 108,001 | 106,254 | 95,754 | ||
Business development | 150,500 | 109,772 | 70,797 | ||
Professional services | 240,978 | 215,761 | 176,280 | ||
Depreciation and amortization | 172,902 | 157,420 | 158,439 | ||
Cost of sales | 440,837 | 470,870 | 338,588 | ||
Other expenses | 387,131 | 337,318 | 302,216 | ||
Total non-interest expenses | 4,923,276 | 5,759,721 | 4,783,438 | ||
Earnings before income taxes | 1,055,562 | 2,254,105 | 1,067,083 | ||
Income tax expense | 273,852 | 576,729 | 298,673 | ||
Net earnings | 781,710 | 1,677,376 | 768,410 | ||
Net earnings (loss) attributable to noncontrolling interests | (2,397) | 3,850 | (5,271) | ||
Net loss attributable to redeemable noncontrolling interests | (1,342) | (826) | (1,558) | ||
Preferred stock dividends | 8,281 | 6,949 | 5,634 | ||
Net earnings attributable to Jefferies Financial Group Inc. | $ 777,168 | $ 1,667,403 | $ 769,605 | ||
Basic earnings per common share (in USD per share) | $ 3.13 | $ 6.29 | $ 2.68 | ||
Diluted earnings per common share (in USD per share) | $ 3.06 | $ 6.13 | $ 2.65 | ||
Investment banking | |||||
Revenues | |||||
Revenues | $ 2,807,822 | $ 4,365,699 | $ 2,501,494 | ||
Principal transactions | |||||
Revenues | |||||
Revenues | 833,757 | 1,617,336 | 1,928,143 | ||
Commissions and other fees | |||||
Revenues | |||||
Revenues | 925,494 | 896,015 | 822,248 | ||
Asset management fees | |||||
Revenues | |||||
Revenues | 80,264 | 72,084 | 34,209 | ||
Interest | |||||
Revenues | |||||
Revenues | 1,183,638 | 956,318 | 1,009,548 | ||
Other contracts with customers | |||||
Revenues | |||||
Revenues | $ 1,318,288 | $ 1,038,012 | $ 584,805 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||||
Statement of Comprehensive Income [Abstract] | ||||||
Net earnings | $ 781,710 | $ 1,677,376 | [1] | $ 768,410 | [1] | |
Other comprehensive loss, net of tax: | ||||||
Currency translation and other adjustments | [2] | (53,572) | (9,781) | 35,991 | ||
Change in fair value of instrument specific credit risk | [3] | 49,146 | (82,521) | (52,262) | ||
Minimum pension liability adjustments | [4] | 3,311 | 9,320 | 21 | ||
Unrealized gain (loss) on available-for-sale securities | (6,161) | (244) | 372 | |||
Total other comprehensive loss, net of tax | [5] | (7,276) | (83,226) | (15,878) | ||
Comprehensive income | 774,434 | 1,594,150 | 752,532 | |||
Net earnings (loss) attributable to noncontrolling interests | (2,397) | 3,850 | (5,271) | |||
Net loss attributable to redeemable noncontrolling interests | (1,342) | (826) | (1,558) | |||
Preferred stock dividends | 8,281 | 6,949 | [1] | 5,634 | [1] | |
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 769,892 | $ 1,584,177 | $ 753,727 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group.[2]The amounts include income tax benefits (expenses) of approximately $15.6 million, $0.6 million and $(11.4) million during the years ended November 30, 2022, 2021 and 2020, respectively.[3]The amounts include income tax benefits (expenses) of approximately $(15.6) million, $26.7 million and $16.4 million for the years ended November 30, 2022, 2021 and 2020, respectively. The amounts for the years ended November 30, 2022, 2021 and 2020 include net gains (losses) of $0.1 million, $(1.9) million and $(0.4) million, respectively, net of tax benefits (expenses) of $41 thousand, $0.6 million and $0.1 million, respectively, for fair value changes related to instrument specific risk, which were reclassified to Principal transactions revenues within the Consolidated Statements of Earnings.[4]The amounts include income tax benefits (expense) of $(1.2) million, $(3.1) million and $13 thousand for the years ended November 30, 2022, 2021 and 2020, respectively. The amounts during the years ended November 30, 2022, 2021 and 2020, include pension net losses of $2.5 million, $3.1 million and $2.9 million, respectively, net of tax benefits of $0.8 million, $1.1 million and $1.0 million, respectively, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings.[5]None of the components of other comprehensive income (loss) are attributable to noncontrolling interests, redeemable noncontrolling interest or preferred stock dividends. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Currency translation adjustments and other, tax benefits (expenses) | $ 15,600 | $ 600 | $ (11,400) |
Changes in instrument specific credit risk, tax benefits (expenses) | (15,600) | 26,700 | 16,400 |
Minimum pension liability adjustments, tax benefits (expenses) | (1,200) | (3,100) | 13 |
Pension losses reclassification amount | 2,500 | 3,100 | 2,900 |
Pension losses reclassification amount, tax | (800) | (1,100) | (1,000) |
Changes in instrument specific credit risk | |||
Changes in instrument specific credit risk reclassified to principal transactions revenues | 100 | (1,900) | (400) |
Changes in instrument specific credit risk reclassified to principal transactions revenues, tax | $ 41 | $ 600 | $ 100 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss, net of tax | Retained earnings | Retained earnings Adjustment for change in accounting principle for current expected credit losses | Total Jefferies Financial Group Inc. common shareholders’ equity | Noncontrolling interests | |
Balance, beginning of period at Nov. 30, 2019 | $ 291,644 | $ 3,627,711 | $ (273,039) | $ 5,933,389 | $ 21,979 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Share-based compensation expense | 40,038 | ||||||||
Change in fair value of redeemable noncontrolling interests | 3,056 | ||||||||
Purchase of common shares for treasury | (42,263) | (773,393) | |||||||
Other | 370 | 13,811 | 1 | ||||||
Other comprehensive loss, net of taxes: | $ (15,878) | [1] | (15,878) | ||||||
Net earnings attributable to Jefferies Financial Group Inc. | 769,605 | [2] | 769,605 | ||||||
Dividends ($1.20, $0.90, and $0.60 per common share, respectively) | (171,158) | ||||||||
Net earnings (loss) | 768,410 | [2] | (5,271) | ||||||
Contributions | 19,617 | ||||||||
Distributions | (1,694) | ||||||||
Deconsolidation of asset management entity | 0 | ||||||||
Balance, end of period at Nov. 30, 2020 | 9,438,525 | 249,751 | 2,911,223 | (288,917) | 6,531,836 | $ (19,915) | $ 9,403,893 | 34,632 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Share-based compensation expense | 78,160 | ||||||||
Change in fair value of redeemable noncontrolling interests | (6,216) | ||||||||
Purchase of common shares for treasury | (8,643) | (260,757) | |||||||
Other | 2,433 | 19,834 | (659) | ||||||
Other comprehensive loss, net of taxes: | (83,226) | [1] | (83,226) | ||||||
Net earnings attributable to Jefferies Financial Group Inc. | 1,667,403 | [2] | 1,667,403 | ||||||
Dividends ($1.20, $0.90, and $0.60 per common share, respectively) | (239,211) | ||||||||
Net earnings (loss) | 1,677,376 | [2] | 3,850 | ||||||
Contributions | 4,325 | ||||||||
Distributions | (16,263) | ||||||||
Deconsolidation of asset management entity | 0 | ||||||||
Balance, end of period at Nov. 30, 2021 | 10,579,640 | [2] | 243,541 | 2,742,244 | (372,143) | 7,940,113 | 10,553,755 | 25,885 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Share-based compensation expense | 43,919 | ||||||||
Change in fair value of redeemable noncontrolling interests | (1,147) | ||||||||
Purchase of common shares for treasury | (25,595) | (833,998) | |||||||
Other | 8,184 | 16,763 | 1 | ||||||
Other comprehensive loss, net of taxes: | (7,276) | [1] | (7,276) | ||||||
Net earnings attributable to Jefferies Financial Group Inc. | 777,168 | 777,168 | |||||||
Dividends ($1.20, $0.90, and $0.60 per common share, respectively) | (298,927) | ||||||||
Net earnings (loss) | 781,710 | (2,397) | |||||||
Contributions | 64,880 | ||||||||
Distributions | (2,629) | ||||||||
Deconsolidation of asset management entity | (23,107) | ||||||||
Balance, end of period at Nov. 30, 2022 | $ 10,295,479 | $ 226,130 | $ 1,967,781 | $ (379,419) | $ 8,418,354 | $ 10,232,846 | $ 62,633 | ||
[1]None of the components of other comprehensive income (loss) are attributable to noncontrolling interests, redeemable noncontrolling interest or preferred stock dividends.[2]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Cash flows from operating activities: | |||||
Net earnings | $ 781,710 | $ 1,677,376 | [1] | $ 768,410 | [1] |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Depreciation and amortization | 189,343 | 144,255 | 136,475 | ||
Deferred income taxes | (70,396) | 96,890 | 64,667 | ||
Share-based compensation | 43,919 | 78,160 | 40,038 | ||
Bad debt expense, net of reversals | 46,846 | 55,876 | 48,157 | ||
(Income) loss on investments in and loans to related parties | 36,287 | (149,885) | 75,177 | ||
Distributions received on investments in related parties | 82,161 | 110,963 | 63,134 | ||
Gain on sale of subsidiaries and investments in related parties | (319,041) | 0 | 0 | ||
Other adjustments | (601,303) | (89,004) | 320,611 | ||
Net change in assets and liabilities: | |||||
Securities deposited with clearing and depository organizations | 0 | 34,237 | 751 | ||
Receivables: | |||||
Brokers, dealers and clearing organizations | 631,672 | (136,614) | (666,491) | ||
Customers | 384,097 | (329,026) | 185,266 | ||
Fees, interest and other | 200,672 | (28,340) | (153,463) | ||
Securities borrowed | 548,567 | 520,455 | 714,664 | ||
Financial instruments owned | (773,523) | (1,314,603) | (877,088) | ||
Securities purchased under agreements to resell | 3,047,353 | (2,552,607) | (752,171) | ||
Other assets | (230,722) | (225,916) | 167,889 | ||
Payables: | |||||
Brokers, dealers and clearing organizations | (1,288,912) | 2,173,266 | 294,397 | ||
Customers | (882,576) | 210,055 | 442,913 | ||
Securities loaned | (139,557) | (282,403) | 270,261 | ||
Financial instruments sold, not yet purchased | 1,875,957 | 992,199 | (1,014,535) | ||
Securities sold under agreements to repurchase | (952,584) | 133,423 | 799,794 | ||
Lease liabilities | (89,689) | (64,377) | (52,553) | ||
Accrued expenses and other liabilities | (715,432) | 527,910 | 1,179,136 | ||
Net cash provided by operating activities | 1,804,849 | 1,582,290 | 2,055,439 | ||
Cash flows from investing activities: | |||||
Contributions to investments in and loans to related parties | (351,645) | (2,339,447) | (1,666,323) | ||
Capital distributions from investments and repayments of loans from related parties | 286,578 | 2,310,186 | 1,552,161 | ||
Originations and purchases of automobile loans, notes and other receivables | (527,929) | (611,486) | (813,867) | ||
Principal collections of automobile loans, notes and other receivables | 434,487 | 394,387 | 686,114 | ||
Net payments on premises and equipment, and other assets | (224,301) | (165,605) | (176,958) | ||
Deconsolidation of asset management entity | (23,107) | 0 | 0 | ||
Proceeds from sales and maturities of investments and loan receivables | 3,588 | 3,274 | 69,321 | ||
Proceeds from sales of subsidiaries and investments in related parties, net of expenses and cash of operations sold | 333,149 | 0 | 179,654 | ||
Other | 8,641 | (1,174) | 4,215 | ||
Net cash used in investing activities | (60,539) | (409,865) | (165,683) | ||
Cash flows from financing activities: | |||||
Proceeds from short-term borrowings | 3,659,098 | 1,005,000 | 1,619,820 | ||
Payments on short-term borrowings | (3,338,000) | (1,556,090) | (1,368,255) | ||
Proceeds from issuance of long-term debt, net of issuance costs | 1,198,565 | 2,488,493 | 1,516,693 | ||
Repayment of long-term debt | (824,894) | (1,646,224) | (1,716,276) | ||
Net proceeds from (payments on) other secured financings | (2,448,731) | 1,197,231 | 218,010 | ||
Net change in bank overdrafts | (14,569) | 8,216 | (34,663) | ||
Proceeds from contributions of noncontrolling interests | 64,880 | 4,325 | 19,617 | ||
Payments on distributions to noncontrolling interests | (2,629) | (16,263) | (1,694) | ||
Purchase of common shares for treasury | (859,593) | (269,400) | (816,871) | ||
Dividends paid | (280,104) | (222,798) | (160,940) | ||
Other | 2,752 | 1,804 | 1,034 | ||
Net cash provided by (used in) financing activities | (2,843,225) | 994,294 | (723,525) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (22,143) | (3,387) | 18,306 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,121,060) | 2,163,332 | 1,184,537 | ||
Cash, cash equivalents and restricted cash at beginning of period | 11,828,304 | 9,664,972 | 8,480,435 | ||
Cash, cash equivalents and restricted cash at end of period | 10,707,244 | 11,828,304 | 9,664,972 | ||
Cash paid during the period for: | |||||
Interest | 1,164,093 | 936,272 | 1,080,368 | ||
Income taxes, net | 214,066 | $ 727,126 | $ 25 | ||
Transfer from investments | $ 215,900 | ||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents | $ 9,703,109 | $ 10,755,133 | [1] |
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 957,302 | 1,015,107 | |
Other assets | 46,833 | 58,064 | |
Total cash, cash equivalents and restricted cash | $ 10,707,244 | $ 11,828,304 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in dollars per share) | $ 0.30 | $ 1.20 | $ 0.90 | $ 0.60 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Jefferies Financial Group Inc. is a U.S.-headquartered global full service, integrated investment banking and securities firm. The accompanying Consolidated Financial Statements represent the accounts of Jefferies Financial Group Inc. and subsidiaries (together “we” or “us”). We, collectively with our consolidated subsidiaries and through our affiliates, deliver a broad range of financial services across investment banking, capital markets and asset management. We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange capital markets activities and our investment banking business, which provides underwriting and financial advisory services to our clients across most industry sectors. We operate globally in the Americas; Europe and the Middle East; and Asia. Investment Banking and Capital Markets also includes our corporate lending joint venture (“JFIN Parent LLC” or “Jefferies Finance”), our commercial real estate joint venture (“Berkadia Commercial Holding LLC” or “Berkadia”) and our automobile lending and servicing activities. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by us or our affiliated asset managers. Jefferies Group LLC (“Jefferies Group”), our investment banking and securities firm, was historically operated as a separate consolidated subsidiary and was a separate Securities and Exchange Commission (“SEC”) reporting company, filing annual, quarterly and periodic financial reports. On November 1, 2022, Jefferies Group was wholly merged into Jefferies Financial Group Inc., which has eliminated the requirement for separate SEC report filings. In addition, we have historically owned a portfolio of investments that have been reflected in our consolidated financial statements as consolidated subsidiaries, equity investments, securities or in other ways that constituted our “merchant banking” business, which were reported as part of our Merchant Banking reportable segment. During the year ended November 30, 2022 and in connection with the merger, we transferred significantly all of our Merchant Banking investments into our Asset Management reportable segment. Certain other publicly traded equity investments related to investment banking relationships were transferred from our Merchant Banking reportable segment to our Investment Banking and Capital Markets reportable segment. These investments are now managed by the respective segment managers. Additionally, activities that were presented as part of the Corporate reportable segment are now fully allocated to either the Investment Banking and Capital Markets or Asset Management reportable segments. Prior year amounts have been revised to conform to the current segment reporting. For further information on our reportable business segments, refer to Note 24, Segment Reporting. During the year ended November 30, 2022, we sold all of our interests in Idaho Timber and sold our interests in the Oak Hill investment management company, registered investment adviser and general partner entity and recognized a gain on sale of $138.7 million and $175.1 million, respectively. These gains are presented within Other revenues in the Consolidated Statements of Earnings and included within our Asset Management reportable business segment. Reclassifications to Consolidated Financial Statements We have made certain reclassifications within our Consolidated Statements of Financial Condition and Consolidated Statements of Earnings in connection with the merger of Jefferies Group into Jefferies Financial Group Inc. This streamlines our financial statements and better aligns the presentation of our firm with our strategy of building our investment banking and capital markets and asset management businesses and reducing our legacy merchant banking portfolio. The reclassifications including, but not limited to, the presentation of equity method investments and any related equity method earnings, loans receivable, intangible assets and interest expense within the financial statements, conform to the presentation utilized in the historical Jefferies Group LLC consolidated financial statements prior to the merger. Additionally, the presentation of receivables, payables, asset management fees and revenues and selling, general and other expenses has been disaggregated to provide additional financial statement line item categories on the face of the Consolidated Statements of Financial Condition and the Consolidated Statements of Earnings. These reclassifications have no effect on our consolidated net earnings, comprehensive income, total assets, total liabilities or total equity. These reclassifications have no effect on the net change in cash, cash equivalents and restricted cash. Historical periods have been recast to conform to these reclassifications. Changes to Consolidated Financial Statements for Change in Accounting Policy As of November 30, 2022, we have changed the accounting for our secondary trading activity related to the purchases and sales of corporate loans. Historically, we have accounted for purchases and sales of corporate loans in the secondary market on trade date. Purchases of loans in the secondary market were recognized on trade date within Financial instruments owned for the total amount of the loans and a corresponding liability was recognized within Payables - brokers, dealers and clearing organizations. Sales of loans in the secondary market were recognized on trade date within Financial instruments sold, not yet purchased for the total amount of the loans and a corresponding asset was recognized within Receivables - brokers, dealers and clearing organizations on the Consolidated Statements of Financial Condition for the amount of cash to be paid or received upon settlement. We have determined that it is preferable to recognize this trading activity on a settlement date basis. A firm commitment to purchase and/or sell loans on the date of trade execution due to the extended settlement period for this trading activity is recognized and results in recognizing the changes in fair value related to the underlying purchased loans or sold loans. We have elected the fair value option for the firm commitment to purchase or sell loans and account for changes in the fair value of the firm commitment within Principal transactions revenues between the trade date and settlement date on the Consolidated Statement of Earnings and within Financial Instruments owned, or Financial Instruments sold on the Consolidated Statement of Financial Condition. This change in accounting policy resulted in a reduction of Financial instruments owned of $2.1 billion, Financial instruments sold, not yet purchased of $2.8 billion, Payables - Brokers of $2.4 billion and Receivables - Brokers of $3.1 billion on the Consolidated Statement of Financial Condition at November 30, 2022. There was no impact to net earnings or total equity as a result of this change in accounting policy. The following table sets forth our Consolidated Statement of Financial Condition as of November 30, 2021 as originally reported and as revised and presented within these consolidated financial statements as a result of the reclassifications and change in accounting policy. Balance at As Originally Reported Increases/Decreases Increases/Decreases due to change in accounting policy As Revised Assets: Financial instruments owned $ 19,828,670 $ 50,964 $ (1,855,013) $ 18,024,621 Investments in and loans to related parties 1,745,790 (158,381) — 1,587,409 Receivables (1) 7,839,240 (7,839,240) — — Receivables - Brokers, dealers and clearing organizations — 4,896,704 (2,441,786) 2,454,918 Receivables - Customers — 1,615,822 — 1,615,822 Receivables - Fees, interest and other — 582,756 — 582,756 Intangible assets, net and goodwill 1,897,500 (1,897,500) — — Goodwill — 1,745,098 — 1,745,098 Other assets (1) 2,352,247 1,003,777 — 3,356,024 Total assets 60,404,110 — (4,296,799) 56,107,311 Liabilities: Financial instruments sold, not yet purchased $ 11,699,467 $ — $ (2,432,377) $ 9,267,090 Payables, expense accruals and other liabilities 13,612,367 (13,612,367) — — Payables - Brokers, dealers and clearing organizations — 5,816,515 (1,864,422) 3,952,093 Payables - Customers — 4,461,481 — 4,461,481 Accrued expenses and other liabilities — 3,334,371 — 3,334,371 Total liabilities 49,674,070 — (4,296,799) 45,377,271 (1) Automobile loans of $745.3 million historically presented within Receivables have been reclassified to Other assets on the Consolidated Statement of Financial Condition. The following table sets forth our Consolidated Statements of Earnings for the years ended November 30, 2021 and 2020 as originally reported and as revised and presented within these consolidated financial statements as a result of the reclassifications. Year Ended Year Ended As Originally Reported Increases/Decreases As Revised As Originally Reported Increases/Decreases As Revised Principal transactions $ 1,623,713 $ (6,377) $ 1,617,336 $ 1,916,508 $ 11,635 $ 1,928,143 Asset management fees and revenues — 72,084 72,084 — 34,209 34,209 Interest 943,336 12,982 956,318 997,555 11,993 1,009,548 Other 1,211,120 (173,108) 1,038,012 718,125 (133,320) 584,805 Total revenues 9,039,883 (94,419) 8,945,464 6,955,930 (75,483) 6,880,447 Interest expense 854,554 77,084 931,638 945,056 84,870 1,029,926 Net revenues 8,185,329 (171,503) 8,013,826 6,010,874 (160,353) 5,850,521 Compensation and benefits 3,551,124 3,636 3,554,760 2,940,863 3,208 2,944,071 Interest expense 77,084 (77,084) — 84,870 (84,870) — Selling, general and other expenses 1,278,447 (1,278,447) — 1,078,956 (1,078,956) — Underwriting costs — 117,572 117,572 — 95,636 95,636 Technology and communications — 388,134 388,134 — 335,065 335,065 Occupancy and equipment rental — 106,254 106,254 — 95,754 95,754 Business development — 109,772 109,772 — 70,797 70,797 Professional services — 215,761 215,761 — 176,280 176,280 Other expenses — 337,318 337,318 — 302,216 302,216 Total expenses 5,836,805 (77,084) 5,759,721 4,868,308 (84,870) 4,783,438 Income (loss) related to associated companies (94,419) 94,419 — (75,483) 75,483 — Conforming changes consistent with these reclassifications have been made to our Consolidated Statements of Cash Flows and to Note 4, Fair Value Disclosures, Note 5, Derivative Financial Instruments, Note 9, Investments, Note 10, Credit Losses on Financial Instruments Measured at Amortized Cost and Note 24, Segment Reporting within our consolidated financial statements for the years ended November 30, 2021 and 2020. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and the accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly-owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings (loss) attributable to noncontrolling interests in our Consolidated Statements of Earnings. In situations in which we have significant influence, but not control, of an entity that does not qualify as a VIE, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP, with our portion of net earnings or gains and losses recorded in Other revenues or Principal transactions revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third-parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased are carried at fair value with gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking . Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis within Underwriting costs in the Consolidated Statements of Earnings. Asset Management Fees and Revenues. Asset management fees and revenues consist of asset management fees, as well as revenues from third-parties with strategic relationships pursuant to arrangements, which entitle us to portions of our revenues and/or affiliated managers’ profits and perpetual rights to certain defined revenues for a given revenue share period. Revenue from third-parties with strategic relationships pursuant to arrangements is recognized at the end of the defined revenue or profit share period when the revenues have been realized and all contingencies have been resolved. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings at amortized cost, except for those for which we have elected the fair value option, with related interest recorded on an accrual basis as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. We recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis. In addition, we recognize interest income as earned on brokerage customer margin balances and interest expense as incurred on credit balances. Other Revenues. Other revenues include revenue from the sale of manufactured or remanufactured lumber for which the transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. Other revenues also include revenue from the sale of produced oil and gas and revenue from the sale of real estate. Contracts for revenue from the sale of produced oil and gas typically include variable consideration based on monthly pricing tied to local indices and volumes and revenue is recorded at the point in time when control of the produced oil and gas transfers to the customer, which is when the performance obligation is satisfied and the variable consideration can be reliably estimated at the end of each month. Revenues from the sales of real estate are recognized at a point in time when the related transaction is complete. If performance obligations under the contract with a customer related to a parcel of real estate are not yet complete when title transfers to the buyer, revenue associated with the incomplete performance obligations is deferred until the performance obligation is completed. Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day-to-day activities. Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and financial instruments that are fair valued by reference to other similar financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management’s judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized within Level 3. Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. In instances where the Company receives securities as collateral in connection with securities-for-securities transactions in the which the Company is the lender of securities and is permitted to sell or repledge the securities received as collateral, the Company reports the fair value of the collateral received and the related obligation to return the collateral in the Company’s Consolidated Statement of Financial Condition. Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third-party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. Refer to Note 5, Derivative Financial Instruments, and Note 6, Collateralized Transactions, for further information. Securitization Activities We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Transfers of financial assets to secured funding vehicles are accounted for as sales when we have relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. We may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Financial instruments owned within our Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. When a transfer of assets does not meet the criteria of a sale, we account for the transfer as a secured borrowing and continue to recognize the assets of a secured borrowing in Financial instruments owned and recognize the associated financing in Other secured financings in our Consolidated Statements of Financial Condition. Investments in and Loans to Related Parties Investments in and loans to related parties include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Investments in and loans to related parties are accounted for using the equity method or at cost, as appropriate, and reviewed for impairment when changes in circumstances may indicate a decrease in value which is other than temporary. Revenues on Investments in and loans related parties are included in Other revenues in our Consolidated Statements of Earnings. See Note 9, Investments, and Note 25, Related Party Transactions, for additional information regarding certain of these investments. Credit Losses Financial assets measured at amortized cost are presented at the net amount expected to be collected and the measurement of credit losses and any expected increases in expected credit losses are recognized in earnings. The estimate of expected credit losses involves judgment and is based on an assessment over the life of the financial instrument taking into consideration current market conditions and reasonable and supportable forecasts of expected future economic conditions. Goodwill and Intangible Assets Goodwill. Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 for our Investment Banking, Fixed Income, Equities and Asset Management reporting units, on November 30 for other identified reporting units or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the fair value is less than the carrying value, then an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit’s fair value. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significa nt judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnit ude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For intangible assets deemed to be impaired, an impairment loss is recognized for the amount by which the intangible asset's carrying value exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. Our annual indefinite-lived intangible asset impairment testing date is August 1st . To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. Refer to Note 11, Goodwill and Intangible Assets, for further information. Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three At November 30, 2022 and 2021, furniture, fixtures and equipment amounted to $730.1 million and $728.3 million, respectively, and leasehold improvements amounted to $245.1 million and $236.8 million, respectively. Accumulated depreciation and amortization was $524.6 million and $526.0 million at November 30, 2022 and 2021, respectively. Depreciation and amortization expense amounted to $172.9 million, $157.4 million and $158.4 million for the years ended November 30, 2022, 2021 and 2020, respectively. Leases For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right-of-use (“ROU”) asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives. The ROU assets are included in Premises and equipment and the lease liabilities are included in Lease liabilities in our Consolidated Statement of Financial Condition. The discount rates used in determining the present value of leases represent our collateralized borrowing rate considering each lease’s term and currency of payment. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Certain leases have renewal options that can be exercised at the discretion of the Company. Lease expense is generally recognized on a straight-line basis over the lease term and included in Occupancy and equipment rental expense in our Consolidated Statement of Earnings. Other Real Estate Other real estate is classified within Other assets and includes all expenditures incurred in connection with the acquisition, development and construction of properties. Interest, payroll related to construction, property taxes and other professional fees attributable to land and property construction are capitalized and added to the cost of those properties when active development begins and ends when the property development is fully completed and ready for its intended use. During the years ended November 30, 2022, 2021 and 2020, capitalized interest of $13.5 million, $9.0 million and $8.6 million, respectively was allocated among real estate projects that are currently under development. Inventories and Cost of Sales We have investments in entities that are consolidated by us that are engaged in various manufacturing and real estate activities. Inventories arising from these consolidated entities are classified as Other assets in the Consolidated Statements of Financial Condition and are stated at the lower of cost or net realizable value, with cost principally determined under the first-in-first-out method. Cost of goods sold, which is recognized within Non-interest expenses on the Consolidated Statements of Earnings in connection with sales of such inventories, principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs. Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of whether an asset group is recoverable is based on management's estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value. If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value. Share-based Compensation Share-based awards are measured based on the fair value of the award and recognized over the required service or vesting period. Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options are estimated at the date of grant using the Black-Scholes option pricing model. We account for forfeitures as they occur, which results in dividends and dividend equivalents originally charged against retained earnings for forfeited shares to be reclassified to compensation expense in the period in which the forfeiture occurs. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We use the portfolio approach relating to the release of stranded tax effects recorded in accumulated other comprehensive income (loss). Earnings per Common Share Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued. Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required. Diluted earnings per share is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share. Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable. See Note 13 for more information regarding the senior executive compensation plan. Legal Reserves In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a c |
Accounting Developments
Accounting Developments | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Developments | Accounting Developments Adopted Accounting Standards Reference Rate Reform . In March 2020, the FASB issued new guidance, which was subsequently amended in January 2021, which provides optional exceptions for applying GAAP to certain contract modifications, hedge accounting relationships or other transactions affected by reference rate reform. In December 2022, the FASB issued an accounting standard update to extend the temporary relief until December 31, 2024. Our assessment of contracts with provisions based on LIBOR is ongoing and this guidance may be applied as we transition away from LIBOR. Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Consolidation. In October 2018, the FASB issued ASU No. 2018-17, Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. We adopted the guidance in the first quarter of fiscal 2021 and elected to apply the guidance prospectively to implementation costs incurred after the adoption date. The adoption did not have an impact on our consolidated financial statements on the adoption date. Defined Benefit Plans. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The objective of the guidance is to improve the effectiveness of disclosure requirements on defined benefit pension plans and other postretirement plans. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies goodwill impairment testing. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Nov. 30, 2022 | |
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 $1.29 billion and $1.05 billion at November 30, 2022 and 2021, respectively, by level within the fair value hierarchy (in thousands): November 30, 2022 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 3,117,327 $ 140,157 $ 240,347 $ — $ 3,497,831 Corporate debt securities — 3,972,153 30,232 — 4,002,385 Collateralized debt obligations and collateralized loan obligations — 71,640 55,824 — 127,464 U.S. government and federal agency securities 3,442,484 15,111 — — 3,457,595 Municipal securities — 574,903 — — 574,903 Sovereign obligations 896,805 849,558 — — 1,746,363 Residential mortgage-backed securities — 1,314,199 27,617 — 1,341,816 Commercial mortgage-backed securities — 442,471 839 — 443,310 Other asset-backed securities — 333,164 94,677 — 427,841 Loans and other receivables — 1,069,041 168,875 — 1,237,916 Derivatives 3,437 3,427,921 11,052 (3,093,244) 349,166 Investments at fair value — 3,750 161,992 — 165,742 Total financial instruments owned, excluding Investments at fair value based on NAV $ 7,460,053 $ 12,214,068 $ 791,455 $ (3,093,244) $ 17,372,332 Securities received as collateral $ 100,362 $ — $ — $ — $ 100,362 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,097,436 $ 48,931 $ 750 $ — $ 2,147,117 Corporate debt securities — 2,337,691 500 — 2,338,191 U.S. government and federal agency securities 3,223,637 — — — 3,223,637 Sovereign obligations 879,909 771,125 — — 1,651,034 Commercial mortgage-backed securities — — 490 — 490 Loans — 180,147 3,164 — 183,311 Derivatives 204 4,174,082 70,576 (2,732,165) 1,512,697 Total financial instruments sold, not yet purchased $ 6,201,186 $ 7,511,976 $ 75,480 $ (2,732,165) $ 11,056,477 Other secured financings $ — $ — $ 1,712 $ — $ 1,712 Obligation to return securities received as collateral $ 100,362 $ — $ — $ — $ 100,362 Long-term debt $ — $ 922,705 $ 661,123 $ — $ 1,583,828 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2021 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,737,255 $ 257,318 $ 118,489 $ — $ 3,113,062 Corporate debt securities — 3,836,341 11,803 — 3,848,144 Collateralized debt obligations and collateralized loan obligations — 579,518 31,946 — 611,464 U.S. government and federal agency securities 3,045,295 68,784 — — 3,114,079 Municipal securities — 509,559 — — 509,559 Sovereign obligations 899,086 654,199 — — 1,553,285 Residential mortgage-backed securities — 1,168,246 1,477 — 1,169,723 Commercial mortgage-backed securities — 196,419 2,333 — 198,752 Other asset-backed securities — 337,022 93,524 — 430,546 Loans and other receivables — 1,515,314 178,417 — 1,693,731 Derivatives 4,429 3,861,551 10,248 (3,305,756) 570,472 Investments at fair value — 11,369 154,373 — 165,742 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,686,065 $ 12,995,640 $ 602,610 $ (3,305,756) $ 16,978,559 Securities received as collateral $ 7,289 $ — $ — $ — $ 7,289 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,671,696 $ 19,654 $ 4,635 $ — $ 1,695,985 Corporate debt securities — 2,111,777 482 — 2,112,259 U.S. government and federal agency securities 2,457,420 — — — 2,457,420 Sovereign obligations 935,801 593,040 — — 1,528,841 Residential mortgage-backed securities — 719 — — 719 Commercial mortgage-backed securities — — 210 — 210 Loans — 49,555 9,925 — 59,480 Derivatives 1,815 5,034,544 78,017 (3,702,200) 1,412,176 Total financial instruments sold, not yet purchased $ 5,066,732 $ 7,809,289 $ 93,269 $ (3,702,200) $ 9,267,090 Other secured financings $ — $ 76,883 $ 25,905 $ — $ 102,788 Obligation to return securities received as collateral $ 7,289 $ — $ — $ — $ 7,289 Long-term debt $ — $ 961,866 $ 881,732 $ — $ 1,843,598 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. The following is a description of the valuation basis, including valuation techniques and inputs, used in measuring our financial assets and liabilities that are accounted for at fair value on a recurring basis: Corporate Equity Securities • Exchange-Traded Equity Securities: Exchange-traded equity securities are measured based on quoted closing exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy, otherwise they are categorized within Level 2 of the fair value hierarchy. To the extent these securities are actively traded, valuation adjustments are not applied. • Non-Exchange-Traded Equity Securities : Non-exchange-traded equity securities are measured primarily using broker quotations, pricing data from external pricing services and prices observed from recently executed market transactions and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity securities are categorized within Level 3 of the fair value hierarchy and measured using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples ( e.g. , price/Earnings before interest, taxes, depreciation and amortization (“EBITDA”), price/book value), discounted cash flow analyses and transaction prices observed from subsequent financing or capital issuance by the company. When using pricing data of comparable companies, judgment must be applied to adjust the pricing data to account for differences between the measured security and the comparable security ( e.g. , issuer market capitalization, yield, dividend rate, geographical concentration). • Equity Warrants: Non-exchange-traded equity warrants are measured primarily from observed prices on recently executed market transactions and broker quotations and are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange-traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and can be measured using third-party valuation services or the Black-Scholes model with key inputs impacting the valuation including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date. Corporate Debt Securities • Investment Grade Corporate Bonds: Investment grade corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed from recently executed market transactions and bond spreads. 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 may be used. Investment grade corporate bonds measured using alternative valuation techniques are categorized within Level 2 or Level 3 of the fair value hierarchy • High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed from recently executed market transactions of institutional size. Where pricing data is less observable, valuations are categorized within Level 3 of the fair value hierarchy and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financing or recapitalization, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers. Collateralized Debt Obligations and Collateralized Loan Obligations Collateralized debt obligations (“CDOs”) and collateralized loan obligations (“CLOs”) are measured based on prices observed from recently executed market transactions of the same or similar security or based on valuations received from third-party brokers or data providers and are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability and significance of the pricing inputs. Valuation that is based on recently executed market transactions of similar securities incorporates additional review and analysis of pricing inputs and comparability criteria, including, but not limited to, collateral type, tranche type, rating, origination year, prepayment rates, default rates and loss severity. U.S. Government and Federal Agency Securities • U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices obtained from external pricing services and categorized within Level 1 of the fair value hierarchy. • U.S. Agency Debt Securities: Callable and non-callable U.S. agency debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Municipal Securities Municipal securities are measured based on quoted prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size and are generally categorized within Level 2 of the fair value hierarchy. Sovereign Obligations Sovereign government obligations are measured based on quoted market prices obtained from external pricing services, where available, or recently executed independent transactions of comparable size. Sovereign government obligations, with consideration given to the country of issuance, are generally categorized within Level 1 or Level 2 of the fair value hierarchy. Residential Mortgage-Backed Securities • Agency Residential Mortgage-Backed Securities (“RMBS”): Agency RMBS include mortgage pass-through securities (fixed and adjustable rate), collateralized mortgage obligations and principal-only and interest-only (including inverse interest-only) securities. Agency RMBS are generally measured using recent transactions, pricing data from external pricing services or expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral and are categorized within Level 2 or Level 3 of the fair value hierarchy. We use prices observed from recently executed transactions to develop market-clearing spread and yield assumptions. Valuation inputs with regard to the underlying collateral incorporate factors such as weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer and weighted average loan age. • Non-Agency RMBS: The fair value of non-agency RMBS is determined primarily using pricing data from external pricing services, where available, and discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability and significance of the pricing inputs used. Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate. Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields. In addition, broker quotes, where available, are also referenced to compare prices primarily on interest-only securities. Commercial Mortgage-Backed Securities • Agency Commercial Mortgage-Backed Securities (“CMBS”): Government National Mortgage Association (“Ginnie Mae”) 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 (“Fannie Mae”) 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. Ginnie Mae project loan bonds and Fannie Mae DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy. • Non-Agency CMBS: Non-agency CMBS are measured using pricing data obtained from external pricing services, prices observed from recently executed market transactions or based on expected cash flow models that incorporate underlying loan collateral characteristics and performance. Non-Agency CMBS are categorized within Level 2 or Level 3 of the fair value hierarchy depending on the observability of the underlying inputs. Other Asset-Backed Securities Other asset-backed securities (“ABS”) include, but are not limited to, securities backed by auto loans, credit card receivables, student loans and other consumer loans and are categorized within Level 2 or Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services, broker quotes and prices observed from recently executed market transactions. In addition, recent transaction data from comparable deals is deployed to develop market clearing yields and cumulative loss assumptions. The cumulative loss assumptions are based on the analysis of the underlying collateral and comparisons to earlier deals from the same issuer to gauge the relative performance of the deal. Loans and Other Receivables • Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market consensus pricing service quotations. Where available, market price quotations from external pricing services are reviewed to ensure they are supported by transaction data. Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent. Price quotations are derived using market prices for debt securities of the same creditor and estimates of future cash flows. Future cash flows use assumptions regarding creditor default and recovery rates, credit rating, effective yield 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 Ginnie Mae Project and Construction Loans: Valuations of participation certificates in Ginnie Mae 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 2 of the fair value hierarchy where fair value is based on recent observations in the same receivable. 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. 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 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. Credit default swaps include both index and single-name credit default swaps. Where available, external data is used in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are generally observable for the underlying asset and used as the basis for measuring the fair value of the derivative contracts. Total return swaps executed on other underlyings are measured based on valuations received from external pricing services. Investments at Fair Value Investments at fair value includes investments in hedge funds and private equity funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy . The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): November 30, 2022 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 441,229 $ — Equity Funds (3) 73,176 36,861 Commodity Fund (4) 24,283 — Multi-asset Funds (5) 401,655 — Other Funds (6) 353,621 53,994 Total $ 1,293,964 $ 90,855 November 30, 2021 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 466,231 $ — Equity Funds (3) 66,152 18,888 Commodity Fund (4) 24,401 — Multi-asset Funds (5) 390,224 — Other Funds (6) 99,054 36,090 Total $ 1,046,062 $ 54,978 (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 November 30, 2022 and 2021, approximately 58% and 74%, respectively, became redeemable quarterly with 90 days written notice on December 31, 2021. At November 30, 2022 and 2021, approximately 34% and 21%, respectively, of the fair value of investments cannot be redeemed because these investments include restrictions that do not allow for redemption before November 30, 2023. At November 30, 2022 and 2021, approximately 6% and 5%, respectively, of the investments are redeemable quarterly with 60 days prior written notice. At November 30, 2022, the remaining balance cannot be redeemed because these investments include restrictions that do not allow for redemption before August 31, 2025. (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are primarily expected to be liquidated in approximately one (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At both November 30, 2022 and 2021, investments representing approximately 78% of the fair value of investments in this category are redeemable monthly with 60 days prior written notice. At November 30, 2022 and 2021, approximately 15% and 22%, respectively, of the fair value of investments in this category are redeemable quarterly with 90 days prior written notice. (6) This category includes investments in a fund that invests in short-term trade receivables and payables that are expected to generally be outstanding between 90 to 120 days and short-term credit instruments. This category also includes investments in a fund that invests in distressed and special situations long and short credit strategies across sectors and asset types. Investments in this category are redeemable quarterly with 90 days prior written notice. Other Secured Financings Other secured financings that are accounted for at fair value are classified within Level 2 or 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 the corresponding leveling guidance above. These financial instruments are typically categorized within Level 1 of the fair value hierarchy. Long-term Debt Long-term debt includes variable rate, fixed-to-floating rate, equity-linked notes, constant maturity swap, digital and Bermudan structured notes. These are valued using various valuation models that incorporate our own credit spread, market price quotations from external pricing sources referencing the appropriate interest rate curves, volatilities and other inputs as well as prices for transactions in a given note during the period. Long-term debt notes are generally categorized within Level 2 of the fair value hierarchy where market trades have been observed during the period or model pricing is available, otherwise the notes are categorized within Level 3. Level 3 Rollforwards The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2022 (in thousands): For instruments still held at November 30, 2022, changes in unrealized gains/(losses) included in: Balance at November 30, 2021 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2022 Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 118,489 $ (645) $ 171,700 $ (62,474) $ (298) $ — $ 13,575 $ 240,347 $ 7,286 $ — Corporate debt securities 11,803 946 18,686 (23,964) (9) — 22,770 30,232 (2,087) — CDOs and CLOs 31,946 7,099 44,995 (22,600) (16,634) — 11,018 55,824 (10,938) — RMBS 1,477 (13,210) 35,774 (372) (240) — 4,188 27,617 (7,728) — CMBS 2,333 (733) — (749) — — (12) 839 (703) — Other ABS 93,524 (6,467) 74,353 (20,362) (39,647) — (6,724) 94,677 (26,982) — Loans and other receivables 178,417 (1,912) 45,536 (33,692) (48,218) — 28,744 168,875 (11,610) — Investments at fair value 154,373 46,735 74,984 (74,742) (15,951) — (23,407) 161,992 33,294 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,635 $ (3,611) $ (815) $ 4,858 $ — $ — $ (4,317) $ 750 $ 2,382 $ — Corporate debt securities 482 88 (70) — — — — 500 (88) — CMBS 210 — — 280 — — — 490 — — Loans 9,925 1,197 (5,173) — 96 — (2,881) 3,164 (2,484) — Net derivatives (2) 67,769 (181,750) (1,559) 1,285 — 28,436 145,343 59,524 168,304 — Other secured financings 25,905 (650) — — (23,543) — — 1,712 650 Long-term debt 881,732 (280,967) — — (3,919) 83,874 (19,597) 661,123 239,400 41,567 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. Analysis of Level 3 Assets and Liabilities for the Year Ended November 30, 2022 During the year ended November 30, 2022, transfers of assets of $111.7 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Loans and other receivables of $33.2 million, corporate debt securities of $22.8 million, other ABS of $22.6 million, corporate equity securities of $17.9 million and CDOs and CLOs of $11.0 million due to reduced pricing transparency. During the year ended November 30, 2022, transfers of assets of $61.5 million from Level 3 to Level 2 are primarily attributed to: • Other ABS of $29.3 million, investment at fair value of $23.4 million, loans and other receivables of $4.5 million and corporate equity securities of $4.3 million due to greater pricing transparency. During the year ended November 30, 2022, transfers of liabilities of $172.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Net derivatives of $152.8 million and structured notes within long-term debt of $19.3 million due to reduced pricing and market transparency. During the year ended November 30, 2022, transfers of liabilities of $53.6 million from Level 3 to Level 2 of the fair value hierarchy are primarily attributed to: • Structured notes within long-term debt of $38.9 million, net derivatives of $7.5 million and corporate equity securities of $4.3 million due to greater pricing and market transparency. Net gains on Level 3 assets were $31.8 million and net gains on Level 3 liabilities were $465.7 million for the year ended November 30, 2022. Net gains on Level 3 assets were primarily due to increased market values in investments at fair value and CDOs and CLOs, partially offset by decreases in RMBS and Other ABS. Net gains on Level 3 liabilities were primarily due to decreased market valuations of certain structured notes within long-term debt and certain derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2021 (in thousands): For instruments still held at November 30, 2021, changes in unrealized gains/(losses) included in: Balance at November 30, 2020 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2021 Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 116,089 $ 19,213 $ 8,778 $ (34,307) $ (49) $ — $ 8,765 $ 118,489 $ 11,589 $ — Corporate debt securities 23,146 1,565 11,161 (7,978) (1,417) — (14,674) 11,803 1,724 — CDOs and CLOs 17,972 8,092 32,618 (27,332) (5,042) — 5,638 31,946 (4,390) — RMBS 21,826 (243) 708 (1,183) (354) — (19,277) 1,477 (131) — CMBS 2,003 (1,694) 2,445 (393) (13) — (15) 2,333 (733) — Other ABS 79,995 5,335 65,277 (21,727) (45,397) — 10,041 93,524 (14,471) — Loans and other receivables 186,568 1,250 50,167 (55,848) (20,442) — 16,722 178,417 (4,905) — Investments at fair value 213,946 112,012 22,957 (47,243) (9,809) — (137,490) 154,373 25,723 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,434 $ (83) $ (21) $ 318 $ — $ — $ (13) $ 4,635 $ 83 $ — Corporate debt securities 141 1,205 (815) — (49) — — 482 (139) — CMBS 35 — (35) 210 — — — 210 — — Loans 6,913 3,384 (469) 220 — — (123) 9,925 (1,523) — Net derivatives (2) 26,017 7,246 — — (1,491) 44,453 (8,456) 67,769 (7,371) — Other secured financings 1,543 (649) — — — 25,011 — 25,905 649 — Long-term debt 676,028 (22,132) — — — 169,975 57,861 881,732 85,260 (63,126) (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes within long-term debt are included in our Consolidated Statement of Comprehensive Income, net of tax. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. Analysis of Level 3 Assets and Liabilities for the Year Ended November 30, 2021 During the year ended November 30, 2021, transfers of assets of $21.1 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to: • Other ABS of $10.2 million, CDOs and CLOs of $7.6 million and corporate debt securities of $3.3 million due to reduced pricing transparency. During the year ended November 30, 2021, transfers of assets of $168.7 million from Level 3 to Level 2 are primarily attributed to: • Investments at fair value of $137.5 million, RMBS of $19.3 million, corporate debt securities of $17.9 million and corporate equity securities of $5.4 million due to greater pricing transparency supporting classification into Level 2. During the year ended November 30, 2021, transfers of liabilities of $74.3 million from Level 2 to Level 3 of the fair value hiera |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Nov. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Financial Instruments Our derivative activities are recorded at fair value in our Consolidated Statements of Financial Condition in Financial instruments owned Financial instruments sold, not yet purchased See Note 4, Fair Value Disclosures, and Note 22, Commitments, Contingencies and Guarantees, for additional disclosures about derivative financial instruments. Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. We manage the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of our firm wide risk management policies. In connection with our derivative activities, we may enter into ISDA master netting agreements or similar agreements with counterparties. See Note 2, Summary of Significant Accounting Policies, for additional information regarding the offsetting of derivative contracts. The following tables present the fair value and related number of derivative contracts at November 30, 2022 and 2021 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts). November 30, 2022 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 217,922 3 Foreign exchange contracts: Bilateral OTC — — 57,875 5 Total derivatives designated as accounting hedges — 275,797 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 3,297 49,736 123 36,085 Cleared OTC 655,140 3,843 452,570 4,203 Bilateral OTC 1,044,632 772 1,573,975 704 Foreign exchange contracts: Exchange-traded — 2 — 1 Bilateral OTC 287,594 2,398 251,339 2,428 Equity contracts: Exchange-traded 1,074,134 1,323,637 864,804 1,338,129 Bilateral OTC 348,611 5,201 800,230 5,543 Commodity contracts: Exchange-traded 37 597 19 607 Bilateral OTC 4,327 5 4,874 3 Credit contracts: Cleared OTC 8,364 51 7,742 35 Bilateral OTC 16,274 9 13,389 8 Total derivatives not designated as accounting hedges 3,442,410 3,969,065 Total gross derivative assets/ liabilities: Exchange-traded 1,077,468 864,946 Cleared OTC 663,504 678,234 Bilateral OTC 1,701,438 2,701,682 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (858,921) (858,921) Cleared OTC (655,969) (657,192) Bilateral OTC (1,578,354) (1,216,052) Net amounts per Consolidated Statements of Financial Condition (4) $ 349,166 $ 1,512,697 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition. November 30, 2021 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 35,726 2 $ 32,200 1 Foreign exchange contracts: Bilateral OTC 30,462 4 — — Total derivatives designated as accounting hedges 66,188 32,200 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,262 23,888 756 39,195 Cleared OTC 373,355 4,505 367,134 4,467 Bilateral OTC 322,353 1,037 283,481 967 Foreign exchange contracts: Bilateral OTC 1,428,712 17,792 1,437,116 17,576 Equity contracts: Exchange-traded 1,206,606 1,582,713 1,036,019 1,450,624 Bilateral OTC 377,132 2,888 1,824,418 2,682 Commodity contracts: Exchange-traded 448 1,394 223 1,457 Bilateral OTC (3) 2,703 2 9,862 7 Credit contracts: Cleared OTC 84,180 132 108,999 128 Bilateral OTC 13,289 14 14,168 17 Total derivatives not designated as accounting hedges 3,810,040 5,082,176 Total gross derivative assets/liabilities: Exchange-traded 1,208,316 1,036,998 Cleared OTC 493,261 508,333 Bilateral OTC 2,174,651 3,569,045 Amounts offset in our Consolidated Statements of Financial Condition (4): Exchange-traded (1,008,091) (1,008,091) Cleared OTC (483,339) (508,333) Bilateral OTC (1,814,326) (2,185,776) Net amounts per Consolidated Statements of Financial Condition (5) $ 570,472 $ 1,412,176 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) As of November 30, 2021, the notional amount of outstanding bilateral commodity contracts was 616 asset contracts and 825 liability contracts. (4) Amounts netted include both netting by counterparty and for cash collateral paid or received. (5) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition. The following table provides information related to gains (losses) recognized in Interest expense in our Consolidated Statements of Earnings related to fair value hedges (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Interest rate swaps $ (212,280) $ (41,845) $ 41,524 Long-term debt 219,143 58,507 (36,668) Total $ 6,863 $ 16,662 $ 4,856 The following table provides information related to gains (losses) on our net investment hedges recognized in Currency translation and other adjustments, a component of Other comprehensive income (loss), in our Consolidated Statements of Comprehensive Income (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Foreign exchange contracts $ 116,876 $ 19,008 $ (3,306) Total $ 116,876 $ 19,008 $ (3,306) The following table presents unrealized and realized gains (losses) on derivative contracts recognized primarily in Principal transactions revenues in our Consolidated Statements of Earnings, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Interest rate contracts $ (154,378) $ (48,510) $ (52,331) Foreign exchange contracts (164,729) (10,152) 2,266 Equity contracts (29,740) (427,593) 47,631 Commodity contracts (43,106) (28,012) 45,491 Credit contracts 15,612 653 15,218 Total $ (376,341) $ (513,614) $ 58,275 The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework. OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at November 30, 2022 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than Cross-Maturity Total Commodity swaps, options and forwards $ 2,826 $ 1,512 $ — $ (1,547) $ 2,791 Equity options and forwards 51,033 2,698 — (499) 53,232 Credit default swaps — 762 7,209 (153) 7,818 Total return swaps 126,590 24,528 — (4,778) 146,340 Foreign currency forwards, swaps and options 106,481 7,379 — (5,965) 107,895 Fixed income forwards 12,816 — — — 12,816 Interest rate swaps, options and forwards 134,140 763,300 28,963 (177,420) 748,983 Total $ 433,886 $ 800,179 $ 36,172 $ (190,362) 1,079,875 Cross-product counterparty netting (35,883) Total OTC derivative assets included in Financial instruments owned $ 1,043,992 (1) At November 30, 2022, we held net exchange-traded derivative assets and other credit agreements with a fair value of $218.6 million, which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At November 30, 2022, cash collateral received was $913.4 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 3,904 $ 980 $ — $ (1,547) $ 3,337 Equity options and forwards 248,343 269,123 453 (499) 517,420 Credit default swaps — — 153 (153) — Total return swaps 66,364 82,529 325 (4,778) 144,440 Foreign currency forwards, swaps and options 128,931 6,530 — (5,965) 129,496 Fixed income forwards 5,989 — — — 5,989 Interest rate swaps, options and forwards 149,794 774,289 524,062 (177,420) 1,270,725 Total $ 603,325 $ 1,133,451 $ 524,993 $ (190,362) 2,071,407 Cross-product counterparty netting (35,883) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 2,035,524 (1) At November 30, 2022, we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $29.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2022, cash collateral pledged was $552.8 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2022 (in thousands): Counterparty credit quality (1): A- or higher $ 763,128 BBB- to BBB+ 156,219 BB+ or lower 73,831 Unrated 50,814 Total $ 1,043,992 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. Credit Related Derivative Contracts The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2022 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 207.9 $ 515.8 $ — $ 723.7 Single name credit default swaps — — 0.2 0.2 November 30, 2021 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 2,612.0 $ 1,298.8 $ — $ 3,910.8 Single name credit default swaps — 17.6 0.2 17.8 Contingent Features Certain of our derivative instruments contain provisions that require our debt to maintain an investment grade credit rating from each of the major credit rating agencies. If our debt were to fall below investment grade, it would be in violation of these provisions and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on our derivative instruments in liability positions. The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): November 30, 2022 2021 Derivative instrument liabilities with credit-risk-related contingent features $ 226.5 $ 821.5 Collateral posted (168.8) (160.5) Collateral received 177.4 369.3 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 235.0 1,030.4 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Nov. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Collateralized Transactions | Collateralized Transactions Our repurchase agreements and securities borrowing and lending arrangements are generally recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their short-term nature. We enter into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of our dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned, at fair value and noted parenthetically as Securities pledged in our Consolidated Statements of Financial Condition. In instances where we receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities and are permitted to sell or repledge the securities received as collateral, we report the fair value of the collateral received and the related obligation to return the collateral in our Consolidated Statements of Financial Condition. The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by class of collateral pledged (in thousands): November 30, 2022 Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total Collateral Pledged: Corporate equity securities $ 967,800 $ 471,581 $ — $ 1,439,381 Corporate debt securities 332,204 2,210,934 — 2,543,138 Mortgage-backed and asset-backed securities — 1,192,265 — 1,192,265 U.S. government and federal agency securities 66,021 6,203,263 100,362 6,369,646 Municipal securities — 535,619 — 535,619 Sovereign obligations — 2,450,880 — 2,450,880 Loans and other receivables — 538,491 — 538,491 Total $ 1,366,025 $ 13,603,033 $ 100,362 $ 15,069,420 November 30, 2021 Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total Collateral Pledged: Corporate equity securities $ 1,160,916 $ 150,602 $ 7,289 $ 1,318,807 Corporate debt securities 321,356 2,684,458 — 3,005,814 Mortgage-backed and asset-backed securities — 1,209,442 — 1,209,442 U.S. government and federal agency securities 6,348 8,426,536 — 8,432,884 Municipal securities — 413,073 — 413,073 Sovereign obligations 37,101 2,422,901 — 2,460,002 Loans and other receivables — 712,388 — 712,388 Total $ 1,525,721 $ 16,019,400 $ 7,289 $ 17,552,410 The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by remaining contractual maturity (in thousands): November 30, 2022 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 808,472 $ — $ 273,865 $ 283,688 $ 1,366,025 Repurchase agreements 6,930,667 1,521,629 2,262,705 2,888,032 13,603,033 Obligation to return securities received as collateral, at fair value 100,362 — — — 100,362 Total $ 7,839,501 $ 1,521,629 $ 2,536,570 $ 3,171,720 $ 15,069,420 November 30, 2021 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 595,628 $ 1,318 $ 539,623 $ 389,152 $ 1,525,721 Repurchase agreements 6,551,934 1,798,716 4,361,993 3,306,757 16,019,400 Obligation to return securities received as collateral, at fair value 7,289 — — — 7,289 Total $ 7,154,851 $ 1,800,034 $ 4,901,616 $ 3,695,909 $ 17,552,410 We receive securities as collateral under resale agreements, securities borrowing transactions, customer margin loans, as initial margin on certain derivative transactions and in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At November 30, 2022 and 2021, the approximate fair value of securities received as collateral by us that may be sold or repledged was $26.82 billion and $31.97 billion, respectively. At November 30, 2022 and 2021, a substantial portion of the securities received by us had been sold or repledged. Offsetting of Securities Financing Agreements To manage our exposure to credit risk associated with securities financing transactions, we may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions). See Note 2, Summary of Significant Accounting Policies, for additional information regarding the offsetting of securities financing agreements. The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 2022 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 5,831,148 $ — $ 5,831,148 $ (285,361) $ (1,381,404) $ 4,164,383 Reverse repurchase agreements 10,697,382 (6,150,691) 4,546,691 (550,669) (3,954,525) 41,497 Securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — Liabilities Securities lending arrangements $ 1,366,025 $ — $ 1,366,025 $ (285,361) $ (1,054,228) $ 26,436 Repurchase agreements 13,603,033 (6,150,691) 7,452,342 (550,669) (6,374,480) 527,193 Obligation to return securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — November 30, 2021 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 6,409,420 $ — $ 6,409,420 $ (271,475) $ (1,528,206) $ 4,609,739 Reverse repurchase agreements 15,215,785 (7,573,301) 7,642,484 (540,312) (7,048,823) 53,349 Securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — Liabilities Securities lending arrangements $ 1,525,721 $ — $ 1,525,721 $ (271,475) $ (1,213,563) $ 40,683 Repurchase agreements (5) 16,019,400 (7,573,301) 8,446,099 (540,312) (7,136,585) 769,202 Obligation to return securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — (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 our Consolidated Statement of Financial Condition because other netting provisions of U.S. GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) Amounts include $4.12 billion of securities borrowing arrangements, for which we have received securities collateral of $4.02 billion, and $495.2 million of repurchase agreements, for which we have pledged securities collateral of $507.3 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $4.51 billion of securities borrowing arrangements, for which we have received securities collateral of $4.35 billion, and $765.0 million of repurchase agreements, for which we have pledged securities collateral of $781.8 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (5) There was an immaterial correction in the amount of available collateral, which resulted in a $200 million decrease in the available collateral and a $200 million increase in the net amount related to repurchase agreements at November 30, 2021. Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations Cash and securities segregated in accordance with regulatory regulations and deposited with clearing and depository organizations totaled $0.96 billion and $1.02 billion at November 30, 2022 and 2021, respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies LLC as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers. |
Securitization Activities
Securitization Activities | 12 Months Ended |
Nov. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, mortgage loans, consumer loans and mortgage-backed and other asset-backed securities. In our securitization transactions, we transfer these assets to special purpose entities (“SPEs”) and act as the placement or structuring agent for the beneficial interests sold to investors by the SPE. A significant portion of our securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies. These SPEs generally meet the criteria of VIEs; however, we generally do not consolidate the SPEs as we are not considered the primary beneficiary for these SPEs. See Note 8, Variable Interest Entities, for further discussion on VIEs and our determination of the primary beneficiary. We account for our securitization transactions as sales, provided we have relinquished control over the transferred assets. Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings prior to the identification and isolation for securitization. Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues. We generally receive cash proceeds in connection with the transfer of assets to an SPE. We may, however, have continuing involvement with the transferred assets, which is limited to retaining one or more tranches of the securitization (primarily senior and subordinated debt securities in the form of mortgage-backed and other-asset backed securities or CLOs). These securities are included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition and are generally initially categorized as Level 2 within the fair value hierarchy. For further information on fair value measurements and the fair value hierarchy, refer to Note 4, Fair Value Disclosures, and Note 2, Summary of Significant Accounting Policies, herein. The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Year Ended November 30, 2022 2021 2020 Transferred assets $ 6,351.2 $ 10,487.3 $ 6,556.2 Proceeds on new securitizations 6,402.6 10,488.6 6,556.2 Cash flows received on retained interests 31.7 21.8 26.8 We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at November 30, 2022 and 2021. The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): November 30, 2022 2021 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 219.8 $ 2.9 $ 330.2 $ 4.9 U.S. government agency CMBS 2,997.7 173.9 2,201.8 69.2 CLOs 5,140.5 31.9 3,382.3 31.0 Consumer and other loans 2,526.7 122.8 2,271.4 136.4 Total assets represent the unpaid principal amount of assets in the SPEs in which we have continuing involvement and are presented solely to provide information regarding the size of the transactions and the size of the underlying assets supporting our retained interests, and are not considered representative of the risk of potential loss. Assets retained in connection with a securitization transaction represent the fair value of the securities of one or more tranches issued by an SPE, including senior and subordinated tranches. Our risk of loss is limited to this fair value amount which is included in total Financial instruments owned in our Consolidated Statements of Financial Condition. Although not obligated, in connection with secondary market-making activities we may make a market in the securities issued by these SPEs. In these market-making transactions, we buy these securities from and sell these securities to investors. Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs. To the extent we purchased securities through these market-making activities and we are not deemed to be the primary beneficiary of the VIE, these securities are included in agency and non-agency mortgage-backed and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 8, Variable Interest Entities. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | Variable Interest Entities VIEs are entities in which equity investors lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary. The primary beneficiary is the party who has both (1) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (2) an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. Our variable interests in VIEs include debt and equity interests, commitments, guarantees and certain fees. Our involvement with VIEs arises primarily from: • Purchases of securities in connection with our trading and secondary market making activities; • Retained interests held as a result of securitization activities; • Acting as placement agent and/or underwriter in connection with client-sponsored securitizations; • Financing of agency and non-agency mortgage-backed and other asset-backed securities; • Acting as servicer for a fee to automobile loan financing vehicles; • Warehouse funding arrangements for client-sponsored consumer and mortgage loan vehicles and CLOs through participation agreements, forward sale agreements, reverse repurchase agreements, and revolving loan and note commitments; and • Loans to, investments in and fees from various investment vehicles. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the “power” criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the “power” criteria of the primary beneficiary. We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests. Consolidated VIEs The following table presents information about our consolidated VIEs at November 30, 2022 and 2021 (in millions). The assets and liabilities in the tables below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2022 2021 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash $ — $ 1.4 $ 3.8 $ — Financial instruments owned — 7.1 173.1 146.4 Securities purchased under agreements to resell (1) 1,565.0 — 3,697.1 — Receivables from brokers (2) — 15.2 — 40.6 Other receivables — — 0.6 — Other assets (3) 798.8 88.3 740.8 — Total assets $ 2,363.8 $ 112.0 $ 4,615.4 $ 187.0 Financial instruments sold, not yet purchased $ — $ 5.7 $ — $ 109.1 Other secured financings (4) 2,289.9 — 4,521.6 — Payables to broker dealers — — 44.2 — Other liabilities (5) 4.6 37.6 2.4 75.3 Long-term debt — 24.7 — — Total liabilities $ 2,294.5 $ 68.0 $ 4,568.2 $ 184.4 (1) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $1.2 million of receivables from brokers at November 30, 2021 are with related consolidated entities, which are eliminated in consolidation. (3) Approximately $82.4 million and $56.5 million of the other assets at November 30, 2022 and 2021, respectively, represent intercompany receivables with related consolidated entities, which are eliminated in consolidation. (4) Approximately $253.8 million and $36.7 million of the other secured financings at November 30, 2022 and 2021, respectively, are with related consolidated entities and are eliminated in consolidation. (5) Approximately $30.9 million and $75.3 million of the other liabilities amounts at November 30, 2022 and 2021, respectively, are with related consolidated entities, which are eliminated in consolidation. Secured Funding Vehicles . We are the primary beneficiary of asset-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans, and asset-backed securities pursuant to the terms of a master repurchase agreement. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement, which we manage, and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle’s debt holders. We are the primary beneficiary of automobile loan financing vehicles to which we transfer automobile loans, act as servicer of the automobile loans for a fee and retain equity interests in the vehicles. The assets of these VIEs consist primarily of automobile loans, which are accounted for as loans held for investment at amortized cost included within Other assets on the Consolidated Statement of Financial Condition. The liabilities of these VIEs consist of notes issued by the VIEs, which are accounted for at amortized cost and included within Other secured financings on the Consolidated Statement of Financial Condition and do not have recourse to our general credit. The automobile loans are pledged as collateral for the related notes and available only for the benefit of the note holders. Other. We are the primary beneficiary of certain investment vehicles set up for the benefit of our employees. We manage and invest alongside our employees in these vehicles. The assets of these VIEs consist of private equity securities, and are available for the benefit of the entities’ equity holders. Our variable interests in these vehicles consist of equity securities. The creditors of these VIEs do not have recourse to our general credit and each such VIE’s assets are not available to satisfy any other debt. We also are the primary beneficiary of a real estate syndication entity that is developing multi-family residential property and manage the property. The assets of the VIE consist primarily of real estate and its liabilities consist primarily of accrued expenses and long-term debt secured by the real estate property. Our variable interest in the VIE consist primarily of our limited liability company interest, a sponsor promote and development and asset management fees for managing the project. Nonconsolidated VIEs The following tables present information about our variable interests in nonconsolidated VIEs (in millions): November 30, 2022 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 133.5 $ 1.4 $ 1,642.5 $ 7,705.3 Asset-backed vehicles 561.0 — 690.4 4,408.3 Related party private equity vehicles 24.8 — 35.5 69.1 Other investment vehicles 1,172.6 — 1,254.0 18,940.5 FXCM 94.8 — 94.8 389.6 Total $ 1,986.7 $ 1.4 $ 3,717.2 $ 31,512.8 November 30, 2021 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 582.2 $ 2.0 $ 2,557.1 $ 10,277.5 Asset-backed vehicles 281.9 — 359.3 3,474.6 Related party private equity vehicles 27.1 — 37.8 78.9 Other investment vehicles 1,111.5 — 1,201.6 15,101.4 FXCM 99.5 — 99.5 387.9 Total $ 2,102.2 $ 2.0 $ 4,255.3 $ 29,320.3 Our maximum exposure to loss often differs from the carrying value of the variable interests. The maximum exposure to loss is dependent on the nature of our variable interests in the VIEs and is limited to the notional amounts of certain loan and equity commitments and guarantees. Our maximum exposure to loss does not include the offsetting benefit of any financial instruments that may be utilized to hedge the risks associated with our variable interests and is not reduced by the amount of collateral held as part of a transaction with a VIE. Collateralized Loan Obligations. Assets collateralizing the CLOs include bank loans, participation interests, sub-investment grade and senior secured U.S. loans, and senior secured Euro denominated corporate leveraged loans and bonds. 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, ◦ Reverse repurchase agreements with collateral margin maintenance obligations and commitments to fund such reverse repurchase agreements; and ◦ Senior and subordinated notes issued in connection with CLO warehousing activities. • Trading positions in securities issued in CLO transactions; and • Investments in variable funding notes issued by CLOs. Asset-Backed Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities, forward purchase agreements and reverse repurchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer loans and mortgage loans. In addition, we may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles. We do not control the activities of these entities. Related Party Private Equity Vehicles. We committed to invest in private equity funds, (the “JCP Funds”, including JCP Fund V (see Note 9, Investments)) managed by Jefferies Capital Partners, LLC (the “JCP Manager”). Additionally, we committed to invest in the general partners of the JCP Funds (the “JCP General Partners”) and the JCP Manager. Our variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the “JCP Entities”) consist of equity interests that, in total, provide us with limited and general partner investment returns of the JCP Funds, a portion of the carried interest earned by the JCP General Partners and a portion of the management fees earned by the JCP Manager. At November 30, 2022 and 2021, our total equity commitment in the JCP Entities was $133.0 million, of which $122.4 million and $122.3 million had been funded, respectively. The carrying value of our equity investments in the JCP Entities was $24.8 million and $27.1 million at November 30, 2022 and 2021, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments. Other Investment Vehicles. At November 30, 2022 and 2021, we had equity commitments to invest $1.14 billion and $1.09 billion, respectively, in various other investment vehicles, of which $1.06 billion and $999.8 million was funded, respectively. The carrying value of our equity investments was $1.17 billion and $1.11 billion at November 30, 2022 and 2021, 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. FXCM. We have equity interests in FXCM of $59.7 million consisting of a 50% voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM, which is accounted for under the equity method of accounting and reported within Investments in and loans to related parties in the Consolidated Statements of Financial Condition. We also have a senior secured term loan to FXCM due May 6, 2023, which is accounted for at a fair value of $35.1 million and $50.5 million, at November 30, 2022 and 2021, respectively, and is reported within Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition. The assets of FXCM consist primarily of brokerage receivables and other financial instruments and operating assets as part of FXCM’s foreign exchange trading business. 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, automobile loans and student loans. These securities are accounted for at fair value and included in Financial instruments owned in our Consolidated Statements of Financial Condition. We have no other involvement with the related SPEs and therefore do not consolidate these entities. We also engage in underwriting, placement and structuring activities for third-party-sponsored securitization trusts generally through agency (Fannie Mae, Federal Home Loan Mortgage Corporation (“Freddie Mac”) or 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 automobile loans. We do not consolidate agency-sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of non-agency-sponsored securitizations and therefore do not have power to direct the most significant activities of the SPEs and accordingly, do not consolidate these entities. We may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs. At November 30, 2022 and 2021, we held $1.47 billion and $1.31 billion of agency mortgage-backed securities, respectively, and $180.6 million and $253.9 million of non-agency mortgage-backed and other asset-backed securities, respectively, as a result of our secondary trading and market-making activities, and underwriting, placement and structuring activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. These mortgage-backed and other asset-backed secured funding vehicles discussed are not included in the above table containing information about our variable interests in nonconsolidated VIEs. |
Investments
Investments | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Investments for which we exercise significant influence over the investee are accounted for under the equity method of accounting with our shares of the investees’ earnings recognized in Other revenues in our Consolidated Statements of Earnings. Equity method investments, including any loans to the investees, are reported within Investments in and loans to related parties in our Consolidated Statements of Financial Condition are summarized as follows (in millions). November 30, 2022 2021 Total Investments in and loans to related parties $ 1,426.8 $ 1,587.4 Year Ended November 30, 2022 2021 2020 Total equity method pickup income recognized in Other revenues in our Consolidated Statements of Earnings $ (36.3) $ 149.9 $ (75.2) The following presents summarized financial information about our significant equity method investees. For certain investees, we receive financial information at a lag and the summarized information provided for these investees is based on the latest financial information available as of November 30, 2022, 2021 and 2020, respectively. Jefferies Finance Jefferies Finance, our 50/50 joint venture entity pursuant to an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”), is a commercial finance company that structures, underwrites and syndicates primarily senior secured loans to corporate borrowers; and manages proprietary and third-party investments for both broadly syndicated and direct lending loans. Jefferies Finance conducts its operations primarily through two business lines, Leveraged Finance Arrangement and Asset Management. Loans are originated primarily through our investment banking efforts and Jefferies Finance typically syndicates to third-party investors substantially all of its arranged volume through us. 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. The Asset Management business, collectively referred to as Jefferies Credit Partners, LLC, (formerly known as JFIN Asset Management LLC) manages a broad portfolio of assets under management composed of portions of loans it has arranged, as well as loan positions that it has purchased in the primary and secondary markets. Jefferies Credit Partners composed of three registered Investment Advisors: Jefferies Finance, Apex Credit Partners LLC and Jefferies Credit Partners LLC, which serve as a private credit platform managing proprietary and third-party capital across commingled funds, separately managed accounts and CLOs. At November 30, 2022, we and MassMutual each had equity commitments to Jefferies Finance of $750.0 million, for a combined total commitment of $1.5 billion. The equity commitment is reduced quarterly based on our share of any undistributed earnings from Jefferies Finance and the commitment is increased only to the extent the share of such earnings are distributed. At November 30, 2022, our remaining commitment to Jefferies Finance was $15.4 million. The investment commitment is scheduled to expire on March 1, 2023 with automatic one year extensions absent a 60 days termination notice by either party. Jefferies Finance has executed a Secured Revolving Credit Facility with us and MassMutual, to be funded equally, to support loan underwritings by Jefferies Finance, which bears interest based on the interest rates of the related Jefferies Finance underwritten loans and is secured by the underlying loans funded by the proceeds of the facility. The total Secured Revolving Credit Facility is a committed amount of $500.0 million at November 30, 2022. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2023 with automatic one year extensions absent a 60 days termination notice by either party. At November 30, 2022, we had funded $0.0 million of our $250.0 million commitment. The following summarizes the activity included in our Consolidated Statements of Earnings related to the facility (in millions): Year Ended November 30, 2022 2021 2020 Interest income $ 0.4 $ 1.5 $ 2.4 Unfunded commitment fees 1.2 1.2 1.1 The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2022 2021 Total assets $ 6,763.0 $ 8,258.7 Total liabilities 5,490.1 6,843.9 November 30, 2022 2021 Our total equity balance $ 636.4 $ 707.4 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ (129.4) $ 205.7 $ (74.9) The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2022 2021 2020 Origination and syndication fee revenues (1) $ 194.7 $ 410.5 $ 198.1 Origination fee expenses (1) 39.7 66.8 27.3 CLO placement fee revenues (2) 4.6 5.7 1.7 Underwriting fees (3) — 2.5 1.7 Service fees (4) 94.7 85.1 65.1 (1) We engage in the origination and syndication of loans underwritten by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues in our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings. (2) We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At November 30, 2022 and 2021, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value in our Consolidated Statements of Condition. (3) We acted as underwriter in connection with term loans issued by Jefferies Finance. (4) Under a service agreement, we charge Jefferies Finance for services provided. In connection with non-U.S. dollar loans originated by Jefferies Finance to borrowers who are investment banking clients of ours, we have entered into an agreement to indemnify Jefferies Finance with respect to any foreign currency exposure. Receivables from Jefferies Finance, included in Other assets in our Consolidated Statements of Financial Condition, were $1.2 million and $26.2 million at November 30, 2022 and 2021, respectively. At November 30, 2022 and 2021, payables to Jefferies Finance related to cash deposited with us and included in Payables to customers in our Consolidated Statements of Financial Condition, were $0.5 million and $8.5 million, respectively. Berkadia Berkadia is a commercial mortgage banking, servicing and finance joint venture that was formed by us and Berkshire Hathaway Inc. We are entitled to receive 45% of the profits of Berkadia. Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies or other investors. Berkadia also is an investment sales advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions. Commercial paper issued by Berkadia is supported by a $1.50 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 November 30, 2022, the aggregate amount of commercial paper outstanding was $1.47 billion. The following is a summary of selected financial information for Berkadia (in millions): November 30, 2022 2021 Total assets $ 4,436.0 $ 4,630.7 Total liabilities 2,801.7 3,377.0 Total noncontrolling interest 690.1 425.8 November 30, 2022 2021 Our total equity balance $ 425.9 $ 373.4 Year Ended November 30, 2022 2021 2020 Gross revenues $ 1,361.2 $ 1,262.4 $ 1,000.4 Net earnings 276.5 290.3 153.1 Our share of net earnings 124.4 130.6 68.9 We received distributions from Berkadia on our equity interest as follows (in millions): Year Ended November 30, 2022 2021 2020 Distributions $ 69.8 $ 58.0 $ 37.1 At November 30, 2022 and 2021, we had commitments to purchase $237.4 million and $425.6 million, respectively, of agency CMBS from Berkadia. OpNet We own approximately 42% of the common shares and 48% of the voting rights of OpNet (formerly known as Linkem). In addition to common stock, we own convertible preferred stock, which is automatically convertible to common shares in 2026, and common stock warrants, which are exercisable by June 2024 and June 2027. If our convertible preferred stock and warrants were all converted or exercised, our ownership would increase to approximately 63% of OpNet’s common equity and voting rights. The convertible preferred stock is reported in Other assets in our Consolidated Statements of Financial Condition and had a carrying value of $0 million and $17.4 million at November 30, 2022 and 2021, respectively. The common stock warrants are reported in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition and had a fair value of $54.2 million and $27.8 million at November 30, 2022 and 2021, respectively. We also own redeemable preferred stock and subordinated bonds issued by OpNet. The redeemable preferred stock is reported in Other assets in our Consolidated Statements of Financial Condition and had a carrying value of $24.5 million and $89.1 million at November 30, 2022 and 2021, respectively. During the year ended November 30, 2022, we reported the subordinated bonds in Financial instruments owned, at fair value in our Consolidated Statements of Condition with a fair value of $48.6 million. Additionally, during the year ended November 30, 2022 we have made shareholder loans to OpNet with a carrying value of $19.3 million at November 30, 2022. In November 2022, we made a subscription advance of $12.5 million, and subsequent to year end we have made additional subscription advances of $20.8 million to participate in a new convertible preferred stock offering, which were partially issued in January 2023. We also received warrants for the new convertible preferred stock in January 2023, which are exercisable by December 23, 2027. We, along with another significant shareholder in OpNet, have agreed to provide additional financial support, if necessary, to meet certain funding needs of OpNet until June 2023. The following is a summary of selected financial information for OpNet (in millions): November 30, 2022 2021 Total assets $ 1,050.8 $ 782.0 Total liabilities 935.2 734.0 November 30, 2022 2021 Our total equity balance $ — $ — Year Ended November 30, 2022 2021 2020 Net loss $ (88.6) $ (90.5) $ (78.8) FXCM We have a 50% voting interest in FXCM, a provider of online foreign exchange trading services and have the ability to significantly influence FXCM through our seats on the board of directors. We also have a senior secured term loan to FXCM, which is reported within Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition and had a fair value of $35.1 million and $50.5 million as of November 30 2022, and 2021 respectively. We are amortizing our basis difference between the estimated fair value and the underlying book value of FXCM customer relationships, technology and trade name over their respective useful lives (weighted average life of 11 years). FXCM is considered a VIE and our term loan and equity interest are variable interests. During the year ended November 30, 2022, we recognized an other-than-temporary impairment charge of $25.3 million within Other revenues on the Consolidated Statement of Earnings on our investment. The following is a summary of selected financial information for FXCM (in millions): November 30, 2022 2021 Total assets $ 389.6 $ 387.9 Total liabilities 341.4 382.2 November 30, 2022 2021 Our total equity balance $ 59.7 $ 49.0 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ 39.0 $ (21.5) $ 6.5 In connection with foreign exchange contracts entered into with FXCM, we have $0.5 million and $0.7 million at November 30, 2022 and 2021, respectively, included in Payables—brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. Golden Queen Mining Company LLC We have a 50% ownership interest in Golden Queen Mining Company, LLC (“Golden Queen”), which owns and operates a gold and silver mine project located in California. We also own warrants to purchase shares with a fair value of $0.6 million and $3.1 million at November 30, 2022 and 2021, which if exercised, would increase our ownership to approximately 51.9% of Golden Queen’s common equity. We also have a shareholder loan to Golden Queen with a carrying value of $14.0 million and $13.9 million at November 30, 2022 and 2021 respectively. The following is a summary of selected financial information for Golden Queen (in millions): November 30, 2022 2021 Total assets $ 209.8 $ 224.5 Total liabilities 102.1 101.6 November 30, 2022 2021 Our total equity balance $ 46.5 $ 55.1 Year Ended November 30, 2022 2021 2020 Net loss $ (15.2) $ (14.7) $ (9.6) Real Estate Investments Our real estate equity method investments primarily consist of equity interests in Brooklyn Renaissance Plaza and Hotel and 54 Madison. Brooklyn Renaissance Plaza is composed of a hotel, office building complex and parking garage located in Brooklyn, New York. We have a 25.4% equity interest in the hotel and a 61.3% equity interest in the office building and garage. Although we have a majority interest in the office building and garage, we do not have control, but only have the ability to exercise significant influence on this investment. 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). An impairment charge of $6.9 million was recognized during the year ended November 30, 2020, which represented all of the carrying value in the Brooklyn Renaissance Plaza hotel. We own approximately 48.1% equity interest in 54 Madison, a fund that owns an interest in one real estate project and is in the process of being liquidated. We received cash distributions of $18.4 million and $39.4 million from 54 Madison during years ended November 30, 2022 and 2021, respectively. The following is a summary of selected financial information for our significant Real Estate Investments (in millions): November 30, 2022 2021 Total assets $ 350.4 $ 434.5 Total liabilities 487.5 506.1 November 30, 2022 2021 Our total equity balance $ 107.3 $ 115.2 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ 17.7 $ (27.0) $ (12.3) JCP Fund V We have limited partnership interests of 11% and 50% in Jefferies Capital Partners V L.P. and the Jefferies SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by our President. The amount of our investments in JCP Fund V included in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition was $23.9 million and $25.4 million at November 30, 2022 and 2021, respectively. We account for these investments at fair value based on the NAV of the funds provided by the fund managers (see Note 2, Summary of Significant Accounting Policies, herein). The following summarizes the results from these investments which are included in Principal transactions revenues in our Consolidated Statements of Earnings (in millions): Year Ended November 30, 2022 2021 2020 Net gains (losses) from our investments in JCP Fund V $ 0.1 $ 7.7 $ (3.0) At both November 30, 2022 and 2021, we were committed to invest equity of up to $85.0 million in JCP Fund V. At both November 30, 2022 and 2021, our unfunded commitment relating to JCP Fund V was $8.7 million. The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we owned effectively 35.2% of the combined equity interests (in millions): September 30, 2022 (1) 2021 (1) Total assets $ 68 $ 72 Total liabilities — — Total partners’ capital 68 72 Nine Months Ended September 30, 2022 (1) Three Months Ended December 31, 2021 (1) Nine Months Ended September 30, 2021 (1) Three Months Ended December 31, 2020 (1) Nine Months Ended September 30, 2020 (1) Three Months Ended December 31, 2019 (1) Net increase (decrease) in net assets resulting from operations $ (1.3) $ (3.2) $ 23.8 $ (1.0) $ (12.5) $ (1.4) (1) Financial information for JCP Fund V in financial position and results of operations at November 30, 2022 and 2021 and for the years ended November 30, 2022, 2021 and 2020 is included based on the presented periods. Other Asset Management Investments We have investments in asset management entities with an aggregate carrying amount of $18.6 million and $25.0 million at November 30, 2022 and 2021, respectively, which consist of our shares in Monashee, an investment management company, registered investment advisor and general partner of various investment management funds and provide us with a 50% voting rights interest and the rights to distributions of 47.5% of the annual net profits of Monashee’s operations if certain thresholds are met. A portion of the carrying amount of the investment in Monashee relates to contract and customer relationship and client relationship intangible assets and goodwill. The intangible assets are amortized over their useful life and the goodwill is not amortized. We also have an investment management agreement whereby Monashee provides asset management services to us for certain separately managed accounts. Our net investment balance in the separately managed accounts was $17.7 million and $13.6 million at November 30, 2022 and 2021, respectively. The following table presents the activity included in our Consolidated Statements of Earnings related to these separately managed accounts (in millions): Year Ended November 30, 2022 2021 2020 Investment losses (1) $ (3.2) $ (0.8) $ — Management fees (2) 0.7 — — (1) Included in Principal transactions revenues in our Consolidated Statements of Earnings. (2) Included in Floor brokerage and clearing fees in our Consolidated Statements of Earnings. At November 30, 2021 our equity method investments also consist of membership interests and limited partnership interests of approximately 15% in the Oak Hill investment management company and registered investment adviser and the Oak Hill general partner entity, which is entitled to a carried interest from certain Oak Hill managed funds (collectively “the Oak Hill interests”). On September 30, 2022, we sold the Oak Hill interests with a carrying value of $167.7 million and recognized $175.1 million within Other revenues in our Consolidated Statement of Earnings as a result of the sale. ApiJect We owned shares which represent a 38% economic interest in ApiJect at November 30, 2022. Our investment in ApiJect is accounted for at fair value by electing the fair value option available under U.S. GAAP and is included within corporate equity securities in Financial instruments owned, at fair value in our Consolidated Statements of Financial Condition. At November 30, 2022, we purchased additional common shares of ApiJect and obtained a right to 1.125% of ApiJect’s future revenues for cash consideration of $25.0 million. In addition, we converted our $25.0 million term loan agreement into additional common shares. At November 30, 2022, the change in fair value of our equity investments in ApiJect was a mark-to-market gain of $37.3 million and the total fair value of our equity investment in common shares of ApiJect is $100.1 million, which is included within Level 3 of the fair value hierarchy. Additionally, we owned warrants to purchase up to 950,000 shares of common stock at any time or from time to time on or before April 15, 2032. We also have a term loan agreement with a principal of ApiJect for $28.7 million, maturing on February 28, 2023. The loan is accounted for at cost plus accrued interest and is reported within Other assets in our Consolidated Statements of Financial Condition. Interest income on the term loan of $2.3 million and $1.6 million was recognized in Interest revenues in our Consolidated Statements of Earnings for the year ended November 30, 2022 and 2021, respectively. The loan has a fair value of $28.9 million and $26.6 million at November 30, 2022 and 2021, which is classified as Level 3 in the fair value hierarchy. |
Credit Losses on Financial Asse
Credit Losses on Financial Assets Measured at Amortized Cost | 12 Months Ended |
Nov. 30, 2022 | |
Credit Loss [Abstract] | |
Credit Losses on Financial Assets Measured at Amortized Cost | Credit Losses on Financial Assets Measured at Amortized Cost Automobile Loans. Financial assets measured at amortized cost are presented at the net amount expected to be collected and the measurement of credit losses and any expected increases or decreases in expected credit losses are recognized in earnings. The estimate of expected credit losses involves judgment based on an assessment over the life of the financial instrument taking into consideration forecast of expected future economic conditions. At November 30, 2022 and 2021, we had automobile loans, including accrued interest and related fees, of $891.1 million and $812.6 million, respectively, which are classified as either held for investment or held for sale depending on the intent and ability to hold the loans, which are collateralized by a security interest in the vehicles’ titles. These loans are included in Other assets in our Consolidated Statements of Financial Condition. Loans held for investment are recorded at cost net of deferred acquisition costs and an allowance for credit losses. Loans held for sale are recorded at the lower of cost or fair value until the loans are sold. Provision for credit losses are charged to income in amounts sufficient to maintain an allowance for credit losses inherent in the automobile loans held for investment which is established systematically by management as of the reporting date. All automobile loans held for investment are collectively evaluated for impairment. Management's estimate of expected credit losses is based on an evaluation of relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the future collectability of the reported amounts. We use static pool modeling techniques to determine the allowance for loan losses expected over the remaining life of the loans, which is supplemented by management judgment. Expected losses are estimated for groups of accounts aggregated by monthly vintage. Generally, the expected losses are projected based on historical loss experience over the last eight years, more heavily weighted toward recent performance when determining the allowance to result in an estimate that is more reflective of the current internal and external environments. Our estimate of expected credit losses includes a reasonable and supportable forecast period of two years and then reverts to an estimate based on historical losses. We review charge-off experience factors, contractual delinquency, historical collection rates, the value of underlying collateral and other information to make the necessary judgments as to credit losses expected in the portfolio as of the reporting date. While management utilizes the best information available to make its evaluations, changes in macroeconomic conditions, interest rate environments, or both, may significantly impact the assumptions and inputs used in determining the allowance for credit losses. Our charge-off policy is based on a loan by loan review of delinquent loans. We have an accounting policy to not place loans on nonaccrual status; however, the allowance for credit losses is determined including the accrued interest receivable that it does not expect to collect. A rollforward of the allowance for credit losses related to our automobile loans for the years ended November 30, 2022, 2021 and 2020 is as follows (in thousands): Year Ended November 30, 2022 2021 2020 Beginning balance $ 67,236 $ 29,710 $ 23,606 Adjustment for change in accounting principle for current expected credit losses — 30,148 — Provision for doubtful accounts 35,173 18,768 27,974 Charge-offs, net of recoveries (22,795) (11,390) (21,870) Ending balance $ 79,614 $ 67,236 $ 29,710 The following tables present a summary of automobile loans held for investment by credit score, determined at origination, at November 30, 2022 for each vintage of the loan portfolio: Year of Origination 2022 2021 2020 2019 2018 Prior Years Total Percent Credit scores of 680 and above $ 53,700 $ 46,668 $ 17,276 $ 16,560 $ 7,631 $ 1,378 $ 143,213 16.3 % Credit scores between 620 to 679 170,220 132,528 44,095 35,393 17,635 7,647 407,518 46.3 Credit scores below 620 175,690 97,953 21,371 19,039 8,840 5,602 328,495 37.4 Total $ 399,610 $ 277,149 $ 82,742 $ 70,992 $ 34,106 $ 14,627 $ 879,226 100.0 % The following tables present a summary of automobile loans held for investment by credit score, determined at origination, at November 30, 2021 for each vintage of the loan portfolio: Year of Origination 2021 2020 2019 2018 2017 Prior Years Total Percent Credit scores of 680 and above $ 71,724 $ 31,215 $ 31,143 $ 16,695 $ 3,642 $ 805 $ 155,224 19.4 % Credit scores between 620 to 679 198,097 79,315 66,247 37,714 17,637 6,509 405,519 50.6 Credit scores below 620 132,374 38,322 34,638 18,277 11,689 5,644 240,944 30.0 Total $ 402,195 $ 148,852 $ 132,028 $ 72,686 $ 32,968 $ 12,958 $ 801,687 100.0 % The aging of automobile loans held for investment at November 30, 2022 is as follows: Year of Origination 2022 2021 2020 2019 2018 Prior Years Total Percent Current Accounts $ 380,863 $ 255,412 $ 76,841 $ 66,338 $ 31,269 $ 13,291 $ 824,014 93.7 % Delinquent Accounts 30 - 59 days 12,720 15,550 4,307 3,380 2,020 1,097 39,074 4.4 60 - 89 days 3,718 4,156 1,090 734 569 181 10,448 1.2 90 days and over 2,309 2,031 504 539 248 59 5,690 0.7 Total $ 399,610 $ 277,149 $ 82,742 $ 70,991 $ 34,106 $ 14,628 $ 879,226 100.0 % The aging of automobile loans held for investment at November 30, 2021 is as follows: Year of Origination 2021 2020 2019 2018 2017 Prior Years Total Percent Current Accounts $ 391,366 $ 142,210 $ 125,580 $ 68,852 $ 31,147 $ 12,041 $ 771,196 96.2 % Delinquent Accounts 30 - 59 days 7,387 4,444 4,330 2,979 1,472 698 21,310 2.7 60 - 89 days 2,613 1,586 1,620 616 305 157 6,897 0.8 90 days and over 829 612 498 240 44 61 2,284 0.3 Total $ 402,195 $ 148,852 $ 132,028 $ 72,687 $ 32,968 $ 12,957 $ 801,687 100.0 % Secured Financing Receivables . In evaluating secured financing receivables (reverse repurchases agreements, securities borrowing arrangements, and margin loans), the underlying collateral maintenance provisions are taken into consideration. The underlying contractual collateral maintenance for significantly all of our secured financing receivables requires that the counterparty continually adjust the collateralization amount, securing the credit exposure on these contracts. Collateralization levels for our secured financing receivables are initially established based upon the counterparty, the type of acceptable collateral that is monitored daily and adjusted to mitigate the potential of any credit losses. Credit losses are not recognized for secured financing receivables where the underlying collateral's fair value is equal to or exceeds the asset's amortized cost basis. In cases where the collateral's fair value does not equal or exceed the amortized cost basis, the allowance for credit losses, if any, is limited to the difference between the fair value of the collateral at the reporting date and the amortized cost basis of the financial assets. During the year ended November 30, 2021, we incurred bad debt expense of $39.0 million related to a specific default in our prime brokerage business. Broker Receivables . Our receivables from brokers, dealers, and clearing organizations include deposits of cash with exchange clearing organizations to meet margin requirements, amounts due from clearing organizations for daily variation settlements, securities failed-to-deliver or receive, receivables and payables for fees and commissions, and receivables arising from unsettled securities or loans transactions. These receivables generally do not give rise to material credit risk and have a remote probability of default either because of their short-term nature or due to the credit protection framework inherent in the design and operations of brokers, dealers and clearing organizations. As such, generally, no allowance for credit losses is held against these receivables. Other Financial Assets . For all other financial assets measured at amortized cost, we estimate expected credit losses over the financial assets' life as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts . Our allowance for credit losses on our investment banking fee receivables using a provisioning matrix based on the shared risk characteristics and historical loss experience for such receivables. In some instances, we may adjust the allowance calculated based on the provision matrix to incorporate a specific allowance based on the unique credit risk profile of a receivable. The provisioning matrix is periodically updated to reflect changes in the underlying portfolio's credit characteristics and most recent historical loss data. The allowance for credit losses for investment banking receivables for the years ended November 30, 2022, 2021 and 2020 is as follows (in thousands): Year Ended November 30, 2022 2021 2020 Beginning balance $ 4,824 $ 19,788 $ 6,817 Adjustment for change in accounting principle for current expected credit losses — (3,594) — Bad debt expense, net of reversals 4,141 2,287 19,582 Charge-offs (910) (6,409) (2,083) Recoveries collected (2,141) (7,248) (4,528) Ending balance (1) $ 5,914 $ 4,824 $ 19,788 (1) The allowance for doubtful accounts balances are substantially all related to mergers and acquisitions and restructuring fee receivables, which include recoverable expense receivables. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill attributed to our reportable business segments are as follows (in thousands): November 30, 2022 2021 Investment Banking and Capital Markets $ 1,552,944 $ 1,561,928 Asset Management 183,170 183,170 Total goodwill $ 1,736,114 $ 1,745,098 The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2022 2021 Balance, at beginning of period $ 1,745,098 $ 1,746,314 Currency translation and other adjustments (8,984) (1,216) Balance, at end of period $ 1,736,114 $ 1,745,098 Goodwill Impairment Testing A reporting unit is an operating segment or one level below an operating segment. The quantitative goodwill impairment test is performed at the level of the reporting unit. The fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value, then an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit's fair value. Allocated tangible equity plus allocated goodwill and intangible assets are used for the carrying amount of each reporting unit. Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using methodologies that include a market valuation method that incorporated price-to-earnings and price-to-book multiples of comparable public companies and/or projected cash flows. Under the market valuation approach, the key assumptions are the selected multiples and our internally developed projections of future profitability, growth and return on equity for each reporting unit. The weight assigned to the multiples requires judgment in qualitatively and quantitatively evaluating the size, profitability and the nature of the business activities of the reporting units as compared to the comparable publicly-traded companies. In addition, as the fair values determined under the market valuation approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2022. Historically, we have performed our annual goodwill impairment testing within the Investment Banking and Capital Markets and Asset Management reportable business segments, which did not indicate any goodwill impairment as of our annual testing date of August 1, 2022. On November 1, 2022, in connection with the merger of Jefferies Group LLC into Jefferies Financial Group Inc., we reassessed our reporting units based on the discrete financial information to be made available to segment management as of and subsequent to the merger. As a result, we identified each of the Investment Banking, Equities and Fixed Income businesses to be reporting units within the Investment Banking and Capital Markets reportable business segment. The total goodwill of $1.55 billion attributed to the Investment Banking and Capital Markets reportable business segment has been assigned to each of these reporting units as of November 1, 2022, based on the relative fair value of each of the reporting units as of November 1, 2022. The relative fair value estimate of each of the reporting units as of November 1, 2022 was based on methodologies consistent with the market valuation approach used in our annual impairment test, which are consistent with valuation techniques market participants would use. In connection with the transfer of certain legacy merchant banking investments to our Asset Management segment, goodwill previously attributable to our Merchant Banking reportable segment is now included within our Asset Management reportable business segment. We tested the assigned goodwill to each of the Investment Banking, Equities and Fixed Income reporting units as of November 1, 2022 for impairment by comparing the fair value of the reporting units to their carrying values as of November 1, 2022. The carrying values of the reporting units were determined based on, allocated tangible equity as determined by our cash capital model plus allocated goodwill and intangible assets. The amount of tangible equity allocated to a reporting unit is based on our cash capital model deployed in managing our businesses, which seeks to approximate the capital a business would require if it were operating independently. Intangible assets are allocated to a reporting unit based on either specifically identifying a particular intangible asset as pertaining to a reporting unit or, if shared among reporting units, based on an assessment of the reporting unit’s benefit from the intangible asset in order to generate results. There was no indication of goodwill impairment in any of the reporting units as a result of the testing performed as of November 1, 2022 in connection with the reassessment of our reporting units. Intangible Assets Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2022 and 2021 (dollars in thousands): November 30, 2022 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,028 $ — $ (89,109) $ 36,919 8.2 Trade name 127,185 — (35,486) 91,699 25.3 Exchange and clearing organization membership interests and registrations 7,447 (39) — 7,408 N/A Other 14,957 — (11,521) 3,436 4.7 Total $ 275,617 $ (39) $ (136,116) $ 139,462 November 30, 2021 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 170,820 $ — $ (128,012) $ 42,808 9.0 Trade name 128,753 — (32,244) 96,509 26.3 Exchange and clearing organization membership interests and registrations 7,798 (66) — 7,732 N/A Other 16,682 — (11,329) 5,353 5.6 Total $ 324,053 $ (66) $ (171,585) $ 152,402 We performed our annual impairment testing of intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2022. We utilized quantitative assessments of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization and qualitative assessments were performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessments, we recognized impairment losses on certain exchange membership interests and registrations. With regard to our qualitative assessments of the remaining indefinite life intangible assets, based on our assessments of market conditions, the utilization of the assets and the replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired. Amortization Expense For finite life intangible assets, aggregate amortization expense amounted to $10.9 million, $14.2 million and $15.3 million for the years ended November 30, 2022, 2021 and 2020, respectively. These expenses are included in Other expenses in our Consolidated Statements of Earnings. The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Year ending November 30, 2023 $ 9,902 Year ending November 30, 2024 9,147 Year ending November 30, 2025 8,636 Year ending November 30, 2026 8,608 Year ending November 30, 2027 8,593 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings at November 30, 2022 and 2021 mature in one year or less and include the following (in thousands): November 30, 2022 2021 Bank loans (1) $ 517,524 $ 215,063 Fixed rate callable note (1) 4,068 — Floating rate puttable notes (1) 6,800 6,800 Total short-term borrowings $ 528,392 $ 221,863 (1) These Short-term borrowings are recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. At November 30, 2022, the weighted average interest rate on short-term borrowings outstanding is 4.62% per annum. At November 30, 2022 and 2021, our borrowings under credit facilities classified within bank loans in Short-term borrowings in our Consolidated Statements of Financial Condition were $517.0 million and $200.0 million, respectively. Our borrowings include credit facilities that contain certain covenants that, among other things, require us to maintain a specified level of tangible net worth, require a minimum regulatory net capital requirement for our U.S. broker-dealer, Jefferies LLC, and impose certain restrictions on the future indebtedness of certain of our subsidiaries that are borrowers. Interest is based on rates at spreads over the federal funds rate or other adjusted rates, as defined in the various credit agreements, or at a rate as agreed between the bank and us in reference to the bank’s cost of funding. At November 30, 2022, we were in compliance with all covenants under these credit facilities. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): November 30, Maturity Effective Interest Rate 2022 2021 Unsecured long-term debt 5.500% Senior Notes October 18, 2023 5.47% $ 393,048 $ 440,120 1.000% Euro Medium Term Notes July 19, 2024 1.00% 519,970 564,985 4.500% Callable Note due 2025 July 22, 2025 4.84% 6,153 — 5.000% Callable Note due 2026 March 26, 2026 5.52% 8,554 — 4.850% Senior Notes (1) January 15, 2027 6.29% 703,533 775,550 6.450% Senior Debentures June 8, 2027 5.46% 363,915 366,556 5.000% Callable Note due 2027 June 16, 2027 5.22% 24,784 — 5.000% Callable Note due 2028 February 17, 2028 5.29% 9,888 — 4.150% Senior Notes January 23, 2030 4.26% 991,518 990,525 2.625% Senior Debentures (1) October 15, 2031 3.90% 911,777 988,059 2.750% Senior Debentures (1) October 15, 2032 5.67% 392,162 460,724 6.250% Senior Notes January 15, 2036 6.03% 497,681 505,267 6.500% Senior Notes January 20, 2043 6.09% 409,472 409,926 6.625% Senior Notes October 23, 2043 6.61% 246,954 246,888 Floating Rate Senior Notes October 29, 2071 3.72% 61,715 61,703 Unsecured Revolving Credit Facility August 3, 2023 5.29% 349,578 348,951 Structured notes (2) Various Various 1,583,828 1,843,598 Total unsecured long-term debt 7,474,530 8,002,852 Secured long-term debt HomeFed EB-5 Program debt 209,060 203,132 HomeFed construction loans 56,965 45,581 Secured Credit Facilities 933,531 774,180 Secured Bank Loan 100,000 100,000 Total long-term debt (3) $ 8,774,086 $ 9,125,745 (1) The carrying values of these senior notes include net gains of $219.1 million and $58.5 million during the years ended November 30, 2022 and 2021, respectively, associated with interest rate swaps based on designation as fair value hedges. See Note 2, Summary of Significant Accounting Policies, and Note 5, Derivative Financial Instruments, for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. A weighted average coupon rate is not meaningful, as all of the structured notes are carried at fair value. (3) The Total Long-term debt has a fair value of $8.46 billion and $9.85 billion at November 30, 2022 and 2021, respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. In connection with the merger of Jefferies Group LLC with and into Jefferies Financial Group Inc. on November 1, 2022, we assumed all of the debt obligations of Jefferies Group LLC, which had previously been non-recourse to us. During 2022, long-term debt decreased by $351.7 million to $8.77 billion at November 30, 2022, as presented in our Consolidated Statements of Financial Condition. This decrease is primarily due to fair value changes in our structured notes and gains on certain of our senior notes associated with interest rate swaps based on their designation as fair value hedges, partially offset by structured notes issuances, net of retirements, of approximately $209.4 million and net issuances of approximately $176.7 million related to our secured credit facilities. During 2021, long-term debt increased by $774 million to $9.13 billion at November 30, 2021. This increase is primarily due to our issuances of 2.625% senior notes with a principal amount of $1.0 billion, due 2031, and floating rate senior notes with a principal amount of $62.3 million, due 2071, partially offset by the early redemption of our 5.125% senior notes with a principal amount of $750.0 million, due January 20, 2023 and partial repurchase of $308.3 million of our 5.500% senior notes, due October 18, 2023. The change was also due to an increase of $349.0 million from borrowings under our senior unsecured revolving credit facility (“Unsecured Revolving Credit Facility”), an increase of $484.3 million from secured long-term borrowings and approximately $175.6 million of structured notes issuances, net of retirements. At November 30, 2022 and 2021 , our borrowings under several credit facilities classified within Long-term debt in our Consolidated Statements of Financial Condition amounted to $933.5 million and $774.1 million, respectively. Interest on these credit facilities are based on adjusted London Interbank Offered Rate (“LIBOR”) rates, Secured Overnight Financing Rate ("SOFR") plus a spread or other adjusted rates, as defined in the various credit agreements. The credit facility agreements contain certain covenants that, among other things, require us to maintain specified levels of tangible net worth and liquidity amounts, and impose certain restrictions on future indebtedness of and require specified levels of regulated capital and cash reserves for certain of our subsidiaries. At November 30, 2022, we were in compliance with all covenants under theses credit facilities, except for certain facilities secured by automobile loans with an amount outstanding of $112.9 million for which technical covenant violations have occurred that are in the process of being resolved with the lenders. In addition, one of our subsidiaries has a Loan and Security Agreement with a bank for a term loan (“Secured Bank Loan”). At November 30, 2022 and 2021 , borrowings under the Secured Bank Loan amounted to $100.0 million and are also classified within Long-term debt in our Consolidated Statements of Financial Condition. The Secured Bank Loan matures on September 13, 2024 and is collateralized by certain trading securities with an interest rate of 1.25% plus LIBOR. The agreement contains certain covenants that, among other things, restricts lien or encumbrance upon any of the pledged collateral. At November 30, 2022, we were in compliance with all covenants under the Secured Bank Loan. 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 debt is secured by certain real estate of HomeFed. At November 30, 2022, 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 EB-5 Program debt matures in 2024 through 2026. |
Leases
Leases | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases We enter into lease and sublease agreements, primarily for office space, across our geographic locations. Information related to operating leases in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 is as follows (in thousands, except lease term and discount rate): November 30, 2022 2021 Premises and equipment - ROU assets $ 455,264 $ 472,014 Weighted average: Remaining lease term (in years) 10.0 10.0 Discount rate 2.9 % 2.9 % The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 (in thousands): November 30, Fiscal Year 2022 2021 2022 $ — $ 75,384 2023 76,847 71,383 2024 78,656 67,039 2025 78,103 66,939 2026 74,472 64,105 2027 71,255 61,722 2028 and thereafter 228,722 228,964 Total undiscounted cash flows 608,055 635,536 Less: Difference between undiscounted and discounted cash flows (75,353) (87,470) Operating leases amount in our Consolidated Statements of Financial Condition 532,702 548,066 Finance leases amount in our Consolidated Statements of Financial Condition 1,006 229 Total amount in our Consolidated Statements of Financial Condition $ 533,708 $ 548,295 In addition to the table above, at November 30, 2022, we entered into a lease agreement that was signed but had not yet commenced. This operating lease will commence in 2023 with a lease term of five years. Lease payments for this lease agreement will be $1.2 million for the period from lease commencement to the end of the lease term. The following table presents our lease costs (in thousands): Year Ended November 30, 2022 2021 2020 Operating lease costs (1) $ 80,959 $ 79,701 $ 77,452 Variable lease costs (2) 12,887 11,168 13,576 Less: Sublease income (4,507) (7,191) (7,590) Total lease cost, net $ 89,339 $ 83,678 $ 83,438 (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 Statements of Cash Flows supplemental information was as follows (in thousands): Year Ended November 30, 2022 2021 2020 Cash outflows - lease liabilities $ 81,082 $ 79,437 $ 73,300 Non-cash - ROU assets recorded for new and modified leases 87,977 30,246 22,460 The amortization of the ROU assets is included within Other adjustments in the Consolidated Statements of Cash Flows. |
Mezzanine Equity
Mezzanine Equity | 12 Months Ended |
Nov. 30, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Redeemable Noncontrolling Interests At November 30, 2022 and 2021, redeemable noncontrolling interests include other redeemable noncontrolling interests of $6.5 million and $25.4 million, respectively, primarily related to our oil and gas exploration and development businesses. Mandatorily Redeemable Convertible Preferred Shares Our 125,000 callable mandatorily redeemable cumulative convertible preferred shares ("Preferred Shares") are callable beginning January 2023 at a price of $1,000 per share, plus accrued interest and are mandatorily redeemable in 2038 for $125.0 million. The Preferred Shares have a dividend rate equal to the sum of 3.25% annual, cumulative cash dividend, plus an additional quarterly payment based on the amount by which our common stock dividends exceed $0.0625 per common share. At November 30, 2022, the Preferred Shares are convertible into 4,440,863 common shares, an effective conversion price of $28.15 per share. Based on the current quarterly dividend of $0.30 per common share, the effective rate on these Preferred Shares is approximately 6.6%. In connection with the Vitesse Energy spin-off, the number of common shares into which the Preferred Shares will convert may be adjusted based on subsequent trading prices, which may increase the number of Preferred Shares convertible into common shares. |
Common Shares and Earnings Per
Common Shares and Earnings Per Common Share | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Common Shares and Earnings Per Common Share | Common Shares and Earnings Per Common Share Basic and diluted earnings per common share amounts were calculated by dividing net earnings 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): Year Ended November 30, 2022 2021 2020 Numerator for earnings per common share: Net earnings attributable to Jefferies Financial Group Inc. $ 777,168 $ 1,667,403 $ 769,605 Allocation of earnings to participating securities (1) (3,015) (9,961) (4,795) Net earnings attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 774,153 1,657,442 764,810 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 29 207 23 Mandatorily redeemable convertible preferred share dividends 8,281 6,949 5,634 Net earnings attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 782,463 $ 1,664,598 $ 770,467 Denominator for earnings per common share: Weighted average common shares outstanding 234,258 246,991 268,518 Weighted average shares of restricted stock outstanding with future service required (1,330) (1,567) (1,785) Weighted average RSUs outstanding with no future service required 14,450 18,171 18,960 Denominator for basic earnings per common share – weighted average shares 247,378 263,595 285,693 Stock options and other share-based awards 1,518 1,203 — Senior executive compensation plan RSU awards 2,234 2,262 356 Mandatorily redeemable convertible preferred shares 4,441 4,441 4,441 Denominator for diluted earnings per common share 255,571 271,501 290,490 Earnings per common share: Basic $ 3.13 $ 6.29 $ 2.68 Diluted $ 3.06 $ 6.13 $ 2.65 (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 991,400, 1,586,500 and 1,801,700 for the years ended November 30, 2022, 2021 and 2020, respectively. Dividends declared on participating securities were $1.1 million, $1.4 million and $1.0 million during the years ended November 30, 2022, 2021 and 2020, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Nov. 30, 2022 | |
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): November 30, 2022 2021 2020 Net unrealized gains (losses) on available for sale securities $ (5,892) $ 269 $ 513 Net unrealized foreign exchange losses (220,071) (166,499) (156,718) Net unrealized losses related to instrument specific credit risk (104,526) (153,672) (71,151) Net minimum pension liability (48,930) (52,241) (61,561) Total accumulated other comprehensive loss $ (379,419) $ (372,143) $ (288,917) Significant amounts reclassified out of accumulated other comprehensive income (loss) to net earnings are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Earnings Year Ended November 30, 2022 2021 2020 Net unrealized gains (losses) on instrument specific credit risk at fair value, net of income tax benefit (expense) of $41, $(599), and $(146), respectively $ (129) $ 1,861 $ 397 Principal transactions revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $845, $1,054, and $957, respectively (2,483) (3,138) (2,872) Compensation and benefits expenses. See Note 14, Benefit Plans for information on this component. Total reclassifications for the period, net of tax $ (2,612) $ (1,277) $ (2,475) |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Nov. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): Year Ended November 30, 2022 2021 2020 Revenues from contracts with customers: Investment banking $ 2,807,822 $ 4,365,699 $ 2,501,494 Commissions and other fees 925,494 896,015 822,248 Asset management fees 23,525 14,836 14,702 Manufacturing revenues 412,605 538,628 421,434 Oil and gas revenues 302,135 182,973 102,210 Real estate revenues 223,323 102,297 26,671 Other contracts with customers 47,954 41,353 34,468 Total revenue from contracts with customers 4,742,858 6,141,801 3,923,227 Other sources of revenue: Principal transactions 833,757 1,617,336 1,928,143 Revenues from strategic affiliates 56,739 57,248 19,507 Interest 1,183,638 956,318 1,009,548 Other 332,271 172,761 22 Total revenues $ 7,149,263 $ 8,945,464 $ 6,880,447 Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services ( i.e. , the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third-parties. The following provides detailed information on the recognition of our revenues from contracts with customers: Investment Banking. We provide our clients with a full range of financial advisory and underwriting services. Revenues from financial advisory services primarily consist of fees generated in connection with merger, acquisition and restructuring transactions. Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. Fees received prior to the completion of the transaction are deferred within Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress as our clients simultaneously receive and consume the benefits of those services as they are provided. A significant portion of the fees we receive for our advisory services are considered variable as they are contingent upon a future event ( e.g. , completion of a transaction or third-party emergence from bankruptcy) and are excluded from the transaction price until the uncertainty associated with the variable consideration is subsequently resolved, which is expected to occur upon achievement of the specified milestone. Payment for advisory services are generally due promptly upon completion of a specified milestone or, for retainer fees, periodically over the course of the engagement. We recognize a receivable between the date of completion of the milestone and payment by the customer. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring assignments, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category in our Consolidated Statements of Earnings and any expenses reimbursed by our clients are recognized as Investment banking revenues. Underwriting services include underwriting and placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked securities transactions and structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal bonds and mortgage-backed and asset-backed securities. Underwriting and placement agent revenues are recognized at a point in time on trade-date, as the client obtains the control and benefit of the underwriting offering at that point. Costs associated with underwriting transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis within Underwriting costs in our Consolidated Statements of Earnings as we are acting as a principal in the arrangement. Any expenses reimbursed by our clients are recognized as Investment banking revenues. Commissions and Other Fees. We earn commission and other fee revenue by executing, settling and clearing transactions for clients primarily in equity, equity-related and futures products. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenues associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade-date. Commissions revenues are generally paid on settlement date and we record a receivable between trade-date and payment on settlement date. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third-parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. We act as an agent in the soft dollar arrangements as the customer controls the use of the soft dollars and directs our payments to third-party service providers on its behalf. Accordingly, amounts allocated to soft dollar arrangements are netted against commission revenues in our Consolidated Statements of Earnings. We also earn investment research fees for the sales of our proprietary investment research when a contract with a client has been identified. The delivery of investment research services represents a distinct performance obligation that is satisfied over time when the performance obligation is to provide ongoing access to a research platform or research analysts, with fees recognized on a straight-line basis over the period in which the performance obligation is satisfied. The performance obligation is satisfied at a point in time when the performance obligation is to provide individual interactions with research analysts or research events, with fees recognized on the interaction date. We earn account advisory and distribution fees in connection with wealth management services. Account advisory fees are recognized over time using the time-elapsed method as we determined that the customer simultaneously receives and consumes the benefits of investment advisory services as they are provided. Account advisory fees may be paid in advance of a specified service period or in arrears at the end of the specified service period ( e.g. , quarterly). Account advisory fees paid in advance are initially deferred within Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. Distribution fees are variable and recognized when the uncertainties with respect to the amounts are resolved. 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. We earn revenues from the sale of manufactured or remanufactured lumber. 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. Oil and Gas Revenues. The sales of oil and natural gas are made under contracts negotiated with customers, which typically include variable consideration based on monthly pricing tied to local indices and volumes. Revenue is recorded at the point in time when control of the produced oil and gas transfers to the customer, which is when the performance obligation is satisfied. The amount of production delivered to the customer and the price that will be received for the sale of the product is estimated utilizing production reports, market indices and estimated differential. The variable consideration can be reasonably estimated at the end of the month when the performance obligation is satisfied. Real Estate Revenues. Revenues from the sales of real estate are recognized at a point in time when the related transaction is complete. The majority of our real estate sales of land, lots and homes transfer the goods and services to the customer at the close of escrow when the title transfers to the buyer and the buyer has the benefit and control of the goods and service. If performance obligation under the contract with a customer related to a parcel of real estate are not yet complete when title transfers to the buyer, revenue associated with the incomplete performance obligation is deferred until the performance obligation is completed. Disaggregation of Revenue The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Year Ended November 30, 2022 2021 2020 Reportable Segment Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 1,778,003 $ — $ 1,778,003 $ 1,873,560 $ — $ 1,873,560 $ 1,053,500 $ — $ 1,053,500 Investment banking - Underwriting 1,029,819 — 1,029,819 2,492,139 — 2,492,139 1,447,994 — 1,447,994 Equities (1) 910,254 — 910,254 881,660 — 881,660 806,340 — 806,340 Fixed income (1) 15,240 — 15,240 14,355 — 14,355 15,908 — 15,908 Asset management — 23,525 23,525 — 14,836 14,836 — 14,702 14,702 Merchant banking — 986,017 986,017 — 865,251 865,251 — 584,783 584,783 Total $ 3,733,316 $ 1,009,542 $ 4,742,858 $ 5,261,714 $ 880,087 $ 6,141,801 $ 3,323,742 $ 599,485 $ 3,923,227 Primary geographic region: Americas $ 2,910,318 $ 1,005,200 $ 3,915,518 $ 4,249,641 $ 876,242 $ 5,125,883 $ 2,741,288 $ 592,474 $ 3,333,762 Europe and the Middle East 575,012 2,595 577,607 766,746 2,816 769,562 401,853 6,645 408,498 Asia 247,986 1,747 249,733 245,327 1,029 246,356 180,601 366 180,967 Total $ 3,733,316 $ 1,009,542 $ 4,742,858 $ 5,261,714 $ 880,087 $ 6,141,801 $ 3,323,742 $ 599,485 $ 3,923,227 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. Refer to Note 24, Segment Reporting, for a further discussion on the allocation of revenues to geographic regions. Information on Remaining Performance Obligations and Revenue Recognized from Past Performance We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at November 30, 2022. Investment banking advisory fees that are contingent upon completion of a specific milestone and fees associated with certain distribution services are also excluded as the fees are considered variable and not included in the transaction price at November 30, 2022. During the years ended November 30, 2022, 2021 and 2020, we recognized $78.9 million, $50.0 million and $11.1 million, respectively, of revenue related to performance obligations satisfied (or partially satisfied) in previous periods, mainly due to resolving uncertainties in variable consideration that was constrained in prior periods. In addition, we recognized $28.1 million, $12.1 million and $17.6 million of revenues primarily associated with distribution services during the years ended November 30, 2022, 2021 and 2020, respectively, a portion of which relates to prior periods. Contract Balances The timing of our revenue recognition may differ from the timing of payment by our customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. Our deferred revenue primarily relates to retainer and milestone fees received in investment banking advisory engagements where the performance obligation has not yet been satisfied. Deferred revenue at November 30, 2022 and 2021 was $27.0 million and $49.7 million, respectively, which are recorded in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. During the years ended November 30, 2022, 2021 and 2020, we recognized revenue of $48.7 million, $10.8 million and $10.9 million, respectively, that were recorded as deferred revenue at the beginning of the year. We had receivables related to revenues from contracts with customers of $206.6 million and $298.7 million at November 30, 2022 and 2021, respectively. Contract Costs We capitalize costs to fulfill contracts associated with investment banking advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At November 30, 2022 and 2021, capitalized costs to fulfill a contract were $3.4 million and $1.6 million, respectively, which are recorded in Receivables – Fees, interest and other in the Consolidated Statement of Financial Condition. For the years ended November 30, 2022, 2021 and 2020, we recognized expenses of $1.6 million, $1.7 million and $5.1 million, respectively, related to costs to fulfill a contract that were capitalized as of the beginning of the year. There were no significant impairment charges recognized in relation to these capitalized costs during the years ended November 30, 2022, 2021 and 2020. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans U.S. Pension Plans Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, ("WilTel") the responsibility for WilTel's defined benefit pension plan was retained by us. All benefits under this plan were frozen as of October 30, 2005. Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”) is a defined benefit pension plan covering certain employees; benefits under that plan were frozen as of December 31, 2005. We contributed $1.0 million to the U.S. Pension Plan during the year ended November 30, 2022 and we anticipate making $1.0 million contribution to the plan for the year ending November 30, 2023. A summary of activity with respect to both plans is as follows (in thousands): Year Ended November 30, 2022 2021 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 226,728 $ 236,572 Interest cost 5,805 4,946 Actuarial (gains) losses (47,362) (4,977) Settlements (4,702) — Benefits paid (8,403) (9,813) Projected benefit obligation, end of year $ 172,066 $ 226,728 Change in plan assets: Fair value of plan assets, beginning of year $ 199,215 $ 190,220 Actual return on plan assets (37,574) 13,619 Employer contributions 1,000 7,089 Benefits paid (8,403) (9,813) Settlements (4,702) — Administrative expenses paid (2,264) (1,900) Fair value of plan assets, end of year $ 147,272 $ 199,215 Funded status at end of year $ (24,794) $ (27,513) As of November 30, 2022 and 2021, $40.5 million and $44.9 million, respectively, of the net amount recognized in the Consolidated Statements of Financial Condition was reflected as a charge to Accumulated other comprehensive income (loss) (substantially all of which were cumulative losses) and $24.8 million and $27.5 million, respectively, was reflected as accrued pension cost. The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands): Year Ended November 30, 2022 2021 2020 Interest cost $ 5,805 $ 4,946 $ 6,349 Expected return on plan assets (7,311) (8,433) (7,934) Settlement losses 833 — 376 Actuarial losses 3,348 4,192 3,453 Net periodic pension cost $ 2,675 $ 705 $ 2,244 Amounts recognized in other comprehensive income (loss): Net (gains) losses arising during the period $ (211) $ (8,264) $ 3,821 Settlement losses (833) — (376) Amortization of net loss (3,348) (4,192) (3,453) Total recognized in other comprehensive income (loss) $ (4,392) $ (12,456) $ (8) Net amount recognized in net periodic benefit cost and other comprehensive income (loss) $ (1,717) $ (11,751) $ 2,236 The amounts in Accumulated other comprehensive income (loss) at November 30, 2022 and 2021 have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations. The assumptions used are as follows: November 30, 2022 2021 WilTel Plan Discount rate used to determine benefit obligation 4.90 % 2.60 % Weighted-average assumptions used to determine net pension cost: Discount rate 2.60 % 2.20 % Expected long-term return on plan assets 6.00 % 7.00 % U.S. Pension Plan Discount rate used to determine benefit obligation 4.80 % 2.40 % Weighted-average assumptions used to determine net pension cost: Discount rate 2.40 % 2.00 % Expected long-term return on plan assets 5.00 % 5.00 % The following pension benefit payments are expected to be paid (in thousands): Fiscal Year: 2023 $ 15,869 2024 12,362 2025 12,015 2026 12,933 2027 13,487 2028 – 2032 63,356 U.S. Plan Assets The information below on the plan assets for the WilTel plan and the U.S. Pension Plan is presented separately for the plans as the investments are managed independently. WilTel Plan Assets The current investment objectives are designed to close the funding gap while mitigating funded status volatility through a combination of liability hedging and investment returns. As plan funded status improves, the asset allocation will move along a predetermined, de-risking glide path that reallocates capital from growth assets to liability-hedging assets in order to reduce funded status volatility and lock in funded status gains. Plan assets are split into two separate portfolios, each with different asset mixes and objectives. The portfolios are valued at their NAV as a practical expedient for fair value. • The Growth Portfolio consists of global equities and high yield investments. • The Liability-Driven Investing ("LDI") Portfolio consists of long duration credit bonds and a suite of long duration, Treasury-based instruments designed to provide capital-efficient interest rate exposure as well as target specific maturities. The objective of the LDI Portfolio is to seek to achieve performance similar to the WilTel plan's liability by seeking to match the interest rate sensitivity and credit sensitivity. The LDI Portfolio is managed to mitigate volatility in funded status deriving from changes in the discounted value of benefit obligations from market movements in the interest rate and credit components of the underlying discount curve. U.S. Pension Plan Assets We have an agreement with an external investment manager to invest and manage the plan’s assets under a strategy using a combination of two portfolios. The investment manager allocates the plan’s assets between a growth portfolio and a liability-driven portfolio according to certain target allocations and tolerance bands that are agreed to by the Administrative Committee of the U.S. Pension Plan. Such target allocations will take into consideration the plan’s funded ratio. The manager will also monitor the strategy and, as the plan’s funded ratio changes over time, will rebalance the strategy, if necessary, to be within the agreed tolerance bands and target allocations. The portfolios are composed of certain common collective investment trusts that are established and maintained by the investment manager. The common collective trusts are valued at their NAV as a practical expedient for fair value. Plan Assumptions To develop the assumption for the expected long-term rate of return on plan assets, we considered the following underlying assumptions: 2.5% current expected inflation, (0.5)% to 1.5% real rate of return for long duration risk free investments and an additional 0.5% to 1.5% return premium for corporate credit risk. For U.S. and international equity, we assume an equity risk premium over risk-free assets equal to 4.6%. We then weighted these assumptions based on invested assets and assumed that investment expenses were offset by expected returns in excess of benchmarks, which resulted in the selection of 6.0% and 5.0% expected long-term rate of return assumption for WilTel and U.S. Pension plan, respectively, for 2022. Other We have defined contribution pension plans, including 401(k) plans, that cover certain employees. Amounts charged to expense related to such plans were $12.7 million, $9.8 million and $9.5 million for the years ended November 30, 2022, 2021 and 2020, respectively. |
Compensation Plans
Compensation Plans | 12 Months Ended |
Nov. 30, 2022 | |
Compensation Related Costs [Abstract] | |
Compensation Plans | Compensation Plans Equity Compensation Plan. Our 2003 Incentive Compensation Plan, as Amended and Restated ("Incentive Plan"), allowed awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, restricted stock units (“RSUs”), dividend equivalents or other share-based awards. We also have the 1999 Directors' Stock Compensation Plan, as Amended and Restated July 25, 2013 (the "Directors' Plan"), which provided for equity awards to our non-employee directors. On March 25, 2021, a new Equity Compensation Plan (the "ECP") was approved by shareholders. The ECP replaced the Incentive Plan and Directors' Plan; no further awards will be granted under the replaced plans. The ECP is an omnibus plan authorizing a variety of equity award types, as well as cash incentive awards, to be used for employees, non-employee directors and other service providers. At November 30, 2022, 4,489,965 shares remain available for new grants under the ECP. Restricted stock awards are grants of our common shares that require service as a condition of vesting. RSUs give a participant the right to receive shares if service or performance conditions are met, and which may specify an additional deferral period allowing a participant to hold an interest tied to common stock on a tax deferred basis. Prior to settlement, RSUs carry no voting or dividend rights associated with the stock ownership, but dividend equivalents are accrued to the extent there are dividends declared on the underlying common shares as cash amounts or as deemed reinvestments in additional RSUs. Restricted stock and RSUs may be granted to new employees as "sign-on" awards, to existing employees as "retention" awards and to certain executive officers as incentive awards. Sign-on and retention awards are generally subject to annual ratable vesting over a multi-year service period and are amortized as compensation expense on a straight-line basis over the service period. Restricted stock and RSUs granted to certain senior executives may contain market, performance and/or service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market conditions are not met. Awards with performance conditions are amortized over the service period if, and to the extent, it is determined to be probable that the performance condition will be achieved. If awards are forfeited due to failure to achieve performance conditions or failure to satisfy service conditions, any previously recognized expense for such awards is reversed. Senior Executive Compensation Plan. The Compensation Committee of our Board of Directors approved an executive compensation plan for our senior executives for compensation year 2020 (the "2020 Plan"). For each senior executive, the Compensation Committee targeted long-term compensation of $22.5 million per year under the 2020 Plan with a target of $16.0 million in long-term equity in the form of RSUs and a target of $6.5 million in cash for both plan years. To receive targeted long-term equity, our senior executives had to achieve 9% growth on a multi-year compounded basis in Jefferies’ total shareholder return ("TSR") and to receive targeted cash, our senior executives had to achieve 9% growth in annual Jefferies' Return on Tangible Deployable Equity ("ROTDE"). If TSR and ROTDE were less than 6%, our senior executives would receive no incentive compensation. If TSR growth rates were greater than 9%, our senior executives were eligible to receive up to 75% additional incentive compensation relative to our peer companies. If ROTDE growth rates were greater than 9%, our senior executives were eligible to receive up to 75% additional incentive compensation on an interpolated basis, up to 12% growth rates. In December 2020, the Compensation Committee of our Board of Directors granted our senior executives nonqualified stock options and stock appreciation rights ("SARs"). The total initial fair value of the stock options and SARs were recorded as expense at the time of the grant, as both awards have no future service requirements. The SARs initially provided for settlement in cash but, at the sole discretion of the Compensation Committee, the awards could be converted irrevocably to a stock-settled award. Accordingly, the SARs were initially determined to be liability-classified share-based awards. In March 2021, the Compensation Committee exercised its discretion and converted the SARs to stock-settled awards, and at which time they became equity-classified share-based awards. As a result, a total of 2,506,266 stock options, with an exercise price of $23.75, were issued to each of our senior executives. The SARs included excess dividend rights, which provide for crediting to the executive a cash amount equal to two times the amount of any quarterly dividend paid in the 9.5 years after grant to the extent the dividend exceeds the quarterly dividend rate in effect at the time of grant for each share underlying the granted SARs (including after conversion to stock options). Beginning in March 2021, the credited amounts are converted to share units at the dividend payment date, to be settled by issuance of shares 9.5 years after grant of the SARs. All of the stock options vest in three equal annual tranches beginning December 6, 2021, with a final expiration date of December 5, 2030. For the year ended November 30, 2021, we recorded $48.6 million of total Compensation and benefits expense relating to the stock options and SARs. At both November 30, 2022 and 2021, 5,012,532 of our common shares were designated for the senior executive nonqualified stock options. In December 2021, the Compensation Committee of our Board of Directors granted each of our senior executives RSUs with a grant date fair value of $8.2 million and performance stock units (“PSUs”) with a target fair market value of $8.2 million. The RSUs have a three-year cliff vesting schedule. With respect to the PSUs, there is a three-year service period, along with performance period measures of fiscal 2021 through fiscal 2023 performance, the threshold level of Return on Tangible Equity (“ROTE”) was 7.5%, the target level of ROTE was 10%, and the upper end was 15%. Any performance below 7.5% will result in forfeiture of all PSUs; 7.5% ROTE will result in receiving 75% of target PSUs; and 15% ROTE or greater will result in receiving 150% of target PSUs. ROTE performance between 7.5% and 10% and 10% and 15% will be linearly interpolated to determine PSU distribution. In December 2021, the Board of Directors also granted our senior executives each a special long-term, five-year retention grant, termed the Leadership Continuity Grant, with a grant date fair value of $25.0 million. Our senior executives will gain the benefits of the retention award after an additional three-year holding period following the five-year service period. The following table details the total activity in restricted stock, inclusive across all plans, during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Restricted Stock Weighted- Average Balance at November 30, 2019 2,008 $ 22.04 Grants 115 $ 13.20 Forfeited (21) $ 23.38 Fulfillment of vesting requirement (619) $ 19.99 Balance at November 30, 2020 1,483 $ 22.19 Grants 337 $ 30.81 Forfeited (40) $ 24.92 Fulfillment of vesting requirement (196) $ 23.55 Balance at November 30, 2021 1,584 $ 23.78 Grants 1,457 $ 29.91 Forfeited — $ — Fulfillment of vesting requirement (902) $ 24.03 Balance at November 30, 2022 2,139 $ 27.85 The following table details the activity in total RSUs, inclusive across all plans, during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Weighted-Average Future No Future Future No Future Balance at November 30, 2019 10 15,667 $ 18.83 $ 21.35 Grants 14 487 $ 13.20 $ 15.73 Distributions of underlying shares — (88) $ — $ 25.48 Forfeited — — $ — $ — Fulfillment of service requirement (1) (3) 2,477 $ 18.83 $ 19.80 Balance at November 30, 2020 21 18,543 $ 14.99 $ 20.97 Grants 80 445 $ 27.10 $ 30.03 Distributions of underlying shares — (1,803) $ — $ 26.32 Forfeited — — $ — $ — Fulfillment of service requirement (1) (53) 8 $ 25.03 $ 15.52 Balance at November 30, 2021 48 17,193 $ 24.07 $ 20.64 Grants 2,299 472 $ 33.75 $ 28.79 Distributions of underlying shares — (6,453) $ — $ 14.65 Forfeited — — $ — $ — Fulfillment of vesting requirement (1) (39) 1,443 $ 24.67 $ 25.38 Balance at November 30, 2022 2,308 12,655 $ 33.70 $ 24.55 (1) Fulfillment of vesting requirement during the years ended November 30, 2022, 2021 and 2020, includes 1,433 RSUs, 0 RSUs and 2,474 RSUs, respectively, related to the senior executive compensation plans. During the years ended November 30, 2022, 2021 and 2020, grants include approximately 550,000, 445,000 and 484,000, respectively, of dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $28.78, $30.03 and $15.73, respectively. In addition, the following table details the activity in RSUs related to the senior executive compensation plan targeted number of shares during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Target Number of Shares Weighted- Average Balance at November 30, 2019 6,491 $ 23.13 Grants 187 $ 15.19 Forfeited (15) $ 19.01 Fulfillment of vesting requirement (2,474) $ 19.80 Balance at November 30, 2020 4,189 $ 24.75 Grants 74 $ 29.81 Forfeited (1,396) $ 25.31 Fulfillment of vesting requirement — $ — Balance at November 30, 2021 2,867 $ 25.43 Grants 537 $ 35.44 Forfeited — $ — Fulfillment of vesting requirement (1,433) $ 25.43 Balance at November 30, 2022 1,971 $ 28.16 During the years ended November 30, 2022, 2021 and 2020, grants related to the targeted number of shares include approximately 67,000, 74,000 and 139,000, respectively, of dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $28.67, $29.81 and $15.82, respectively. During the year ended November 30, 2020, grants include approximately 48,000 of RSUs issued as a result of superior performance pursuant to the 2016 compensation year award. In December 2022, the Compensation Committee of our Board of Directors approved a total of 934,718 RSUs relating to above target performance earned under the compensation year 2020 Plan . In estimating the fair value of each stock option award on the grant date we use the Black-Scholes option pricing model. The below includes both the options granted in December 2020 and the SARs, fair valued as of the time when the liability settled award was converted to an equity settled option award in March 2021. The following summary presents the weighted-average assumptions used for the senior executive stock options issued during the year ended November 30, 2021: Year Ended Risk free interest rate 0.8 % Expected volatility 32.9 % Expected dividend yield 2.6 % Expected life 5.8 years Weighted-average fair value per grant $ 7.43 The risk-free interest rate was based on the U.S. Treasury yield for zero-coupon U.S. Treasury notes with maturities approximating each grant's expected life. Expected life assumed options are exercised midway between the vesting date and expiration date. The expected volatility was based on the historical behavior of the Company's stock price using the expected life. Dividend yield was based on our current dividend yield at the time of grant. The fair value of the excess dividend rights was determined by means of a Monte Carlo simulation. Employee Stock Purchase Plan. An Employee Stock Purchase Plan (the "ESPP") has been implemented under both the prior Incentive Plan and the new ECP. We consider the ESPP to be noncompensatory effective January 1, 2007. The ESPP allows eligible employees to make payroll contributions that are used to acquire shares of our stock, generally at a discounted price. Deferred Compensation Plan. A Deferred Compensation Plan (the "DCP"), has been implemented under both the prior Incentive Plan and the new ECP. The DCP permits eligible employees to defer compensation which may be deemed invested in our common shares usually at a discount, or directed among other investment vehicles available under the DCP. We often invest directly, as a principal, in investments corresponding to the other investment vehicles, relating to our obligations to perform under the DCP. The compensation deferred by our eligible employees is expensed in the period earned. The change in fair value of our investments in assets corresponding to the specified other investment vehicles are recognized in Principal transactions revenues and changes in the corresponding deferred compensation liability are reflected as Compensation and benefits expense in our Consolidated Statements of Earnings. Other Stock-Based Plans . In connection with the HomeFed merger in 2019, each HomeFed stock option was converted into an option to purchase two of our common shares. At November 30, 2022, 2021 and 2020, 12,000, 96,000 and 313,000, respectively, of our common shares were designated for the HomeFed stock options. Profit Sharing Plan . We have a profit sharing plan, covering substantially all employees, which includes a salary reduction feature designed to qualify under Section 401(k) of the Internal Revenue Code. Restricted Cash Awards. We provide compensation to new and existing employees in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements. We amortize these awards to compensation expense over the relevant service period, which is generally considered to start at the beginning of the annual compensation year. Compensation Expense. The components of total compensation costs associated with certain of our compensation plans are as follows (in millions): Year Ended November 30, 2022 2021 2020 Components of compensation costs: Restricted cash awards (1) $ 196.6 $ 375.5 $ 474.3 Stock options and Stock appreciation rights — 48.7 0.1 Restricted stock and RSUs (2) 43.9 29.5 39.9 Profit sharing plan 10.5 7.8 7.8 Total compensation costs $ 251.0 $ 461.5 $ 522.1 (1) Amounts include costs related to the accelerated amortization of certain cash-based awards, which were amended to remove any service requirements for vesting in the awards, which amounted to $0.0 million and $188.3 million for the years ended November 30, 2022 and 2021, respectively. (2) Total compensation costs associated with restricted stock and RSUs include the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation costs related to the discount provided to employees in electing to defer compensation under the DCP. These compensation costs were approximately $0.5 million, $0.4 million and $0.3 million for the years ended November 30, 2022, 2021 and 2020, respectively. Remaining unamortized amounts related to certain compensation plans at November 30, 2022 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period Non-vested share-based awards $ 124.6 4 Restricted cash awards 289.7 3 Total $ 414.3 In December 2022, $528.0 million of restricted cash awards related to the 2022 performance year that contain a future service requirement were approved and awarded. Absent actual forfeitures or cancellations or accelerations, the annual compensation cost for these awards will be recognized as follows (in millions): Year Ended November 30, 2022 2023 2024 Thereafter Total Restricted cash awards $ 90.4 $ 106.8 $ 103.7 $ 227.1 $ 528.0 |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2022 2021 2020 Current: U.S. Federal $ 198,507 $ 322,551 $ 90,350 U.S. state and local 67,236 70,370 68,261 Foreign 78,505 86,918 75,395 Total current 344,248 479,839 234,006 Deferred: U.S. Federal (61,303) 72,753 52,765 U.S. state and local (17,010) 19,502 (1,288) Foreign 7,917 4,635 13,190 Total deferred (70,396) 96,890 64,667 Total income tax expense $ 273,852 $ 576,729 $ 298,673 The following table presents the U.S. and non-U.S. components of earnings before income tax expense (in thousands): Year Ended November 30, 2022 2021 2020 U.S. $ 801,047 $ 1,970,625 $ 813,305 Non-U.S. (1) 254,515 283,480 253,778 Earnings before income tax expense $ 1,055,562 $ 2,254,105 $ 1,067,083 (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 21.0% to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2022 2021 2020 Amount Percent Amount Percent Amount Percent Computed expected federal income taxes $ 221,668 21.0 % $ 473,362 21.0 % $ 224,087 21.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of Federal income tax benefit 47,364 4.5 96,884 4.3 45,457 4.3 International operations (including foreign rate differential) 18,711 1.8 18,073 0.8 13,155 1.2 Non-deductible executive compensation 12,596 1.2 20,359 0.9 12,814 1.2 Foreign tax credits, net (20,368) (1.9) (13,963) (0.6) (8,654) (0.8) Employee share-based awards (37,988) (3.6) 893 — 209 — Regulatory Settlement 20,184 1.9 — — — — Change in unrecognized tax benefits related to prior years (16,915) (1.7) (27,374) (1.2) (4,522) (0.5) Interest on unrecognized tax benefits 13,902 1.3 8,651 0.4 15,600 1.5 Other, net 14,698 1.4 (156) — 527 0.1 Total income tax expense $ 273,852 25.9 % $ 576,729 25.6 % $ 298,673 28.0 % The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2022 2021 2020 Balance at beginning of period $ 339,036 $ 314,347 $ 260,138 Increases based on tax positions related to the current period 30,690 50,079 41,114 Increases based on tax positions related to prior periods 5,902 3,490 22,328 Decreases based on tax positions related to prior periods (25,673) (24,180) (8,966) Decreases related to settlements with taxing authorities — (4,700) (267) Balance at end of period $ 349,955 $ 339,036 $ 314,347 The total amount of unrecognized benefits that, if recognized, would favorably affect the effective tax rate was $276.5 million and $267.8 million (net of Federal benefit) at November 30, 2022 and 2021, respectively. We recognize interest accrued related to unrecognized tax benefits and penalties, if any, as components of Income tax expense. Net interest expense related to unrecognized tax benefits was $18.6 million, $10.8 million and $19.9 million for the years ended November 30, 2022, 2021 and 2020, respectively. At November 30, 2022, 2021 and 2020, we had interest accrued of approximately $116.5 million, $97.9 million and $87.1 million, respectively, included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. No material penalties were accrued for the years ended November 30, 2022, 2021 and 2020. The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2022 2021 Deferred tax assets: Compensation and benefits $ 250,096 $ 187,818 Operating lease liabilities 133,250 135,862 Long-term debt 47,535 65,037 Accrued expenses and other 166,564 178,451 Investments in associated companies 11,931 1,135 Sub-total 609,376 568,303 Valuation allowance (6,266) (11,922) Total deferred tax assets 603,110 556,381 Deferred tax liabilities: Operating lease right-of-use assets 118,567 126,150 Amortization of intangibles 62,670 62,123 Other 34,011 40,561 Total deferred tax liabilities 215,248 228,834 Net deferred tax asset, included in Other assets $ 387,862 $ 327,547 The valuation allowance represents the portion of our deferred tax assets for which it is more likely than not that the benefit of such items will not be realized. We believe that the realization of the net deferred tax asset of $387.9 million at November 30, 2022 is more likely than not based on expectations of future taxable income in the jurisdictions in which we operate. At November 30, 2022, we had gross net operating loss carryforwards of $10.2 million, primarily related to various state and local jurisdictions. This balance has been partially offset by a valuation allowance of $4.5 million. The remaining valuation allowance is attributable to deferred tax assets related to compensation and benefits in the U.K. We are currently under examination by a number of taxing jurisdictions. Though we do not expect that resolution of these examinations will have a material effect on our consolidated financial position, they may have a material impact on our consolidated results of operations for the period in which resolution occurs. It is reasonably possible that, within the next twelve months, statutes of limitation will expire which would have the effect of reducing the balance of unrecognized tax benefits by $26.3 million. The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate: Jurisdiction Tax Year United States 2019 New York State 2001 New York City 2006 United Kingdom 2021 Germany 2017 Hong Kong 2016 India 2010 We will recognize any U.S. income tax expense we may incur on global intangible low-taxed income as income tax expense in the period in which the tax is incurred. On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law. The Inflation Reduction Act of 2022 includes a 15% corporate alternative minimum tax (“AMT”) and a one percent excise tax on net stock repurchases. The corporate AMT applies to corporations with average annual profits over $1 billion and is calculated on their financial statement income, with certain adjustments, and will apply to our tax year beginning December 1, 2023. The one percent excise tax on net stock repurchases is effective January 1, 2023. We do not expect that these changes will have a significant effect on our future effective tax rate, but we will continue to evaluate the nature and monitor the extent of the potential impacts. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments The following table summarizes our commitments at November 30, 2022 (in millions): Expected Maturity Date (fiscal years) 2023 2024 2025 and 2026 2027 and 2028 2029 and Later Maximum Payout Equity commitments (1) $ 25.2 $ 1.4 $ 103.3 $ 2.8 $ 160.2 $ 292.9 Loan commitments (1) 271.5 — 70.0 9.9 — 351.4 Loans purchase commitments (2) 2,363.9 — — — — 2,363.9 Underwriting commitments 62.3 — — — — 62.3 Forward starting reverse repos (3) 8,470.9 — — — — 8,470.9 Forward starting repos (3) 4,213.7 — — — — 4,213.7 Other unfunded commitments (1) 0.1 287.5 109.7 — — 397.3 Total commitments $ 15,407.6 $ 288.9 $ 283.0 $ 12.7 $ 160.2 $ 16,152.4 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) Loan purchase commitments comprise of unfunded commitments to acquire secondary market loans. For the population of loans to be acquired under the loan purchase commitments, at November 30, 2022, Jefferies had also entered into back-to-back committed sale contracts aggregating to $2.67 billion. (3) At November 30, 2022, $7.73 billion within forward starting securities purchased under agreements to resell and all except $2.6 million of forward starting securities sold under agreements to repurchase settled within three business days. Equity Commitments. Include a commitment to invest in our joint venture, Jefferies Finance, and commitments to invest in private equity funds and in Jefferies Capital Partners, LLC, the manager of the private equity funds, which consists of a team led by our President and a director. At November 30, 2022, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds were $10.6 million. Additionally, at November 30, 2022, we had other outstanding equity commitments to invest up to $230.1 million with strategic affiliates and $36.8 million to various other investments. Loan Commitments. From time to time we make commitments to extend credit to clients and to strategic affiliates. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At November 30, 2022, we had $97.4 million of outstanding loan commitments to clients and $4.0 million to strategic affiliates. Loan commitments outstanding at November 30, 2022 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings by Jefferies Finance. Underwriting Commitments. In connection with investment banking activities, we may from time to time provide underwriting commitments to our clients in connection with capital raising transactions. Forward Starting Reverse Repos and Repos. We enter into commitments to take possession of securities with agreements to resell on a forward starting basis and to sell securities with agreements to repurchase on a forward starting basis that are primarily secured by U.S. government and agency securities. Other Unfunded Commitments. Other unfunded commitments include obligations in the form of revolving notes, warehouse financings and debt securities to provide financing to asset-backed and CLO vehicles. Upon advancing funds, drawn amounts are collateralized by the assets of an entity. Guarantees Derivative Contracts. As a dealer, we make markets and trade in a variety of derivative instruments. Certain derivative contracts that we have entered into meet the accounting definition of a guarantee under U.S. GAAP, including credit default swaps, written foreign currency options and written equity put options. On certain of these contracts, such as written interest rate caps and foreign currency options, the maximum payout cannot be quantified since the increase in interest or foreign exchange rates are not contractually limited by the terms of the contract. As such, we have disclosed notional values as a measure of our maximum potential payout under these contracts. The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at November 30, 2022 (in millions): Expected Maturity Date (Fiscal Years) 2023 2024 2025 and 2026 2027 and 2028 2029 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 19,015.0 $ 6,933.1 $ 11,994.3 $ 850.3 $ — $ 38,792.7 Written derivative contracts—credit related — 0.2 — — — 0.2 Total derivative contracts $ 19,015.0 $ 6,933.3 $ 11,994.3 $ 850.3 $ — $ 38,792.9 The derivative contracts deemed to meet the definition of a guarantee under U.S. GAAP are before consideration of hedging transactions and only reflect a partial or “one-sided” component of any risk exposure. Written equity options and written credit default swaps are often executed in a strategy that is in tandem with long cash instruments ( e.g. , equity and debt securities). We substantially mitigate our exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments, and we manage the risk associated with these contracts in the context of our overall risk management framework. We believe notional amounts overstate our expected payout and that fair value of these contracts is a more relevant measure of our obligations. At November 30, 2022, the fair value of derivative contracts meeting the definition of a guarantee is approximately $702.1 million. 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 November 30, 2022, the aggregate amount of commercial paper outstanding was $1.47 billion. HomeFed. For real estate development projects, we are 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 a municipality satisfactory completion of a project. As the planned area is developed and the municipality accepts the improvements, the bonds are released. At November 30, 2022, the aggregate amount of infrastructure improvement bonds outstanding was $70.7 million. Standby Letters of Credit. At November 30, 2022, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $57.6 million, with a weighted average maturity of less than one year. Standby letters of credit commit us to make payment to the beneficiary if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary. Since commitments associated with these collateral instruments may expire unused, the amount shown does not necessarily reflect the actual future cash funding requirement. Other Guarantees. We are members of various exchanges and clearing houses. In the normal course of business, we provide guarantees to securities clearing houses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearing house, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearing houses often require members to post collateral. Our obligations under such guarantees could exceed the collateral amounts posted. Our maximum potential liability under these arrangements cannot be quantified; however, the potential for us to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. Additionally, we provide certain indemnifications in connection with third-party clearing and execution arrangements whereby a third-party may clear and settle transactions on behalf of our clients. These indemnifications generally have standard contractual terms and are entered into in the ordinary course of business. Our obligations in respect of such transactions are secured by the assets in our client’s account, as well as any proceeds received from the transactions cleared and settled on behalf of our client. However, we believe that it is unlikely we would have to make any material payments under these arrangements and no material liabilities related to these indemnifications have been recognized. |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Nov. 30, 2022 | |
Broker-Dealer [Abstract] | |
Net Capital Requirements | Net Capital Requirements As a broker-dealer registered with the SEC and a member firm of the Financial Industry Regulatory Authority (“FINRA”), Jefferies LLC is subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and has elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC, as a dually-registered U.S. broker-dealer and futures commission merchant (“FCM”), is also subject to Rule 1.17 of the Commodity Futures Trading Commission (“CFTC”), which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually-registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17. Jefferies Financial Services, Inc. (“JFSI”) is a registered swap dealer subject to the CFTC’s regulatory capital requirements, is a registered security-based swap dealer with the SEC subject to the SEC’s security-based swap dealer regulatory rules and is approved by the SEC as an OTC derivatives dealer subject to compliance with the SEC’s net capital requirements. At November 30, 2022, JFSI is in compliance with these SEC and CFTC requirements. Additionally, JFSI is subject to the net capital requirements of the National Futures Association (“NFA”), as a member of the NFA. JFSI is required to maintain minimum net capital, as defined under SEC Rule 18a-1 of not less than the greater of 2% of the risk margin amount, as defined, or $20 million. At November 30, 2022, Jefferies LLC and JFSI’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 903,349 $ 806,238 JFSI 436,681 416,681 FINRA is the designated examining authority for Jefferies LLC and the NFA is the designated self-regulatory organization for Jefferies LLC as an FCM. Certain other U.S. and non-U.S. subsidiaries are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions, including Jefferies International Limited which is subject to the regulatory supervision and requirements of the Financial Conduct Authority in the U.K. The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries. At November 30, 2022 and 2021, $5.77 billion and $6.07 billion, respectively, of net assets of our consolidated subsidiaries are restricted as to the payment of cash dividends, or the ability to make loans or advances to the parent company. At November 30, 2022 and 2021, $4.87 billion and $5.25 billion, respectively, of these assets are restricted as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the parent company. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our securities, commodities, futures and foreign exchange capital markets activities and investment banking business, which is composed of financial advisory and underwriting activities. The Investment Banking and Capital Markets reportable business segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management reportable business segment provides investment management services to investors in the U.S. and overseas and invests capital in hedge funds, separately managed accounts and third-party asset managers. Our reportable business segment information is prepared using the following methodologies: • Net revenues and non-interest expenses directly associated with each reportable business segment are included in determining earnings (loss) before income taxes. • Net revenues and non-interest expenses not directly associated with specific reportable business segments are allocated based on the most relevant measures applicable, including each reportable business segment’s net revenues, headcount and other factors. • Reportable business segment assets include an allocation of indirect corporate assets that have been fully allocated to our reportable business segments, generally based on each reportable business segment’s capital utilization. During the year ended November 30, 2022 and in connection with the merger of Jefferies Group LLC with and into Jefferies Financial Group Inc., we transferred significantly all of our legacy merchant banking investments to our Asset Management reportable segment. Certain other publicly traded equity investments related to investment banking relationships were transferred from our Merchant Banking reportable segment to our Investment Banking and Capital Markets reportable segment. In addition, there were certain investments that were held within the Investment Banking and Capital Markets reportable segment, which have been transferred to the Asset Management reportable segment. These investments are now managed by the respective segment managers and we have revised our reportable segment presentation accordingly. We believe that this reorganization of our segments better aligns the manner in which we manage our business activities and is in keeping with our fundamental long-term strategy of continuing to build out our investment banking effort, enhancing our capital markets businesses and further developing our Leucadia Asset Management alternative asset management platform as we continue to divest of significant portions of our legacy merchant banking portfolio. Additionally, corporate activities are now fully allocated to either the Investment Banking and Capital Markets reportable segment or the Asset Management reportable segment. Prior year amounts have been revised to conform to current segment reporting. Our net revenues, non-interest expenses and earnings (loss) before income taxes by reportable business segment are summarized below (in millions): Year Ended November 30, 2022 2021 2020 Investment Banking and Capital Markets: Net revenues $ 4,726.2 $ 6,917.8 $ 5,029.5 Non-interest expenses 3,950.9 4,730.6 3,920.7 Earnings before income taxes 775.3 2,187.2 1,108.8 Asset Management: Net revenues 1,257.7 1,092.6 814.6 Non-interest expenses 967.0 1,025.7 858.7 Earnings (loss) before income taxes 290.7 66.9 (44.1) Total of Reportable Business Segments: Net revenues 5,983.9 8,010.4 5,844.1 Non-interest expenses 4,917.9 5,756.3 4,779.4 Earnings before income taxes 1,066.0 2,254.1 1,064.7 Reconciliation to consolidated amounts: Net revenues (5.1) 3.4 6.4 Non-interest expenses 5.3 3.4 4.0 Earnings (loss) before income taxes (1) (10.4) — 2.4 Total: Net revenues 5,978.8 8,013.8 5,850.5 Non-interest expenses 4,923.2 5,759.7 4,783.4 Total earnings before income taxes $ 1,055.6 $ 2,254.1 $ 1,067.1 (1) Management does not consider certain foreign currency transaction gains or losses, fair value debt valuation adjustments on derivative contracts, gains and losses on investments held in deferred compensation or certain other immaterial corporate income and expense items in assessing the financial performance of operating businesses. Collectively, these items are included in the reconciliation of reportable business segment amounts to consolidated amounts. The following table summarizes our total assets by reportable business segment (in millions): November 30, 2022 2021 Investment Banking and Capital Markets $ 45,541.0 $ 50,912.3 Asset Management 5,516.7 5,195.0 Total assets $ 51,057.7 $ 56,107.3 Net Revenues by Geographic Region Net revenues for the Investment Banking and Capital Markets reportable business segment are recorded in the geographic region in which the position was risk-managed or, in the case of investment banking, in which the senior coverage banker is located. For the Asset Management reportable business segment, net revenues are allocated according to the location of the investment advisor or the location of the invested capital. Net revenues by geographic region were as follows (in millions): Year Ended November 30, 2022 2021 2020 Americas (1) $ 4,815.4 $ 6,748.8 $ 4,730.1 Europe and the Middle East (2) 925.4 1,045.7 826.4 Asia 238.0 219.3 294.0 Net revenues $ 5,978.8 $ 8,013.8 $ 5,850.5 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Nov. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Officers, Directors and Employees. The following sets forth information regarding related party transactions with our officers, directors and employees: • At November 30, 2022 and 2021, we had $17.7 million and $23.1 million, respectively, of loans outstanding to certain of our officers and employees (none of whom are executive officers or directors) that are included in Other assets in our Consolidated Statements of Financial Condition. • On October 24, 2022, we repurchased 640,000 of our shares from one of our officers for approximately $21.0 million. • Receivables from and payables to customers include balances arising from officers’, directors’ and employees’ individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms. • One of our directors had an investment in a hedge fund managed by us of approximately $0.8 million at November 30, 2020. This investment was fully redeemed in February 2021. Special Purpose Acquisition Companies. We earned investment banking revenues during the year ended November 30, 2021 of $45.5 million for services provided to special purpose acquisition companies we have co-sponsored. Sale of Subsidiary. On November 3, 2020, we sold a wholly-owned subsidiary primarily invested in short-dated receivables that related to an asset management strategy to an investment fund managed by us for approximately $180.7 million. The gain on sale was not material. See Note 8, Variable Interest Entities, and Note 22, Commitments, Contingencies and Guarantees, for further information regarding related party transactions with our officers, directors and employees. See Note 9, Investments for further information on transactions with our equity method investees. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Nov. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management has evaluated events and transactions that occurred subsequent to November 30, 2022 through the date these consolidated financial statements were issued. On January 13, 2023, we completed the previously announced legal and structural separation and distribution to our shareholders of all of the outstanding shares of Vitesse Energy that were held by us. The distribution was made in the amount of one share of Vitesse Energy common stock for every 8.49668 common shares of Jefferies Financial Group Inc. owned by our shareholders as of the close of business on December 27, 2022, the record date of the distribution. |
Schedule I (PARENT COMPANY ONLY
Schedule I (PARENT COMPANY ONLY) | 12 Months Ended |
Nov. 30, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I (PARENT COMPANY ONLY) | JEFFERIES FINANCIAL GROUP INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF FINANCIAL CONDITION (In thousands) November 30, 2022 2021 ASSETS Cash and cash equivalents $ 2,411,270 $ 640,985 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations 57,876 8,219 Financial instruments owned, at fair value 97,870 298,773 Investments in and loans to related parties 637,302 708,611 Investment in subsidiaries 7,567,225 10,092,436 Advances to subsidiaries 3,486,572 3,154,643 Subordinated notes receivable 3,867,931 3,868,198 Other assets 821,634 753,349 Total assets $ 18,947,680 $ 19,525,214 LIABILITIES AND EQUITY Short-term borrowings $ 10,868 $ 6,800 Financial instruments sold, not yet purchased, at fair value 4,873 3,491 Advances from subsidiaries 430,846 402,786 Accrued expenses and other liabilities 668,717 430,530 Long-term debt 7,474,530 8,002,852 Total liabilities 8,589,834 8,846,459 MEZZANINE EQUITY Mandatorily redeemable convertible preferred shares 125,000 125,000 EQUITY Common shares, par value $1 per share, authorized 600,000,000 shares; 226,129,626 and 243,541,431 shares issued and outstanding, after deducting 90,334,082 and 72,922,277 shares held in treasury 226,130 243,541 Additional paid-in capital 1,967,781 2,742,244 Accumulated other comprehensive loss (379,419) (372,143) Retained earnings 8,418,354 7,940,113 Total Jefferies Financial Group Inc. common shareholders’ equity 10,232,846 10,553,755 Total liabilities and equity $ 18,947,680 $ 19,525,214 See accompanying notes to condensed financial statements. JEFFERIES FINANCIAL GROUP INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (In thousands) Year Ended November 30, 2022 2021 2020 Revenues: Principal transactions $ (61,407) $ 98,373 $ 111,688 Interest 317,020 213,910 217,159 Other (66,539) 101,203 (43,375) Total revenues 189,074 413,486 285,472 Interest expense 317,916 318,138 338,535 Net revenues (128,842) 95,348 (53,063) Non-interest expenses: Total non-interest expenses 69,962 147,761 85,339 Earnings (loss) before income taxes (198,804) (52,413) (138,402) Income tax expense (benefit) (78,338) (11,806) (35,770) Net earnings (loss) before undistributed earnings of subsidiaries (120,466) (40,607) (102,632) Undistributed earnings of subsidiaries 905,915 1,714,959 877,871 Net earnings 785,449 1,674,352 775,239 Preferred stock dividends 8,281 6,949 5,634 Net earnings attributable to Jefferies Financial Group Inc. 777,168 1,667,403 769,605 Other comprehensive income (loss), net of tax: Currency translation and other adjustments (53,572) (9,781) 35,991 Change in fair value of instrument specific credit risk 49,146 (82,521) (52,262) Minimum pension liability adjustments, net of tax 3,311 9,320 21 Unrealized gain (loss) on available-for-sale securities (6,161) (244) 372 Total other comprehensive loss, net of tax (7,276) (83,226) (15,878) Comprehensive income attributable to Jefferies Financial Group Inc. $ 769,892 $ 1,584,177 $ 753,727 See accompanying notes to condensed financial statements. JEFFERIES FINANCIAL GROUP INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Year Ended November 30, 2022 2021 2020 Cash flows from operating activities: Net earnings $ 785,449 $ 1,674,352 $ 775,239 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Deferred income taxes (38,875) 27,933 (1,787) Share-based compensation 43,919 78,160 40,038 Amortization 1,322 (24,379) (36,708) Undistributed earnings of subsidiaries (905,915) (1,714,959) (877,871) (Income) loss on investments in and loans to related parties 71,405 (101,302) 42,412 Other adjustments (560,325) (203,947) 187,486 Net change in assets and liabilities: Financial instruments owned 200,903 (76,852) 78,592 Other assets 129,322 (171,933) (4,069) Financial instruments sold, not yet purchased 1,382 3,491 (2,307) Income taxes receivable/payable, net (158,732) (62,531) 65,057 Accrued expenses and other liabilities 233,217 (126,894) 446,386 Net cash provided by (used in) operating activities (196,928) (698,861) 712,468 Cash flows from investing activities: Contributions to investments in and loans to related parties (118) — (50,000) Capital distributions from investments and repayments of loans from related parties 22 50,000 — Advances on loan receivables — (50,000) (23,000) Principal collections of loan receivables — — 23,000 Distribution (to) from subsidiaries, net 2,921,528 456,220 441,063 Proceeds from sales of subsidiaries — — 180,664 Other — (611) — Net cash provided by investing activities 2,921,432 455,609 571,727 Cash flows from financing activities: Proceeds from short-term borrowings 4,068 — 11,820 Payments on short-term borrowings — (5,090) (20,263) Proceeds from issuance of long-term debt, net of issuance costs 400,059 1,681,058 1,169,722 Repayments of long-term debt (202,172) (1,256,495) (1,494,696) Advances (to) from subsidiaries, net 30,428 (341,327) 1,159,495 Issuances of common shares 2,752 2,107 1,034 Purchase of common shares for treasury (859,593) (269,400) (816,871) Dividends paid (280,104) (222,798) (160,940) Net cash used in financing activities (904,562) (411,945) (150,699) Net increase (decrease) in cash and cash equivalents and restricted cash 1,819,942 (655,197) 1,133,496 Cash, cash equivalents and restricted cash at beginning of period 649,204 1,304,401 170,905 Cash, cash equivalents and restricted cash at end of period $ 2,469,146 $ 649,204 $ 1,304,401 Year Ended November 30, 2022 2021 2020 Supplemental disclosures of cash flow information: Cash paid (received) during the period for: Interest $ 484,349 $ 381,117 $ 324,782 Income taxes, net 124,516 625,072 1,811 Non-cash investing activities: Investments contributed to subsidiary $ — $ 5,451 $ 51,190 Dividends received from subsidiaries — 1,970 40,805 The following presents the Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition (in thousands): November 30, 2022 2021 Cash and cash equivalents $ 2,411,270 $ 640,985 Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations 57,876 8,219 Total cash, cash equivalents and restricted cash $ 2,469,146 $ 649,204 See accompanying notes to condensed financial statements. The accompanying condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Jefferies Financial Group Inc. (the “Company”) and the notes thereto found in the Company’s Annual Report on Form 10-K for the year ended November 30, 2022. For purposes of these condensed financial statements, the Company’s wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting (“equity method subsidiaries”). On November 1, 2022, Jefferies Group LLC was merged into the Company with the Company as the surviving entity. Prior to the merger, Jefferies Group LLC was a direct wholly-owned subsidiary of the Company. Upon the merger, the Company recognized the assets and liabilities of Jefferies Group LLC transferred into the Company at their carrying amounts. The merger of Jefferies Group LLC into the Company is deemed a transfer between entities under common control and constitutes a change in the reporting entity of the Company. Accordingly, the financial statements of the Company are combined retrospectively as if the merger of Jefferies Group LLC with and into the Company had occurred as of December 1, 2019. The transfer of the net assets of Jefferies Group LLC into the Company resulted in an increase in total assets of $8.06 billion and an increase in total liabilities of $8.06 billion at November 30, 2021. There was no impact to total common shareholders’ equity, net earnings attributable to the Company or comprehensive income attributable to the Company as a result of the net transfer. The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Summary of Significant Accounting Policies, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2022. The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and intangible assets, the ability to realize deferred tax assets and the recognition and measurement of uncertain tax positions. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. In the normal course of its business, the Parent Company issues guarantees in respect of obligations of certain of its wholly- owned subsidiaries under trading and other financial arrangements, including guarantees to various trading counterparties and banks. The Parent Company records all derivative contracts and Financial instruments owned and Financial instruments sold, not yet purchased at fair value in its Consolidated Statements of Financial Condition. Certain of the Parent Company’s equity method subsidiaries are members of various exchanges and clearing houses. In the normal course of business, the Parent Company provides guarantees to securities clearinghouses and exchanges. These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members. Additionally, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet these shortfalls. To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral. The Parent Company’s obligations under such guarantees could exceed the collateral amounts posted. The maximum potential liability under these arrangements cannot be quantified; however, the potential for the Parent Company to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Reclassification to Consolidated Financial Statements | Reclassifications to Consolidated Financial Statements We have made certain reclassifications within our Consolidated Statements of Financial Condition and Consolidated Statements of Earnings in connection with the merger of Jefferies Group into Jefferies Financial Group Inc. This streamlines our financial statements and better aligns the presentation of our firm with our strategy of building our investment banking and capital markets and asset management businesses and reducing our legacy merchant banking portfolio. The reclassifications including, but not limited to, the presentation of equity method investments and any related equity method earnings, loans receivable, intangible assets and interest expense within the financial statements, conform to the presentation utilized in the historical Jefferies Group LLC consolidated financial statements prior to the merger. Additionally, the presentation of receivables, payables, asset management fees and revenues and selling, general and other expenses has been disaggregated to provide additional financial statement line item categories on the face of the Consolidated Statements of Financial Condition and the Consolidated Statements of Earnings. These reclassifications have no effect on our consolidated net earnings, comprehensive income, total assets, total liabilities or total equity. These reclassifications have no effect on the net change in cash, cash equivalents and restricted cash. Historical periods have been recast to conform to these reclassifications. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, goodwill and the accounting for income taxes. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. |
Consolidation | Changes to Consolidated Financial Statements for Change in Accounting Policy As of November 30, 2022, we have changed the accounting for our secondary trading activity related to the purchases and sales of corporate loans. Historically, we have accounted for purchases and sales of corporate loans in the secondary market on trade date. Purchases of loans in the secondary market were recognized on trade date within Financial instruments owned for the total amount of the loans and a corresponding liability was recognized within Payables - brokers, dealers and clearing organizations. Sales of loans in the secondary market were recognized on trade date within Financial instruments sold, not yet purchased for the total amount of the loans and a corresponding asset was recognized within Receivables - brokers, dealers and clearing organizations on the Consolidated Statements of Financial Condition for the amount of cash to be paid or received upon settlement. We have determined that it is preferable to recognize this trading activity on a settlement date basis. A firm commitment to purchase and/or sell loans on the date of trade execution due to the extended settlement period for this trading activity is recognized and results in recognizing the changes in fair value related to the underlying purchased loans or sold loans. We have elected the fair value option for the firm commitment to purchase or sell loans and account for changes in the fair value of the firm commitment within Principal transactions revenues between the trade date and settlement date on the Consolidated Statement of Earnings and within Financial Instruments owned, or Financial Instruments sold on the Consolidated Statement of Financial Condition. Consolidation Our policy is to consolidate all entities that we control by ownership of a majority of the outstanding voting stock. In addition, we consolidate entities that meet the definition of a variable interest entity (“VIE”) for which we are the primary beneficiary. The primary beneficiary is the party who has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. For consolidated entities that are less than wholly-owned, the third-party’s holding of equity interest is presented as Noncontrolling interests in our Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity. The portion of net earnings attributable to the noncontrolling interests is presented as Net earnings (loss) attributable to noncontrolling interests in our Consolidated Statements of Earnings. In situations in which we have significant influence, but not control, of an entity that does not qualify as a VIE, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under U.S. GAAP, with our portion of net earnings or gains and losses recorded in Other revenues or Principal transactions revenues, respectively. We also have formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies and are carried at fair value. We act as general partner or managing member for these investment vehicles and have generally provided the third-party investors with termination or “kick-out” rights. Intercompany accounts and transactions are eliminated in consolidation. |
Revenue Recognition Policies | Revenue Recognition Policies Commissions and Other Fees. All customer securities transactions are reported in our Consolidated Statements of Financial Condition on a settlement date basis with related income reported on a trade-date basis. We permit institutional customers to allocate a portion of their gross commissions to pay for research products and other services provided by third-parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. These arrangements are accounted for on an accrual basis and, as we are acting as an agent in these arrangements, netted against commission revenues in our Consolidated Statements of Earnings. In addition, we earn asset-based fees associated with the management and supervision of assets, account services and administration related to customer accounts. Principal Transactions. Financial instruments owned and Financial instruments sold, not yet purchased are carried at fair value with gains and losses reflected in Principal transactions revenues in our Consolidated Statements of Earnings, except for derivatives accounted for as hedges (see “Hedge Accounting” section herein and Note 5, Derivative Financial Instruments). Fees received on loans carried at fair value are also recorded in Principal transactions revenues. Investment Banking . Advisory fees from mergers and acquisitions engagements are recognized at a point in time when the related transaction is completed. Advisory fees from restructuring engagements are recognized over time using a time elapsed measure of progress. Expenses associated with investment banking advisory engagements are deferred only to the extent they are explicitly reimbursable by the client and the related revenue is recognized at a point in time. All other investment banking advisory related expenses, including expenses incurred related to restructuring advisory engagements, are expensed as incurred. All investment banking advisory expenses are recognized within their respective expense category on the Consolidated Statements of Earnings and any expenses reimbursed by clients are recognized as Investment banking revenues. Underwriting and placement agent revenues are recognized at a point in time on trade-date. Costs associated with underwriting activities are deferred until the related revenue is recognized or the engagement is otherwise concluded and are recorded on a gross basis within Underwriting costs in the Consolidated Statements of Earnings. Asset Management Fees and Revenues. Asset management fees and revenues consist of asset management fees, as well as revenues from third-parties with strategic relationships pursuant to arrangements, which entitle us to portions of our revenues and/or affiliated managers’ profits and perpetual rights to certain defined revenues for a given revenue share period. Revenue from third-parties with strategic relationships pursuant to arrangements is recognized at the end of the defined revenue or profit share period when the revenues have been realized and all contingencies have been resolved. Management and administrative fees are generally recognized over the period that the related service is provided. Performance fee revenue is generally recognized only at the end of the performance period to the extent that the benchmark return has been met. Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, not yet purchased, on an accrual basis as a component of interest revenue and expense. Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions revenues in our Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings at amortized cost, except for those for which we have elected the fair value option, with related interest recorded on an accrual basis as Interest expense. Discounts/premiums arising on our long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations. We recognize interest revenue related to our securities borrowed and securities purchased under agreements to resell activities and interest expense related to our securities loaned and securities sold under agreements to repurchase activities on an accrual basis. In addition, we recognize interest income as earned on brokerage customer margin balances and interest expense as incurred on credit balances. Other Revenues. Other revenues include revenue from the sale of manufactured or remanufactured lumber for which the transaction price is fixed at the time of sale and revenue is generally recognized when the customer takes control of the product. Other revenues also include revenue from the sale of produced oil and gas and revenue from the sale of real estate. Contracts for revenue from the sale of produced oil and gas typically include variable consideration based on monthly pricing tied to local indices and volumes and revenue is recorded at the point in time when control of the produced oil and gas transfers to the customer, which is when the performance obligation is satisfied and the variable consideration can be reliably estimated at the end of each month. Revenues from the sales of real estate are recognized at a point in time when the related transaction is complete. If performance obligations under the contract with a customer related to a parcel of real estate are not yet complete when title transfers to the buyer, revenue associated with the incomplete performance obligations is deferred until the performance obligation is completed. |
Cash Equivalents | Cash Equivalents Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less. |
Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited With Clearing and Depository Organizations | Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository OrganizationsIn accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients. Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day-to-day activities. |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value, either as required by accounting pronouncements or through the fair value option election. These instruments primarily represent our trading activities and include both cash and derivative products. Gains and losses are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities at the reported date. Valuation adjustments and block discounts are not applied to Level 1 instruments. Level 2: Pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable at the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments for which fair values have been derived using model inputs that are directly observable in the market, or can be derived principally from, or corroborated by, observable market data, and financial instruments that are fair valued by reference to other similar financial instruments, the parameters of which can be directly observed. Level 3: Instruments that have little to no pricing observability at the reported date. These financial instruments are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Certain financial instruments have bid and ask prices that can be observed in the marketplace. For financial instruments whose inputs are based on bid-ask prices, the financial instrument is valued at the point within the bid-ask range that meets our best estimate of fair value. We use prices and inputs that are current at the measurement date. For financial instruments that do not have readily determinable fair values using quoted market prices, the determination of fair value is based on the best available information, taking into account the types of financial instruments, current financial information, restrictions (if any) on dispositions, fair values of underlying financial instruments and quotations for similar instruments. The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models are permitted based on management’s judgment, which takes into consideration the features of the financial instrument such as its complexity, the market in which the financial instrument is traded and underlying risk uncertainties about market conditions. Adjustments from the price derived from a valuation model reflect management’s judgment that other participants in the market for the financial instrument being measured at fair value would also consider in valuing that same financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. The availability of observable inputs can vary and is affected by a wide variety of factors, including, for example, the type of financial instrument and market conditions. As the observability of prices and inputs may change for a financial instrument from period to period, this condition may cause a transfer of an instrument among the fair value hierarchy levels. The degree of judgment exercised in determining fair value is greatest for instruments categorized within Level 3. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced and received in connection with the transactions and accounted for as collateralized financing transactions. In connection with both trading and brokerage activities, we borrow securities to cover short sales and to complete transactions in which customers have failed to deliver securities by the required settlement date, and lend securities to other brokers and dealers for similar purposes. When we borrow securities, we generally provide cash to the lender as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities borrowed. We earn interest revenues on this cash collateral. Similarly, when we lend securities to another party, that party provides cash to us as collateral, which is reflected in our Consolidated Statements of Financial Condition as Securities loaned. We pay interest expense on the cash collateral received from the party borrowing the securities. The initial collateral advanced or received approximates or is greater than the fair value of the securities borrowed or loaned. We monitor the fair value of the securities borrowed and loaned on a daily basis and request additional collateral or return excess collateral, as appropriate. In instances where the Company receives securities as collateral in connection with securities-for-securities transactions in the which the Company is the lender of securities and is permitted to sell or repledge the securities received as collateral, the Company reports the fair value of the collateral received and the related obligation to return the collateral in the Company’s Consolidated Statement of Financial Condition. |
Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase | Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase Securities purchased under agreements to resell and Securities sold under agreements to repurchase (collectively “repos”) are accounted for as collateralized financing transactions and are recorded at their contracted resale or repurchase amount plus accrued interest. We earn and incur interest over the term of the repo, which is reflected in Interest revenue and Interest expense in our Consolidated Statements of Earnings on an accrual basis. Repos are presented in our Consolidated Statements of Financial Condition on a net-basis by counterparty, where permitted by U.S. GAAP. We monitor the fair value of the underlying securities daily versus the related receivable or payable balances. Should the fair value of the underlying securities decline or increase, additional collateral is requested or excess collateral is returned, as appropriate. |
Offsetting of Derivative Financial Instruments and Securities Financing Agreements | Offsetting of Derivative Financial Instruments and Securities Financing Agreements To manage our exposure to credit risk associated with our derivative activities and securities financing transactions, we may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements, master securities lending agreements, master repurchase agreements or similar agreements and collateral arrangements with counterparties. A master agreement creates a single contract under which all transactions between two counterparties are executed allowing for trade aggregation and a single net payment obligation. Master agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be settled or otherwise eliminated by applying amounts due against all or a portion of an amount due from the counterparty or a third-party. Under our ISDA master netting agreements, we typically also execute credit support annexes, which provide for collateral, either in the form of cash or securities, to be posted by or paid to a counterparty based on the fair value of the derivative receivable or payable based on the rates and parameters established in the credit support annex. In the event of the counterparty’s default, provisions of the master agreement permit acceleration and termination of all outstanding transactions covered by the agreement such that a single amount is owed by, or to, the non-defaulting party. In addition, any collateral posted can be applied to the net obligations, with any excess returned; and the collateralized party has a right to liquidate the collateral. Any residual claim after netting is treated along with other unsecured claims in bankruptcy court. The conditions supporting the legal right of offset may vary from one legal jurisdiction to another and the enforceability of master netting agreements and bankruptcy laws in certain countries or in certain industries is not free from doubt. The right of offset is dependent both on contract law under the governing arrangement and consistency with the bankruptcy laws of the jurisdiction where the counterparty is located. Industry legal opinions with respect to the enforceability of certain standard provisions in respective jurisdictions are relied upon as a part of managing credit risk. In cases where we have not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of our risk management processes as part of reducing counterparty credit risk and managing liquidity risk. We are also a party to clearing agreements with various central clearing parties. Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount. In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions. |
Securitization Activities | Securitization Activities We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Transfers of financial assets to secured funding vehicles are accounted for as sales when we have relinquished control over the transferred assets. The gain or loss on sale of such financial assets depends, in part, on the previous carrying amount of the assets involved in the transfer allocated between the assets sold and the retained interests, if any, based upon their respective fair values at the date of sale. We may retain interests in the securitized financial assets as one or more tranches of the securitization. These retained interests are included in Financial instruments owned within our Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized in Principal transactions revenues in our Consolidated Statements of Earnings. When a transfer of assets does not meet the criteria of a sale, we account for the transfer as a secured borrowing and continue to recognize the assets of a secured borrowing in Financial instruments owned and recognize the associated financing in Other secured financings in our Consolidated Statements of Financial Condition. |
Investments and in Loans to Related Parties | Investments in and Loans to Related PartiesInvestments in and loans to related parties include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Investments in and loans to related parties are accounted for using the equity method or at cost, as appropriate, and reviewed for impairment when changes in circumstances may indicate a decrease in value which is other than temporary. Revenues on Investments in and loans related parties are included in Other revenues in our Consolidated Statements of Earnings. |
Credit Losses | Credit Losses Financial assets measured at amortized cost are presented at the net amount expected to be collected and the measurement of credit losses and any expected increases in expected credit losses are recognized in earnings. The estimate of expected credit losses involves judgment and is based on an assessment over the life of the financial instrument taking into consideration current market conditions and reasonable and supportable forecasts of expected future economic conditions. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill. Goodwill represents the excess acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized and is subject to annual impairment testing on August 1 for our Investment Banking, Fixed Income, Equities and Asset Management reporting units, on November 30 for other identified reporting units or between annual tests if an event or change in circumstance occurs that would more likely than not reduce the fair value of a reporting unit below its carrying value. The goodwill impairment test is performed at the reporting unit level by comparing the estimated fair value of a reporting unit with its respective carrying value. If the estimated fair value exceeds the carrying value, goodwill at the reporting unit level is not impaired. If the fair value is less than the carrying value, then an impairment loss is recognized for the amount by which the carrying value of the reporting unit exceeds the reporting unit’s fair value. The fair value of reporting units are based on widely accepted valuation techniques that we believe market participants would use, although the valuation process requires significa nt judgment and often involves the use of significant estimates and assumptions. The methodologies we utilize in estimating the fair value of reporting units include market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable exchange-traded companies and multiples of merger and acquisitions of similar businesses. The estimates and assumptions used in determining fair value could have a significant effect on whether or not an impairment charge is recorded and the magnit ude of such a charge. Adverse market or economic events could result in impairment charges in future periods. Intangible Assets . Intangible assets deemed to have finite lives are amortized on a straight-line basis over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to our future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For intangible assets deemed to be impaired, an impairment loss is recognized for the amount by which the intangible asset's carrying value exceeds its fair value. At least annually, the remaining useful life is evaluated. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If we conclude otherwise, we are required to perform a quantitative impairment test. Intangible assets are included in Other assets in our Consolidated Statements of Financial Condition. Our annual indefinite-lived intangible asset impairment testing date is August 1st . To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset that is amortized over the remaining useful life of that asset, if any. Subsequent reversal of impairment losses is not permitted. |
Premises and Equipment | Premises and Equipment Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three |
Leases | Leases For leases with an original term longer than one year, lease liabilities are initially recognized on the lease commencement date based on the present value of the future minimum lease payments over the lease term, including non-lease components such as fixed common area maintenance costs and other fixed costs for generally all leases. A corresponding right-of-use (“ROU”) asset is initially recognized equal to the lease liability adjusted for any lease prepayments, initial direct costs and lease incentives. The ROU assets are included in Premises and equipment and the lease liabilities are included in Lease liabilities in our Consolidated Statement of Financial Condition. |
Other Real Estate | Other Real EstateOther real estate is classified within Other assets and includes all expenditures incurred in connection with the acquisition, development and construction of properties. Interest, payroll related to construction, property taxes and other professional fees attributable to land and property construction are capitalized and added to the cost of those properties when active development begins and ends when the property development is fully completed and ready for its intended use. |
Inventories and Cost of Sales | Inventories and Cost of SalesWe have investments in entities that are consolidated by us that are engaged in various manufacturing and real estate activities. Inventories arising from these consolidated entities are classified as Other assets in the Consolidated Statements of Financial Condition and are stated at the lower of cost or net realizable value, with cost principally determined under the first-in-first-out method. Cost of goods sold, which is recognized within Non-interest expenses on the Consolidated Statements of Earnings in connection with sales of such inventories, principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs. |
Impairment oof Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group). The determination of whether an asset group is recoverable is based on management's estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value. If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value. |
Share-based Compensation | Share-based Compensation Share-based awards are measured based on the fair value of the award and recognized over the required service or vesting period. Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options are estimated at the date of grant using the Black-Scholes option pricing model. We account for forfeitures as they occur, which results in dividends and dividend equivalents originally charged against retained earnings for forfeited shares to be reclassified to compensation expense in the period in which the forfeiture occurs. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of its projected separate return results. We record uncertain tax positions using a two-step process: (i) we determine whether it is more likely than not that each tax position will be sustained on the basis of the technical merits of the position; and (ii) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued. Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required. Diluted earnings per share is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share. Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable. See Note 13 for more information regarding the senior executive compensation plan. |
Legal Reserves | Legal Reserves In the normal course of business, we have been named, from time to time, as a defendant in legal and regulatory proceedings. We are also involved, from time to time, in other exams, investigations and similar reviews (both formal and informal) by governmental and self-regulatory agencies regarding our businesses, certain of which may result in judgments, settlements, fines, penalties or other injunctions. We recognize a liability for a contingency in Accrued expenses and other liabilities when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the reasonable estimate of a probable loss is a range, we accrue the most likely amount of such loss, and if such amount is not determinable, then we accrue the minimum in the range as the loss accrual. The determination of the outcome and loss estimates requires significant judgment on the part of management. We believe that any other matters for which we have determined a loss to be probable and reasonably estimable are not material to our consolidated financial statements. In many instances, it is not possible to determine whether any loss is probable or even possible or to estimate the amount of any loss or the size of any range of loss. We believe that, in the aggregate, the pending legal actions or regulatory proceedings and any other exams, investigations or similar reviews (both formal and informal) should not have a material adverse effect on our consolidated results of operations, cash flows or financial condition. In addition, we believe that any amount of potential loss or range of potential loss in excess of what has been provided in our consolidated financial statements that could be reasonably estimated is not material. |
Hedge Accounting | Hedge Accounting Hedge accounting is applied using interest rate swaps designated as fair value hedges of changes in the benchmark interest rate of fixed rate senior long-term debt. The interest rate swaps are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. We use regression analysis to perform ongoing prospective and retrospective assessments of the effectiveness of these hedging relationships. A hedging relationship is deemed effective if the change in fair value of the interest rate swap and the change in the fair value of the long-term debt due to changes in the benchmark interest rate offset within a range of 80% - 125%. The impact of valuation adjustments related to our own credit spreads and counterparty credit spreads are included in the assessment of effectiveness. For qualifying fair value hedges of benchmark interest rates, the change in the fair value of the derivative and the change in fair value of the long-term debt provide offset of one another and, together with any resulting ineffectiveness, are recorded in Interest expense. We seek to reduce the impact of fluctuations in foreign exchange rates on our net investments in certain non-U.S. operations through the use of foreign exchange contracts. The foreign exchange contracts are included as derivative contracts in Financial instruments owned and Financial instruments sold, not yet purchased in our Consolidated Statements of Financial Position. For foreign exchange contracts designated as hedges, the effectiveness of the hedge is assessed based on the overall changes in the fair value of the forward contracts ( i.e. , based on changes in forward rates). For qualifying net investment hedges, all gains or losses on the hedging instruments are included in Currency translation adjustments and other in our Consolidated Statements of Comprehensive Income. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the end of a period. Revenues and expenses are translated at average exchange rates during the period. The gains or losses resulting from translating foreign currency financial statements into U.S. dollars, net of hedging gains or losses and taxes, if any, are included in Other comprehensive income. Gains or losses resulting from foreign currency transactions are included in Principal transactions revenues in our Consolidated Statements of Earnings. |
Adopted Accounting Standards | Adopted Accounting Standards Reference Rate Reform . In March 2020, the FASB issued new guidance, which was subsequently amended in January 2021, which provides optional exceptions for applying GAAP to certain contract modifications, hedge accounting relationships or other transactions affected by reference rate reform. In December 2022, the FASB issued an accounting standard update to extend the temporary relief until December 31, 2024. Our assessment of contracts with provisions based on LIBOR is ongoing and this guidance may be applied as we transition away from LIBOR. Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The objective of the guidance is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Consolidation. In October 2018, the FASB issued ASU No. 2018-17, Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities. The guidance requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Internal-Use Software. In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The guidance amends the definition of a hosting arrangement and requires that the customer in a hosting arrangement that is a service contract capitalize certain implementation costs as if the arrangement was an internal-use software project. We adopted the guidance in the first quarter of fiscal 2021 and elected to apply the guidance prospectively to implementation costs incurred after the adoption date. The adoption did not have an impact on our consolidated financial statements on the adoption date. Defined Benefit Plans. In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The objective of the guidance is to improve the effectiveness of disclosure requirements on defined benefit pension plans and other postretirement plans. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. Goodwill. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies goodwill impairment testing. We adopted the guidance in the first quarter of fiscal 2021 and the adoption did not have a material impact on our consolidated financial statements. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following table sets forth our Consolidated Statement of Financial Condition as of November 30, 2021 as originally reported and as revised and presented within these consolidated financial statements as a result of the reclassifications and change in accounting policy. Balance at As Originally Reported Increases/Decreases Increases/Decreases due to change in accounting policy As Revised Assets: Financial instruments owned $ 19,828,670 $ 50,964 $ (1,855,013) $ 18,024,621 Investments in and loans to related parties 1,745,790 (158,381) — 1,587,409 Receivables (1) 7,839,240 (7,839,240) — — Receivables - Brokers, dealers and clearing organizations — 4,896,704 (2,441,786) 2,454,918 Receivables - Customers — 1,615,822 — 1,615,822 Receivables - Fees, interest and other — 582,756 — 582,756 Intangible assets, net and goodwill 1,897,500 (1,897,500) — — Goodwill — 1,745,098 — 1,745,098 Other assets (1) 2,352,247 1,003,777 — 3,356,024 Total assets 60,404,110 — (4,296,799) 56,107,311 Liabilities: Financial instruments sold, not yet purchased $ 11,699,467 $ — $ (2,432,377) $ 9,267,090 Payables, expense accruals and other liabilities 13,612,367 (13,612,367) — — Payables - Brokers, dealers and clearing organizations — 5,816,515 (1,864,422) 3,952,093 Payables - Customers — 4,461,481 — 4,461,481 Accrued expenses and other liabilities — 3,334,371 — 3,334,371 Total liabilities 49,674,070 — (4,296,799) 45,377,271 (1) Automobile loans of $745.3 million historically presented within Receivables have been reclassified to Other assets on the Consolidated Statement of Financial Condition. The following table sets forth our Consolidated Statements of Earnings for the years ended November 30, 2021 and 2020 as originally reported and as revised and presented within these consolidated financial statements as a result of the reclassifications. Year Ended Year Ended As Originally Reported Increases/Decreases As Revised As Originally Reported Increases/Decreases As Revised Principal transactions $ 1,623,713 $ (6,377) $ 1,617,336 $ 1,916,508 $ 11,635 $ 1,928,143 Asset management fees and revenues — 72,084 72,084 — 34,209 34,209 Interest 943,336 12,982 956,318 997,555 11,993 1,009,548 Other 1,211,120 (173,108) 1,038,012 718,125 (133,320) 584,805 Total revenues 9,039,883 (94,419) 8,945,464 6,955,930 (75,483) 6,880,447 Interest expense 854,554 77,084 931,638 945,056 84,870 1,029,926 Net revenues 8,185,329 (171,503) 8,013,826 6,010,874 (160,353) 5,850,521 Compensation and benefits 3,551,124 3,636 3,554,760 2,940,863 3,208 2,944,071 Interest expense 77,084 (77,084) — 84,870 (84,870) — Selling, general and other expenses 1,278,447 (1,278,447) — 1,078,956 (1,078,956) — Underwriting costs — 117,572 117,572 — 95,636 95,636 Technology and communications — 388,134 388,134 — 335,065 335,065 Occupancy and equipment rental — 106,254 106,254 — 95,754 95,754 Business development — 109,772 109,772 — 70,797 70,797 Professional services — 215,761 215,761 — 176,280 176,280 Other expenses — 337,318 337,318 — 302,216 302,216 Total expenses 5,836,805 (77,084) 5,759,721 4,868,308 (84,870) 4,783,438 Income (loss) related to associated companies (94,419) 94,419 — (75,483) 75,483 — |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following is a summary of our financial assets and liabilities that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on net asset value (“NAV”) of $1.29 billion and $1.05 billion at November 30, 2022 and 2021, respectively, by level within the fair value hierarchy (in thousands): November 30, 2022 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 3,117,327 $ 140,157 $ 240,347 $ — $ 3,497,831 Corporate debt securities — 3,972,153 30,232 — 4,002,385 Collateralized debt obligations and collateralized loan obligations — 71,640 55,824 — 127,464 U.S. government and federal agency securities 3,442,484 15,111 — — 3,457,595 Municipal securities — 574,903 — — 574,903 Sovereign obligations 896,805 849,558 — — 1,746,363 Residential mortgage-backed securities — 1,314,199 27,617 — 1,341,816 Commercial mortgage-backed securities — 442,471 839 — 443,310 Other asset-backed securities — 333,164 94,677 — 427,841 Loans and other receivables — 1,069,041 168,875 — 1,237,916 Derivatives 3,437 3,427,921 11,052 (3,093,244) 349,166 Investments at fair value — 3,750 161,992 — 165,742 Total financial instruments owned, excluding Investments at fair value based on NAV $ 7,460,053 $ 12,214,068 $ 791,455 $ (3,093,244) $ 17,372,332 Securities received as collateral $ 100,362 $ — $ — $ — $ 100,362 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 2,097,436 $ 48,931 $ 750 $ — $ 2,147,117 Corporate debt securities — 2,337,691 500 — 2,338,191 U.S. government and federal agency securities 3,223,637 — — — 3,223,637 Sovereign obligations 879,909 771,125 — — 1,651,034 Commercial mortgage-backed securities — — 490 — 490 Loans — 180,147 3,164 — 183,311 Derivatives 204 4,174,082 70,576 (2,732,165) 1,512,697 Total financial instruments sold, not yet purchased $ 6,201,186 $ 7,511,976 $ 75,480 $ (2,732,165) $ 11,056,477 Other secured financings $ — $ — $ 1,712 $ — $ 1,712 Obligation to return securities received as collateral $ 100,362 $ — $ — $ — $ 100,362 Long-term debt $ — $ 922,705 $ 661,123 $ — $ 1,583,828 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. November 30, 2021 Level 1 Level 2 Level 3 Counterparty and Cash Collateral Netting (1) Total Assets: Financial instruments owned: Corporate equity securities $ 2,737,255 $ 257,318 $ 118,489 $ — $ 3,113,062 Corporate debt securities — 3,836,341 11,803 — 3,848,144 Collateralized debt obligations and collateralized loan obligations — 579,518 31,946 — 611,464 U.S. government and federal agency securities 3,045,295 68,784 — — 3,114,079 Municipal securities — 509,559 — — 509,559 Sovereign obligations 899,086 654,199 — — 1,553,285 Residential mortgage-backed securities — 1,168,246 1,477 — 1,169,723 Commercial mortgage-backed securities — 196,419 2,333 — 198,752 Other asset-backed securities — 337,022 93,524 — 430,546 Loans and other receivables — 1,515,314 178,417 — 1,693,731 Derivatives 4,429 3,861,551 10,248 (3,305,756) 570,472 Investments at fair value — 11,369 154,373 — 165,742 Total financial instruments owned, excluding Investments at fair value based on NAV $ 6,686,065 $ 12,995,640 $ 602,610 $ (3,305,756) $ 16,978,559 Securities received as collateral $ 7,289 $ — $ — $ — $ 7,289 Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 1,671,696 $ 19,654 $ 4,635 $ — $ 1,695,985 Corporate debt securities — 2,111,777 482 — 2,112,259 U.S. government and federal agency securities 2,457,420 — — — 2,457,420 Sovereign obligations 935,801 593,040 — — 1,528,841 Residential mortgage-backed securities — 719 — — 719 Commercial mortgage-backed securities — — 210 — 210 Loans — 49,555 9,925 — 59,480 Derivatives 1,815 5,034,544 78,017 (3,702,200) 1,412,176 Total financial instruments sold, not yet purchased $ 5,066,732 $ 7,809,289 $ 93,269 $ (3,702,200) $ 9,267,090 Other secured financings $ — $ 76,883 $ 25,905 $ — $ 102,788 Obligation to return securities received as collateral $ 7,289 $ — $ — $ — $ 7,289 Long-term debt $ — $ 961,866 $ 881,732 $ — $ 1,843,598 (1) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty. |
Investments Measured at Fair Value Based on Net Asset Value Per Share | The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands): November 30, 2022 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 441,229 $ — Equity Funds (3) 73,176 36,861 Commodity Fund (4) 24,283 — Multi-asset Funds (5) 401,655 — Other Funds (6) 353,621 53,994 Total $ 1,293,964 $ 90,855 November 30, 2021 Fair Value (1) Unfunded Commitments Equity Long/Short Hedge Funds (2) $ 466,231 $ — Equity Funds (3) 66,152 18,888 Commodity Fund (4) 24,401 — Multi-asset Funds (5) 390,224 — Other Funds (6) 99,054 36,090 Total $ 1,046,062 $ 54,978 (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 November 30, 2022 and 2021, approximately 58% and 74%, respectively, became redeemable quarterly with 90 days written notice on December 31, 2021. At November 30, 2022 and 2021, approximately 34% and 21%, respectively, of the fair value of investments cannot be redeemed because these investments include restrictions that do not allow for redemption before November 30, 2023. At November 30, 2022 and 2021, approximately 6% and 5%, respectively, of the investments are redeemable quarterly with 60 days prior written notice. At November 30, 2022, the remaining balance cannot be redeemed because these investments include restrictions that do not allow for redemption before August 31, 2025. (3) The investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed; instead, distributions are received through the liquidation of the underlying assets of the funds which are primarily expected to be liquidated in approximately one (4) This category includes investments in a hedge fund that invests, long and short, primarily in commodities. Investments in this category are redeemable quarterly with 60 days prior written notice. (5) This category includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At both November 30, 2022 and 2021, investments representing approximately 78% of the fair value of investments in this category are redeemable monthly with 60 days prior written notice. At November 30, 2022 and 2021, approximately 15% and 22%, respectively, of the fair value of investments in this category are redeemable quarterly with 90 days prior written notice. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2022 (in thousands): For instruments still held at November 30, 2022, changes in unrealized gains/(losses) included in: Balance at November 30, 2021 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2022 Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 118,489 $ (645) $ 171,700 $ (62,474) $ (298) $ — $ 13,575 $ 240,347 $ 7,286 $ — Corporate debt securities 11,803 946 18,686 (23,964) (9) — 22,770 30,232 (2,087) — CDOs and CLOs 31,946 7,099 44,995 (22,600) (16,634) — 11,018 55,824 (10,938) — RMBS 1,477 (13,210) 35,774 (372) (240) — 4,188 27,617 (7,728) — CMBS 2,333 (733) — (749) — — (12) 839 (703) — Other ABS 93,524 (6,467) 74,353 (20,362) (39,647) — (6,724) 94,677 (26,982) — Loans and other receivables 178,417 (1,912) 45,536 (33,692) (48,218) — 28,744 168,875 (11,610) — Investments at fair value 154,373 46,735 74,984 (74,742) (15,951) — (23,407) 161,992 33,294 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,635 $ (3,611) $ (815) $ 4,858 $ — $ — $ (4,317) $ 750 $ 2,382 $ — Corporate debt securities 482 88 (70) — — — — 500 (88) — CMBS 210 — — 280 — — — 490 — — Loans 9,925 1,197 (5,173) — 96 — (2,881) 3,164 (2,484) — Net derivatives (2) 67,769 (181,750) (1,559) 1,285 — 28,436 145,343 59,524 168,304 — Other secured financings 25,905 (650) — — (23,543) — — 1,712 650 Long-term debt 881,732 (280,967) — — (3,919) 83,874 (19,597) 661,123 239,400 41,567 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2021 (in thousands): For instruments still held at November 30, 2021, changes in unrealized gains/(losses) included in: Balance at November 30, 2020 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2021 Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 116,089 $ 19,213 $ 8,778 $ (34,307) $ (49) $ — $ 8,765 $ 118,489 $ 11,589 $ — Corporate debt securities 23,146 1,565 11,161 (7,978) (1,417) — (14,674) 11,803 1,724 — CDOs and CLOs 17,972 8,092 32,618 (27,332) (5,042) — 5,638 31,946 (4,390) — RMBS 21,826 (243) 708 (1,183) (354) — (19,277) 1,477 (131) — CMBS 2,003 (1,694) 2,445 (393) (13) — (15) 2,333 (733) — Other ABS 79,995 5,335 65,277 (21,727) (45,397) — 10,041 93,524 (14,471) — Loans and other receivables 186,568 1,250 50,167 (55,848) (20,442) — 16,722 178,417 (4,905) — Investments at fair value 213,946 112,012 22,957 (47,243) (9,809) — (137,490) 154,373 25,723 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,434 $ (83) $ (21) $ 318 $ — $ — $ (13) $ 4,635 $ 83 $ — Corporate debt securities 141 1,205 (815) — (49) — — 482 (139) — CMBS 35 — (35) 210 — — — 210 — — Loans 6,913 3,384 (469) 220 — — (123) 9,925 (1,523) — Net derivatives (2) 26,017 7,246 — — (1,491) 44,453 (8,456) 67,769 (7,371) — Other secured financings 1,543 (649) — — — 25,011 — 25,905 649 — Long-term debt 676,028 (22,132) — — — 169,975 57,861 881,732 85,260 (63,126) (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes within long-term debt are included in our Consolidated Statement of Comprehensive Income, net of tax. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2020 (in thousands): For instruments still held at November 30, 2020, changes in unrealized gains/(losses) included in: Balance at November 30, 2019 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2020 Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 58,426 $ 1,411 $ 31,885 $ (37,706) $ — $ 34,688 $ 27,385 $ 116,089 $ 4,845 $ — Corporate debt securities 7,490 83 1,607 (391) (602) — 14,959 23,146 (270) — CDOs and CLOs 28,788 (3,821) 10,913 (14,389) (5,201) — 1,682 17,972 (17,212) — RMBS 17,740 (934) 7,887 (969) (1,053) — (845) 21,826 (599) — CMBS 6,110 (827) 393 (1,856) (1,787) — (30) 2,003 (295) — Other ABS 42,563 (3,848) 69,701 (1,638) (43,072) — 16,289 79,995 (5,945) Loans and other receivables 154,322 (6,203) 110,116 (25,568) (57,455) — 11,356 186,568 (5,522) — Investments, at fair value 205,412 (31,666) 55,836 (167) (17,298) — 1,829 213,946 (33,514) — Securities purchased under agreements to resell 25,000 — — — (25,000) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 456 $ (513) $ — $ — $ — $ 4 $ 4,434 $ (81) $ — Corporate debt securities 340 (268) (325) 394 — — — 141 27 — CMBS 35 — — 35 — — (35) 35 — — Loans 1,690 5,297 (440) — — — 366 6,913 (5,409) — Net derivatives (2) 77,168 (40) (7,446) 19,376 (2,216) — (60,825) 26,017 (1,805) — Other secured financings — (2,475) — — — 4,018 — 1,543 2,475 — Long-term debt 480,069 84,930 — — (57,088) 248,718 (80,601) 676,028 (51,567) (33,363) (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes within long-term debt are included in our Consolidated Statement of Comprehensive Income, net of tax. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2022 (in thousands): For instruments still held at November 30, 2022, changes in unrealized gains/(losses) included in: Balance at November 30, 2021 Total gains/ losses (realized and unrealized) (1) Purchases Sales Settlements Issuances Net transfers into/ Balance at November 30, 2022 Earnings (1) Other comprehensive income (1) Assets: Financial instruments owned: Corporate equity securities $ 118,489 $ (645) $ 171,700 $ (62,474) $ (298) $ — $ 13,575 $ 240,347 $ 7,286 $ — Corporate debt securities 11,803 946 18,686 (23,964) (9) — 22,770 30,232 (2,087) — CDOs and CLOs 31,946 7,099 44,995 (22,600) (16,634) — 11,018 55,824 (10,938) — RMBS 1,477 (13,210) 35,774 (372) (240) — 4,188 27,617 (7,728) — CMBS 2,333 (733) — (749) — — (12) 839 (703) — Other ABS 93,524 (6,467) 74,353 (20,362) (39,647) — (6,724) 94,677 (26,982) — Loans and other receivables 178,417 (1,912) 45,536 (33,692) (48,218) — 28,744 168,875 (11,610) — Investments at fair value 154,373 46,735 74,984 (74,742) (15,951) — (23,407) 161,992 33,294 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,635 $ (3,611) $ (815) $ 4,858 $ — $ — $ (4,317) $ 750 $ 2,382 $ — Corporate debt securities 482 88 (70) — — — — 500 (88) — CMBS 210 — — 280 — — — 490 — — Loans 9,925 1,197 (5,173) — 96 — (2,881) 3,164 (2,484) — Net derivatives (2) 67,769 (181,750) (1,559) 1,285 — 28,436 145,343 59,524 168,304 — Other secured financings 25,905 (650) — — (23,543) — — 1,712 650 Long-term debt 881,732 (280,967) — — (3,919) 83,874 (19,597) 661,123 239,400 41,567 (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2021 (in thousands): For instruments still held at November 30, 2021, changes in unrealized gains/(losses) included in: Balance at November 30, 2020 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2021 Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 116,089 $ 19,213 $ 8,778 $ (34,307) $ (49) $ — $ 8,765 $ 118,489 $ 11,589 $ — Corporate debt securities 23,146 1,565 11,161 (7,978) (1,417) — (14,674) 11,803 1,724 — CDOs and CLOs 17,972 8,092 32,618 (27,332) (5,042) — 5,638 31,946 (4,390) — RMBS 21,826 (243) 708 (1,183) (354) — (19,277) 1,477 (131) — CMBS 2,003 (1,694) 2,445 (393) (13) — (15) 2,333 (733) — Other ABS 79,995 5,335 65,277 (21,727) (45,397) — 10,041 93,524 (14,471) — Loans and other receivables 186,568 1,250 50,167 (55,848) (20,442) — 16,722 178,417 (4,905) — Investments at fair value 213,946 112,012 22,957 (47,243) (9,809) — (137,490) 154,373 25,723 — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,434 $ (83) $ (21) $ 318 $ — $ — $ (13) $ 4,635 $ 83 $ — Corporate debt securities 141 1,205 (815) — (49) — — 482 (139) — CMBS 35 — (35) 210 — — — 210 — — Loans 6,913 3,384 (469) 220 — — (123) 9,925 (1,523) — Net derivatives (2) 26,017 7,246 — — (1,491) 44,453 (8,456) 67,769 (7,371) — Other secured financings 1,543 (649) — — — 25,011 — 25,905 649 — Long-term debt 676,028 (22,132) — — — 169,975 57,861 881,732 85,260 (63,126) (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes within long-term debt are included in our Consolidated Statement of Comprehensive Income, net of tax. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended November 30, 2020 (in thousands): For instruments still held at November 30, 2020, changes in unrealized gains/(losses) included in: Balance at November 30, 2019 Total gains/ Purchases Sales Settlements Issuances Net Balance at November 30, 2020 Earnings (1) Other Assets: Financial instruments owned: Corporate equity securities $ 58,426 $ 1,411 $ 31,885 $ (37,706) $ — $ 34,688 $ 27,385 $ 116,089 $ 4,845 $ — Corporate debt securities 7,490 83 1,607 (391) (602) — 14,959 23,146 (270) — CDOs and CLOs 28,788 (3,821) 10,913 (14,389) (5,201) — 1,682 17,972 (17,212) — RMBS 17,740 (934) 7,887 (969) (1,053) — (845) 21,826 (599) — CMBS 6,110 (827) 393 (1,856) (1,787) — (30) 2,003 (295) — Other ABS 42,563 (3,848) 69,701 (1,638) (43,072) — 16,289 79,995 (5,945) Loans and other receivables 154,322 (6,203) 110,116 (25,568) (57,455) — 11,356 186,568 (5,522) — Investments, at fair value 205,412 (31,666) 55,836 (167) (17,298) — 1,829 213,946 (33,514) — Securities purchased under agreements to resell 25,000 — — — (25,000) — — — — — Liabilities: Financial instruments sold, not yet purchased: Corporate equity securities $ 4,487 $ 456 $ (513) $ — $ — $ — $ 4 $ 4,434 $ (81) $ — Corporate debt securities 340 (268) (325) 394 — — — 141 27 — CMBS 35 — — 35 — — (35) 35 — — Loans 1,690 5,297 (440) — — — 366 6,913 (5,409) — Net derivatives (2) 77,168 (40) (7,446) 19,376 (2,216) — (60,825) 26,017 (1,805) — Other secured financings — (2,475) — — — 4,018 — 1,543 2,475 — Long-term debt 480,069 84,930 — — (57,088) 248,718 (80,601) 676,028 (51,567) (33,363) (1) Realized and unrealized gains/losses are primarily reported in Principal transactions revenues in our Consolidated Statements of Earnings. Changes in instrument-specific credit risk related to structured notes within long-term debt are included in our Consolidated Statement of Comprehensive Income, net of tax. (2) Net derivatives represent Financial instruments owned—Derivatives and Financial instruments sold, not yet purchased —Derivatives. |
Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements | The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument ( i.e. , the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category. For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period. November 30, 2022 Financial Instruments Owned Fair Value Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Corporate equity securities $ 240,347 Non-exchange-traded securities Market approach Price $0 - $325 $43 Corporate debt securities $ 30,232 Market approach Price $48 - $82 $65 EBITDA multiple 4.2 — Scenario analysis Estimated recovery percentage 7% — CDOs and CLOs $ 55,824 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2 % - 3% 2% Loss severity 30 % - 40% 32% Discount rate/yield 18 % - 23% 22% Market approach Price $67 - $102 $89 Scenario analysis Estimated recovery percentage 69% — CMBS $ 839 Scenario analysis Estimated recovery percentage 45% — Other ABS $ 55,858 Discounted cash flows Discount rate/yield 6 % - 20% 17% Cumulative loss rate 8 % - 22% 19% Duration (years) 0.8 - 1.6 1.2 Loans and other receivables $ 168,875 Market approach Price $1 - $150 $82 Scenario analysis Estimated recovery percentage 6 % - 78% 30% Investments at fair value $ 159,304 Private equity securities Market approach Price $0 - $14,919 $604 Discount rate/yield 23% — Revenue $30,194,338 — Financial Instruments Sold, Not Yet Purchased: Derivatives $ 65,841 Equity options Volatility benchmarking Volatility 26 % - 75% 51% Other secured financings $ 1,712 Scenario analysis Estimated recovery percentage 9 % - 30% 23% Long-term debt $ 661,123 Structured notes Market approach Price $51 - $97 $64 Price €59 - €99 €77 November 30, 2021 Financial Instruments Owned: Fair Value Valuation Technique Significant Unobservable Input(s) Input / Range Weighted Corporate equity securities $ 117,803 Non-exchange-traded securities Market approach Price $1 - $662 $227 Price €15 - €18 €16 Volatility 25 % - 59% 31% Volatility benchmarking Volatility 40 % - 53% 45% Corporate debt securities $ 11,803 Market approach Price $13 - $100 $86 CDOs and CLOs $ 31,944 Discounted cash flows Constant prepayment rate 20% — Constant default rate 2% — Loss severity 25 % - 30% 26% Discount rate/yield 8 % - 19% 16% Market approach Price $86 - $103 $93 CMBS $ 2,333 Scenario analysis Estimated recovery percentage 81% — Other ABS $ 86,099 Discounted cash flows Constant prepayment rate 0 % - 35% 31% Constant default rate 2 % 4% 4% Loss severity 60 % - 85% 55% Discount rate/yield 3 % - 16% 10% Cumulative loss rate 7 % - 20% 14% Duration (years) 0.7 - 1.4 1.1 Market approach Price $37 - $100 $94 Loans and other receivables $ 177,193 Market approach Price $31 - $101 $54 Discounted cash flows Duration (years) 0 - 2.2 2.2 Scenario analysis Estimated recovery percentage 9 % - 100% 76% Derivatives $ 6,501 Equity options Volatility benchmarking Volatility 46% — Interest rate swaps Market approach Basis points upfront 0.1 - 8.1 3.3 Total return swaps Price $100 — Investments at fair value $ 128,152 Private equity securities Market approach Price $1 - $152 $32 EBITDA multiple 16.9 — Revenue multiple 4.9 - 5.1 5.0 Scenario analysis Estimated recovery percentage 7% — Discount rate/yield 13% - 21% 17 Revenue growth 0% — Financial Instruments Sold, Not Yet Purchased: Corporate equity securities Non-exchange-traded securities $ 4,635 Market approach Price $1 — Loans $ 9,925 Market approach Price $31 - $100 $43 Scenario analysis Estimated recovery percentage 50% — Derivatives $ 76,533 Equity options Volatility benchmarking Volatility 26 % - 77% 40% Interest rate swaps Market approach Basis points upfront 0.1 - 8.7 3.1 Total return swaps Price $100 — Other secured financings $ 25,905 Scenario analysis Estimated recovery percentage 13 % - 98% 92% Long-term debt $ 881,732 Structured notes Market approach Price $76 - $115 $94 Price €81 - €113 €103 |
Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk and Summary of Contractual Principal Exceeds Fair Value for Loans and Other Receivables | The following is a summary of gains (losses) due to changes in fair value related to instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on Short-term borrowings, Other secured financings and Long-term debt measured at fair value under the fair value option (in thousands): Year Ended November 30, 2022 2021 2020 Financial instruments owned: Loans and other receivables $ (20,529) $ 11,682 $ (25,623) Financial instruments sold, not yet purchased: Loans — 1,077 — Loan commitments — — 464 Short-term borrowings: Other changes in fair value (2) — — (48) Other secured financings: Other changes in fair value (2) 695 650 2,475 Long-term debt: Changes in fair value of instrument specific credit risk (1) 63,344 (113,027) 70,201 Other changes in fair value (2) 345,050 108,739 (84,116) (1) Changes in fair value of instrument specific credit risk related to structured notes are included in our Consolidated Statements of Comprehensive Income, net of tax. (2) Other changes in fair value are included in Principal transactions revenues in our Consolidated Statements of Earnings. The following is a summary of the amounts by which contractual principal is greater than (less than) fair value for loans and other receivables, short-term borrowings, Other secured financings and Long-term debt measured at fair value under the fair value option (in thousands): November 30, 2022 2021 Financial instruments owned: Loans and other receivables (1) $ 2,144,632 $ 5,600,648 Loans and other receivables on nonaccrual status and/or 90 days or 181,766 64,203 Long-term debt and short-term borrowings 369,990 (38,391) Other secured financings 3,563 3,432 (1) Interest income is recognized separately from other changes in fair value and is included in Interest revenues in our Consolidated Statements of Earnings. (2) Amounts include loans and other receivables 90 days or greater past due by which contractual principal exceeds fair value of $83.4 million and $19.7 million at November 30, 2022 and 2021, respectively. |
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | The following table presents those assets measured at fair value on a non-recurring basis for which we recognized a non-recurring fair value adjustment during the years ended November 30, 2022, 2021 and 2020 (in thousands): November 30, 2022 Level 2 Level 3 Impairment Losses Exchange ownership interests and registrations (1) $ — $ — $ 39 Investments in and loans to related parties (2) — 106,172 27,119 Other assets (3) — 1,709 6,701 November 30, 2021 Level 2 Level 3 Impairment Losses Exchange ownership interests and registrations (1) $ 1,935 $ — $ 66 November 30, 2020 Level 2 Level 3 Impairment Losses Exchange ownership interests and registrations (1) $ 1,974 $ — $ 468 Intangible assets (4) — — 300 Investments in and loans to related parties (5) — — 55,612 Other assets (6) 36,400 46,200 (1) These impairment losses, which represent ownership interests in market exchanges on which trading business is conducted, and registrations, were recognized in Other expenses (2) These impairment losses, which are related to certain equity method investments, were recognized in Other revenues in our Consolidated Statements of Earnings and the assets were in the Asset Management reportable business segment. The fair values were based on estimated future cash flows using discount rates ranging from 10.0% to 23.0%. (See Note 9, Investments.) (3) These impairment losses, which relate to a real estate property, were recognized in Other expenses in our Consolidated Statements of Earnings and the assets were in the Asset Management reportable business segment. The fair values were based on estimated future cash flows discounted at 12.0%. (4) These impairment losses were recognized in Other expenses (5) These impairment losses, which are related to a real estate equity method investment, were recognized in Other revenues in our Consolidated Statements of Earnings and the assets were in the Asset Management reportable business segment. The fair value was based on a third party appraisal which incorporates Level 3 inputs of comparable property prices. (See Note 9, Investments.) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract | The following tables present the fair value and related number of derivative contracts at November 30, 2022 and 2021 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands, except contract amounts). November 30, 2022 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ — — $ 217,922 3 Foreign exchange contracts: Bilateral OTC — — 57,875 5 Total derivatives designated as accounting hedges — 275,797 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 3,297 49,736 123 36,085 Cleared OTC 655,140 3,843 452,570 4,203 Bilateral OTC 1,044,632 772 1,573,975 704 Foreign exchange contracts: Exchange-traded — 2 — 1 Bilateral OTC 287,594 2,398 251,339 2,428 Equity contracts: Exchange-traded 1,074,134 1,323,637 864,804 1,338,129 Bilateral OTC 348,611 5,201 800,230 5,543 Commodity contracts: Exchange-traded 37 597 19 607 Bilateral OTC 4,327 5 4,874 3 Credit contracts: Cleared OTC 8,364 51 7,742 35 Bilateral OTC 16,274 9 13,389 8 Total derivatives not designated as accounting hedges 3,442,410 3,969,065 Total gross derivative assets/ liabilities: Exchange-traded 1,077,468 864,946 Cleared OTC 663,504 678,234 Bilateral OTC 1,701,438 2,701,682 Amounts offset in our Consolidated Statements of Financial Condition (3): Exchange-traded (858,921) (858,921) Cleared OTC (655,969) (657,192) Bilateral OTC (1,578,354) (1,216,052) Net amounts per Consolidated Statements of Financial Condition (4) $ 349,166 $ 1,512,697 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) Amounts netted include both netting by counterparty and for cash collateral paid or received. (4) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition. November 30, 2021 (1) Assets Liabilities Fair Value Number of Contracts (2) Fair Value Number of Contracts (2) Derivatives designated as accounting hedges: Interest rate contracts: Cleared OTC $ 35,726 2 $ 32,200 1 Foreign exchange contracts: Bilateral OTC 30,462 4 — — Total derivatives designated as accounting hedges 66,188 32,200 Derivatives not designated as accounting hedges: Interest rate contracts: Exchange-traded 1,262 23,888 756 39,195 Cleared OTC 373,355 4,505 367,134 4,467 Bilateral OTC 322,353 1,037 283,481 967 Foreign exchange contracts: Bilateral OTC 1,428,712 17,792 1,437,116 17,576 Equity contracts: Exchange-traded 1,206,606 1,582,713 1,036,019 1,450,624 Bilateral OTC 377,132 2,888 1,824,418 2,682 Commodity contracts: Exchange-traded 448 1,394 223 1,457 Bilateral OTC (3) 2,703 2 9,862 7 Credit contracts: Cleared OTC 84,180 132 108,999 128 Bilateral OTC 13,289 14 14,168 17 Total derivatives not designated as accounting hedges 3,810,040 5,082,176 Total gross derivative assets/liabilities: Exchange-traded 1,208,316 1,036,998 Cleared OTC 493,261 508,333 Bilateral OTC 2,174,651 3,569,045 Amounts offset in our Consolidated Statements of Financial Condition (4): Exchange-traded (1,008,091) (1,008,091) Cleared OTC (483,339) (508,333) Bilateral OTC (1,814,326) (2,185,776) Net amounts per Consolidated Statements of Financial Condition (5) $ 570,472 $ 1,412,176 (1) Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2) Number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations in our Consolidated Statements of Financial Condition. (3) As of November 30, 2021, the notional amount of outstanding bilateral commodity contracts was 616 asset contracts and 825 liability contracts. (4) Amounts netted include both netting by counterparty and for cash collateral paid or received. (5) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition. |
Unrealized and Realized Gains (Losses) on Derivative Contracts | The following table provides information related to gains (losses) recognized in Interest expense in our Consolidated Statements of Earnings related to fair value hedges (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Interest rate swaps $ (212,280) $ (41,845) $ 41,524 Long-term debt 219,143 58,507 (36,668) Total $ 6,863 $ 16,662 $ 4,856 The following table provides information related to gains (losses) on our net investment hedges recognized in Currency translation and other adjustments, a component of Other comprehensive income (loss), in our Consolidated Statements of Comprehensive Income (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Foreign exchange contracts $ 116,876 $ 19,008 $ (3,306) Total $ 116,876 $ 19,008 $ (3,306) The following table presents unrealized and realized gains (losses) on derivative contracts recognized primarily in Principal transactions revenues in our Consolidated Statements of Earnings, which are utilized in connection with our client activities and our economic risk management activities (in thousands): Year Ended November 30, Gains (Losses) 2022 2021 2020 Interest rate contracts $ (154,378) $ (48,510) $ (52,331) Foreign exchange contracts (164,729) (10,152) 2,266 Equity contracts (29,740) (427,593) 47,631 Commodity contracts (43,106) (28,012) 45,491 Credit contracts 15,612 653 15,218 Total $ (376,341) $ (513,614) $ 58,275 |
Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities | The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at November 30, 2022 (in thousands): OTC Derivative Assets (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than Cross-Maturity Total Commodity swaps, options and forwards $ 2,826 $ 1,512 $ — $ (1,547) $ 2,791 Equity options and forwards 51,033 2,698 — (499) 53,232 Credit default swaps — 762 7,209 (153) 7,818 Total return swaps 126,590 24,528 — (4,778) 146,340 Foreign currency forwards, swaps and options 106,481 7,379 — (5,965) 107,895 Fixed income forwards 12,816 — — — 12,816 Interest rate swaps, options and forwards 134,140 763,300 28,963 (177,420) 748,983 Total $ 433,886 $ 800,179 $ 36,172 $ (190,362) 1,079,875 Cross-product counterparty netting (35,883) Total OTC derivative assets included in Financial instruments owned $ 1,043,992 (1) At November 30, 2022, we held net exchange-traded derivative assets and other credit agreements with a fair value of $218.6 million, which are not included in this table. (2) OTC derivative assets in the table above are gross of collateral received. OTC derivative assets are recorded net of collateral received in our Consolidated Statements of Financial Condition. At November 30, 2022, cash collateral received was $913.4 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC Derivative Liabilities (1) (2) (3) 0 – 12 Months 1 – 5 Years Greater Than 5 Years Cross-Maturity Netting (4) Total Commodity swaps, options and forwards $ 3,904 $ 980 $ — $ (1,547) $ 3,337 Equity options and forwards 248,343 269,123 453 (499) 517,420 Credit default swaps — — 153 (153) — Total return swaps 66,364 82,529 325 (4,778) 144,440 Foreign currency forwards, swaps and options 128,931 6,530 — (5,965) 129,496 Fixed income forwards 5,989 — — — 5,989 Interest rate swaps, options and forwards 149,794 774,289 524,062 (177,420) 1,270,725 Total $ 603,325 $ 1,133,451 $ 524,993 $ (190,362) 2,071,407 Cross-product counterparty netting (35,883) Total OTC derivative liabilities included in Financial instruments sold, not yet purchased $ 2,035,524 (1) At November 30, 2022, we held net exchange-traded derivative liabilities and other credit agreements with a fair value of $29.5 million, which are not included in this table. (2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At November 30, 2022, cash collateral pledged was $552.8 million. (3) Derivative fair values include counterparty netting within product category. (4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. |
Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets | The following table presents the counterparty credit quality with respect to the fair value of our OTC derivative assets at November 30, 2022 (in thousands): Counterparty credit quality (1): A- or higher $ 763,128 BBB- to BBB+ 156,219 BB+ or lower 73,831 Unrated 50,814 Total $ 1,043,992 (1) We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. |
Credit Related Derivative Contracts | The external credit ratings of the underlyings or referenced assets for our written credit related derivative contracts (in millions): November 30, 2022 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 207.9 $ 515.8 $ — $ 723.7 Single name credit default swaps — — 0.2 0.2 November 30, 2021 External Credit Rating Investment Grade Non-investment Grade Unrated Total Notional Credit protection sold: Index credit default swaps $ 2,612.0 $ 1,298.8 $ — $ 3,910.8 Single name credit default swaps — 17.6 0.2 17.8 |
Derivative Instruments with Contingent Features | The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we would have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered (in millions): November 30, 2022 2021 Derivative instrument liabilities with credit-risk-related contingent features $ 226.5 $ 821.5 Collateral posted (168.8) (160.5) Collateral received 177.4 369.3 Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) 235.0 1,030.4 (1) These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade. |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Collateralized Financing Transactions | The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by class of collateral pledged (in thousands): November 30, 2022 Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total Collateral Pledged: Corporate equity securities $ 967,800 $ 471,581 $ — $ 1,439,381 Corporate debt securities 332,204 2,210,934 — 2,543,138 Mortgage-backed and asset-backed securities — 1,192,265 — 1,192,265 U.S. government and federal agency securities 66,021 6,203,263 100,362 6,369,646 Municipal securities — 535,619 — 535,619 Sovereign obligations — 2,450,880 — 2,450,880 Loans and other receivables — 538,491 — 538,491 Total $ 1,366,025 $ 13,603,033 $ 100,362 $ 15,069,420 November 30, 2021 Securities Lending Arrangements Repurchase Agreements Obligation to Return Securities Received as Collateral, at Fair Value Total Collateral Pledged: Corporate equity securities $ 1,160,916 $ 150,602 $ 7,289 $ 1,318,807 Corporate debt securities 321,356 2,684,458 — 3,005,814 Mortgage-backed and asset-backed securities — 1,209,442 — 1,209,442 U.S. government and federal agency securities 6,348 8,426,536 — 8,432,884 Municipal securities — 413,073 — 413,073 Sovereign obligations 37,101 2,422,901 — 2,460,002 Loans and other receivables — 712,388 — 712,388 Total $ 1,525,721 $ 16,019,400 $ 7,289 $ 17,552,410 The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value, by remaining contractual maturity (in thousands): November 30, 2022 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 808,472 $ — $ 273,865 $ 283,688 $ 1,366,025 Repurchase agreements 6,930,667 1,521,629 2,262,705 2,888,032 13,603,033 Obligation to return securities received as collateral, at fair value 100,362 — — — 100,362 Total $ 7,839,501 $ 1,521,629 $ 2,536,570 $ 3,171,720 $ 15,069,420 November 30, 2021 Overnight and Continuous Up to 30 Days 31-90 Days Greater than 90 Days Total Securities lending arrangements $ 595,628 $ 1,318 $ 539,623 $ 389,152 $ 1,525,721 Repurchase agreements 6,551,934 1,798,716 4,361,993 3,306,757 16,019,400 Obligation to return securities received as collateral, at fair value 7,289 — — — 7,289 Total $ 7,154,851 $ 1,800,034 $ 4,901,616 $ 3,695,909 $ 17,552,410 |
Offsetting Assets | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 2022 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 5,831,148 $ — $ 5,831,148 $ (285,361) $ (1,381,404) $ 4,164,383 Reverse repurchase agreements 10,697,382 (6,150,691) 4,546,691 (550,669) (3,954,525) 41,497 Securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — Liabilities Securities lending arrangements $ 1,366,025 $ — $ 1,366,025 $ (285,361) $ (1,054,228) $ 26,436 Repurchase agreements 13,603,033 (6,150,691) 7,452,342 (550,669) (6,374,480) 527,193 Obligation to return securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — November 30, 2021 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 6,409,420 $ — $ 6,409,420 $ (271,475) $ (1,528,206) $ 4,609,739 Reverse repurchase agreements 15,215,785 (7,573,301) 7,642,484 (540,312) (7,048,823) 53,349 Securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — Liabilities Securities lending arrangements $ 1,525,721 $ — $ 1,525,721 $ (271,475) $ (1,213,563) $ 40,683 Repurchase agreements (5) 16,019,400 (7,573,301) 8,446,099 (540,312) (7,136,585) 769,202 Obligation to return securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — (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 our Consolidated Statement of Financial Condition because other netting provisions of U.S. GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) Amounts include $4.12 billion of securities borrowing arrangements, for which we have received securities collateral of $4.02 billion, and $495.2 million of repurchase agreements, for which we have pledged securities collateral of $507.3 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $4.51 billion of securities borrowing arrangements, for which we have received securities collateral of $4.35 billion, and $765.0 million of repurchase agreements, for which we have pledged securities collateral of $781.8 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (5) There was an immaterial correction in the amount of available collateral, which resulted in a $200 million decrease in the available collateral and a $200 million increase in the net amount related to repurchase agreements at November 30, 2021. |
Offsetting Liabilities | The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands). November 30, 2022 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (3) Assets Securities borrowing arrangements $ 5,831,148 $ — $ 5,831,148 $ (285,361) $ (1,381,404) $ 4,164,383 Reverse repurchase agreements 10,697,382 (6,150,691) 4,546,691 (550,669) (3,954,525) 41,497 Securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — Liabilities Securities lending arrangements $ 1,366,025 $ — $ 1,366,025 $ (285,361) $ (1,054,228) $ 26,436 Repurchase agreements 13,603,033 (6,150,691) 7,452,342 (550,669) (6,374,480) 527,193 Obligation to return securities received as collateral, at fair value 100,362 — 100,362 — (100,362) — November 30, 2021 Gross Amounts Netting in Consolidated Statement of Financial Condition Net Amounts in Consolidated Statement of Financial Condition Additional Amounts Available for Setoff (1) Available Collateral (2) Net Amount (4) Assets Securities borrowing arrangements $ 6,409,420 $ — $ 6,409,420 $ (271,475) $ (1,528,206) $ 4,609,739 Reverse repurchase agreements 15,215,785 (7,573,301) 7,642,484 (540,312) (7,048,823) 53,349 Securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — Liabilities Securities lending arrangements $ 1,525,721 $ — $ 1,525,721 $ (271,475) $ (1,213,563) $ 40,683 Repurchase agreements (5) 16,019,400 (7,573,301) 8,446,099 (540,312) (7,136,585) 769,202 Obligation to return securities received as collateral, at fair value 7,289 — 7,289 — (7,289) — (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 our Consolidated Statement of Financial Condition because other netting provisions of U.S. GAAP are not met. (2) Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements. (3) Amounts include $4.12 billion of securities borrowing arrangements, for which we have received securities collateral of $4.02 billion, and $495.2 million of repurchase agreements, for which we have pledged securities collateral of $507.3 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (4) Amounts include $4.51 billion of securities borrowing arrangements, for which we have received securities collateral of $4.35 billion, and $765.0 million of repurchase agreements, for which we have pledged securities collateral of $781.8 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable. (5) There was an immaterial correction in the amount of available collateral, which resulted in a $200 million decrease in the available collateral and a $200 million increase in the net amount related to repurchase agreements at November 30, 2021. |
Securitization Activities (Tabl
Securitization Activities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Activity Related to Securitizations Accounted for as Sales | The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions): Year Ended November 30, 2022 2021 2020 Transferred assets $ 6,351.2 $ 10,487.3 $ 6,556.2 Proceeds on new securitizations 6,402.6 10,488.6 6,556.2 Cash flows received on retained interests 31.7 21.8 26.8 |
Summary of Retained Interests in SPEs | The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions): November 30, 2022 2021 Securitization Type Total Assets Retained Interests Total Assets Retained Interests U.S. government agency RMBS $ 219.8 $ 2.9 $ 330.2 $ 4.9 U.S. government agency CMBS 2,997.7 173.9 2,201.8 69.2 CLOs 5,140.5 31.9 3,382.3 31.0 Consumer and other loans 2,526.7 122.8 2,271.4 136.4 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | The following table presents information about our consolidated VIEs at November 30, 2022 and 2021 (in millions). The assets and liabilities in the tables below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation. November 30, 2022 2021 Secured Funding Vehicles Other Secured Funding Vehicles Other Cash $ — $ 1.4 $ 3.8 $ — Financial instruments owned — 7.1 173.1 146.4 Securities purchased under agreements to resell (1) 1,565.0 — 3,697.1 — Receivables from brokers (2) — 15.2 — 40.6 Other receivables — — 0.6 — Other assets (3) 798.8 88.3 740.8 — Total assets $ 2,363.8 $ 112.0 $ 4,615.4 $ 187.0 Financial instruments sold, not yet purchased $ — $ 5.7 $ — $ 109.1 Other secured financings (4) 2,289.9 — 4,521.6 — Payables to broker dealers — — 44.2 — Other liabilities (5) 4.6 37.6 2.4 75.3 Long-term debt — 24.7 — — Total liabilities $ 2,294.5 $ 68.0 $ 4,568.2 $ 184.4 (1) Securities purchased under agreements to resell primarily represent amounts due under collateralized transactions on related consolidated entities, which are eliminated in consolidation. (2) Approximately $1.2 million of receivables from brokers at November 30, 2021 are with related consolidated entities, which are eliminated in consolidation. (3) Approximately $82.4 million and $56.5 million of the other assets at November 30, 2022 and 2021, respectively, represent intercompany receivables with related consolidated entities, which are eliminated in consolidation. (4) Approximately $253.8 million and $36.7 million of the other secured financings at November 30, 2022 and 2021, respectively, are with related consolidated entities and are eliminated in consolidation. (5) Approximately $30.9 million and $75.3 million of the other liabilities amounts at November 30, 2022 and 2021, respectively, are with related consolidated entities, which are eliminated in consolidation. The following tables present information about our variable interests in nonconsolidated VIEs (in millions): November 30, 2022 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 133.5 $ 1.4 $ 1,642.5 $ 7,705.3 Asset-backed vehicles 561.0 — 690.4 4,408.3 Related party private equity vehicles 24.8 — 35.5 69.1 Other investment vehicles 1,172.6 — 1,254.0 18,940.5 FXCM 94.8 — 94.8 389.6 Total $ 1,986.7 $ 1.4 $ 3,717.2 $ 31,512.8 November 30, 2021 Carrying Amount Maximum Exposure to Loss VIE Assets Assets Liabilities CLOs $ 582.2 $ 2.0 $ 2,557.1 $ 10,277.5 Asset-backed vehicles 281.9 — 359.3 3,474.6 Related party private equity vehicles 27.1 — 37.8 78.9 Other investment vehicles 1,111.5 — 1,201.6 15,101.4 FXCM 99.5 — 99.5 387.9 Total $ 2,102.2 $ 2.0 $ 4,255.3 $ 29,320.3 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Selected Financial Information | Equity method investments, including any loans to the investees, are reported within Investments in and loans to related parties in our Consolidated Statements of Financial Condition are summarized as follows (in millions). November 30, 2022 2021 Total Investments in and loans to related parties $ 1,426.8 $ 1,587.4 Year Ended November 30, 2022 2021 2020 Total equity method pickup income recognized in Other revenues in our Consolidated Statements of Earnings $ (36.3) $ 149.9 $ (75.2) Year Ended November 30, 2022 2021 2020 Interest income $ 0.4 $ 1.5 $ 2.4 Unfunded commitment fees 1.2 1.2 1.1 The following is a summary of selected financial information for Jefferies Finance (in millions): November 30, 2022 2021 Total assets $ 6,763.0 $ 8,258.7 Total liabilities 5,490.1 6,843.9 November 30, 2022 2021 Our total equity balance $ 636.4 $ 707.4 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ (129.4) $ 205.7 $ (74.9) The following summarizes activity related to our other transactions with Jefferies Finance (in millions): Year Ended November 30, 2022 2021 2020 Origination and syndication fee revenues (1) $ 194.7 $ 410.5 $ 198.1 Origination fee expenses (1) 39.7 66.8 27.3 CLO placement fee revenues (2) 4.6 5.7 1.7 Underwriting fees (3) — 2.5 1.7 Service fees (4) 94.7 85.1 65.1 (1) We engage in the origination and syndication of loans underwritten by Jefferies Finance. In connection with such services, we earned fees, which are recognized in Investment banking revenues in our Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance, which are recognized as Business development expenses in our Consolidated Statements of Earnings. (2) We act as a placement agent for CLOs managed by Jefferies Finance, for which we recognized fees, which are included in Investment banking revenues in our Consolidated Statements of Earnings. At November 30, 2022 and 2021, we held securities issued by CLOs managed by Jefferies Finance, which are included in Financial instruments owned, at fair value in our Consolidated Statements of Condition. (3) We acted as underwriter in connection with term loans issued by Jefferies Finance. (4) Under a service agreement, we charge Jefferies Finance for services provided. The following is a summary of selected financial information for Berkadia (in millions): November 30, 2022 2021 Total assets $ 4,436.0 $ 4,630.7 Total liabilities 2,801.7 3,377.0 Total noncontrolling interest 690.1 425.8 November 30, 2022 2021 Our total equity balance $ 425.9 $ 373.4 Year Ended November 30, 2022 2021 2020 Gross revenues $ 1,361.2 $ 1,262.4 $ 1,000.4 Net earnings 276.5 290.3 153.1 Our share of net earnings 124.4 130.6 68.9 We received distributions from Berkadia on our equity interest as follows (in millions): Year Ended November 30, 2022 2021 2020 Distributions $ 69.8 $ 58.0 $ 37.1 The following is a summary of selected financial information for OpNet (in millions): November 30, 2022 2021 Total assets $ 1,050.8 $ 782.0 Total liabilities 935.2 734.0 November 30, 2022 2021 Our total equity balance $ — $ — Year Ended November 30, 2022 2021 2020 Net loss $ (88.6) $ (90.5) $ (78.8) November 30, 2022 2021 Total assets $ 389.6 $ 387.9 Total liabilities 341.4 382.2 November 30, 2022 2021 Our total equity balance $ 59.7 $ 49.0 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ 39.0 $ (21.5) $ 6.5 November 30, 2022 2021 Total assets $ 209.8 $ 224.5 Total liabilities 102.1 101.6 November 30, 2022 2021 Our total equity balance $ 46.5 $ 55.1 Year Ended November 30, 2022 2021 2020 Net loss $ (15.2) $ (14.7) $ (9.6) November 30, 2022 2021 Total assets $ 350.4 $ 434.5 Total liabilities 487.5 506.1 November 30, 2022 2021 Our total equity balance $ 107.3 $ 115.2 Year Ended November 30, 2022 2021 2020 Net earnings (loss) $ 17.7 $ (27.0) $ (12.3) Year Ended November 30, 2022 2021 2020 Net gains (losses) from our investments in JCP Fund V $ 0.1 $ 7.7 $ (3.0) The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we owned effectively 35.2% of the combined equity interests (in millions): September 30, 2022 (1) 2021 (1) Total assets $ 68 $ 72 Total liabilities — — Total partners’ capital 68 72 Nine Months Ended September 30, 2022 (1) Three Months Ended December 31, 2021 (1) Nine Months Ended September 30, 2021 (1) Three Months Ended December 31, 2020 (1) Nine Months Ended September 30, 2020 (1) Three Months Ended December 31, 2019 (1) Net increase (decrease) in net assets resulting from operations $ (1.3) $ (3.2) $ 23.8 $ (1.0) $ (12.5) $ (1.4) (1) Financial information for JCP Fund V in financial position and results of operations at November 30, 2022 and 2021 and for the years ended November 30, 2022, 2021 and 2020 is included based on the presented periods. Year Ended November 30, 2022 2021 2020 Investment losses (1) $ (3.2) $ (0.8) $ — Management fees (2) 0.7 — — (1) Included in Principal transactions revenues in our Consolidated Statements of Earnings. (2) Included in Floor brokerage and clearing fees in our Consolidated Statements of Earnings. |
Credit Losses on Financial As_2
Credit Losses on Financial Assets Measured at Amortized Cost (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Loss, Automobiles | A rollforward of the allowance for credit losses related to our automobile loans for the years ended November 30, 2022, 2021 and 2020 is as follows (in thousands): Year Ended November 30, 2022 2021 2020 Beginning balance $ 67,236 $ 29,710 $ 23,606 Adjustment for change in accounting principle for current expected credit losses — 30,148 — Provision for doubtful accounts 35,173 18,768 27,974 Charge-offs, net of recoveries (22,795) (11,390) (21,870) Ending balance $ 79,614 $ 67,236 $ 29,710 |
Financing Receivable Credit Quality Indicators | The following tables present a summary of automobile loans held for investment by credit score, determined at origination, at November 30, 2022 for each vintage of the loan portfolio: Year of Origination 2022 2021 2020 2019 2018 Prior Years Total Percent Credit scores of 680 and above $ 53,700 $ 46,668 $ 17,276 $ 16,560 $ 7,631 $ 1,378 $ 143,213 16.3 % Credit scores between 620 to 679 170,220 132,528 44,095 35,393 17,635 7,647 407,518 46.3 Credit scores below 620 175,690 97,953 21,371 19,039 8,840 5,602 328,495 37.4 Total $ 399,610 $ 277,149 $ 82,742 $ 70,992 $ 34,106 $ 14,627 $ 879,226 100.0 % The following tables present a summary of automobile loans held for investment by credit score, determined at origination, at November 30, 2021 for each vintage of the loan portfolio: Year of Origination 2021 2020 2019 2018 2017 Prior Years Total Percent Credit scores of 680 and above $ 71,724 $ 31,215 $ 31,143 $ 16,695 $ 3,642 $ 805 $ 155,224 19.4 % Credit scores between 620 to 679 198,097 79,315 66,247 37,714 17,637 6,509 405,519 50.6 Credit scores below 620 132,374 38,322 34,638 18,277 11,689 5,644 240,944 30.0 Total $ 402,195 $ 148,852 $ 132,028 $ 72,686 $ 32,968 $ 12,958 $ 801,687 100.0 % |
Schedule of Aging Loans | The aging of automobile loans held for investment at November 30, 2022 is as follows: Year of Origination 2022 2021 2020 2019 2018 Prior Years Total Percent Current Accounts $ 380,863 $ 255,412 $ 76,841 $ 66,338 $ 31,269 $ 13,291 $ 824,014 93.7 % Delinquent Accounts 30 - 59 days 12,720 15,550 4,307 3,380 2,020 1,097 39,074 4.4 60 - 89 days 3,718 4,156 1,090 734 569 181 10,448 1.2 90 days and over 2,309 2,031 504 539 248 59 5,690 0.7 Total $ 399,610 $ 277,149 $ 82,742 $ 70,991 $ 34,106 $ 14,628 $ 879,226 100.0 % The aging of automobile loans held for investment at November 30, 2021 is as follows: Year of Origination 2021 2020 2019 2018 2017 Prior Years Total Percent Current Accounts $ 391,366 $ 142,210 $ 125,580 $ 68,852 $ 31,147 $ 12,041 $ 771,196 96.2 % Delinquent Accounts 30 - 59 days 7,387 4,444 4,330 2,979 1,472 698 21,310 2.7 60 - 89 days 2,613 1,586 1,620 616 305 157 6,897 0.8 90 days and over 829 612 498 240 44 61 2,284 0.3 Total $ 402,195 $ 148,852 $ 132,028 $ 72,687 $ 32,968 $ 12,957 $ 801,687 100.0 % |
Schedule of Allowance for Credit Loss, Investment Banking | The allowance for credit losses for investment banking receivables for the years ended November 30, 2022, 2021 and 2020 is as follows (in thousands): Year Ended November 30, 2022 2021 2020 Beginning balance $ 4,824 $ 19,788 $ 6,817 Adjustment for change in accounting principle for current expected credit losses — (3,594) — Bad debt expense, net of reversals 4,141 2,287 19,582 Charge-offs (910) (6,409) (2,083) Recoveries collected (2,141) (7,248) (4,528) Ending balance (1) $ 5,914 $ 4,824 $ 19,788 (1) The allowance for doubtful accounts balances are substantially all related to mergers and acquisitions and restructuring fee receivables, which include recoverable expense receivables. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill attributed to our reportable business segments are as follows (in thousands): November 30, 2022 2021 Investment Banking and Capital Markets $ 1,552,944 $ 1,561,928 Asset Management 183,170 183,170 Total goodwill $ 1,736,114 $ 1,745,098 The following table is a summary of the changes to goodwill (in thousands): Year Ended November 30, 2022 2021 Balance, at beginning of period $ 1,745,098 $ 1,746,314 Currency translation and other adjustments (8,984) (1,216) Balance, at end of period $ 1,736,114 $ 1,745,098 |
Schedule of Finite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2022 and 2021 (dollars in thousands): November 30, 2022 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,028 $ — $ (89,109) $ 36,919 8.2 Trade name 127,185 — (35,486) 91,699 25.3 Exchange and clearing organization membership interests and registrations 7,447 (39) — 7,408 N/A Other 14,957 — (11,521) 3,436 4.7 Total $ 275,617 $ (39) $ (136,116) $ 139,462 November 30, 2021 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 170,820 $ — $ (128,012) $ 42,808 9.0 Trade name 128,753 — (32,244) 96,509 26.3 Exchange and clearing organization membership interests and registrations 7,798 (66) — 7,732 N/A Other 16,682 — (11,329) 5,353 5.6 Total $ 324,053 $ (66) $ (171,585) $ 152,402 |
Schedule of Indefinite-Lived Intangible Assets | The following tables present the gross carrying amount, changes in carrying amount, net carrying amount and weighted average amortization period of identifiable intangible assets at November 30, 2022 and 2021 (dollars in thousands): November 30, 2022 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 126,028 $ — $ (89,109) $ 36,919 8.2 Trade name 127,185 — (35,486) 91,699 25.3 Exchange and clearing organization membership interests and registrations 7,447 (39) — 7,408 N/A Other 14,957 — (11,521) 3,436 4.7 Total $ 275,617 $ (39) $ (136,116) $ 139,462 November 30, 2021 Weighted average remaining lives (years) Gross cost Impairment losses Accumulated amortization Net carrying amount Customer relationships $ 170,820 $ — $ (128,012) $ 42,808 9.0 Trade name 128,753 — (32,244) 96,509 26.3 Exchange and clearing organization membership interests and registrations 7,798 (66) — 7,732 N/A Other 16,682 — (11,329) 5,353 5.6 Total $ 324,053 $ (66) $ (171,585) $ 152,402 |
Future Amortization Expense Related to Intangible Assets | The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands): Year ending November 30, 2023 $ 9,902 Year ending November 30, 2024 9,147 Year ending November 30, 2025 8,636 Year ending November 30, 2026 8,608 Year ending November 30, 2027 8,593 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings at November 30, 2022 and 2021 mature in one year or less and include the following (in thousands): November 30, 2022 2021 Bank loans (1) $ 517,524 $ 215,063 Fixed rate callable note (1) 4,068 — Floating rate puttable notes (1) 6,800 6,800 Total short-term borrowings $ 528,392 $ 221,863 (1) These Short-term borrowings are recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their liquid and short-term nature. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following summarizes our long-term debt carrying values (including unamortized discounts and premiums, valuation adjustments and debt issuance costs, where applicable) (in thousands): November 30, Maturity Effective Interest Rate 2022 2021 Unsecured long-term debt 5.500% Senior Notes October 18, 2023 5.47% $ 393,048 $ 440,120 1.000% Euro Medium Term Notes July 19, 2024 1.00% 519,970 564,985 4.500% Callable Note due 2025 July 22, 2025 4.84% 6,153 — 5.000% Callable Note due 2026 March 26, 2026 5.52% 8,554 — 4.850% Senior Notes (1) January 15, 2027 6.29% 703,533 775,550 6.450% Senior Debentures June 8, 2027 5.46% 363,915 366,556 5.000% Callable Note due 2027 June 16, 2027 5.22% 24,784 — 5.000% Callable Note due 2028 February 17, 2028 5.29% 9,888 — 4.150% Senior Notes January 23, 2030 4.26% 991,518 990,525 2.625% Senior Debentures (1) October 15, 2031 3.90% 911,777 988,059 2.750% Senior Debentures (1) October 15, 2032 5.67% 392,162 460,724 6.250% Senior Notes January 15, 2036 6.03% 497,681 505,267 6.500% Senior Notes January 20, 2043 6.09% 409,472 409,926 6.625% Senior Notes October 23, 2043 6.61% 246,954 246,888 Floating Rate Senior Notes October 29, 2071 3.72% 61,715 61,703 Unsecured Revolving Credit Facility August 3, 2023 5.29% 349,578 348,951 Structured notes (2) Various Various 1,583,828 1,843,598 Total unsecured long-term debt 7,474,530 8,002,852 Secured long-term debt HomeFed EB-5 Program debt 209,060 203,132 HomeFed construction loans 56,965 45,581 Secured Credit Facilities 933,531 774,180 Secured Bank Loan 100,000 100,000 Total long-term debt (3) $ 8,774,086 $ 9,125,745 (1) The carrying values of these senior notes include net gains of $219.1 million and $58.5 million during the years ended November 30, 2022 and 2021, respectively, associated with interest rate swaps based on designation as fair value hedges. See Note 2, Summary of Significant Accounting Policies, and Note 5, Derivative Financial Instruments, for further information. (2) These structured notes contain various interest rate payment terms and are accounted for at fair value, with changes in fair value resulting from a change in the instrument-specific credit risk presented in other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transactions revenues. A weighted average coupon rate is not meaningful, as all of the structured notes are carried at fair value. (3) The Total Long-term debt has a fair value of $8.46 billion and $9.85 billion at November 30, 2022 and 2021, respectively, which would be classified as Level 2 and Level 3 in the fair value hierarchy. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information | Information related to operating leases in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 is as follows (in thousands, except lease term and discount rate): November 30, 2022 2021 Premises and equipment - ROU assets $ 455,264 $ 472,014 Weighted average: Remaining lease term (in years) 10.0 10.0 Discount rate 2.9 % 2.9 % The following table presents our lease costs (in thousands): Year Ended November 30, 2022 2021 2020 Operating lease costs (1) $ 80,959 $ 79,701 $ 77,452 Variable lease costs (2) 12,887 11,168 13,576 Less: Sublease income (4,507) (7,191) (7,590) Total lease cost, net $ 89,339 $ 83,678 $ 83,438 (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 Statements of Cash Flows supplemental information was as follows (in thousands): Year Ended November 30, 2022 2021 2020 Cash outflows - lease liabilities $ 81,082 $ 79,437 $ 73,300 Non-cash - ROU assets recorded for new and modified leases 87,977 30,246 22,460 |
Maturity of Operating Lease Liabilities | The following table presents the maturities of our operating lease liabilities and a reconciliation to the Lease liabilities included in our Consolidated Statements of Financial Condition at November 30, 2022 and 2021 (in thousands): November 30, Fiscal Year 2022 2021 2022 $ — $ 75,384 2023 76,847 71,383 2024 78,656 67,039 2025 78,103 66,939 2026 74,472 64,105 2027 71,255 61,722 2028 and thereafter 228,722 228,964 Total undiscounted cash flows 608,055 635,536 Less: Difference between undiscounted and discounted cash flows (75,353) (87,470) Operating leases amount in our Consolidated Statements of Financial Condition 532,702 548,066 Finance leases amount in our Consolidated Statements of Financial Condition 1,006 229 Total amount in our Consolidated Statements of Financial Condition $ 533,708 $ 548,295 |
Common Shares and Earnings Pe_2
Common Shares and Earnings Per Common Share (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
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): Year Ended November 30, 2022 2021 2020 Numerator for earnings per common share: Net earnings attributable to Jefferies Financial Group Inc. $ 777,168 $ 1,667,403 $ 769,605 Allocation of earnings to participating securities (1) (3,015) (9,961) (4,795) Net earnings attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share 774,153 1,657,442 764,810 Adjustment to allocation of earnings to participating securities related to diluted shares (1) 29 207 23 Mandatorily redeemable convertible preferred share dividends 8,281 6,949 5,634 Net earnings attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share $ 782,463 $ 1,664,598 $ 770,467 Denominator for earnings per common share: Weighted average common shares outstanding 234,258 246,991 268,518 Weighted average shares of restricted stock outstanding with future service required (1,330) (1,567) (1,785) Weighted average RSUs outstanding with no future service required 14,450 18,171 18,960 Denominator for basic earnings per common share – weighted average shares 247,378 263,595 285,693 Stock options and other share-based awards 1,518 1,203 — Senior executive compensation plan RSU awards 2,234 2,262 356 Mandatorily redeemable convertible preferred shares 4,441 4,441 4,441 Denominator for diluted earnings per common share 255,571 271,501 290,490 Earnings per common share: Basic $ 3.13 $ 6.29 $ 2.68 Diluted $ 3.06 $ 6.13 $ 2.65 (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 991,400, 1,586,500 and 1,801,700 for the years ended November 30, 2022, 2021 and 2020, respectively. Dividends declared on participating securities were $1.1 million, $1.4 million and $1.0 million during the years ended November 30, 2022, 2021 and 2020, respectively. Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary Of Accumulated Other Comprehensive Income, Net Of Taxes | A summary of accumulated other comprehensive income (loss), net of taxes is as follows (in thousands): November 30, 2022 2021 2020 Net unrealized gains (losses) on available for sale securities $ (5,892) $ 269 $ 513 Net unrealized foreign exchange losses (220,071) (166,499) (156,718) Net unrealized losses related to instrument specific credit risk (104,526) (153,672) (71,151) Net minimum pension liability (48,930) (52,241) (61,561) Total accumulated other comprehensive loss $ (379,419) $ (372,143) $ (288,917) |
Schedule Of Accumulated Other Comprehensive Income Reclassifications | Significant amounts reclassified out of accumulated other comprehensive income (loss) to net earnings are as follows (in thousands): Details about Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Earnings Year Ended November 30, 2022 2021 2020 Net unrealized gains (losses) on instrument specific credit risk at fair value, net of income tax benefit (expense) of $41, $(599), and $(146), respectively $ (129) $ 1,861 $ 397 Principal transactions revenues Amortization of defined benefit pension plan actuarial losses, net of income tax benefit of $845, $1,054, and $957, respectively (2,483) (3,138) (2,872) Compensation and benefits expenses. See Note 14, Benefit Plans for information on this component. Total reclassifications for the period, net of tax $ (2,612) $ (1,277) $ (2,475) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): Year Ended November 30, 2022 2021 2020 Revenues from contracts with customers: Investment banking $ 2,807,822 $ 4,365,699 $ 2,501,494 Commissions and other fees 925,494 896,015 822,248 Asset management fees 23,525 14,836 14,702 Manufacturing revenues 412,605 538,628 421,434 Oil and gas revenues 302,135 182,973 102,210 Real estate revenues 223,323 102,297 26,671 Other contracts with customers 47,954 41,353 34,468 Total revenue from contracts with customers 4,742,858 6,141,801 3,923,227 Other sources of revenue: Principal transactions 833,757 1,617,336 1,928,143 Revenues from strategic affiliates 56,739 57,248 19,507 Interest 1,183,638 956,318 1,009,548 Other 332,271 172,761 22 Total revenues $ 7,149,263 $ 8,945,464 $ 6,880,447 The following presents our revenues from contracts with customers disaggregated by major business activity and primary geographic regions (in thousands): Year Ended November 30, 2022 2021 2020 Reportable Segment Reportable Segment Reportable Segment Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Investment Banking and Capital Markets Asset Management Total Major business activity: Investment banking - Advisory $ 1,778,003 $ — $ 1,778,003 $ 1,873,560 $ — $ 1,873,560 $ 1,053,500 $ — $ 1,053,500 Investment banking - Underwriting 1,029,819 — 1,029,819 2,492,139 — 2,492,139 1,447,994 — 1,447,994 Equities (1) 910,254 — 910,254 881,660 — 881,660 806,340 — 806,340 Fixed income (1) 15,240 — 15,240 14,355 — 14,355 15,908 — 15,908 Asset management — 23,525 23,525 — 14,836 14,836 — 14,702 14,702 Merchant banking — 986,017 986,017 — 865,251 865,251 — 584,783 584,783 Total $ 3,733,316 $ 1,009,542 $ 4,742,858 $ 5,261,714 $ 880,087 $ 6,141,801 $ 3,323,742 $ 599,485 $ 3,923,227 Primary geographic region: Americas $ 2,910,318 $ 1,005,200 $ 3,915,518 $ 4,249,641 $ 876,242 $ 5,125,883 $ 2,741,288 $ 592,474 $ 3,333,762 Europe and the Middle East 575,012 2,595 577,607 766,746 2,816 769,562 401,853 6,645 408,498 Asia 247,986 1,747 249,733 245,327 1,029 246,356 180,601 366 180,967 Total $ 3,733,316 $ 1,009,542 $ 4,742,858 $ 5,261,714 $ 880,087 $ 6,141,801 $ 3,323,742 $ 599,485 $ 3,923,227 (1) Revenues from contracts with customers associated with the equities and fixed income businesses primarily represent commissions and other fee revenue. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligation | A summary of activity with respect to both plans is as follows (in thousands): Year Ended November 30, 2022 2021 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 226,728 $ 236,572 Interest cost 5,805 4,946 Actuarial (gains) losses (47,362) (4,977) Settlements (4,702) — Benefits paid (8,403) (9,813) Projected benefit obligation, end of year $ 172,066 $ 226,728 Change in plan assets: Fair value of plan assets, beginning of year $ 199,215 $ 190,220 Actual return on plan assets (37,574) 13,619 Employer contributions 1,000 7,089 Benefits paid (8,403) (9,813) Settlements (4,702) — Administrative expenses paid (2,264) (1,900) Fair value of plan assets, end of year $ 147,272 $ 199,215 Funded status at end of year $ (24,794) $ (27,513) |
Components of Net Periodic Pension (Benefit) Cost | The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands): Year Ended November 30, 2022 2021 2020 Interest cost $ 5,805 $ 4,946 $ 6,349 Expected return on plan assets (7,311) (8,433) (7,934) Settlement losses 833 — 376 Actuarial losses 3,348 4,192 3,453 Net periodic pension cost $ 2,675 $ 705 $ 2,244 Amounts recognized in other comprehensive income (loss): Net (gains) losses arising during the period $ (211) $ (8,264) $ 3,821 Settlement losses (833) — (376) Amortization of net loss (3,348) (4,192) (3,453) Total recognized in other comprehensive income (loss) $ (4,392) $ (12,456) $ (8) Net amount recognized in net periodic benefit cost and other comprehensive income (loss) $ (1,717) $ (11,751) $ 2,236 |
Assumptions Used to Determine the Present Value of the Projected Benefit Obligations and Net Periodic Pension Costs | The assumptions used are as follows: November 30, 2022 2021 WilTel Plan Discount rate used to determine benefit obligation 4.90 % 2.60 % Weighted-average assumptions used to determine net pension cost: Discount rate 2.60 % 2.20 % Expected long-term return on plan assets 6.00 % 7.00 % U.S. Pension Plan Discount rate used to determine benefit obligation 4.80 % 2.40 % Weighted-average assumptions used to determine net pension cost: Discount rate 2.40 % 2.00 % Expected long-term return on plan assets 5.00 % 5.00 % |
Expected Benefit Payments | The following pension benefit payments are expected to be paid (in thousands): Fiscal Year: 2023 $ 15,869 2024 12,362 2025 12,015 2026 12,933 2027 13,487 2028 – 2032 63,356 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Compensation Related Costs [Abstract] | |
Activity of Restricted Stock | The following table details the total activity in restricted stock, inclusive across all plans, during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Restricted Stock Weighted- Average Balance at November 30, 2019 2,008 $ 22.04 Grants 115 $ 13.20 Forfeited (21) $ 23.38 Fulfillment of vesting requirement (619) $ 19.99 Balance at November 30, 2020 1,483 $ 22.19 Grants 337 $ 30.81 Forfeited (40) $ 24.92 Fulfillment of vesting requirement (196) $ 23.55 Balance at November 30, 2021 1,584 $ 23.78 Grants 1,457 $ 29.91 Forfeited — $ — Fulfillment of vesting requirement (902) $ 24.03 Balance at November 30, 2022 2,139 $ 27.85 |
Activity of Restricted Stock Units | The following table details the activity in total RSUs, inclusive across all plans, during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Weighted-Average Future No Future Future No Future Balance at November 30, 2019 10 15,667 $ 18.83 $ 21.35 Grants 14 487 $ 13.20 $ 15.73 Distributions of underlying shares — (88) $ — $ 25.48 Forfeited — — $ — $ — Fulfillment of service requirement (1) (3) 2,477 $ 18.83 $ 19.80 Balance at November 30, 2020 21 18,543 $ 14.99 $ 20.97 Grants 80 445 $ 27.10 $ 30.03 Distributions of underlying shares — (1,803) $ — $ 26.32 Forfeited — — $ — $ — Fulfillment of service requirement (1) (53) 8 $ 25.03 $ 15.52 Balance at November 30, 2021 48 17,193 $ 24.07 $ 20.64 Grants 2,299 472 $ 33.75 $ 28.79 Distributions of underlying shares — (6,453) $ — $ 14.65 Forfeited — — $ — $ — Fulfillment of vesting requirement (1) (39) 1,443 $ 24.67 $ 25.38 Balance at November 30, 2022 2,308 12,655 $ 33.70 $ 24.55 (1) Fulfillment of vesting requirement during the years ended November 30, 2022, 2021 and 2020, includes 1,433 RSUs, 0 RSUs and 2,474 RSUs, respectively, related to the senior executive compensation plans. In addition, the following table details the activity in RSUs related to the senior executive compensation plan targeted number of shares during the years ended November 30, 2022, 2021 and 2020 (in thousands, except per share amounts): Target Number of Shares Weighted- Average Balance at November 30, 2019 6,491 $ 23.13 Grants 187 $ 15.19 Forfeited (15) $ 19.01 Fulfillment of vesting requirement (2,474) $ 19.80 Balance at November 30, 2020 4,189 $ 24.75 Grants 74 $ 29.81 Forfeited (1,396) $ 25.31 Fulfillment of vesting requirement — $ — Balance at November 30, 2021 2,867 $ 25.43 Grants 537 $ 35.44 Forfeited — $ — Fulfillment of vesting requirement (1,433) $ 25.43 Balance at November 30, 2022 1,971 $ 28.16 |
Summary of Weighted-Average Assumptions | The following summary presents the weighted-average assumptions used for the senior executive stock options issued during the year ended November 30, 2021: Year Ended Risk free interest rate 0.8 % Expected volatility 32.9 % Expected dividend yield 2.6 % Expected life 5.8 years Weighted-average fair value per grant $ 7.43 |
Schedule of Components of Compensation Cost | The components of total compensation costs associated with certain of our compensation plans are as follows (in millions): Year Ended November 30, 2022 2021 2020 Components of compensation costs: Restricted cash awards (1) $ 196.6 $ 375.5 $ 474.3 Stock options and Stock appreciation rights — 48.7 0.1 Restricted stock and RSUs (2) 43.9 29.5 39.9 Profit sharing plan 10.5 7.8 7.8 Total compensation costs $ 251.0 $ 461.5 $ 522.1 (1) Amounts include costs related to the accelerated amortization of certain cash-based awards, which were amended to remove any service requirements for vesting in the awards, which amounted to $0.0 million and $188.3 million for the years ended November 30, 2022 and 2021, respectively. (2) Total compensation costs associated with restricted stock and RSUs include the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation costs related to the discount provided to employees in electing to defer compensation under the DCP. These compensation costs were approximately $0.5 million, $0.4 million and $0.3 million for the years ended November 30, 2022, 2021 and 2020, respectively. Year Ended November 30, 2022 2023 2024 Thereafter Total Restricted cash awards $ 90.4 $ 106.8 $ 103.7 $ 227.1 $ 528.0 |
Schedule of Remaining Unamortized Amounts Related to Certain Compensation Plans | Remaining unamortized amounts related to certain compensation plans at November 30, 2022 are as follows (dollars in millions): Remaining Unamortized Amounts Weighted Average Vesting Period Non-vested share-based awards $ 124.6 4 Restricted cash awards 289.7 3 Total $ 414.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Provision For Income Taxes | The provision for income tax expense consists of the following components (in thousands): Year Ended November 30, 2022 2021 2020 Current: U.S. Federal $ 198,507 $ 322,551 $ 90,350 U.S. state and local 67,236 70,370 68,261 Foreign 78,505 86,918 75,395 Total current 344,248 479,839 234,006 Deferred: U.S. Federal (61,303) 72,753 52,765 U.S. state and local (17,010) 19,502 (1,288) Foreign 7,917 4,635 13,190 Total deferred (70,396) 96,890 64,667 Total income tax expense $ 273,852 $ 576,729 $ 298,673 |
Schedule of Income before Income Tax, U.S. and non-U.S. | The following table presents the U.S. and non-U.S. components of earnings before income tax expense (in thousands): Year Ended November 30, 2022 2021 2020 U.S. $ 801,047 $ 1,970,625 $ 813,305 Non-U.S. (1) 254,515 283,480 253,778 Earnings before income tax expense $ 1,055,562 $ 2,254,105 $ 1,067,083 (1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Schedule Of Reconciliation Of Expected Statutory Federal Income Tax To Actual Income Tax Provision (Benefit) | Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 21.0% to earnings before income taxes as a result of the following (dollars in thousands): Year Ended November 30, 2022 2021 2020 Amount Percent Amount Percent Amount Percent Computed expected federal income taxes $ 221,668 21.0 % $ 473,362 21.0 % $ 224,087 21.0 % Increase (decrease) in income taxes resulting from: State and local income taxes, net of Federal income tax benefit 47,364 4.5 96,884 4.3 45,457 4.3 International operations (including foreign rate differential) 18,711 1.8 18,073 0.8 13,155 1.2 Non-deductible executive compensation 12,596 1.2 20,359 0.9 12,814 1.2 Foreign tax credits, net (20,368) (1.9) (13,963) (0.6) (8,654) (0.8) Employee share-based awards (37,988) (3.6) 893 — 209 — Regulatory Settlement 20,184 1.9 — — — — Change in unrecognized tax benefits related to prior years (16,915) (1.7) (27,374) (1.2) (4,522) (0.5) Interest on unrecognized tax benefits 13,902 1.3 8,651 0.4 15,600 1.5 Other, net 14,698 1.4 (156) — 527 0.1 Total income tax expense $ 273,852 25.9 % $ 576,729 25.6 % $ 298,673 28.0 % |
Schedule Of Reconciliation Of Unrecognized Tax Benefits | The following table presents a reconciliation of gross unrecognized tax benefits (in thousands): Year Ended November 30, 2022 2021 2020 Balance at beginning of period $ 339,036 $ 314,347 $ 260,138 Increases based on tax positions related to the current period 30,690 50,079 41,114 Increases based on tax positions related to prior periods 5,902 3,490 22,328 Decreases based on tax positions related to prior periods (25,673) (24,180) (8,966) Decreases related to settlements with taxing authorities — (4,700) (267) Balance at end of period $ 349,955 $ 339,036 $ 314,347 |
Schedule of Deferred Tax Assets and Liabilities | The cumulative tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below (in thousands): November 30, 2022 2021 Deferred tax assets: Compensation and benefits $ 250,096 $ 187,818 Operating lease liabilities 133,250 135,862 Long-term debt 47,535 65,037 Accrued expenses and other 166,564 178,451 Investments in associated companies 11,931 1,135 Sub-total 609,376 568,303 Valuation allowance (6,266) (11,922) Total deferred tax assets 603,110 556,381 Deferred tax liabilities: Operating lease right-of-use assets 118,567 126,150 Amortization of intangibles 62,670 62,123 Other 34,011 40,561 Total deferred tax liabilities 215,248 228,834 Net deferred tax asset, included in Other assets $ 387,862 $ 327,547 |
Schedule of Tax Years Subject to Examination | The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate: Jurisdiction Tax Year United States 2019 New York State 2001 New York City 2006 United Kingdom 2021 Germany 2017 Hong Kong 2016 India 2010 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments and Contingencies | The following table summarizes our commitments at November 30, 2022 (in millions): Expected Maturity Date (fiscal years) 2023 2024 2025 and 2026 2027 and 2028 2029 and Later Maximum Payout Equity commitments (1) $ 25.2 $ 1.4 $ 103.3 $ 2.8 $ 160.2 $ 292.9 Loan commitments (1) 271.5 — 70.0 9.9 — 351.4 Loans purchase commitments (2) 2,363.9 — — — — 2,363.9 Underwriting commitments 62.3 — — — — 62.3 Forward starting reverse repos (3) 8,470.9 — — — — 8,470.9 Forward starting repos (3) 4,213.7 — — — — 4,213.7 Other unfunded commitments (1) 0.1 287.5 109.7 — — 397.3 Total commitments $ 15,407.6 $ 288.9 $ 283.0 $ 12.7 $ 160.2 $ 16,152.4 (1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand. (2) Loan purchase commitments comprise of unfunded commitments to acquire secondary market loans. For the population of loans to be acquired under the loan purchase commitments, at November 30, 2022, Jefferies had also entered into back-to-back committed sale contracts aggregating to $2.67 billion. (3) At November 30, 2022, $7.73 billion within forward starting securities purchased under agreements to resell and all except $2.6 million of forward starting securities sold under agreements to repurchase settled within three business days. |
Schedule of Guarantees | The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at November 30, 2022 (in millions): Expected Maturity Date (Fiscal Years) 2023 2024 2025 and 2026 2027 and 2028 2029 and Later Notional/ Maximum Payout Guarantee Type: Derivative contracts—non-credit related $ 19,015.0 $ 6,933.1 $ 11,994.3 $ 850.3 $ — $ 38,792.7 Written derivative contracts—credit related — 0.2 — — — 0.2 Total derivative contracts $ 19,015.0 $ 6,933.3 $ 11,994.3 $ 850.3 $ — $ 38,792.9 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Broker-Dealer [Abstract] | |
Schedule of Net Capital, Adjusted and Excess Net Capital | At November 30, 2022, Jefferies LLC and JFSI’s net capital and excess net capital were as follows (in thousands): Net Capital Excess Net Capital Jefferies LLC $ 903,349 $ 806,238 JFSI 436,681 416,681 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenues, Expenses and Total Assets by Segment | Our net revenues, non-interest expenses and earnings (loss) before income taxes by reportable business segment are summarized below (in millions): Year Ended November 30, 2022 2021 2020 Investment Banking and Capital Markets: Net revenues $ 4,726.2 $ 6,917.8 $ 5,029.5 Non-interest expenses 3,950.9 4,730.6 3,920.7 Earnings before income taxes 775.3 2,187.2 1,108.8 Asset Management: Net revenues 1,257.7 1,092.6 814.6 Non-interest expenses 967.0 1,025.7 858.7 Earnings (loss) before income taxes 290.7 66.9 (44.1) Total of Reportable Business Segments: Net revenues 5,983.9 8,010.4 5,844.1 Non-interest expenses 4,917.9 5,756.3 4,779.4 Earnings before income taxes 1,066.0 2,254.1 1,064.7 Reconciliation to consolidated amounts: Net revenues (5.1) 3.4 6.4 Non-interest expenses 5.3 3.4 4.0 Earnings (loss) before income taxes (1) (10.4) — 2.4 Total: Net revenues 5,978.8 8,013.8 5,850.5 Non-interest expenses 4,923.2 5,759.7 4,783.4 Total earnings before income taxes $ 1,055.6 $ 2,254.1 $ 1,067.1 (1) Management does not consider certain foreign currency transaction gains or losses, fair value debt valuation adjustments on derivative contracts, gains and losses on investments held in deferred compensation or certain other immaterial corporate income and expense items in assessing the financial performance of operating businesses. Collectively, these items are included in the reconciliation of reportable business segment amounts to consolidated amounts. The following table summarizes our total assets by reportable business segment (in millions): November 30, 2022 2021 Investment Banking and Capital Markets $ 45,541.0 $ 50,912.3 Asset Management 5,516.7 5,195.0 Total assets $ 51,057.7 $ 56,107.3 |
Summary Net Revenues by Geographic Region | Net revenues by geographic region were as follows (in millions): Year Ended November 30, 2022 2021 2020 Americas (1) $ 4,815.4 $ 6,748.8 $ 4,730.1 Europe and the Middle East (2) 925.4 1,045.7 826.4 Asia 238.0 219.3 294.0 Net revenues $ 5,978.8 $ 8,013.8 $ 5,850.5 (1) Substantially all relates to U.S. results. (2) Substantially all relates to U.K. results. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Nov. 30, 2022 USD ($) segment | Nov. 30, 2021 USD ($) | ||
Schedule of Equity Method Investments [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Financial instruments owned | $ 18,666,296 | $ 18,024,621 | [1] | |
Financial instruments sold, not yet purchased, at fair value | 11,056,477 | 9,267,090 | [1] | |
Brokers, dealers and clearing organizations | 2,628,727 | 3,952,093 | [1] | |
Brokers, dealers and clearing organizations | 1,792,937 | 2,454,918 | [1] | |
Oak Hill | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on sale | $ 175,100 | |||
Increases/Decreases due to change in accounting policy | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Financial instruments owned | 2,100,000 | (1,855,013) | ||
Financial instruments sold, not yet purchased, at fair value | 2,800,000 | (2,432,377) | ||
Brokers, dealers and clearing organizations | 2,400,000 | (1,864,422) | ||
Brokers, dealers and clearing organizations | 3,100,000 | $ (2,441,786) | ||
Disposal group, disposed of by sale, not discontinued operations | Idaho Timber | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on disposition of business | 138,700 | |||
Disposal group, disposed of by sale, not discontinued operations | Oak Hill | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on disposition of business | $ 175,100 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
ASSETS | |||||
Financial instruments owned | $ 18,666,296 | $ 18,024,621 | [1] | ||
Investments in and loans to related parties | 1,426,817 | 1,587,409 | [1] | ||
Brokers, dealers and clearing organizations | 1,792,937 | 2,454,918 | [1] | ||
Customers | 1,225,137 | 1,615,822 | [1] | ||
Fees, interest and other | 568,921 | 582,756 | [1] | ||
Intangible assets, net and goodwill | 0 | ||||
Goodwill | 1,736,114 | 1,745,098 | [1] | $ 1,746,314 | |
Other Assets | 3,595,985 | 3,356,024 | [1] | ||
Total assets | 51,057,683 | 56,107,311 | [1] | ||
Liabilities: | |||||
Financial instruments sold, not yet purchased, at fair value | 11,056,477 | 9,267,090 | [1] | ||
Brokers, dealers and clearing organizations | 2,628,727 | 3,952,093 | [1] | ||
Customers | 3,578,854 | 4,461,481 | [1] | ||
Accrued expenses and other liabilities | 2,573,927 | 3,334,371 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Revenues | 7,149,263 | 8,945,464 | [1] | 6,880,447 | [1] |
Interest expense | 1,170,425 | 931,638 | [1] | 1,029,926 | [1] |
Net revenues | 5,978,838 | 8,013,826 | [1] | 5,850,521 | [1] |
Compensation and benefits | 2,589,044 | 3,554,760 | [1] | 2,944,071 | [1] |
Selling, general and other expenses | 0 | 0 | |||
Underwriting costs | 42,067 | 117,572 | [1] | 95,636 | [1] |
Technology and communications | 444,011 | 388,134 | [1] | 335,065 | [1] |
Occupancy and equipment rental | 108,001 | 106,254 | [1] | 95,754 | [1] |
Business development | 150,500 | 109,772 | [1] | 70,797 | [1] |
Professional services | 240,978 | 215,761 | [1] | 176,280 | [1] |
Other expenses | 387,131 | 337,318 | [1] | 302,216 | [1] |
Total non-interest expenses | 4,923,276 | 5,759,721 | [1] | 4,783,438 | [1] |
Income (loss) related to associated companies | (36,300) | 149,900 | (75,200) | ||
Other contracts with customers | |||||
Liabilities: | |||||
Revenues | 1,318,288 | 1,038,012 | [1] | 584,805 | [1] |
JFG Pre Merger | |||||
ASSETS | |||||
Receivables | 0 | ||||
Liabilities: | |||||
Payables, expense accruals and other liabilities | 0 | ||||
Interest expense | 0 | 0 | |||
Income (loss) related to associated companies | 0 | 0 | |||
As Originally Reported | |||||
ASSETS | |||||
Financial instruments owned | 19,828,670 | ||||
Investments in and loans to related parties | 1,745,790 | ||||
Receivables | 7,839,240 | ||||
Brokers, dealers and clearing organizations | 0 | ||||
Customers | 0 | ||||
Fees, interest and other | 0 | ||||
Intangible assets, net and goodwill | 1,897,500 | ||||
Goodwill | 0 | ||||
Other Assets | 2,352,247 | ||||
Total assets | 60,404,110 | ||||
Liabilities: | |||||
Financial instruments sold, not yet purchased, at fair value | 11,699,467 | ||||
Brokers, dealers and clearing organizations | 0 | ||||
Customers | 0 | ||||
Accrued expenses and other liabilities | 0 | ||||
Total liabilities | 49,674,070 | ||||
Principal transactions | 1,623,713 | 1,916,508 | |||
Asset management fees and revenues | 0 | 0 | |||
Other | 1,211,120 | 718,125 | |||
Revenues | 9,039,883 | 6,955,930 | |||
Interest | 943,336 | 997,555 | |||
Interest expense | 854,554 | 945,056 | |||
Net revenues | 8,185,329 | 6,010,874 | |||
Compensation and benefits | 3,551,124 | 2,940,863 | |||
Selling, general and other expenses | 1,278,447 | 1,078,956 | |||
Underwriting costs | 0 | 0 | |||
Technology and communications | 0 | 0 | |||
Occupancy and equipment rental | 0 | 0 | |||
Business development | 0 | 0 | |||
Professional services | 0 | 0 | |||
Other expenses | 0 | 0 | |||
Total non-interest expenses | 5,836,805 | 4,868,308 | |||
As Originally Reported | JFG Pre Merger | |||||
Liabilities: | |||||
Payables, expense accruals and other liabilities | 13,612,367 | ||||
Interest expense | 77,084 | 84,870 | |||
Income (loss) related to associated companies | (94,419) | (75,483) | |||
Increases/Decreases due to reclassifications | |||||
ASSETS | |||||
Financial instruments owned | 50,964 | ||||
Investments in and loans to related parties | (158,381) | ||||
Brokers, dealers and clearing organizations | 4,896,704 | ||||
Customers | 1,615,822 | ||||
Fees, interest and other | 582,756 | ||||
Intangible assets, net and goodwill | (1,897,500) | ||||
Goodwill | 1,745,098 | ||||
Other Assets | 1,003,777 | ||||
Total assets | 0 | ||||
Liabilities: | |||||
Financial instruments sold, not yet purchased, at fair value | 0 | ||||
Brokers, dealers and clearing organizations | 5,816,515 | ||||
Customers | 4,461,481 | ||||
Accrued expenses and other liabilities | 3,334,371 | ||||
Total liabilities | 0 | ||||
Principal transactions | (6,377) | 11,635 | |||
Asset management fees and revenues | 72,084 | 34,209 | |||
Other | (173,108) | (133,320) | |||
Revenues | (94,419) | (75,483) | |||
Interest | 12,982 | 11,993 | |||
Interest expense | 77,084 | 84,870 | |||
Net revenues | (171,503) | (160,353) | |||
Compensation and benefits | 3,636 | 3,208 | |||
Selling, general and other expenses | (1,278,447) | (1,078,956) | |||
Underwriting costs | 117,572 | 95,636 | |||
Technology and communications | 388,134 | 335,065 | |||
Occupancy and equipment rental | 106,254 | 95,754 | |||
Business development | 109,772 | 70,797 | |||
Professional services | 215,761 | 176,280 | |||
Other expenses | 337,318 | 302,216 | |||
Total non-interest expenses | (77,084) | (84,870) | |||
Increases/Decreases due to reclassifications | Automobile Loan | |||||
ASSETS | |||||
Other Assets | 745,300 | ||||
Increases/Decreases due to reclassifications | JFG Pre Merger | |||||
ASSETS | |||||
Receivables | (7,839,240) | ||||
Liabilities: | |||||
Payables, expense accruals and other liabilities | (13,612,367) | ||||
Interest expense | (77,084) | (84,870) | |||
Income (loss) related to associated companies | 94,419 | $ 75,483 | |||
Increases/Decreases due to change in accounting policy | |||||
ASSETS | |||||
Financial instruments owned | 2,100,000 | (1,855,013) | |||
Investments in and loans to related parties | 0 | ||||
Brokers, dealers and clearing organizations | 3,100,000 | (2,441,786) | |||
Customers | 0 | ||||
Fees, interest and other | 0 | ||||
Intangible assets, net and goodwill | 0 | ||||
Goodwill | 0 | ||||
Other Assets | 0 | ||||
Total assets | (4,296,799) | ||||
Liabilities: | |||||
Financial instruments sold, not yet purchased, at fair value | 2,800,000 | (2,432,377) | |||
Brokers, dealers and clearing organizations | $ 2,400,000 | (1,864,422) | |||
Customers | 0 | ||||
Accrued expenses and other liabilities | 0 | ||||
Total liabilities | (4,296,799) | ||||
Increases/Decreases due to change in accounting policy | JFG Pre Merger | |||||
ASSETS | |||||
Receivables | 0 | ||||
Liabilities: | |||||
Payables, expense accruals and other liabilities | $ 0 | ||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Accounting Policies [Abstract] | |||
Capitalized interest | $ 13.5 | $ 9 | $ 8.6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ (524.6) | $ (526) | |
Depreciation and amortization | 172.9 | 157.4 | $ 158.4 |
Furniture, Fixtures and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 730.1 | 728.3 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 245.1 | $ 236.8 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of premises and equipment | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Hedge Accounting (Details) | 12 Months Ended |
Nov. 30, 2022 | |
Minimum | |
Derivative [Line Items] | |
Hedging relationship effective percentage | 80% |
Maximum | |
Derivative [Line Items] | |
Hedging relationship effective percentage | 125% |
Accounting Developments (Detail
Accounting Developments (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | [1] | Dec. 01, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in retained earnings | $ (8,418,354) | $ (7,940,113) | ||
Adjustment for change in accounting principle for current expected credit losses | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Provision for credit losses | $ 26,500 | |||
Decrease in retained earnings | 19,900 | |||
Adjustment for change in accounting principle for current expected credit losses | Automobile Loan | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Provision for credit losses | $ 30,100 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative investment | $ 1,293,964 | $ 1,046,062 | |
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 17,372,332 | 16,978,559 | |
Counterparty and cash collateral netting, assets | (3,093,244) | (3,305,756) | |
Securities received as collateral | 100,362 | 7,289 | [1] |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 11,056,477 | 9,267,090 | [1] |
Counterparty and Cash Collateral Netting | (2,732,165) | (3,702,200) | |
Other secured financings | 1,712 | 102,788 | |
Obligation to return securities received as collateral | 100,362 | 7,289 | [1] |
Long-term debt | 1,583,828 | 1,843,598 | |
Corporate equity securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,497,831 | 3,113,062 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 2,147,117 | 1,695,985 | |
Corporate debt securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 4,002,385 | 3,848,144 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 2,338,191 | 2,112,259 | |
Collateralized debt obligations and collateralized loan obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 127,464 | 611,464 | |
U.S. government and federal agency securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,457,595 | 3,114,079 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 3,223,637 | 2,457,420 | |
Municipal securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 574,903 | 509,559 | |
Sovereign obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,746,363 | 1,553,285 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 1,651,034 | 1,528,841 | |
Residential mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,341,816 | 1,169,723 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 719 | ||
Commercial mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 443,310 | 198,752 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 490 | 210 | |
Other asset-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 427,841 | 430,546 | |
Loans and other receivables | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,237,916 | 1,693,731 | |
Derivative, assets | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 349,166 | 570,472 | |
Investments at fair value | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 165,742 | 165,742 | |
Loans | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 183,311 | 59,480 | |
Net derivatives | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 1,512,697 | 1,412,176 | |
Fair value based on net asset value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative investment | 1,290,000 | 1,050,000 | |
Level 1 | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 7,460,053 | 6,686,065 | |
Securities received as collateral | 100,362 | 7,289 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 6,201,186 | 5,066,732 | |
Other secured financings | 0 | 0 | |
Obligation to return securities received as collateral | 100,362 | 7,289 | |
Long-term debt | 0 | 0 | |
Level 1 | Corporate equity securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,117,327 | 2,737,255 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 2,097,436 | 1,671,696 | |
Level 1 | Corporate debt securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 1 | Collateralized debt obligations and collateralized loan obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 1 | U.S. government and federal agency securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,442,484 | 3,045,295 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 3,223,637 | 2,457,420 | |
Level 1 | Municipal securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 1 | Sovereign obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 896,805 | 899,086 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 879,909 | 935,801 | |
Level 1 | Residential mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | ||
Level 1 | Commercial mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 1 | Other asset-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 1 | Loans and other receivables | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 1 | Derivative, assets | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,437 | 4,429 | |
Level 1 | Investments at fair value | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 1 | Loans | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 1 | Net derivatives | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 204 | 1,815 | |
Level 2 | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 12,214,068 | 12,995,640 | |
Securities received as collateral | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 7,511,976 | 7,809,289 | |
Other secured financings | 0 | 76,883 | |
Obligation to return securities received as collateral | 0 | 0 | |
Long-term debt | 922,705 | 961,866 | |
Level 2 | Corporate equity securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 140,157 | 257,318 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 48,931 | 19,654 | |
Level 2 | Corporate debt securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,972,153 | 3,836,341 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 2,337,691 | 2,111,777 | |
Level 2 | Collateralized debt obligations and collateralized loan obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 71,640 | 579,518 | |
Level 2 | U.S. government and federal agency securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 15,111 | 68,784 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 2 | Municipal securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 574,903 | 509,559 | |
Level 2 | Sovereign obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 849,558 | 654,199 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 771,125 | 593,040 | |
Level 2 | Residential mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,314,199 | 1,168,246 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 719 | ||
Level 2 | Commercial mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 442,471 | 196,419 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 2 | Other asset-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 333,164 | 337,022 | |
Level 2 | Loans and other receivables | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 1,069,041 | 1,515,314 | |
Level 2 | Derivative, assets | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,427,921 | 3,861,551 | |
Level 2 | Investments at fair value | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 3,750 | 11,369 | |
Level 2 | Loans | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 180,147 | 49,555 | |
Level 2 | Net derivatives | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 4,174,082 | 5,034,544 | |
Level 3 | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 791,455 | 602,610 | |
Securities received as collateral | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 75,480 | 93,269 | |
Other secured financings | 1,712 | 25,905 | |
Obligation to return securities received as collateral | 0 | 0 | |
Long-term debt | 661,123 | 881,732 | |
Level 3 | Corporate equity securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 240,347 | 118,489 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 750 | 4,635 | |
Level 3 | Corporate debt securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 30,232 | 11,803 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 500 | 482 | |
Level 3 | Collateralized debt obligations and collateralized loan obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 55,824 | 31,946 | |
Level 3 | U.S. government and federal agency securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 3 | Municipal securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Level 3 | Sovereign obligations | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 0 | 0 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 | |
Level 3 | Residential mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 27,617 | 1,477 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 0 | ||
Level 3 | Commercial mortgage-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 839 | 2,333 | |
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 490 | 210 | |
Level 3 | Other asset-backed securities | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 94,677 | 93,524 | |
Level 3 | Loans and other receivables | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 168,875 | 178,417 | |
Level 3 | Derivative, assets | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 11,052 | 10,248 | |
Level 3 | Investments at fair value | |||
Financial instruments owned: | |||
Total financial instruments owned, excluding Investments at fair value based on NAV | 161,992 | 154,373 | |
Level 3 | Loans | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | 3,164 | 9,925 | |
Level 3 | Net derivatives | |||
Financial instruments sold, not yet purchased: | |||
Financial instruments sold, not yet purchased, at fair value | $ 70,576 | $ 78,017 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Fair Value Disclosures - Invest
Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 1,293,964 | $ 1,046,062 |
Unfunded Commitments | 90,855 | 54,978 |
Equity long/short hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | 441,229 | 466,231 |
Unfunded Commitments | $ 0 | $ 0 |
Percentage of investment at fair value, redemption restriction | 34% | 21% |
Equity long/short hedge funds | 90 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of investments redeemable | 58% | 74% |
Notice period redemption of investment prior written notice | 90 days | |
Equity long/short hedge funds | Sixty Days Prior Written Notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of investments redeemable | 6% | 5% |
Notice period redemption of investment prior written notice | 60 days | |
Equity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 73,176 | $ 66,152 |
Unfunded Commitments | $ 36,861 | $ 18,888 |
Estimated period for the liquidation of the underlying assets, minimum | 1 year | 1 year |
Estimated period for the liquidation of the underlying assets, maximum | 12 years | 12 years |
Commodity funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 24,283 | $ 24,401 |
Unfunded Commitments | $ 0 | $ 0 |
Commodity funds | 60 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 60 days | 60 days |
Multi-asset funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 401,655 | $ 390,224 |
Unfunded Commitments | $ 0 | $ 0 |
Multi-asset funds | 90 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of investments redeemable | 15% | 22% |
Multi-asset funds | 60 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 60 days | 60 days |
Percentage of investments redeemable | 78% | 78% |
Multi-asset funds | 90 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 90 days | 90 days |
Other funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair value | $ 353,621 | $ 99,054 |
Unfunded Commitments | $ 53,994 | $ 36,090 |
Short-term investments | 90 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 90 days | 90 days |
Short-term investments | 120 Days prior written notice | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Notice period redemption of investment prior written notice | 120 days | 120 days |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 Rollforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Assets: | |||
Total gains/(losses) (realized and unrealized) | $ 31,800 | $ 140,000 | $ (46,300) |
Liabilities: | |||
Total gains/(losses) (realized and unrealized) | 465,700 | (12,900) | 88,000 |
Transfers of liabilities from Level 2 to Level 3 | $ 172,100 | $ 74,300 | $ 500 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
Corporate equity securities | |||
Assets: | |||
Beginning balance | $ 118,489 | $ 116,089 | $ 58,426 |
Total gains/(losses) (realized and unrealized) | (645) | 19,213 | 1,411 |
Purchases | 171,700 | 8,778 | 31,885 |
Sales | (62,474) | (34,307) | (37,706) |
Settlements | (298) | (49) | 0 |
Issuances | 0 | 0 | 34,688 |
Net transfers into/ (out of) Level 3 | 13,575 | 8,765 | 27,385 |
Ending balance | 240,347 | 118,489 | 116,089 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | 7,286 | 11,589 | 4,845 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 4,635 | 4,434 | 4,487 |
Total gains/(losses) (realized and unrealized) | (3,611) | (83) | 456 |
Purchases | (815) | (21) | (513) |
Sales | 4,858 | 318 | 0 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (4,317) | (13) | 4 |
Ending balance | 750 | 4,635 | 4,434 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 2,382 | 83 | (81) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Corporate debt securities | |||
Assets: | |||
Beginning balance | 11,803 | 23,146 | 7,490 |
Total gains/(losses) (realized and unrealized) | 946 | 1,565 | 83 |
Purchases | 18,686 | 11,161 | 1,607 |
Sales | (23,964) | (7,978) | (391) |
Settlements | (9) | (1,417) | (602) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 22,770 | (14,674) | 14,959 |
Ending balance | 30,232 | 11,803 | 23,146 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (2,087) | 1,724 | (270) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 482 | 141 | 340 |
Total gains/(losses) (realized and unrealized) | 88 | 1,205 | (268) |
Purchases | (70) | (815) | (325) |
Sales | 0 | 0 | 394 |
Settlements | 0 | (49) | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 |
Ending balance | 500 | 482 | 141 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | (88) | (139) | 27 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
CDOs and CLOs | |||
Assets: | |||
Beginning balance | 31,946 | 17,972 | 28,788 |
Total gains/(losses) (realized and unrealized) | 7,099 | 8,092 | (3,821) |
Purchases | 44,995 | 32,618 | 10,913 |
Sales | (22,600) | (27,332) | (14,389) |
Settlements | (16,634) | (5,042) | (5,201) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 11,018 | 5,638 | 1,682 |
Ending balance | 55,824 | 31,946 | 17,972 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (10,938) | (4,390) | (17,212) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
RMBS | |||
Assets: | |||
Beginning balance | 1,477 | 21,826 | 17,740 |
Total gains/(losses) (realized and unrealized) | (13,210) | (243) | (934) |
Purchases | 35,774 | 708 | 7,887 |
Sales | (372) | (1,183) | (969) |
Settlements | (240) | (354) | (1,053) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 4,188 | (19,277) | (845) |
Ending balance | 27,617 | 1,477 | 21,826 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (7,728) | (131) | (599) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
CMBS | |||
Assets: | |||
Beginning balance | 2,333 | 2,003 | 6,110 |
Total gains/(losses) (realized and unrealized) | (733) | (1,694) | (827) |
Purchases | 0 | 2,445 | 393 |
Sales | (749) | (393) | (1,856) |
Settlements | 0 | (13) | (1,787) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (12) | (15) | (30) |
Ending balance | 839 | 2,333 | 2,003 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (703) | (733) | (295) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Liabilities: | |||
Beginning balance | 210 | 35 | 35 |
Total gains/(losses) (realized and unrealized) | 0 | 0 | 0 |
Purchases | 0 | (35) | 0 |
Sales | 280 | 210 | 35 |
Settlements | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 0 | 0 | (35) |
Ending balance | 490 | 210 | 35 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 0 | 0 | 0 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Other ABS | |||
Assets: | |||
Beginning balance | 93,524 | 79,995 | 42,563 |
Total gains/(losses) (realized and unrealized) | (6,467) | 5,335 | (3,848) |
Purchases | 74,353 | 65,277 | 69,701 |
Sales | (20,362) | (21,727) | (1,638) |
Settlements | (39,647) | (45,397) | (43,072) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (6,724) | 10,041 | 16,289 |
Ending balance | 94,677 | 93,524 | 79,995 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (26,982) | (14,471) | (5,945) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | |
Loans and other receivables | |||
Assets: | |||
Beginning balance | 178,417 | 186,568 | 154,322 |
Total gains/(losses) (realized and unrealized) | (1,912) | 1,250 | (6,203) |
Purchases | 45,536 | 50,167 | 110,116 |
Sales | (33,692) | (55,848) | (25,568) |
Settlements | (48,218) | (20,442) | (57,455) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | 28,744 | 16,722 | 11,356 |
Ending balance | 168,875 | 178,417 | 186,568 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | (11,610) | (4,905) | (5,522) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Investments at fair value | |||
Assets: | |||
Beginning balance | 154,373 | 213,946 | 205,412 |
Total gains/(losses) (realized and unrealized) | 46,735 | 112,012 | (31,666) |
Purchases | 74,984 | 22,957 | 55,836 |
Sales | (74,742) | (47,243) | (167) |
Settlements | (15,951) | (9,809) | (17,298) |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (23,407) | (137,490) | 1,829 |
Ending balance | 161,992 | 154,373 | 213,946 |
Changes in unrealized gains/(losses) included in earnings for instruments still held | 33,294 | 25,723 | (33,514) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Securities purchased under agreements to resell | |||
Assets: | |||
Beginning balance | 0 | 25,000 | |
Total gains/(losses) (realized and unrealized) | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | (25,000) | ||
Issuances | 0 | ||
Net transfers into/ (out of) Level 3 | 0 | ||
Ending balance | 0 | ||
Changes in unrealized gains/(losses) included in earnings for instruments still held | 0 | ||
Loans | |||
Liabilities: | |||
Beginning balance | 9,925 | 6,913 | 1,690 |
Total gains/(losses) (realized and unrealized) | 1,197 | 3,384 | 5,297 |
Purchases | (5,173) | (469) | (440) |
Sales | 0 | 220 | 0 |
Settlements | 96 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Net transfers into/ (out of) Level 3 | (2,881) | (123) | 366 |
Ending balance | 3,164 | 9,925 | 6,913 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | (2,484) | (1,523) | (5,409) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Transfers of liabilities from Level 2 to Level 3 | 400 | ||
Net derivatives | |||
Liabilities: | |||
Beginning balance | 67,769 | 26,017 | 77,168 |
Total gains/(losses) (realized and unrealized) | (181,750) | 7,246 | (40) |
Purchases | (1,559) | 0 | (7,446) |
Sales | 1,285 | 0 | 19,376 |
Settlements | 0 | (1,491) | (2,216) |
Issuances | 28,436 | 44,453 | 0 |
Net transfers into/ (out of) Level 3 | 145,343 | (8,456) | (60,825) |
Ending balance | 59,524 | 67,769 | 26,017 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 168,304 | (7,371) | (1,805) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | 0 | 0 |
Transfers of liabilities from Level 2 to Level 3 | 152,800 | 16,200 | |
Other secured financings | |||
Liabilities: | |||
Beginning balance | 25,905 | 1,543 | 0 |
Total gains/(losses) (realized and unrealized) | (650) | (649) | (2,475) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (23,543) | 0 | 0 |
Issuances | 0 | 25,011 | 4,018 |
Net transfers into/ (out of) Level 3 | 0 | 0 | 0 |
Ending balance | 1,712 | 25,905 | 1,543 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 650 | 649 | 2,475 |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 0 | ||
Long-term debt | |||
Liabilities: | |||
Beginning balance | 881,732 | 676,028 | 480,069 |
Total gains/(losses) (realized and unrealized) | (280,967) | (22,132) | 84,930 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (3,919) | 0 | (57,088) |
Issuances | 83,874 | 169,975 | 248,718 |
Net transfers into/ (out of) Level 3 | (19,597) | 57,861 | (80,601) |
Ending balance | 661,123 | 881,732 | 676,028 |
Changes in unrealized gains/ (losses) included in earnings for instruments still held | 239,400 | 85,260 | (51,567) |
Changes in unrealized gains/ (losses) included in other comprehensive income for instruments still held | 41,567 | (63,126) | $ (33,363) |
Structured notes | |||
Liabilities: | |||
Transfers of liabilities from Level 2 to Level 3 | $ 19,300 | $ 57,900 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | $ 111,700,000 | $ 21,100,000 | $ 122,200,000 | |
Transfers of assets from Level 3 to Level 2 | 61,500,000 | 168,700,000 | 24,200,000 | |
Transfers of liabilities from Level 2 to Level 3 | 172,100,000 | 74,300,000 | 500,000 | |
Transfers of liabilities from Level 3 to Level 2 | 53,600,000 | 24,700,000 | 141,500,000 | |
Net gains/(losses) on Level 3 assets (realized and unrealized) | 31,800,000 | 140,000,000 | (46,300,000) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (465,700,000) | 12,900,000 | (88,000,000) | |
Value of asset excluded from significant unobservable inputs | 80,200,000 | 40,800,000 | ||
Value of liability excluded from significant unobservable inputs | (9,600,000) | (2,200,000) | ||
Aggregate fair value of loans and other receivables on nonaccrual status and/or 90 days or greater past due | 69,200,000 | 56,900,000 | ||
Loan and other receivables greater than 90 days past due | 65,100,000 | 23,500,000 | ||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 957,302,000 | 1,015,107,000 | [1] | |
Equity securities without readily determinable fair value | 37,000,000 | 119,400,000 | ||
Impairment | 0 | 0 | 20,400,000 | |
Realized investment gains (losses) | 3,600,000 | 800,000 | 2,100,000 | |
Unrealized gains (losses) on investments | 0 | 0 | 0 | |
Loans and other receivables | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | 33,200,000 | 45,100,000 | ||
Transfers of assets from Level 3 to Level 2 | 4,500,000 | 6,600,000 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (1,912,000) | 1,250,000 | (6,203,000) | |
Other ABS | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | 22,600,000 | 10,200,000 | 23,000,000 | |
Transfers of assets from Level 3 to Level 2 | 29,300,000 | 6,800,000 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (6,467,000) | 5,335,000 | (3,848,000) | |
CDOs and CLOs | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | 11,000,000 | 7,600,000 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | 7,099,000 | 8,092,000 | (3,821,000) | |
Corporate debt securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | 22,800,000 | 3,300,000 | 18,000,000 | |
Transfers of assets from Level 3 to Level 2 | 17,900,000 | 3,000,000 | ||
Net gains/(losses) on Level 3 assets (realized and unrealized) | 946,000 | 1,565,000 | 83,000 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (88,000) | (1,205,000) | 268,000 | |
RMBS | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 3 to Level 2 | 19,300,000 | |||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (13,210,000) | (243,000) | (934,000) | |
Corporate equity securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 2 to Level 3 | 17,900,000 | 32,500,000 | ||
Transfers of assets from Level 3 to Level 2 | 4,300,000 | 5,400,000 | 5,100,000 | |
Transfers of liabilities from Level 3 to Level 2 | 4,300,000 | |||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (645,000) | 19,213,000 | 1,411,000 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 3,611,000 | 83,000 | (456,000) | |
Structured notes | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of liabilities from Level 2 to Level 3 | 19,300,000 | 57,900,000 | ||
Transfers of liabilities from Level 3 to Level 2 | 38,900,000 | 80,600,000 | ||
Net derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of liabilities from Level 2 to Level 3 | 152,800,000 | 16,200,000 | ||
Transfers of liabilities from Level 3 to Level 2 | 7,500,000 | 24,700,000 | 60,800,000 | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 181,750,000 | (7,246,000) | 40,000 | |
Loans | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of liabilities from Level 2 to Level 3 | 400,000 | |||
Net gains (losses) on Level 3 liabilities (realized and unrealized) | (1,197,000) | (3,384,000) | (5,297,000) | |
CMBS | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net gains/(losses) on Level 3 assets (realized and unrealized) | (733,000) | (1,694,000) | (827,000) | |
Net gains (losses) on Level 3 liabilities (realized and unrealized) | 0 | 0 | $ 0 | |
Investments at Fair Value | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Transfers of assets from Level 3 to Level 2 | $ 23,400,000 | $ 137,500,000 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Details) | 12 Months Ended | |||||||||||
Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2022 $ / shares | Nov. 30, 2022 $ / Bond | Nov. 30, 2022 | Nov. 30, 2022 € / shares | Nov. 30, 2021 $ / shares | Nov. 30, 2021 $ / Bond | Nov. 30, 2021 | Nov. 30, 2021 € / shares | Nov. 30, 2021 € / Bond | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 17,372,332,000 | $ 16,978,559,000 | ||||||||||
Derivative assets | 349,166,000 | 570,472,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 11,056,477,000 | 9,267,090,000 | [1] | |||||||||
Derivative liabilities | 1,512,697,000 | 1,412,176,000 | ||||||||||
Long term debt, at fair value | 1,583,828,000 | 1,843,598,000 | ||||||||||
Corporate equity securities | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 3,497,831,000 | 3,113,062,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 2,147,117,000 | 1,695,985,000 | ||||||||||
Corporate debt securities | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 4,002,385,000 | 3,848,144,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 2,338,191,000 | 2,112,259,000 | ||||||||||
CDOs and CLOs | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 127,464,000 | 611,464,000 | ||||||||||
CMBS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 443,310,000 | 198,752,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 490,000 | 210,000 | ||||||||||
Other ABS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 427,841,000 | 430,546,000 | ||||||||||
Loans and other receivables | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 1,237,916,000 | 1,693,731,000 | ||||||||||
RMBS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 1,341,816,000 | 1,169,723,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 719,000 | |||||||||||
Investments at fair value | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 165,742,000 | 165,742,000 | ||||||||||
Loans | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | 183,311,000 | 59,480,000 | ||||||||||
Level 3 | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 791,455,000 | 602,610,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 75,480,000 | 93,269,000 | ||||||||||
Long term debt, at fair value | 661,123,000 | 881,732,000 | ||||||||||
Level 3 | Volatility benchmarking and market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative assets | 6,501,000 | |||||||||||
Derivative liabilities | 65,841,000 | 76,533,000 | ||||||||||
Level 3 | Scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings | 1,712,000 | 25,905,000 | ||||||||||
Level 3 | Corporate equity securities | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 240,347,000 | 118,489,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 750,000 | 4,635,000 | ||||||||||
Level 3 | Corporate equity securities | Market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | 4,635,000 | |||||||||||
Level 3 | Corporate equity securities | Market approach | Price | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 1 | |||||||||||
Level 3 | Non-exchange-traded securities | Market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 240,347,000 | 117,803,000 | ||||||||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0 | 1 | 15 | |||||||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 325 | 662 | 18 | |||||||||
Level 3 | Non-exchange-traded securities | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 43 | 227 | 16 | |||||||||
Level 3 | Non-exchange-traded securities | Market approach | Volatility | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.25 | |||||||||||
Level 3 | Non-exchange-traded securities | Market approach | Volatility | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.59 | |||||||||||
Level 3 | Non-exchange-traded securities | Market approach | Volatility | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.31 | |||||||||||
Level 3 | Non-exchange-traded securities | Volatility | Volatility | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.40 | |||||||||||
Level 3 | Non-exchange-traded securities | Volatility | Volatility | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.53 | |||||||||||
Level 3 | Non-exchange-traded securities | Volatility | Volatility | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Investments in and advances to affiliates, measurement Iinput | 0.45 | |||||||||||
Level 3 | Corporate debt securities | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 30,232,000 | 11,803,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 500,000 | 482,000 | ||||||||||
Level 3 | Corporate debt securities | Market approach and scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 11,803,000 | |||||||||||
Level 3 | Corporate debt securities | Market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 30,232,000 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 48 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 82 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 65 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 13 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 100 | |||||||||||
Level 3 | Corporate debt securities | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 86 | |||||||||||
Level 3 | Corporate debt securities | Market approach | EBITDA multiple | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / Bond | 4.2 | |||||||||||
Level 3 | Corporate debt securities | Scenario analysis | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.07 | |||||||||||
Level 3 | CDOs and CLOs | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 55,824,000 | 31,946,000 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows and market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 55,824,000 | |||||||||||
Level 3 | CDOs and CLOs | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 67 | 86 | ||||||||||
Level 3 | CDOs and CLOs | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 102 | 103 | ||||||||||
Level 3 | CDOs and CLOs | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 89 | 93 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 31,944,000 | |||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant prepayment rate | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.20 | 0.20 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.02 | |||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.02 | |||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.03 | |||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Constant default rate | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.02 | |||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.30 | 0.25 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.40 | 0.30 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Loss severity | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.32 | 0.26 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.18 | 0.08 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.23 | 0.19 | ||||||||||
Level 3 | CDOs and CLOs | Discounted cash flows | Discount rate/yield | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.22 | 0.16 | ||||||||||
Level 3 | CDOs and CLOs | Scenario analysis | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.69 | |||||||||||
Level 3 | CMBS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 839,000 | 2,333,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 490,000 | 210,000 | ||||||||||
Level 3 | CMBS | Discounted cash flows | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.81 | |||||||||||
Level 3 | CMBS | Scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 839,000 | |||||||||||
Level 3 | CMBS | Scenario analysis | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.45 | |||||||||||
Level 3 | CMBS | Discounted cash flows and scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 2,333,000 | |||||||||||
Level 3 | Other ABS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 94,677,000 | $ 93,524,000 | ||||||||||
Level 3 | Other ABS | Discounted cash flows and market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 55,858,000 | |||||||||||
Level 3 | Other ABS | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 37 | |||||||||||
Level 3 | Other ABS | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 100 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Price | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 94 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant prepayment rate | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant prepayment rate | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.35 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant prepayment rate | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.31 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant default rate | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 86,099,000 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant default rate | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 0.02 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant default rate | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 0.04 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Constant default rate | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 0.04 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.60 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.85 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Loss severity | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.55 | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.06 | 0.03 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.20 | 0.16 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Discount rate/yield | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.17 | 0.10 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.08 | 0.07 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.22 | 0.20 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Cumulative loss rate | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.19 | 0.14 | ||||||||||
Level 3 | Other ABS | Discounted cash flows | Duration (years) | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input, term | 9 months 18 days | |||||||||||
Financial instruments owned, duration, measurement input | 8 months 12 days | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Duration (years) | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input, term | 1 year 7 months 6 days | |||||||||||
Financial instruments owned, duration, measurement input | 1 year 4 months 24 days | |||||||||||
Level 3 | Other ABS | Discounted cash flows | Duration (years) | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input, term | 1 year 2 months 12 days | |||||||||||
Financial instruments owned, duration, measurement input | 1 year 1 month 6 days | |||||||||||
Level 3 | Loans and other receivables | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | $ 168,875,000 | $ 178,417,000 | ||||||||||
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 | 168,875,000 | $ 177,193,000 | ||||||||||
Level 3 | Loans and other receivables | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / Bond | 1 | 31 | ||||||||||
Level 3 | Loans and other receivables | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / Bond | 150 | 101 | ||||||||||
Level 3 | Loans and other receivables | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / Bond | 82 | 54 | ||||||||||
Level 3 | Loans and other receivables | Discounted cash flows | Duration (years) | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, duration, measurement input | 0 months | |||||||||||
Level 3 | Loans and other receivables | Discounted cash flows | Duration (years) | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, duration, measurement input | 2 years 2 months 12 days | |||||||||||
Level 3 | Loans and other receivables | Discounted cash flows | Duration (years) | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, duration, measurement input | 2 years 2 months 12 days | |||||||||||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.06 | 0.09 | ||||||||||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.78 | 1 | ||||||||||
Level 3 | Loans and other receivables | Scenario analysis | Estimated recovery percentage | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.30 | 0.76 | ||||||||||
Level 3 | Equity options | Volatility | Volatility | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 0.46 | |||||||||||
Level 3 | Equity options | Volatility | Volatility | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.26 | 0.26 | ||||||||||
Level 3 | Equity options | Volatility | Volatility | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.75 | 0.77 | ||||||||||
Level 3 | Equity options | Volatility | Volatility | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative liability, measurement input | 0.51 | 0.40 | ||||||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 0.1 | |||||||||||
Derivative liability, measurement input | 0.1 | |||||||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 8.1 | |||||||||||
Derivative liability, measurement input | 8.7 | |||||||||||
Level 3 | Interest rate swaps | Market approach | Basis points upfront | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Derivative asset, measurement input | 3.3 | |||||||||||
Derivative liability, measurement input | 3.1 | |||||||||||
Level 3 | Loans/Bonds total return swaps | Market approach | Price | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | $ / shares | 100 | |||||||||||
Derivative liability, measurement input | $ / Bond | 100 | |||||||||||
Level 3 | RMBS | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 27,617,000 | $ 1,477,000 | ||||||||||
Financial instruments sold, not yet purchased, at fair value | 0 | |||||||||||
Level 3 | Investments at fair value | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 161,992,000 | 154,373,000 | ||||||||||
Level 3 | Investments at fair value | Market approach and scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 159,304,000 | |||||||||||
Level 3 | Private equity securities | Market approach and scenario analysis | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, at fair value | 128,152,000 | |||||||||||
Level 3 | Private equity securities | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 0 | 1 | ||||||||||
Level 3 | Private equity securities | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 14,919 | 152 | ||||||||||
Level 3 | Private equity securities | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 604 | 32 | ||||||||||
Level 3 | Private equity securities | Market approach | Discount rate/yield | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 0.23 | |||||||||||
Level 3 | Private equity securities | Market approach | EBITDA multiple | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 16.9 | |||||||||||
Level 3 | Private equity securities | Market approach | Revenue multiple | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 4.9 | |||||||||||
Level 3 | Private equity securities | Market approach | Revenue multiple | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 5.1 | |||||||||||
Level 3 | Private equity securities | Market approach | Revenue multiple | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 5 | |||||||||||
Level 3 | Private equity securities | Market approach | Revenue growth | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | $ / shares | 30,194,338 | |||||||||||
Level 3 | Private equity securities | Scenario analysis | Discount rate/yield | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.13 | |||||||||||
Level 3 | Private equity securities | Scenario analysis | Discount rate/yield | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.21 | |||||||||||
Level 3 | Private equity securities | Scenario analysis | Discount rate/yield | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.17 | |||||||||||
Level 3 | Private equity securities | Scenario analysis | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0.07 | |||||||||||
Level 3 | Private equity securities | Scenario analysis | Revenue growth | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments owned, measurement input | 0 | |||||||||||
Level 3 | Loans | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | 3,164,000 | 9,925,000 | ||||||||||
Level 3 | Loans | Market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Debt instrument | 9,925,000 | |||||||||||
Level 3 | Loans | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans | $ / Bond | 31 | |||||||||||
Level 3 | Loans | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans | $ / Bond | 100 | |||||||||||
Level 3 | Loans | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Loans | $ / Bond | 43 | |||||||||||
Level 3 | Loans | Scenario analysis | Estimated recovery percentage | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, measurement input | 0.50 | |||||||||||
Level 3 | Other secured financings: | Scenario analysis | Estimated recovery percentage | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings | 0.09 | 0.13 | ||||||||||
Level 3 | Other secured financings: | Scenario analysis | Estimated recovery percentage | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings | 0.30 | 0.98 | ||||||||||
Level 3 | Other secured financings: | Scenario analysis | Estimated recovery percentage | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Other secured financings | 0.23 | 0.92 | ||||||||||
Level 3 | Long-term debt | Market approach | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Financial instruments sold, not yet purchased, at fair value | $ 661,123,000 | |||||||||||
Long term debt, at fair value | $ 881,732,000 | |||||||||||
Level 3 | Long-term debt | Market approach | Price | Minimum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt | 51 | 59 | 76 | 81 | ||||||||
Level 3 | Long-term debt | Market approach | Price | Maximum | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt | 97 | 99 | 115 | 113 | ||||||||
Level 3 | Long-term debt | Market approach | Price | Weighted Average | ||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||||||||
Long-term debt | 64 | 77 | 94 | 103 | ||||||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk for Loans and Other Receivables and Loan Commitments Measured at Fair Value under Fair Value Option (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Financial instruments owned: | |||
Loans and other receivables | $ (20,529) | $ 11,682 | $ (25,623) |
Loans | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 0 | 1,077 | 0 |
Loan commitments | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 0 | 0 | 464 |
Short-term borrowings: | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Other changes in fair value | 0 | 0 | (48) |
Other secured financings: | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Other changes in fair value | 695 | 650 | 2,475 |
Long-term debt: | |||
Financial instruments sold, not yet purchased, Long-term debt and Short-term borrowings | |||
Changes in instrument specific credit risk | 63,344 | (113,027) | 70,201 |
Other changes in fair value | $ 345,050 | $ 108,739 | $ (84,116) |
Fair Value Disclosures - Summ_2
Fair Value Disclosures - Summary of Amount by Which Contractual Principal Exceeds Fair Value for Loans and Other Receivables Measured at Fair Value under Fair Value Option (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Financial instruments owned: | ||
Loans and other receivables | $ 2,144,632 | $ 5,600,648 |
Loans and other receivables on nonaccrual status and/or 90 days or greater past due | 181,766 | 64,203 |
Long-term debt and short-term borrowings | 369,990 | (38,391) |
Other secured financings | 3,563 | 3,432 |
Loans and other receivables 90 days or greater past due | $ 83,400 | $ 19,700 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, impairment loss | $ 39 | $ 66 | |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expenses | Other expenses | Other expenses |
Discount rate/yield | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other expenses | Other expenses | |
Discount rate/yield | Real Estate Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, measurement input | 0.120 | ||
Discount rate/yield | Oil and Gas Properties | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Oil and gas properties, measurement input | 0.100 | ||
Discount rate/yield | Minimum | Equity Method Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments, measurement input | 0.100 | ||
Discount rate/yield | Maximum | Equity Method Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments, measurement input | 0.230 | ||
Exchange and clearing organization membership interests and registrations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, impairment loss | $ 39 | $ 66 | |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of Investments in and loans to related parties | 27,119 | $ 55,612 | |
Impairment of intangible assets, finite-lived | 300 | ||
Impairment of other assets | 6,701 | 46,200 | |
Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in and loans to related party, fair value disclosure | 0 | 0 | |
Finite-lived intangible assets, fair value disclosure | 0 | ||
Other assets, fair value disclosure | 0 | ||
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments in and loans to related party, fair value disclosure | 106,172 | 0 | |
Finite-lived intangible assets, fair value disclosure | 0 | ||
Other assets, fair value disclosure | 1,709 | 36,400 | |
Nonrecurring | Exchange and clearing organization membership interests and registrations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, impairment loss | 39 | 66 | 468 |
Nonrecurring | Exchange and clearing organization membership interests and registrations | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, fair value | 0 | 1,935 | 1,974 |
Nonrecurring | Exchange and clearing organization membership interests and registrations | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Exchange ownership interest and registrations, fair value | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Details) $ in Thousands | Nov. 30, 2022 USD ($) Contract | Nov. 30, 2021 USD ($) contract Contract |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Financial instruments owned | Financial instruments owned |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Financial instruments sold, not yet purchased, at fair value | Financial instruments sold, not yet purchased, at fair value |
Net amounts per consolidated statements of financial condition, assets | $ 349,166 | $ 570,472 |
Net amounts per consolidated statements of financial condition, liabilities | 1,512,697 | 1,412,176 |
Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 1,077,468 | 1,208,316 |
Fair value, liabilities | 864,946 | 1,036,998 |
Amounts offset in the consolidated statements of financial condition, assets | (858,921) | (1,008,091) |
Amounts offset in the consolidated statements of financial condition, liabilities | (858,921) | (1,008,091) |
Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 663,504 | 493,261 |
Fair value, liabilities | 678,234 | 508,333 |
Amounts offset in the consolidated statements of financial condition, assets | (655,969) | (483,339) |
Amounts offset in the consolidated statements of financial condition, liabilities | (657,192) | (508,333) |
Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 1,701,438 | 2,174,651 |
Fair value, liabilities | 2,701,682 | 3,569,045 |
Amounts offset in the consolidated statements of financial condition, assets | (1,578,354) | (1,814,326) |
Amounts offset in the consolidated statements of financial condition, liabilities | (1,216,052) | (2,185,776) |
Derivatives designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | 0 | 66,188 |
Fair value, liabilities | 275,797 | 32,200 |
Derivatives designated as accounting hedges: | Interest rate contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | $ 35,726 |
Number of contracts, assets | Contract | 0 | 2 |
Fair value, liabilities | $ 217,922 | $ 32,200 |
Number of contracts, liabilities | Contract | 3 | 1 |
Derivatives designated as accounting hedges: | Foreign exchange contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | $ 30,462 |
Number of contracts, assets | Contract | 0 | 4 |
Fair value, liabilities | $ 57,875 | $ 0 |
Number of contracts, liabilities | Contract | 5 | 0 |
Derivatives not designated as accounting hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 3,442,410 | $ 3,810,040 |
Fair value, liabilities | 3,969,065 | 5,082,176 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 3,297 | $ 1,262 |
Number of contracts, assets | Contract | 49,736 | 23,888 |
Fair value, liabilities | $ 123 | $ 756 |
Number of contracts, liabilities | Contract | 36,085 | 39,195 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 655,140 | $ 373,355 |
Number of contracts, assets | Contract | 3,843 | 4,505 |
Fair value, liabilities | $ 452,570 | $ 367,134 |
Number of contracts, liabilities | Contract | 4,203 | 4,467 |
Derivatives not designated as accounting hedges: | Interest rate contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 1,044,632 | $ 322,353 |
Number of contracts, assets | Contract | 772 | 1,037 |
Fair value, liabilities | $ 1,573,975 | $ 283,481 |
Number of contracts, liabilities | Contract | 704 | 967 |
Derivatives not designated as accounting hedges: | Foreign exchange contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 0 | |
Number of contracts, assets | Contract | 2 | |
Fair value, liabilities | $ 0 | |
Number of contracts, liabilities | Contract | 1 | |
Derivatives not designated as accounting hedges: | Foreign exchange contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 287,594 | $ 1,428,712 |
Number of contracts, assets | Contract | 2,398 | 17,792 |
Fair value, liabilities | $ 251,339 | $ 1,437,116 |
Number of contracts, liabilities | Contract | 2,428 | 17,576 |
Derivatives not designated as accounting hedges: | Equity contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 1,074,134 | $ 1,206,606 |
Number of contracts, assets | Contract | 1,323,637 | 1,582,713 |
Fair value, liabilities | $ 864,804 | $ 1,036,019 |
Number of contracts, liabilities | Contract | 1,338,129 | 1,450,624 |
Derivatives not designated as accounting hedges: | Equity contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 348,611 | $ 377,132 |
Number of contracts, assets | Contract | 5,201 | 2,888 |
Fair value, liabilities | $ 800,230 | $ 1,824,418 |
Number of contracts, liabilities | Contract | 5,543 | 2,682 |
Derivatives not designated as accounting hedges: | Commodity contracts: | Exchange-traded | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 37 | $ 448 |
Number of contracts, assets | Contract | 597 | 1,394 |
Fair value, liabilities | $ 19 | $ 223 |
Number of contracts, liabilities | Contract | 607 | 1,457 |
Derivatives not designated as accounting hedges: | Commodity contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 4,327 | $ 2,703 |
Number of contracts, assets | 5 | 2 |
Fair value, liabilities | $ 4,874 | $ 9,862 |
Number of contracts, liabilities | 3 | 7 |
Derivatives not designated as accounting hedges: | Commodity contracts: | Bilateral OTC | Revision of Prior Period, Error Correction, Adjustment | ||
Derivatives, Fair Value [Line Items] | ||
Number of contracts, liabilities | contract | 825 | |
Derivatives not designated as accounting hedges: | Credit contracts: | Cleared OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 8,364 | $ 84,180 |
Number of contracts, assets | Contract | 51 | 132 |
Fair value, liabilities | $ 7,742 | $ 108,999 |
Number of contracts, liabilities | Contract | 35 | 128 |
Derivatives not designated as accounting hedges: | Credit contracts: | Bilateral OTC | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, assets | $ 16,274 | $ 13,289 |
Number of contracts, assets | Contract | 9 | 14 |
Fair value, liabilities | $ 13,389 | $ 14,168 |
Number of contracts, liabilities | Contract | 8 | 17 |
Derivatives not designated as accounting hedges: | Credit contracts: | Bilateral OTC | Revision of Prior Period, Error Correction, Adjustment | ||
Derivatives, Fair Value [Line Items] | ||
Number of contracts, assets | Contract | 616 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ 6,863 | $ 16,662 | $ 4,856 |
Unrealized and realized gains (losses) | (376,341) | (513,614) | 58,275 |
Net investment hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), foreign currency transaction and translation gain (loss), before reclassification and tax | 116,876 | 19,008 | (3,306) |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (164,729) | (10,152) | 2,266 |
Foreign exchange contracts | Net investment hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other comprehensive income (loss), foreign currency transaction and translation gain (loss), before reclassification and tax | 116,876 | 19,008 | (3,306) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (154,378) | (48,510) | (52,331) |
Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (29,740) | (427,593) | 47,631 |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | (43,106) | (28,012) | 45,491 |
Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized and realized gains (losses) | 15,612 | 653 | 15,218 |
Derivative, assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | (212,280) | (41,845) | 41,524 |
Long-term debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recognized in interest expense on fair value hedge | $ 219,143 | $ 58,507 | $ (36,668) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | $ 433,886 |
OTC derivative assets having maturity period of 1 to 5 years | 800,179 |
OTC derivative assets having maturity period of greater than 5 years | 36,172 |
OTC derivative assets cross-maturity netting | (190,362) |
Total OTC derivative assets, net of cross-maturity netting | 1,079,875 |
Cross-product counterparty netting | (35,883) |
Total OTC derivative assets included in Financial instruments owned | 1,043,992 |
OTC derivative liabilities having maturity period of 0 to 12 months | 603,325 |
OTC derivative liabilities having maturity period of 1 to 5 years | 1,133,451 |
OTC derivative liabilities having maturity period of greater than 5 years | 524,993 |
OTC derivative liabilities cross-maturity netting | (190,362) |
Total OTC derivative liabilities, net of cross-maturity netting | 2,071,407 |
Cross-product counterparty netting | (35,883) |
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased | 2,035,524 |
Exchange traded derivative assets | 218,600 |
Cash collateral received | 913,400 |
Exchange traded derivative liabilities, with fair value | 29,500 |
Cash collateral pledged | 552,800 |
Commodity swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 2,826 |
OTC derivative assets having maturity period of 1 to 5 years | 1,512 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (1,547) |
Total OTC derivative assets, net of cross-maturity netting | 2,791 |
OTC derivative liabilities having maturity period of 0 to 12 months | 3,904 |
OTC derivative liabilities having maturity period of 1 to 5 years | 980 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (1,547) |
Consolidated Otc Derivative Liabilities Net Of Crossmaturity Netting | 3,337 |
Equity options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 51,033 |
OTC derivative assets having maturity period of 1 to 5 years | 2,698 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (499) |
Total OTC derivative assets, net of cross-maturity netting | 53,232 |
OTC derivative liabilities having maturity period of 0 to 12 months | 248,343 |
OTC derivative liabilities having maturity period of 1 to 5 years | 269,123 |
OTC derivative liabilities having maturity period of greater than 5 years | 453 |
OTC derivative liabilities cross-maturity netting | (499) |
Total OTC derivative liabilities, net of cross-maturity netting | 517,420 |
Credit default swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 0 |
OTC derivative assets having maturity period of 1 to 5 years | 762 |
OTC derivative assets having maturity period of greater than 5 years | 7,209 |
OTC derivative assets cross-maturity netting | (153) |
Total OTC derivative assets, net of cross-maturity netting | 7,818 |
OTC derivative liabilities having maturity period of 0 to 12 months | 0 |
OTC derivative liabilities having maturity period of 1 to 5 years | 0 |
OTC derivative liabilities having maturity period of greater than 5 years | 153 |
OTC derivative liabilities cross-maturity netting | (153) |
Total OTC derivative liabilities, net of cross-maturity netting | 0 |
Loans/Bonds total return swaps | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 126,590 |
OTC derivative assets having maturity period of 1 to 5 years | 24,528 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (4,778) |
Total OTC derivative assets, net of cross-maturity netting | 146,340 |
OTC derivative liabilities having maturity period of 0 to 12 months | 66,364 |
OTC derivative liabilities having maturity period of 1 to 5 years | 82,529 |
OTC derivative liabilities having maturity period of greater than 5 years | 325 |
OTC derivative liabilities cross-maturity netting | (4,778) |
Total OTC derivative liabilities, net of cross-maturity netting | 144,440 |
Foreign currency forwards, swaps and options | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 106,481 |
OTC derivative assets having maturity period of 1 to 5 years | 7,379 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | (5,965) |
Total OTC derivative assets, net of cross-maturity netting | 107,895 |
OTC derivative liabilities having maturity period of 0 to 12 months | 128,931 |
OTC derivative liabilities having maturity period of 1 to 5 years | 6,530 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | (5,965) |
Total OTC derivative liabilities, net of cross-maturity netting | 129,496 |
Fixed income forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 12,816 |
OTC derivative assets having maturity period of 1 to 5 years | 0 |
OTC derivative assets having maturity period of greater than 5 years | 0 |
OTC derivative assets cross-maturity netting | 0 |
Total OTC derivative assets, net of cross-maturity netting | 12,816 |
OTC derivative liabilities having maturity period of 0 to 12 months | 5,989 |
OTC derivative liabilities having maturity period of 1 to 5 years | 0 |
OTC derivative liabilities having maturity period of greater than 5 years | 0 |
OTC derivative liabilities cross-maturity netting | 0 |
Total OTC derivative liabilities, net of cross-maturity netting | 5,989 |
Interest rate swaps, options and forwards | |
Remaining Contract Maturity Of Fair Value Of Over Counter Derivative Assets And Liabilities [Line Items] | |
OTC derivative assets having maturity period of 0 to 12 months | 134,140 |
OTC derivative assets having maturity period of 1 to 5 years | 763,300 |
OTC derivative assets having maturity period of greater than 5 years | 28,963 |
OTC derivative assets cross-maturity netting | (177,420) |
Total OTC derivative assets, net of cross-maturity netting | 748,983 |
OTC derivative liabilities having maturity period of 0 to 12 months | 149,794 |
OTC derivative liabilities having maturity period of 1 to 5 years | 774,289 |
OTC derivative liabilities having maturity period of greater than 5 years | 524,062 |
OTC derivative liabilities cross-maturity netting | (177,420) |
Total OTC derivative liabilities, net of cross-maturity netting | $ 1,270,725 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
A- or higher | $ 763,128 |
BBB- to BBB+ | 156,219 |
BB+ or lower | 73,831 |
Unrated | 50,814 |
Total OTC derivative assets included in Financial instruments owned | $ 1,043,992 |
Derivative Financial Instrume_7
Derivative Financial Instruments - External Credit Ratings of Underlyings or Referenced Assets (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 723.7 | $ 3,910.8 |
Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0.2 | 17.8 |
Investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 207.9 | 2,612 |
Investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Non-investment Grade | Index credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 515.8 | 1,298.8 |
Non-investment Grade | Single name credit default swaps | ||
Derivative [Line Items] | ||
Notional amount | 0 | 17.6 |
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 | $ 0.2 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Contingent Features (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative instrument liabilities with credit-risk-related contingent features | $ 226.5 | $ 821.5 |
Collateral posted | (168.8) | (160.5) |
Collateral received | 177.4 | 369.3 |
Return of and additional collateral required in the event of a credit rating downgrade below investment grade | $ 235 | $ 1,030.4 |
Collateralized Transactions - C
Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,366,025 | $ 1,525,721 |
Repurchase Agreements | 13,603,033 | 16,019,400 |
Obligation to Return Securities Received as Collateral, at Fair Value | 100,362 | 7,289 |
Total | 15,069,420 | 17,552,410 |
Corporate equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 967,800 | 1,160,916 |
Repurchase Agreements | 471,581 | 150,602 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 7,289 |
Total | 1,439,381 | 1,318,807 |
Corporate debt securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 332,204 | 321,356 |
Repurchase Agreements | 2,210,934 | 2,684,458 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 2,543,138 | 3,005,814 |
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 | 1,192,265 | 1,209,442 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 1,192,265 | 1,209,442 |
U.S. government and federal agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 66,021 | 6,348 |
Repurchase Agreements | 6,203,263 | 8,426,536 |
Obligation to Return Securities Received as Collateral, at Fair Value | 100,362 | 0 |
Total | 6,369,646 | 8,432,884 |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 535,619 | 413,073 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 535,619 | 413,073 |
Sovereign obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 37,101 |
Repurchase Agreements | 2,450,880 | 2,422,901 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 2,450,880 | 2,460,002 |
Loans and other receivables | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 0 |
Repurchase Agreements | 538,491 | 712,388 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | $ 538,491 | $ 712,388 |
Collateralized Transactions -_2
Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | $ 1,366,025 | $ 1,525,721 |
Repurchase Agreements | 13,603,033 | 16,019,400 |
Obligation to Return Securities Received as Collateral, at Fair Value | 100,362 | 7,289 |
Total | 15,069,420 | 17,552,410 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 808,472 | 595,628 |
Repurchase Agreements | 6,930,667 | 6,551,934 |
Obligation to Return Securities Received as Collateral, at Fair Value | 100,362 | 7,289 |
Total | 7,839,501 | 7,154,851 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 0 | 1,318 |
Repurchase Agreements | 1,521,629 | 1,798,716 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 1,521,629 | 1,800,034 |
31-90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 273,865 | 539,623 |
Repurchase Agreements | 2,262,705 | 4,361,993 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | 2,536,570 | 4,901,616 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Lending Arrangements | 283,688 | 389,152 |
Repurchase Agreements | 2,888,032 | 3,306,757 |
Obligation to Return Securities Received as Collateral, at Fair Value | 0 | 0 |
Total | $ 3,171,720 | $ 3,695,909 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Fair value of securities received as collateral | $ 26,820,000 | $ 31,970,000 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 957,302 | $ 1,015,107 | [1] |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Collateralized Transactions - S
Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Securities borrowing arrangements | |||
Gross Amounts | $ 5,831,148 | $ 6,409,420 | |
Netting in Consolidated Statement of Financial Condition | 0 | 0 | |
Net Amounts in Consolidated Statement of Financial Condition | 5,831,148 | 6,409,420 | [1] |
Additional amounts available for setoff | (285,361) | (271,475) | |
Available collateral | (1,381,404) | (1,528,206) | |
Net amount | 4,164,383 | 4,609,739 | |
Reverse repurchase agreements | |||
Gross Amounts | 10,697,382 | 15,215,785 | |
Netting in Consolidated Statement of Financial Condition | (6,150,691) | (7,573,301) | |
Net Amounts in Consolidated Statement of Financial Condition | 4,546,691 | 7,642,484 | [1] |
Additional amounts available for setoff | (550,669) | (540,312) | |
Available collateral | (3,954,525) | (7,048,823) | |
Net amount | 41,497 | 53,349 | |
Securities lending arrangements | |||
Gross Amounts | 1,366,025 | 1,525,721 | |
Netting in Consolidated Statement of Financial Condition | 0 | 0 | |
Net Amounts in Consolidated Statement of Financial Condition | 1,366,025 | 1,525,721 | [1] |
Additional amounts available for setoff | (285,361) | (271,475) | |
Available collateral | (1,054,228) | (1,213,563) | |
Net amount | 26,436 | 40,683 | |
Repurchase agreements | |||
Gross Amounts | 13,603,033 | 16,019,400 | |
Netting in Consolidated Statement of Financial Condition | (6,150,691) | (7,573,301) | |
Net Amounts in Consolidated Statement of Financial Condition | 7,452,342 | 8,446,099 | [1] |
Additional amounts available for setoff | (550,669) | (540,312) | |
Available collateral | (6,374,480) | (7,136,585) | |
Net amount | 527,193 | 769,202 | |
Securities borrowing arrangements | 4,120,000 | 4,510,000 | |
Securities borrowing arrangements, collateral | 4,020,000 | 4,350,000 | |
Securities borrowing arrangements, repurchase agreements | 495,200 | 765,000 | |
Securities borrowing arrangements, repurchase agreements, pledged securities collateral | 507,300 | 781,800 | |
Revision of Prior Period, Error Correction, Adjustment | |||
Repurchase agreements | |||
Available collateral | 200,000 | ||
Net amount | 200,000 | ||
Obligation to return securities received as collateral, at fair value | |||
Securities lending arrangements | |||
Gross Amounts | 100,362 | 7,289 | |
Netting in Consolidated Statement of Financial Condition | 0 | 0 | |
Net Amounts in Consolidated Statement of Financial Condition | 100,362 | 7,289 | |
Additional amounts available for setoff | 0 | 0 | |
Available collateral | (100,362) | (7,289) | |
Net amount | 0 | 0 | |
Securities received as collateral, at fair value | |||
Securities borrowing arrangements | |||
Gross Amounts | 100,362 | 7,289 | |
Netting in Consolidated Statement of Financial Condition | 0 | 0 | |
Net Amounts in Consolidated Statement of Financial Condition | 100,362 | 7,289 | |
Additional amounts available for setoff | 0 | 0 | |
Available collateral | (100,362) | (7,289) | |
Net amount | $ 0 | $ 0 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Securitization Activities - Act
Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Transfers and Servicing [Abstract] | |||
Transferred assets | $ 6,351.2 | $ 10,487.3 | $ 6,556.2 |
Proceeds on new securitizations | 6,402.6 | 10,488.6 | 6,556.2 |
Cash flows received on retained interests | $ 31.7 | $ 21.8 | $ 26.8 |
Securitization Activities - Sum
Securitization Activities - Summary of Retained Interests in SPEs (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Securitization Vehicles [Line Items] | ||
Total RMBS securitization assets | $ 219.8 | $ 330.2 |
Total CMBS securitization assets | 2,997.7 | 2,201.8 |
Total collateralized loan obligations | 5,140.5 | 3,382.3 |
Consumer and other loans | 2,526.7 | 2,271.4 |
U.S. government agency RMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 2.9 | 4.9 |
U.S. government agency CMBS | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 173.9 | 69.2 |
CLOs | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | 31.9 | 31 |
Consumer and other loans | ||
Securitization Vehicles [Line Items] | ||
Retained Interests | $ 122.8 | $ 136.4 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] |
Total liabilities | 40,630,743 | 45,377,271 | [1] |
Variable interest entities | Receivables from brokers | |||
Variable Interest Entity [Line Items] | |||
VIE assets, eliminated in consolidation | 1,200 | ||
Variable interest entities | Other assets | |||
Variable Interest Entity [Line Items] | |||
VIE assets, eliminated in consolidation | 82,400 | 56,500 | |
Variable interest entities | Other secured financings: | |||
Variable Interest Entity [Line Items] | |||
VIE liabilities, eliminated in consolidation | 253,800 | 36,700 | |
Variable interest entities | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
VIE liabilities, eliminated in consolidation | 30,900 | 75,300 | |
Variable interest entities | Securitization activity | |||
Variable Interest Entity [Line Items] | |||
Total assets | 2,363,800 | 4,615,400 | |
Total liabilities | 2,294,500 | 4,568,200 | |
Variable interest entities | Securitization activity | Cash | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 3,800 | |
Variable interest entities | Securitization activity | Financial instruments owned | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 173,100 | |
Variable interest entities | Securitization activity | Securities purchased under agreements to resell | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,565,000 | 3,697,100 | |
Variable interest entities | Securitization activity | Receivables from brokers | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Variable interest entities | Securitization activity | Other receivables | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 600 | |
Variable interest entities | Securitization activity | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 798,800 | 740,800 | |
Variable interest entities | Securitization activity | Financial instruments sold, not yet purchased | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 0 | 0 | |
Variable interest entities | Securitization activity | Other secured financings: | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 2,289,900 | 4,521,600 | |
Variable interest entities | Securitization activity | Payables to broker dealers | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 0 | 44,200 | |
Variable interest entities | Securitization activity | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 4,600 | 2,400 | |
Variable interest entities | Securitization activity | Long-term debt | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 0 | 0 | |
Variable interest entities | Other | |||
Variable Interest Entity [Line Items] | |||
Total assets | 112,000 | 187,000 | |
Total liabilities | 68,000 | 184,400 | |
Variable interest entities | Other | Cash | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,400 | 0 | |
Variable interest entities | Other | Financial instruments owned | |||
Variable Interest Entity [Line Items] | |||
Total assets | 7,100 | 146,400 | |
Variable interest entities | Other | Securities purchased under agreements to resell | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Variable interest entities | Other | Receivables from brokers | |||
Variable Interest Entity [Line Items] | |||
Total assets | 15,200 | 40,600 | |
Variable interest entities | Other | Other receivables | |||
Variable Interest Entity [Line Items] | |||
Total assets | 0 | 0 | |
Variable interest entities | Other | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets | 88,300 | 0 | |
Variable interest entities | Other | Financial instruments sold, not yet purchased | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 5,700 | 109,100 | |
Variable interest entities | Other | Other secured financings: | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 0 | 0 | |
Variable interest entities | Other | Payables to broker dealers | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 0 | 0 | |
Variable interest entities | Other | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 37,600 | 75,300 | |
Variable interest entities | Other | Long-term debt | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | $ 24,700 | $ 0 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Variable Interest Entities - Va
Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] |
Total liabilities | 40,630,743 | 45,377,271 | [1] |
Variable interest entity, not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,986,700 | 2,102,200 | |
Total liabilities | 1,400 | 2,000 | |
Maximum Exposure to Loss | 3,717,200 | 4,255,300 | |
VIE Assets | 31,512,800 | 29,320,300 | |
Variable interest entity, not primary beneficiary | CLOs | |||
Variable Interest Entity [Line Items] | |||
Total assets | 133,500 | 582,200 | |
Total liabilities | 1,400 | 2,000 | |
Maximum Exposure to Loss | 1,642,500 | 2,557,100 | |
VIE Assets | 7,705,300 | 10,277,500 | |
Variable interest entity, not primary beneficiary | Asset-backed vehicles | |||
Variable Interest Entity [Line Items] | |||
Total assets | 561,000 | 281,900 | |
Total liabilities | 0 | 0 | |
Maximum Exposure to Loss | 690,400 | 359,300 | |
VIE Assets | 4,408,300 | 3,474,600 | |
Variable interest entity, not primary beneficiary | Related party private equity vehicles | |||
Variable Interest Entity [Line Items] | |||
Total assets | 24,800 | 27,100 | |
Total liabilities | 0 | 0 | |
Maximum Exposure to Loss | 35,500 | 37,800 | |
VIE Assets | 69,100 | 78,900 | |
Variable interest entity, not primary beneficiary | Other investment vehicles | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,172,600 | 1,111,500 | |
Total liabilities | 0 | 0 | |
Maximum Exposure to Loss | 1,254,000 | 1,201,600 | |
VIE Assets | 18,940,500 | 15,101,400 | |
Variable interest entity, not primary beneficiary | FXCM | |||
Variable Interest Entity [Line Items] | |||
Total assets | 94,800 | 99,500 | |
Total liabilities | 0 | 0 | |
Maximum Exposure to Loss | 94,800 | 99,500 | |
VIE Assets | $ 389,600 | $ 387,900 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Variable Interest Entities - No
Variable Interest Entities - Non-consolidated VIEs - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] |
Investment in FXCM | |||
Variable Interest Entity [Line Items] | |||
Our total equity balance | $ 59,700 | 49,000 | |
Ownership percentage | 50% | ||
Variable interest entity, not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 1,986,700 | 2,102,200 | |
Variable interest entity, not primary beneficiary | Investment in FXCM | |||
Variable Interest Entity [Line Items] | |||
Our total equity balance | 59,700 | ||
Fair value of senior secured term loan receivable | 35,100 | 50,500 | |
Related party private equity vehicles | Variable interest entity, not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 24,800 | 27,100 | |
Other investment vehicles | |||
Variable Interest Entity [Line Items] | |||
Equity commitments amount | 1,140,000 | 1,090,000 | |
Funded equity commitments | 1,060,000 | 999,800 | |
Carrying amount of equity investment | 1,170,000 | 1,110,000 | |
Other investment vehicles | Variable interest entity, not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,172,600 | 1,111,500 | |
Agency mortgage-backed securities | Variable interest entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 1,470,000 | 1,310,000 | |
Non-agency mortgage and other asset-backed securities | Variable interest entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 180,600 | 253,900 | |
JCP Entities | Related party private equity vehicles | |||
Variable Interest Entity [Line Items] | |||
Equity commitments amount | 133,000 | ||
Funded equity commitments | 122,400 | 122,300 | |
Carrying amount of equity investment | $ 24,800 | $ 27,100 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Loans and Investm
Investments - Loans and Investments In Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Equity Method Investments and Joint Ventures [Abstract] | ||||
Investments in and loans to related parties | $ 1,426,817 | $ 1,587,409 | [1] | |
Income (loss) related to associated companies | $ (36,300) | $ 149,900 | $ (75,200) | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Jefferies Finance
Investments - Jefferies Finance - Narrative (Details) - Jefferies Finance | 12 Months Ended | |
Nov. 30, 2022 USD ($) businessLine | Nov. 30, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of business lines | businessLine | 2 | |
Equity commitment | $ 750,000,000 | |
Total committed equity capitalization | 1,500,000,000 | |
Unfunded portion of equity commitment to subsidiary | $ 15,400,000 | |
Extension period | 1 year | |
Termination notice period | 60 days | |
Funded portion of loan commitment | $ 0 | |
Loan commitment | 250,000,000 | |
Other assets (3) | ||
Schedule of Equity Method Investments [Line Items] | ||
Receivables under service agreement | 1,200,000 | $ 26,200,000 |
Accrued expense and other liabilities | ||
Schedule of Equity Method Investments [Line Items] | ||
Payables under service agreement | 500,000 | $ 8,500,000 |
Committed advances | ||
Schedule of Equity Method Investments [Line Items] | ||
Committed line of credit facility amount | $ 500,000,000 | |
Jefferies Finance | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% |
Investments - Summary of Select
Investments - Summary of Selected Financial Information for Jefferies Finance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Net earnings (loss) | 781,710 | 1,677,376 | [1] | $ 768,410 | [1] |
Jefferies Finance | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 6,763,000 | 8,258,700 | |||
Total liabilities | 5,490,100 | 6,843,900 | |||
Net earnings (loss) | (129,400) | 205,700 | (74,900) | ||
Jefferies Finance | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest income | 400 | 1,500 | 2,400 | ||
Unfunded commitment fees | 1,200 | 1,200 | 1,100 | ||
Our total equity balance | 636,400 | 707,400 | |||
Origination and syndication fee revenues | 194,700 | 410,500 | 198,100 | ||
Origination fee expenses | 39,700 | 66,800 | 27,300 | ||
CLO placement fee revenues | 4,600 | 5,700 | 1,700 | ||
Underwriting fees | 0 | 2,500 | 1,700 | ||
Service fees | $ 94,700 | $ 85,100 | $ 65,100 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Berkadia - Narrat
Investments - Berkadia - Narrative (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Berkadia | ||
Schedule of Equity Method Investments [Line Items] | ||
Surety policy issued | $ 1,500,000,000 | |
Commercial paper | $ 1,470,000,000 | |
Berkadia | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of profits received from joint venture | 45% | |
Commercial paper | $ 1,470,000,000 | |
Purchase commitment amount | $ 237,400,000 | $ 425,600,000 |
Investments - Summary of Sele_2
Investments - Summary of Selected Financial Information for Berkadia (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Noncontrolling interests | 62,633 | 25,885 | [1] | ||
Revenues | 7,149,263 | 8,945,464 | [1] | $ 6,880,447 | [1] |
Net earnings (loss) | 781,710 | 1,677,376 | [1] | 768,410 | [1] |
Our share of net earnings | (36,300) | 149,900 | (75,200) | ||
Berkadia | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 4,436,000 | 4,630,700 | |||
Total liabilities | 2,801,700 | 3,377,000 | |||
Noncontrolling interests | 690,100 | 425,800 | |||
Revenues | 1,361,200 | 1,262,400 | 1,000,400 | ||
Net earnings (loss) | 276,500 | 290,300 | 153,100 | ||
Berkadia | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Our total equity balance | 425,900 | 373,400 | |||
Our share of net earnings | 124,400 | 130,600 | 68,900 | ||
Cash distribution from equity method investment | $ 69,800 | $ 58,000 | $ 37,100 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - OpNet - Narrative
Investments - OpNet - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 31, 2023 | Nov. 30, 2022 | Nov. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage upon conversion | 63% | ||
OpNet | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 42% | ||
Investment voting percentage | 48% | ||
Subordinated bonds at fair value | $ 48.6 | ||
Principal outstanding | 19.3 | ||
Subscriptions advance amount | 12.5 | ||
Common stock warrants, at fair value | 54.2 | $ 27.8 | |
OpNet | Redeemable Preferred Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Preferred stock, redemption amount | 24.5 | 89.1 | |
OpNet | Convertible Preferred Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Preferred stock, redemption amount | $ 0 | $ 17.4 | |
OpNet | Subsequent event | |||
Schedule of Equity Method Investments [Line Items] | |||
Subscriptions advance amount | $ 20.8 |
Investments - Summary of Sele_3
Investments - Summary of Selected Financial Information for OpNet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Net earnings | 781,710 | 1,677,376 | [1] | $ 768,410 | [1] |
OpNet | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 1,050,800 | 782,000 | |||
Total liabilities | 935,200 | 734,000 | |||
Net earnings | (88,600) | (90,500) | $ (78,800) | ||
OpNet | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Our total equity balance | $ 0 | $ 0 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - FXCM - Narrative
Investments - FXCM - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | ||
Schedule of Equity Method Investments [Line Items] | |||
Brokers, dealers and clearing organizations | $ 2,628,727 | $ 3,952,093 | [1] |
Investment in FXCM | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50% | ||
Senior secured term loans at fair value | $ 35,100 | 50,500 | |
Weighted average life of assets and liabilities | 11 years | ||
Brokers, dealers and clearing organizations | $ 500 | $ 700 | |
Investment, other than temporary impairment | $ 25,300 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Summary of Sele_4
Investments - Summary of Selected Financial Information For FXCM (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Net earnings | 781,710 | 1,677,376 | [1] | $ 768,410 | [1] |
Investment in FXCM | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 389,600 | 387,900 | |||
Total liabilities | 341,400 | 382,200 | |||
Net earnings | 39,000 | (21,500) | $ 6,500 | ||
Investment in FXCM | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Our total equity balance | $ 59,700 | $ 49,000 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Golden Queen Mini
Investments - Golden Queen Mining Company - Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Warrants, fair value | $ 0.6 | $ 3.1 |
Ownership percentage upon conversion | 63% | |
Golden Queen Mining Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage upon conversion | 51.90% | |
Golden Queen Mining Company | Golden Queen Mining Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | |
Principal outstanding | $ 14 | $ 13.9 |
Investments - Summary of Sele_5
Investments - Summary of Selected Financial Information For Golden Queen Mining Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Net earnings | 781,710 | 1,677,376 | [1] | $ 768,410 | [1] |
Golden Queen Mining Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 209,800 | 224,500 | |||
Total liabilities | 102,100 | 101,600 | |||
Net earnings | (15,200) | (14,700) | $ (9,600) | ||
Golden Queen Mining Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Our total equity balance | $ 46,500 | $ 55,100 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Real Estate Inves
Investments - Real Estate Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Brooklyn Renaissance Plaza Hotel | HomeFed LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment, other than temporary impairment | $ 6.9 | ||
54 Madison Capital, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 48.10% | ||
Cash distributions | $ 18.4 | $ 39.4 | |
Hotel | Brooklyn Renaissance Plaza Office | HomeFed LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25.40% | ||
Office Building | Brooklyn Renaissance Plaza Office | HomeFed LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 61.30% | ||
Weighted average life of assets and liabilities | 39 years |
Investments - Summary of Sele_6
Investments - Summary of Selected Financial Information For Real Estate Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | ||
Total liabilities | 40,630,743 | 45,377,271 | [1] | ||
Net earnings | 781,710 | 1,677,376 | [1] | $ 768,410 | [1] |
Real Estate Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total assets | 350,400 | 434,500 | |||
Total liabilities | 487,500 | 506,100 | |||
Net earnings | 17,700 | (27,000) | $ (12,300) | ||
Real Estate Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Our total equity balance | $ 107,300 | $ 115,200 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - JCP Fund V - Narr
Investments - JCP Fund V - Narrative (Details) - JCP Fund V - USD ($) $ in Millions | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment amount | $ 23.9 | $ 25.4 |
Unfunded portion of equity commitment to subsidiary | $ 8.7 | 8.7 |
Percent of financial information presented | 100% | |
Ownership percentage | 35.20% | |
Maximum | ||
Schedule of Equity Method Investments [Line Items] | ||
Total committed equity capitalization | $ 85 | $ 85 |
Investments - Summary of Sele_7
Investments - Summary of Selected Financial Information for JCP Fund V (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total assets | $ 51,057,683 | $ 56,107,311 | [1] | |||||||
Total liabilities | 40,630,743 | 45,377,271 | [1] | |||||||
Total partners’ capital | $ 10,295,479 | 10,579,640 | [1] | $ 9,438,525 | ||||||
JCP Fund V | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Total assets | $ 68,000 | $ 72,000 | ||||||||
Total liabilities | 0 | 0 | ||||||||
Total partners’ capital | 68,000 | 72,000 | ||||||||
JCP Fund V | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage | 35.20% | |||||||||
Net gains (losses) from our investments in JCP Fund V | $ 100 | $ 7,700 | $ (3,000) | |||||||
Net increase (decrease) in net assets resulting from operations | $ (3,200) | $ (1,000) | $ (1,400) | $ (1,300) | $ 23,800 | $ (12,500) | ||||
Jefferies Capital Partners V L.P. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage | 11% | |||||||||
SBI USA Fund L.P. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Ownership percentage | 50% | |||||||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - Other Asset Manag
Investments - Other Asset Management Companies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues | $ 7,149,263 | $ 8,945,464 | [1] | $ 6,880,447 | [1] | |
Floor brokerage and clearing fees | 347,805 | 301,860 | [1] | 266,592 | [1] | |
Principal transactions | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues | 833,757 | 1,617,336 | [1] | 1,928,143 | [1] | |
Principal transactions | Monashee's Separate Managed Accounts | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues | $ (3,200) | (800) | 0 | |||
Monashee | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% | |||||
Percentage of profits received from joint venture | 47.50% | |||||
Monashee's Separate Managed Accounts | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Our total equity balance | $ 17,700 | 13,600 | ||||
Floor brokerage and clearing fees | 700 | 0 | $ 0 | |||
Various Asset Management Entities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Our total equity balance | $ 18,600 | $ 25,000 | ||||
Oak Hill | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Our total equity balance | $ 167,700 | |||||
Ownership percentage | 15% | |||||
Gain on sale | $ 175,100 | |||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Investments - ApiJect - Narrati
Investments - ApiJect - Narrative (Details) - ApiJect - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 38% | |
Percentage of future revenue | 1.125% | |
Cash consideration | $ 25 | |
Converted term loan agreement into common shares | 25 | |
Fair value of equity investment | 100.1 | |
Change in fair value of equity investments | $ 37.3 | |
Warrants purchased (in shares) | 950 | |
Term loan | ||
Schedule of Equity Method Investments [Line Items] | ||
Loans, face amount | $ 28.7 | |
Interest income | 2.3 | $ 1.6 |
Automobile loans fair value | $ 28.9 | $ 26.6 |
Credit Losses on Financial As_3
Credit Losses on Financial Assets Measured at Amortized Cost - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Bad debt expense, net of reversals | $ 4,141 | $ 2,287 | $ 19,582 |
Prime Brokerage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Bad debt expense, net of reversals | 39,000 | ||
Automobile Loan | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Financing receivable, balance | $ 891,100 | $ 812,600 | |
Historical loss experience period | 8 years | ||
Supportable forecast period | 2 years |
Credit Losses on Financial As_4
Credit Losses on Financial Assets Measured at Amortized Cost - Rollforward of the Allowance for Credit Losses Related to Automobile Loans (Details) - Automobile Loan - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 67,236 | $ 29,710 | $ 23,606 |
Provision for doubtful accounts | 35,173 | 18,768 | 27,974 |
Charge-offs, net of recoveries | (22,795) | (11,390) | (21,870) |
Ending balance | 79,614 | 67,236 | 29,710 |
Adjustment for change in accounting principle for current expected credit losses | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | 30,148 | 0 |
Ending balance | $ 0 | $ 30,148 |
Credit Losses on Financial As_5
Credit Losses on Financial Assets Measured at Amortized Cost - Summary of Automobile Loans Held for Investment by Credit Score (Details) - Automobile Loan - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 / 2021 | $ 399,610 | $ 402,195 |
2021 / 2020 | 277,149 | 148,852 |
2020 / 2019 | 82,742 | 132,028 |
2019 / 2018 | 70,992 | 72,686 |
2018 / 2017 | 34,106 | 32,968 |
Prior Years | 14,627 | 12,958 |
Total | $ 879,226 | $ 801,687 |
Percent | 100% | 100% |
Credit scores of 680 and above | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 / 2021 | $ 53,700 | $ 71,724 |
2021 / 2020 | 46,668 | 31,215 |
2020 / 2019 | 17,276 | 31,143 |
2019 / 2018 | 16,560 | 16,695 |
2018 / 2017 | 7,631 | 3,642 |
Prior Years | 1,378 | 805 |
Total | $ 143,213 | $ 155,224 |
Percent | 16.30% | 19.40% |
Credit scores between 620 to 679 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 / 2021 | $ 170,220 | $ 198,097 |
2021 / 2020 | 132,528 | 79,315 |
2020 / 2019 | 44,095 | 66,247 |
2019 / 2018 | 35,393 | 37,714 |
2018 / 2017 | 17,635 | 17,637 |
Prior Years | 7,647 | 6,509 |
Total | $ 407,518 | $ 405,519 |
Percent | 46.30% | 50.60% |
Credit scores below 620 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 / 2021 | $ 175,690 | $ 132,374 |
2021 / 2020 | 97,953 | 38,322 |
2020 / 2019 | 21,371 | 34,638 |
2019 / 2018 | 19,039 | 18,277 |
2018 / 2017 | 8,840 | 11,689 |
Prior Years | 5,602 | 5,644 |
Total | $ 328,495 | $ 240,944 |
Percent | 37.40% | 30% |
Credit Losses on Financial As_6
Credit Losses on Financial Assets Measured at Amortized Cost - Aging of Automobile Loans Held For Investment (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Current Accounts | ||
Financing Receivable, Past Due [Line Items] | ||
2022 / 2021 | $ 380,863 | $ 391,366 |
2021 / 2020 | 255,412 | 142,210 |
2020 / 2019 | 76,841 | 125,580 |
2019 / 2018 | 66,338 | 68,852 |
2018 / 2017 | 31,269 | 31,147 |
Prior Years | 13,291 | 12,041 |
Total | $ 824,014 | $ 771,196 |
Percent | 93.70% | 96.20% |
30 - 59 days | ||
Financing Receivable, Past Due [Line Items] | ||
2022 / 2021 | $ 12,720 | $ 7,387 |
2021 / 2020 | 15,550 | 4,444 |
2020 / 2019 | 4,307 | 4,330 |
2019 / 2018 | 3,380 | 2,979 |
2018 / 2017 | 2,020 | 1,472 |
Prior Years | 1,097 | 698 |
Total | $ 39,074 | $ 21,310 |
Percent | 4.40% | 2.70% |
60 - 89 days | ||
Financing Receivable, Past Due [Line Items] | ||
2022 / 2021 | $ 3,718 | $ 2,613 |
2021 / 2020 | 4,156 | 1,586 |
2020 / 2019 | 1,090 | 1,620 |
2019 / 2018 | 734 | 616 |
2018 / 2017 | 569 | 305 |
Prior Years | 181 | 157 |
Total | $ 10,448 | $ 6,897 |
Percent | 1.20% | 0.80% |
90 days and over | ||
Financing Receivable, Past Due [Line Items] | ||
2022 / 2021 | $ 2,309 | $ 829 |
2021 / 2020 | 2,031 | 612 |
2020 / 2019 | 504 | 498 |
2019 / 2018 | 539 | 240 |
2018 / 2017 | 248 | 44 |
Prior Years | 59 | 61 |
Total | $ 5,690 | $ 2,284 |
Percent | 0.70% | 0.30% |
Total | ||
Financing Receivable, Past Due [Line Items] | ||
2022 / 2021 | $ 399,610 | $ 402,195 |
2021 / 2020 | 277,149 | 148,852 |
2020 / 2019 | 82,742 | 132,028 |
2019 / 2018 | 70,991 | 72,687 |
2018 / 2017 | 34,106 | 32,968 |
Prior Years | 14,628 | 12,957 |
Total | $ 879,226 | $ 801,687 |
Percent | 100% | 100% |
Credit Losses on Financial As_7
Credit Losses on Financial Assets Measured at Amortized Cost - Schedule of Allowance for Credit Loss - Investing Banking (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accounts receivable, allowance for credit loss, beginning balance | $ 4,824 | $ 19,788 | $ 6,817 |
Bad debt expense, net of reversals | 4,141 | 2,287 | 19,582 |
Charge-offs | (910) | (6,409) | (2,083) |
Recoveries collected | (2,141) | (7,248) | (4,528) |
Accounts receivable, allowance for credit loss, ending balance | 5,914 | 4,824 | 19,788 |
Adjustment for change in accounting principle for current expected credit losses | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Accounts receivable, allowance for credit loss, beginning balance | $ 0 | (3,594) | 0 |
Accounts receivable, allowance for credit loss, ending balance | $ 0 | $ (3,594) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | |||
Goodwill [Roll Forward] | ||||
Balance, at beginning of period | $ 1,745,098 | [1] | $ 1,746,314 | |
Currency translation and other adjustments | (8,984) | (1,216) | ||
Balance, at end of period | 1,736,114 | 1,745,098 | [1] | |
Investment Banking and Capital Markets | ||||
Goodwill [Roll Forward] | ||||
Balance, at beginning of period | 1,561,928 | |||
Balance, at end of period | 1,552,944 | 1,561,928 | ||
Asset Management | ||||
Goodwill [Roll Forward] | ||||
Balance, at beginning of period | 183,170 | |||
Balance, at end of period | $ 183,170 | $ 183,170 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment losses | $ (39) | $ (66) |
Accumulated amortization - finite lived intangible assets | (136,116) | (171,585) |
Total gross costs - intangible assets | 275,617 | 324,053 |
Total net carrying amount - intangible assets | 139,462 | 152,402 |
Exchange and clearing organization membership interests and registrations | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment losses | (39) | (66) |
Gross costs - indefinite lived intangible assets | 7,447 | 7,798 |
Net carrying amount - indefinite lived intangible assets | 7,408 | 7,732 |
Customer relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross costs - finite lived intangible assets | 126,028 | 170,820 |
Impairment losses | 0 | 0 |
Accumulated amortization - finite lived intangible assets | (89,109) | (128,012) |
Net carrying amount - finite lived intangible assets | $ 36,919 | $ 42,808 |
Useful life - finite lived intangible assets | 8 years 2 months 12 days | 9 years |
Trade name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross costs - finite lived intangible assets | $ 127,185 | $ 128,753 |
Impairment losses | 0 | 0 |
Accumulated amortization - finite lived intangible assets | (35,486) | (32,244) |
Net carrying amount - finite lived intangible assets | $ 91,699 | $ 96,509 |
Useful life - finite lived intangible assets | 25 years 3 months 18 days | 26 years 3 months 18 days |
Other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross costs - finite lived intangible assets | $ 14,957 | $ 16,682 |
Impairment losses | 0 | 0 |
Accumulated amortization - finite lived intangible assets | (11,521) | (11,329) |
Net carrying amount - finite lived intangible assets | $ 3,436 | $ 5,353 |
Useful life - finite lived intangible assets | 4 years 8 months 12 days | 5 years 7 months 6 days |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Aggregate amortization expense | $ 10.9 | $ 14.2 | $ 15.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year ending November 30, 2023 | $ 9,902 |
Year ending November 30, 2024 | 9,147 |
Year ending November 30, 2025 | 8,636 |
Year ending November 30, 2026 | 8,608 |
Year ending November 30, 2027 | $ 8,593 |
Short-Term Borrowings - Schedul
Short-Term Borrowings - Schedule of Short-Term Borrowings (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 528,392 | $ 221,863 |
Fixed rate callable note | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 4,068 | 0 |
Floating rate puttable notes | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 6,800 | 6,800 |
Bank loans | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 517,524 | $ 215,063 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Infomation (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Short-term Debt [Line Items] | ||
Weighted average interest rate on short-term borrowings outstanding | 4.62% | |
Short-term debt | $ 528,392 | $ 221,863 |
Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 517,000 | $ 200,000 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 8,774,086 | $ 9,125,745 | [1] | |
Gain (losses) recognized in interest expense of Jeffries Group | 6,863 | 16,662 | $ 4,856 | |
Long term debt, at fair value | 1,583,828 | 1,843,598 | ||
Fair value, inputs, level 2 and level 3 | ||||
Debt Instrument [Line Items] | ||||
Long term debt, at fair value | 8,460,000 | $ 9,850,000 | ||
5.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | |||
HomeFed EB-5 Program Debt | Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 209,060 | $ 203,132 | ||
HomeFed Construction Loan | Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 56,965 | 45,581 | ||
Unsecured long-term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 7,474,530 | 8,002,852 | ||
Unsecured long-term debt | 5.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 5.47% | |||
Long-term debt | $ 393,048 | 440,120 | ||
Unsecured long-term debt | 1.000% Euro Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1% | |||
Effective Interest Rate | 1% | |||
Long-term debt | $ 519,970 | 564,985 | ||
Unsecured long-term debt | 4.500% Callable Note due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.50% | |||
Effective Interest Rate | 4.84% | |||
Long-term debt | $ 6,153 | 0 | ||
Unsecured long-term debt | 5.000% Callable Note due 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5% | |||
Effective Interest Rate | 5.52% | |||
Long-term debt | $ 8,554 | 0 | ||
Unsecured long-term debt | 4.850% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.85% | |||
Effective Interest Rate | 6.29% | |||
Long-term debt | $ 703,533 | 775,550 | ||
Unsecured long-term debt | 4.850% Senior Notes | Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Gain (losses) recognized in interest expense of Jeffries Group | $ 219,100 | 58,500 | ||
Unsecured long-term debt | 6.450% Senior Debentures | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.45% | |||
Effective Interest Rate | 5.46% | |||
Long-term debt | $ 363,915 | 366,556 | ||
Unsecured long-term debt | 5.000% Callable Note due 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5% | |||
Effective Interest Rate | 5.22% | |||
Long-term debt | $ 24,784 | 0 | ||
Unsecured long-term debt | 5.000% Callable Note due 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5% | |||
Effective Interest Rate | 5.29% | |||
Long-term debt | $ 9,888 | 0 | ||
Unsecured long-term debt | 4.150% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.15% | |||
Effective Interest Rate | 4.26% | |||
Long-term debt | $ 991,518 | 990,525 | ||
Unsecured long-term debt | 2.625% Senior Debentures (1) | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.625% | |||
Effective Interest Rate | 3.90% | |||
Long-term debt | $ 911,777 | 988,059 | ||
Unsecured long-term debt | 2.750% Senior Debentures (1) | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.75% | |||
Effective Interest Rate | 5.67% | |||
Long-term debt | $ 392,162 | 460,724 | ||
Unsecured long-term debt | 6.250% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.25% | |||
Effective Interest Rate | 6.03% | |||
Long-term debt | $ 497,681 | 505,267 | ||
Unsecured long-term debt | 6.500% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.50% | |||
Effective Interest Rate | 6.09% | |||
Long-term debt | $ 409,472 | 409,926 | ||
Unsecured long-term debt | 6.625% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.625% | |||
Effective Interest Rate | 6.61% | |||
Long-term debt | $ 246,954 | 246,888 | ||
Unsecured long-term debt | Floating Rate Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 3.72% | |||
Long-term debt | $ 61,715 | 61,703 | ||
Unsecured long-term debt | Unsecured Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 5.29% | |||
Long-term debt | $ 349,578 | 348,951 | ||
Unsecured long-term debt | Structured notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,583,828 | 1,843,598 | ||
Secured long-term debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 100,000 | 100,000 | ||
Secured long-term debt | Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 933,531 | $ 774,180 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | ||
Debt Instrument [Line Items] | |||
Increase (decrease) of long-term debt | $ (351,700,000) | $ 774,000,000 | |
Long-term debt | 8,774,086,000 | 9,125,745,000 | [1] |
Unsecured long-term debt | |||
Debt Instrument [Line Items] | |||
Increase (decrease) of long-term debt | 349,000,000 | ||
Long-term debt | 7,474,530,000 | 8,002,852,000 | |
Secured long-term debt | |||
Debt Instrument [Line Items] | |||
Increase (decrease) of long-term debt | 176,700,000 | 484,300,000 | |
Long-term debt | 100,000,000 | 100,000,000 | |
Secured long-term debt | Secured Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 933,531,000 | $ 774,180,000 | |
Long-term debt gross | 112,900,000 | ||
2.625% Senior Debentures (1) | Senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.625% | ||
Debt principal amount | $ 1,000,000,000 | ||
Floating Rate Senior Notes, due October 29, 2071 | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt principal amount | $ 62,300,000 | ||
5.125% Senior Notes, due January 20, 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.125% | ||
5.125% Senior Notes, due January 20, 2023 | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt principal amount | $ 750,000,000 | ||
5.500% Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | ||
Debt principal amount | $ 308,300,000 | ||
5.500% Senior Notes | Unsecured long-term debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 393,048,000 | 440,120,000 | |
Structured notes | |||
Debt Instrument [Line Items] | |||
Debt issued during period, principal amount, net of retirements | 209,400,000 | 175,600,000 | |
Structured notes | Unsecured long-term debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,583,828,000 | 1,843,598,000 | |
Secured Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 774,100,000 | ||
Loans | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 100,000,000 | ||
Bank Loan Obligations | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt basis spread on variable rate | 1.25% | ||
HomeFed Construction Loans | HomeFed LLC | |||
Debt Instrument [Line Items] | |||
Construction loans, maximum borrowing amount | $ 101,900,000 | ||
Weighted average interest rate | 6.07% | ||
Long-term debt gross | $ 57,000,000 | $ 45,600,000 | |
HomeFed Construction Loans | LIBOR | HomeFed LLC | Minimum | |||
Debt Instrument [Line Items] | |||
Debt basis spread on variable rate | 1.35% | ||
HomeFed Construction Loans | LIBOR | HomeFed LLC | Maximum | |||
Debt Instrument [Line Items] | |||
Debt basis spread on variable rate | 3% | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Leases - Finance Lease ROU Asse
Leases - Finance Lease ROU Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment | Premises and equipment |
Premises and equipment - ROU assets | $ 455,264 | $ 472,014 |
Remaining lease term (in years) | 10 years | 10 years |
Discount rate | 2.90% | 2.90% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Leases [Abstract] | |||
2022 | $ 0 | $ 75,384 | |
2023 | 76,847 | 71,383 | |
2024 | 78,656 | 67,039 | |
2025 | 78,103 | 66,939 | |
2026 | 74,472 | 64,105 | |
2027 | 71,255 | 61,722 | |
2028 and thereafter | 228,722 | 228,964 | |
Total undiscounted cash flows | 608,055 | 635,536 | |
Less: Difference between undiscounted and discounted cash flows | (75,353) | (87,470) | |
Operating leases amount in our Consolidated Statements of Financial Condition | $ 532,702 | $ 548,066 | |
Operating lease, liability, statement of financial position [Extensible List] | |||
Finance leases amount in our Consolidated Statements of Financial Condition | $ 1,006 | $ 229 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | |||
Total amount in our Consolidated Statements of Financial Condition | $ 533,708 | $ 548,295 | [1] |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Nov. 30, 2022 USD ($) |
Leases [Abstract] | |
Lease not yet commenced, term | 5 years |
Lease not yet commenced, payments | $ 1.2 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 80,959 | $ 79,701 | $ 77,452 |
Variable lease costs | 12,887 | 11,168 | 13,576 |
Less: Sublease income | (4,507) | (7,191) | (7,590) |
Total lease cost, net | $ 89,339 | $ 83,678 | $ 83,438 |
Leases - Supplemental Informati
Leases - Supplemental Information of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Cash outflows - lease liabilities | $ 81,082 | $ 79,437 | $ 73,300 |
Non-cash - ROU assets recorded for new and modified leases | $ 87,977 | $ 30,246 | $ 22,460 |
Mezzanine Equity - Narrative (D
Mezzanine Equity - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Purchase Requirement [Line Items] | |||||
Redeemable noncontrolling interests | $ 6,500,000 | $ 6,500,000 | $ 25,400,000 | ||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | [1] | |
Dividends per common share (in dollars per share) | $ 0.30 | $ 1.20 | $ 0.90 | $ 0.60 | |
Cumulative convertible preferred shares | |||||
Purchase Requirement [Line Items] | |||||
Callable preferred shares (in shares) | 125,000 | 125,000 | |||
Mandatorily redeemable preferred shares callable price per share (in dollars per share) | $ 1,000 | $ 1,000 | |||
Mandatorily redeemable convertible preferred shares redemption value | $ 125,000,000 | $ 125,000,000 | |||
Dividend rate on preferred stock | 3.25% | ||||
Minimum common dividend considered for additional quarterly payments (in dollars per share) | $ 0.0625 | $ 0.0625 | |||
Mandatoriy 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 | |||
Preferred stock, effective dividend rate, percentage | 6.60% | ||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Common Shares and Earnings Pe_3
Common Shares and Earnings Per Common Share - Earnings Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Numerator for earnings per common share: | |||||
Net earnings attributable to Jefferies Financial Group Inc. | $ 777,168 | $ 1,667,403 | [1] | $ 769,605 | [1] |
Allocation of earnings to participating securities | (3,015) | (9,961) | (4,795) | ||
Net earnings attributable to Jefferies Financial Group Inc. common shareholders for basic earnings per share | 774,153 | 1,657,442 | 764,810 | ||
Adjustment to allocation of earnings to participating securities related to diluted shares | 29 | 207 | 23 | ||
Mandatorily redeemable convertible preferred share dividends | 8,281 | 6,949 | 5,634 | ||
Net earnings attributable to Jefferies Financial Group Inc. common shareholders for diluted earnings per share | $ 782,463 | $ 1,664,598 | $ 770,467 | ||
Denominator for earnings per common share: | |||||
Weighted average common shares outstanding (in shares) | 234,258,000 | 246,991,000 | 268,518,000 | ||
Denominator for basic earnings per share – weighted average shares (in shares) | 247,378,000 | 263,595,000 | 285,693,000 | ||
Mandatorily redeemable convertible preferred shares (in shares) | 4,441,000 | 4,441,000 | 4,441,000 | ||
Denominator for diluted earnings per share (in shares) | 255,571,000 | 271,501,000 | 290,490,000 | ||
Earnings per share, Basic (USD per share) | $ 3.13 | $ 6.29 | [1] | $ 2.68 | [1] |
Earnings per share, Diluted (USD per share) | $ 3.06 | $ 6.13 | [1] | $ 2.65 | [1] |
Weighted average shares of participating securities (in shares) | 1,586,500 | 1,801,700 | |||
Dividends declared on participating securities | $ 1,100 | $ 1,400 | $ 1,000 | ||
Restricted stock with future service required | |||||
Denominator for earnings per common share: | |||||
Weighted average shares of restricted stock outstanding with future service required (in shares) | (1,330,000) | (1,567,000) | (1,785,000) | ||
Restricted stock units with no future service required | |||||
Denominator for earnings per common share: | |||||
Weighted average RSUs outstanding with no future service required (in shares) | 14,450,000 | 18,171,000 | 18,960,000 | ||
Stock options | |||||
Denominator for earnings per common share: | |||||
Dilutive effect of share-based payment arrangements (in shares) | 1,518,000 | 1,203,000 | 0 | ||
Senior executive compensation plan awards | Restricted stock units (RSUs) | |||||
Denominator for earnings per common share: | |||||
Dilutive effect of share-based payment arrangements (in shares) | 2,234,000 | 2,262,000 | 356,000 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Common Shares and Earnings Pe_4
Common Shares and Earnings Per Common Share - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jan. 31, 2022 |
Earnings Per Share [Abstract] | ||||
Stock repurchase program, authorized amount | $ 145.9 | $ 250 | $ 250 | $ 87.5 |
Available for future purchases | $ 250 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ 10,295,479 | $ 10,579,640 | [1] | $ 9,438,525 |
Net unrealized gains (losses) on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (5,892) | 269 | 513 | |
Net unrealized foreign exchange losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (220,071) | (166,499) | (156,718) | |
Net unrealized losses related to instrument specific credit risk | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (104,526) | (153,672) | (71,151) | |
Net minimum pension liability | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | (48,930) | (52,241) | (61,561) | |
Total accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive loss | $ (379,419) | $ (372,143) | $ (288,917) | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Revenues | $ 7,149,263 | $ 8,945,464 | [1] | $ 6,880,447 | [1] |
Selling, general and other expenses, which includes pension expense | (2,589,044) | (3,554,760) | [1] | (2,944,071) | [1] |
Total reclassifications for the period, net of tax | (781,710) | (1,677,376) | [1] | (768,410) | [1] |
Principal transactions | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Revenues | 833,757 | 1,617,336 | [1] | 1,928,143 | [1] |
Net unrealized gains (losses) on instrument specific credit risk at fair value, net of income tax benefit (expense) of $41, $(599), and $(146), respectively | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification for the period, tax | 41 | (599) | (146) | ||
Net minimum pension liability | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification for the period, tax | 845 | 1,054 | 957 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total reclassifications for the period, net of tax | (2,612) | (1,277) | (2,475) | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Net unrealized gains (losses) on instrument specific credit risk at fair value, net of income tax benefit (expense) of $41, $(599), and $(146), respectively | Principal transactions | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Revenues | (129) | 1,861 | 397 | ||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Net minimum pension liability | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Selling, general and other expenses, which includes pension expense | $ (2,483) | $ (3,138) | $ (2,872) | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Components of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | $ 4,742,858 | $ 6,141,801 | $ 3,923,227 | ||
Total revenues | 7,149,263 | 8,945,464 | [1] | 6,880,447 | [1] |
Investment banking | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 2,807,822 | 4,365,699 | 2,501,494 | ||
Total revenues | 2,807,822 | 4,365,699 | [1] | 2,501,494 | [1] |
Commissions and other fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 925,494 | 896,015 | 822,248 | ||
Total revenues | 925,494 | 896,015 | [1] | 822,248 | [1] |
Asset management fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 23,525 | 14,836 | 14,702 | ||
Total revenues | 80,264 | 72,084 | [1] | 34,209 | [1] |
Manufacturing revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 412,605 | 538,628 | 421,434 | ||
Oil and gas revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 302,135 | 182,973 | 102,210 | ||
Real estate revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 223,323 | 102,297 | 26,671 | ||
Other contracts with customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers: | 47,954 | 41,353 | 34,468 | ||
Total revenues | 1,318,288 | 1,038,012 | [1] | 584,805 | [1] |
Principal transactions | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 833,757 | 1,617,336 | 1,928,143 | ||
Total revenues | 833,757 | 1,617,336 | [1] | 1,928,143 | [1] |
Revenues from strategic affiliates | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 56,739 | 57,248 | 19,507 | ||
Interest | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 1,183,638 | 956,318 | 1,009,548 | ||
Total revenues | 1,183,638 | 956,318 | [1] | 1,009,548 | [1] |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | $ 332,271 | $ 172,761 | $ 22 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | $ 4,742,858 | $ 6,141,801 | $ 3,923,227 |
Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 3,733,316 | 5,261,714 | 3,323,742 |
Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,009,542 | 880,087 | 599,485 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 3,915,518 | 5,125,883 | 3,333,762 |
Americas | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 2,910,318 | 4,249,641 | 2,741,288 |
Americas | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,005,200 | 876,242 | 592,474 |
Europe and the Middle East | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 577,607 | 769,562 | 408,498 |
Europe and the Middle East | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 575,012 | 766,746 | 401,853 |
Europe and the Middle East | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 2,595 | 2,816 | 6,645 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 249,733 | 246,356 | 180,967 |
Asia | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 247,986 | 245,327 | 180,601 |
Asia | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,747 | 1,029 | 366 |
Investment banking - Advisory | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,778,003 | 1,873,560 | 1,053,500 |
Investment banking - Advisory | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,778,003 | 1,873,560 | 1,053,500 |
Investment banking - Advisory | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Investment banking - Underwriting | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,029,819 | 2,492,139 | 1,447,994 |
Investment banking - Underwriting | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 1,029,819 | 2,492,139 | 1,447,994 |
Investment banking - Underwriting | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Equities | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 910,254 | 881,660 | 806,340 |
Equities | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 910,254 | 881,660 | 806,340 |
Equities | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Fixed income | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 15,240 | 14,355 | 15,908 |
Fixed income | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 15,240 | 14,355 | 15,908 |
Fixed income | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Asset management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 23,525 | 14,836 | 14,702 |
Asset management | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Asset management | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 23,525 | 14,836 | 14,702 |
Merchant banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 986,017 | 865,251 | 584,783 |
Merchant banking | Investment Banking and Capital Markets | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | 0 | 0 | 0 |
Merchant banking | Asset Management | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers: | $ 986,017 | $ 865,251 | $ 584,783 |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue related to performance obligations satisfied | $ 78.9 | $ 50 | $ 11.1 |
Revenue associated with distribution services, a portion of which related to prior periods | 28.1 | 12.1 | 17.6 |
Deferred revenue | 27 | 49.7 | |
Deferred revenue, revenue recognized | 48.7 | 10.8 | 10.9 |
Receivables related to revenue from contracts with customers | 206.6 | 298.7 | |
Capitalized contract cost | 3.4 | 1.6 | |
Expenses related to capitalized costs to fulfill a contract | $ 1.6 | $ 1.7 | $ 5.1 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 USD ($) portfolio | Nov. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Defined contribution plan | $ 12,700 | $ 9,800 | $ 9,500 |
WiTel Plan | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Number of portfolios | portfolio | 2 | ||
United States | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Contribution amount | $ 1,000 | ||
Expected contribution plan for next year | 1,000 | ||
Accumulated other comprehensive (income) loss, before tax | 40,500 | 44,900 | |
Liability, defined benefit pension plan | $ 24,800 | $ 27,500 | |
Expected long-term return on plan assets | 5% | 5% | |
United States | WiTel Plan | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Expected long-term return on plan assets | 6% | 7% | |
United States | U.S. Pension Plan | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Current expected inflation Rate | 2.50% | ||
Equity risk premium over risk free assets | 4.60% | ||
Expected long-term return on plan assets | 5% | ||
United States | U.S. Pension Plan | Minimum | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Long duration risk free real rate of return | (0.50%) | ||
Rate of return premium for corporate credit risk | 0.50% | ||
United States | U.S. Pension Plan | Maximum | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Long duration risk free real rate of return | 1.50% | ||
Rate of return premium for corporate credit risk | 1.50% |
Benefit Plans - Changes in Proj
Benefit Plans - Changes in Projected Benefit Obligation and Components of Net Periodic Pension Costs (Details) - United States - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 226,728 | $ 236,572 | |
Interest cost | 5,805 | 4,946 | $ 6,349 |
Actuarial (gains) losses | (47,362) | (4,977) | |
Settlements | (4,702) | 0 | |
Benefits paid | (8,403) | (9,813) | |
Projected benefit obligation, end of year | 172,066 | 226,728 | 236,572 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 199,215 | 190,220 | |
Actual return on plan assets | (37,574) | 13,619 | |
Employer contributions | 1,000 | 7,089 | |
Benefits paid | (8,403) | (9,813) | |
Settlements | (4,702) | 0 | |
Administrative expenses paid | (2,264) | (1,900) | |
Fair value of plan assets, end of year | 147,272 | 199,215 | $ 190,220 |
Funded status at end of year | $ (24,794) | $ (27,513) |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Change in projected benefit obligation: | |||
Defined Benefit Plan Net Periodic Benefit Cost Credit Interest Cost Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Interest cost | Interest cost | Interest cost |
Defined Benefit Plan Net Periodic Benefit Cost Credit Expected Return Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Expected return on plan assets | Expected return on plan assets | Expected return on plan assets |
Defined Benefit Plan Net Periodic Benefit Cost Credit Settlement Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Settlement losses | Settlement losses | Settlement losses |
Defined Benefit Plan Net Periodic Benefit Cost Credit Amortization Of Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Actuarial losses | Actuarial losses | Actuarial losses |
United States | |||
Change in projected benefit obligation: | |||
Interest cost | $ 5,805 | $ 4,946 | $ 6,349 |
Expected return on plan assets | (7,311) | (8,433) | (7,934) |
Settlement losses | 833 | 0 | 376 |
Actuarial losses | 3,348 | 4,192 | 3,453 |
Net periodic pension cost | 2,675 | 705 | 2,244 |
Net (gains) losses arising during the period | 211 | 8,264 | (3,821) |
Settlement losses | (833) | 0 | (376) |
Amortization of net loss | (3,348) | (4,192) | (3,453) |
Total recognized in other comprehensive income (loss) | (4,392) | (12,456) | (8) |
Net amount recognized in net periodic benefit cost and other comprehensive income (loss) | $ (1,717) | $ (11,751) | $ 2,236 |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used to Determine Actuarial Present Value of Projected Benefit Obligation and Net Periodic Pension Benefit Cost (Details) - United States | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Change in projected benefit obligation: | ||
Discount rate used to determine benefit obligation | 4.80% | 2.40% |
Weighted-average assumptions used to determine net pension cost: | ||
Discount rate | 2.40% | 2% |
Expected long-term return on plan assets | 5% | 5% |
WiTel Plan | ||
Change in projected benefit obligation: | ||
Discount rate used to determine benefit obligation | 4.90% | 2.60% |
Weighted-average assumptions used to determine net pension cost: | ||
Discount rate | 2.60% | 2.20% |
Expected long-term return on plan assets | 6% | 7% |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments (Details) - United States $ in Thousands | Nov. 30, 2022 USD ($) |
Expected Benefit Payments | |
2023 | $ 15,869 |
2024 | 12,362 |
2025 | 12,015 |
2026 | 12,933 |
2027 | 13,487 |
2028 – 2032 | $ 63,356 |
Compensation Plans - Equity Com
Compensation Plans - Equity Compensation Plan (Details) - $ / shares | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Dec. 31, 2022 | |
Restricted stock units (RSUs) | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for stock options and warrants (in shares) | 934,718 | |||
Restricted stock units (RSUs) | Dividend equivalents | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend equivalents declared on restricted stock units (in shares) | 550,000 | 445,000 | 484,000 | |
Grants, weighted average grant date fair value (in dollars per share) | $ 28.78 | $ 30.03 | $ 15.73 | |
Equity Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock available for grant (in shares) | 4,489,965 |
Compensation Plans - Senior Exe
Compensation Plans - Senior Executive Compensation Plan (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 USD ($) | Mar. 31, 2021 $ / shares shares | Nov. 30, 2022 USD ($) tranche multiplierAmount $ / shares shares | Nov. 30, 2021 USD ($) $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation and benefits expense | $ 251,000,000 | $ 461,500,000 | $ 522,100,000 | ||
Restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 8,200,000 | ||||
Vesting period (in years) | 3 years | ||||
Restricted stock units (RSUs) | Dividend equivalents | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend equivalents declared on restricted stock units (in shares) | shares | 550,000 | 445,000 | 484,000 | ||
Grants, weighted average grant date fair value (in dollars per share) | $ / shares | $ 28.78 | $ 30.03 | $ 15.73 | ||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 8,200,000 | ||||
Service period (in years) | 3 years | ||||
ROTE threshold level | 7.50% | ||||
Target level of ROTE | 10% | ||||
Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target level of ROTE | 7.50% | ||||
Percentage of target PSUs | 75% | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Target level of ROTE | 15% | ||||
Percentage of target PSUs | 150% | ||||
Senior executive compensation plan awards | Restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants, weighted average grant date fair value (in dollars per share) | $ / shares | $ 35.44 | $ 29.81 | $ 15.19 | ||
Restricted shares, vested (in shares) | shares | 537,000 | 74,000 | 187,000 | ||
Senior executive compensation plan awards | Restricted stock units (RSUs) | Dividend equivalents | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend equivalents declared on restricted stock units (in shares) | shares | 67,000 | 74,000 | 139,000 | ||
Grants, weighted average grant date fair value (in dollars per share) | $ / shares | $ 28.67 | $ 29.81 | $ 15.82 | ||
2016 Plan | Restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares, vested (in shares) | shares | 48,000 | ||||
Senior Executives | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options issued (in shares) | shares | 2,506,266 | ||||
Stock options, exercise price (in dollars per share) | $ / shares | $ 23.75 | ||||
Number of vesting tranches | tranche | 3 | ||||
Common shares reserved issuance (in shares) | shares | 5,012,532 | 5,012,532 | |||
Senior Executives | Stock Options and SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation and benefits expense | $ 48,600,000 | ||||
Senior Executives | Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends subject to cash credit, multiplier amount | multiplierAmount | 2 | ||||
Dividends subject to cash credit, eligibility period | 9 years 6 months | ||||
Senior Executives | 2019 Plan and 2020 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 22,500,000 | ||||
Performance measurement benchmark, growth rate in TSR | 9% | ||||
Performance measurement benchmark, growth rate in ROTDE | 9% | ||||
Performance measurement benchmark, growth rate in TSR and ROTDE (less than) | 6% | ||||
Additional incentive compensation, percentage | 75% | ||||
Performance measurement benchmark, growth rate in TSR and ROTDE (up to) | 12% | ||||
Senior Executives | 2019 Plan and 2020 Plan | Restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 16,000,000 | ||||
Performance measurement benchmark, growth rate in TSR | 9% | ||||
Senior Executives | 2019 Plan and 2020 Plan | Long-term cash | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance measurement, targeted long-term compensation | $ 6,500,000 | ||||
Performance measurement benchmark, growth rate in ROTDE | 9% | ||||
Senior Executives | Leadership Continuity Grant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant date fair value | $ 25,000,000 | ||||
Service period (in years) | 5 years | ||||
Holding period | 3 years |
Compensation Plans - Activity o
Compensation Plans - Activity of Restricted Stock (Details) - Restricted stock - $ / shares shares in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Restricted Stock | |||
Nonvested balance, beginning of period (in shares) | 1,584 | 1,483 | 2,008 |
Grants (in shares) | 1,457 | 337 | 115 |
Forfeited (in shares) | 0 | (40) | (21) |
Fulfillment of vesting requirement (in shares) | (902) | (196) | (619) |
Nonvested balance, end of period (in shares) | 2,139 | 1,584 | 1,483 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (in dollars per share) | $ 23.78 | $ 22.19 | $ 22.04 |
Grants (in dollars per share) | 29.91 | 30.81 | 13.20 |
Forfeited (in dollars per share) | 0 | 24.92 | 23.38 |
Fulfillment of vesting requirement (in dollars per share) | 24.03 | 23.55 | 19.99 |
Nonvested balance, end of period (in dollars per share) | $ 27.85 | $ 23.78 | $ 22.19 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of Activity in RSUs (Details) - $ / shares | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Restricted stock units (RSUs) | Senior executive compensation plan awards | |||
Restricted Stock | |||
Nonvested balance, beginning of period (in shares) | 2,867,000 | 4,189,000 | 6,491,000 |
Grants (in shares) | 537,000 | 74,000 | 187,000 |
Forfeited (in shares) | 0 | (1,396,000) | (15,000) |
Fulfillment of vesting requirement (in shares) | (1,433,000) | 0 | (2,474,000) |
Nonvested balance, end of period (in shares) | 1,971,000 | 2,867,000 | 4,189,000 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (in dollars per share) | $ 25.43 | $ 24.75 | $ 23.13 |
Grants (in dollars per share) | 35.44 | 29.81 | 15.19 |
Forfeited (in dollars per share) | 0 | 25.31 | 19.01 |
Fulfillment of vesting requirement (in dollars per share) | 25.43 | 0 | 19.80 |
Nonvested balance, end of period (in dollars per share) | $ 28.16 | $ 25.43 | $ 24.75 |
Restricted stock units with future service required | |||
Restricted Stock | |||
Nonvested balance, beginning of period (in shares) | 48,000 | 21,000 | 10,000 |
Grants (in shares) | 2,299,000 | 80,000 | 14,000 |
Distributions of underlying shares (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Fulfillment of vesting requirement (in shares) | (39,000) | (53,000) | (3,000) |
Nonvested balance, end of period (in shares) | 2,308,000 | 48,000 | 21,000 |
Weighted- Average Grant Date Fair Value | |||
Nonvested balance, beginning of period (in dollars per share) | $ 24.07 | $ 14.99 | $ 18.83 |
Grants (in dollars per share) | 33.75 | 27.10 | 13.20 |
Distribution of underlying shares (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Fulfillment of vesting requirement (in dollars per share) | 24.67 | 25.03 | 18.83 |
Nonvested balance, end of period (in dollars per share) | $ 33.70 | $ 24.07 | $ 14.99 |
Restricted stock units with no future service required | |||
Restricted Stock | |||
Vested balance, beginning of period (in shares) | 17,193,000 | 18,543,000 | 15,667,000 |
Grants (in shares) | 472,000 | 445,000 | 487,000 |
Distributions of underlying shares (in shares) | (6,453,000) | (1,803,000) | (88,000) |
Forfeited (in shares) | 0 | 0 | 0 |
Fulfillment of vesting requirement (in shares) | (1,443,000) | (8,000) | (2,477,000) |
Vested balance, end of period (in shares) | 12,655,000 | 17,193,000 | 18,543,000 |
Weighted- Average Grant Date Fair Value | |||
Balance, beginning of period (in dollars per share) | $ 20.64 | $ 20.97 | $ 21.35 |
Grants (in dollars per share) | 28.79 | 30.03 | 15.73 |
Distribution of underlying shares (in dollars per share) | 14.65 | 26.32 | 25.48 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Fulfillment of vesting requirement (in dollars per share) | 25.38 | 15.52 | 19.80 |
Balance, end of period, weighted average grant date fair value (in dollars per share) | $ 24.55 | $ 20.64 | $ 20.97 |
Restricted stock units with no future service required | Senior executive compensation plan awards | |||
Restricted Stock | |||
Fulfillment of vesting requirement (in shares) | (1,433) | 0 | (2,474) |
Compensation Plans - Summary of
Compensation Plans - Summary of Weighted-Average Assumptions (Details) - Stock options | 12 Months Ended |
Nov. 30, 2021 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 0.80% |
Expected volatility | 32.90% |
Expected dividend yield | 2.60% |
Expected life | 5 years 9 months 18 days |
Weighted-average fair value per grant (in dollars per share) | $ 7.43 |
Compensation Plans - Compensati
Compensation Plans - Compensation Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation and benefits expense | $ 251 | $ 461.5 | $ 522.1 |
Profit sharing plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation and benefits expense | 10.5 | 7.8 | 7.8 |
Restricted cash awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation and benefits expense | 196.6 | 375.5 | 474.3 |
Accelerated amortization | 0 | 188.3 | |
Stock options and Stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation and benefits expense | 0 | 48.7 | 0.1 |
Restricted stock and RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation and benefits expense | 43.9 | 29.5 | 39.9 |
Restricted stock and RSUs | Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted cash awards | $ 0.5 | $ 0.4 | $ 0.3 |
Compensation Plans - Other Comp
Compensation Plans - Other Compensation Plan (Details) - shares | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued to purchased number of shares (in shares) | 2 | ||
Other Stock-Based Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for stock options and warrants (in shares) | 12,000 | 96,000 | 313,000 |
Compensation Plans - Remaining
Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions | 12 Months Ended |
Nov. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 414.3 |
Weighted Average Vesting Period (in Years) | |
Non-vested share-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 124.6 |
Weighted Average Vesting Period (in Years) | 4 years |
Restricted cash awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining Unamortized Amounts | $ 289.7 |
Weighted Average Vesting Period (in Years) | 3 years |
Compensation Plans - Restricted
Compensation Plans - Restricted Cash Awards (Details) - Restricted cash awards $ in Thousands | 12 Months Ended |
Nov. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Year Ended November 30, 2022 | $ 90,400 |
Year Ended November 30, 2023 | 106,800 |
Year Ended November 30, 2024 | 103,700 |
Thereafter | 227,100 |
Total | $ 528,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Current: | |||||
U.S. Federal | $ 198,507 | $ 322,551 | $ 90,350 | ||
U.S. state and local | 67,236 | 70,370 | 68,261 | ||
Foreign | 78,505 | 86,918 | 75,395 | ||
Total current | 344,248 | 479,839 | 234,006 | ||
Deferred: | |||||
U.S. Federal | (61,303) | 72,753 | 52,765 | ||
U.S. state and local | (17,010) | 19,502 | (1,288) | ||
Foreign | 7,917 | 4,635 | 13,190 | ||
Total deferred | (70,396) | 96,890 | 64,667 | ||
Total income tax expense | $ 273,852 | $ 576,729 | [1] | $ 298,673 | [1] |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, U.S. and non-U.S. (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Income Tax Disclosure [Abstract] | |||||
U.S. | $ 801,047 | $ 1,970,625 | $ 813,305 | ||
Non-U.S. | 254,515 | 283,480 | 253,778 | ||
Earnings before income taxes | $ 1,055,562 | $ 2,254,105 | [1] | $ 1,067,083 | [1] |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Expected Statutory Federal Income Tax to Actual Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Amount | |||||
Computed expected federal income taxes | $ 221,668 | $ 473,362 | $ 224,087 | ||
State and local income taxes, net of Federal income tax benefit | 47,364 | 96,884 | 45,457 | ||
International operations (including foreign rate differential) | 18,711 | 18,073 | 13,155 | ||
Non-deductible executive compensation | 12,596 | 20,359 | 12,814 | ||
Foreign tax credits, net | (20,368) | (13,963) | (8,654) | ||
Employee share-based awards | (37,988) | 893 | 209 | ||
Regulatory Settlement | 20,184 | 0 | 0 | ||
Change in unrecognized tax benefits related to prior years | (16,915) | (27,374) | (4,522) | ||
Interest on unrecognized tax benefits | 13,902 | 8,651 | 15,600 | ||
Other, net | 14,698 | (156) | 527 | ||
Total income tax expense | $ 273,852 | $ 576,729 | [1] | $ 298,673 | [1] |
Percent | |||||
Computed expected federal income taxes | 21% | 21% | 21% | ||
State and local income taxes, net of Federal income tax benefit | 4.50% | 4.30% | 4.30% | ||
International operations (including foreign rate differential) | 1.80% | 0.80% | 1.20% | ||
Non-deductible executive compensation | 1.20% | 0.90% | 1.20% | ||
Foreign tax credits, net | (1.90%) | (0.60%) | (0.80%) | ||
Employee share-based awards | (3.60%) | 0% | 0% | ||
Regulatory Settlement | 1.90% | 0% | 0% | ||
Change in unrecognized tax benefits related to prior years | (1.70%) | (1.20%) | (0.50%) | ||
Interest on unrecognized tax benefits | 0.013 | 0.004 | 0.015 | ||
Other, net | 1.40% | 0% | 0.10% | ||
Total income tax expense, percent | 25.90% | 25.60% | 28% | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at beginning of period | $ 339,036 | $ 314,347 | $ 260,138 |
Increases based on tax positions related to the current period | 30,690 | 50,079 | 41,114 |
Increases based on tax positions related to prior periods | 5,902 | 3,490 | 22,328 |
Decreases based on tax positions related to prior periods | (25,673) | (24,180) | (8,966) |
Decreases related to settlements with taxing authorities | 0 | 4,700 | 267 |
Balance at end of period | $ 349,955 | $ 339,036 | $ 314,347 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate in future | $ 276,500 | $ 267,800 | |
Net interest expense related to unrecognized tax benefits | 18,600 | 10,800 | $ 19,900 |
Accrued interest on unrecognized tax benefits | 116,500 | 97,900 | $ 87,100 |
Net deferred tax asset | 387,862 | $ 327,547 | |
Operating loss carryforwards | 10,200 | ||
Valuation allowance | 4,500 | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 26,300 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Deferred tax assets: | ||
Compensation and benefits | $ 250,096 | $ 187,818 |
Operating lease liabilities | 133,250 | 135,862 |
Long-term debt | 47,535 | 65,037 |
Accrued expenses and other | 166,564 | 178,451 |
Investments in associated companies | 11,931 | 1,135 |
Sub-total | 609,376 | 568,303 |
Valuation allowance | (6,266) | (11,922) |
Total deferred tax assets | 603,110 | 556,381 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | 118,567 | 126,150 |
Amortization of intangibles | 62,670 | 62,123 |
Other | 34,011 | 40,561 |
Total deferred tax liabilities | 215,248 | 228,834 |
Net deferred tax asset, included in Other assets | $ 387,862 | $ 327,547 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Commitments and Contingencies (Details) $ in Millions | Nov. 30, 2022 USD ($) |
Commitments And Guarantee Obligations [Line Items] | |
2023 | $ 15,407.6 |
2024 | 288.9 |
2025 and 2026 | 283 |
2027 and 2028 | 12.7 |
2029 and Later | 160.2 |
Maximum Payout | 16,152.4 |
Equity commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 25.2 |
2024 | 1.4 |
2025 and 2026 | 103.3 |
2027 and 2028 | 2.8 |
2029 and Later | 160.2 |
Maximum Payout | 292.9 |
Loan commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 271.5 |
2024 | 0 |
2025 and 2026 | 70 |
2027 and 2028 | 9.9 |
2029 and Later | 0 |
Maximum Payout | 351.4 |
Loans purchase commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 2,363.9 |
2024 | 0 |
2025 and 2026 | 0 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Maximum Payout | 2,363.9 |
Underwriting commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 62.3 |
2024 | 0 |
2025 and 2026 | 0 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Maximum Payout | 62.3 |
Forward starting reverse repos | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 8,470.9 |
2024 | 0 |
2025 and 2026 | 0 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Maximum Payout | 8,470.9 |
Forward starting repos | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 4,213.7 |
2024 | 0 |
2025 and 2026 | 0 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Maximum Payout | 4,213.7 |
Other unfunded commitments | |
Commitments And Guarantee Obligations [Line Items] | |
2023 | 0.1 |
2024 | 287.5 |
2025 and 2026 | 109.7 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Maximum Payout | 397.3 |
Back-to-back committed sales contracts | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | 2,670 |
Forward starting securities purchased under agreements to resell | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | 7,730 |
Forward starting securities sold under agreements to repurchase settled agreements | |
Commitments And Guarantee Obligations [Line Items] | |
Maximum Payout | $ 2.6 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Details) | 12 Months Ended |
Nov. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | |
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee | $ 702,100,000 |
Berkadia | |
Loss Contingencies [Line Items] | |
Reimbursement of losses incurred, maximum percentage | 50% |
Surety policy issued | $ 1,500,000,000 |
Commercial paper | 1,470,000,000 |
HomeFed LLC | |
Loss Contingencies [Line Items] | |
Bonds outstanding | 70,700,000 |
Standby letters of credit | |
Loss Contingencies [Line Items] | |
Letters of credit commitments | $ 57,600,000 |
Letters of credit commitments expiration period | 1 year |
Clients | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | $ 97,400,000 |
Strategic Affiliates | |
Loss Contingencies [Line Items] | |
Loan commitments outstanding to clients | 4,000,000 |
Jefferies Capital Partners LLC | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | 10,600,000 |
Third parties | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | 230,100,000 |
Other investments | |
Loss Contingencies [Line Items] | |
Outstanding equity commitments | $ 36,800,000 |
Commitments, Contingencies an_5
Commitments, Contingencies and Guarantees - Schedule of Guarantees (Details) $ in Millions | Nov. 30, 2022 USD ($) |
Derivative contracts—non-credit related | |
Guarantor Obligations [Line Items] | |
2023 | $ 19,015 |
2024 | 6,933.1 |
2025 and 2026 | 11,994.3 |
2027 and 2028 | 850.3 |
2029 and Later | 0 |
Notional/ Maximum Payout | 38,792.7 |
Written derivative contracts—credit related | |
Guarantor Obligations [Line Items] | |
2023 | 0 |
2024 | 0.2 |
2025 and 2026 | 0 |
2027 and 2028 | 0 |
2029 and Later | 0 |
Notional/ Maximum Payout | 0.2 |
Total derivative contracts | |
Guarantor Obligations [Line Items] | |
2023 | 19,015 |
2024 | 6,933.3 |
2025 and 2026 | 11,994.3 |
2027 and 2028 | 850.3 |
2029 and Later | 0 |
Notional/ Maximum Payout | $ 38,792.9 |
Net Capital Requirements - Sche
Net Capital Requirements - Schedule of Net Capital and Excess Net Capital (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Jefferies LLC | |
Net Capital Requirements [Line Items] | |
Net Capital | $ 903,349 |
Excess Net Capital | 806,238 |
JFSI | |
Net Capital Requirements [Line Items] | |
Net Capital | 436,681 |
Excess Net Capital | $ 416,681 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Broker-Dealer [Abstract] | ||
Amount of restricted net assets | $ 5,770 | $ 6,070 |
Amount of restricted net assets for regulatory capital requirements | $ 4,870 | $ 5,250 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Nov. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues, Expenses and Total Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | $ 5,978,838 | $ 8,013,826 | [1] | $ 5,850,521 | [1] |
Non-interest expenses | 4,923,200 | ||||
Non-interest expenses | 4,923,276 | 5,759,721 | [1] | 4,783,438 | [1] |
Earnings before income taxes | 1,055,562 | 2,254,105 | [1] | 1,067,083 | [1] |
Total assets | 51,057,683 | 56,107,311 | [1] | ||
Operating Segments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 5,983,900 | 8,010,400 | 5,844,100 | ||
Non-interest expenses | 4,917,900 | 5,756,300 | 4,779,400 | ||
Earnings before income taxes | 1,066,000 | 2,254,100 | 1,064,700 | ||
Segment Reconciling Items | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | (5,100) | 3,400 | 6,400 | ||
Non-interest expenses | 5,300 | 3,400 | 4,000 | ||
Earnings before income taxes | (10,400) | 0 | 2,400 | ||
Investment Banking and Capital Markets | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total assets | 45,541,000 | 50,912,300 | |||
Investment Banking and Capital Markets | Operating Segments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 4,726,200 | 6,917,800 | 5,029,500 | ||
Non-interest expenses | 3,950,900 | 4,730,600 | 3,920,700 | ||
Earnings before income taxes | 775,300 | 2,187,200 | 1,108,800 | ||
Asset Management | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total assets | 5,516,700 | 5,195,000 | |||
Asset Management | Operating Segments | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 1,257,700 | 1,092,600 | 814,600 | ||
Non-interest expenses | 967,000 | 1,025,700 | 858,700 | ||
Earnings before income taxes | $ 290,700 | $ 66,900 | $ (44,100) | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Revenues | |||||
Net revenues | $ 5,978,838 | $ 8,013,826 | [1] | $ 5,850,521 | [1] |
Americas | |||||
Revenues | |||||
Net revenues | 4,815,400 | 6,748,800 | 4,730,100 | ||
Europe | |||||
Revenues | |||||
Net revenues | 925,400 | 1,045,700 | 826,400 | ||
Asia | |||||
Revenues | |||||
Net revenues | $ 238,000 | $ 219,300 | $ 294,000 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Oct. 24, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 03, 2020 | |||
Related Party Transaction [Line Items] | |||||||
Revenues | $ 7,149,263 | $ 8,945,464 | [1] | $ 6,880,447 | [1] | ||
Disposal group, disposed of by sale, not discontinued operations | Sale of subsidiary | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of subsidiary | $ 180,700 | ||||||
Investment Banking | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues | 2,807,822 | 4,365,699 | [1] | 2,501,494 | [1] | ||
Co-sponsored Companies | Investment Banking | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues | 45,500 | ||||||
Officers And Employees | |||||||
Related Party Transaction [Line Items] | |||||||
Investments in and loans to related parties | $ 17,700 | $ 23,100 | |||||
Officer | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares repurchased during period (in shares) | 640 | ||||||
Stock repurchased during period | $ 21,000 | ||||||
Director | |||||||
Related Party Transaction [Line Items] | |||||||
Investment in related party | $ 800 | ||||||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 13, 2023 $ / shares |
Subsequent event | Vitesse Energy | |
Subsequent Event [Line Items] | |
Shares issued per entity share ratio | $ 0.1176 |
Schedule I (PARENT COMPANY ON_2
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
ASSETS | |||
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | $ 957,302 | $ 1,015,107 | [1] |
Financial instruments owned, at fair value | 18,666,296 | 18,024,621 | [1] |
Investment in subsidiaries | 1,426,817 | 1,587,409 | [1] |
Other assets | 3,595,985 | 3,356,024 | [1] |
Total assets | 51,057,683 | 56,107,311 | [1] |
LIABILITIES AND EQUITY | |||
Short-term borrowings | 528,392 | 221,863 | |
Financial instruments sold, not yet purchased, at fair value | 11,056,477 | 9,267,090 | [1] |
Accrued expenses and other liabilities | 2,573,927 | 3,334,371 | [1] |
Long-term debt | 8,774,086 | 9,125,745 | [1] |
Total liabilities | 40,630,743 | 45,377,271 | [1] |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | [1] |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 226,129,626 and 243,541,431 shares issued and outstanding, after deducting 90,334,082 and 72,922,277 shares held in treasury | 226,130 | 243,541 | [1] |
Additional paid-in capital | 1,967,781 | 2,742,244 | [1] |
Accumulated other comprehensive loss | (379,419) | (372,143) | [1] |
Retained earnings | 8,418,354 | 7,940,113 | [1] |
Total Jefferies Financial Group Inc. common shareholders’ equity | 10,232,846 | 10,553,755 | [1] |
Total liabilities and equity | 51,057,683 | 56,107,311 | [1] |
Parent company | |||
ASSETS | |||
Cash and cash equivalents | 2,411,270 | 640,985 | |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations | 57,876 | 8,219 | |
Financial instruments owned, at fair value | 97,870 | 298,773 | |
Investments in and loans to related parties | 637,302 | 708,611 | |
Investment in subsidiaries | 7,567,225 | 10,092,436 | |
Advances to subsidiaries | 3,486,572 | 3,154,643 | |
Subordinated notes receivable | 3,867,931 | 3,868,198 | |
Other assets | 821,634 | 753,349 | |
Total assets | 18,947,680 | 19,525,214 | |
LIABILITIES AND EQUITY | |||
Short-term borrowings | 10,868 | 6,800 | |
Financial instruments sold, not yet purchased, at fair value | 4,873 | 3,491 | |
Advances from subsidiaries | 430,846 | 402,786 | |
Accrued expenses and other liabilities | 668,717 | 430,530 | |
Long-term debt | 7,474,530 | 8,002,852 | |
Total liabilities | 8,589,834 | 8,846,459 | |
Mandatorily redeemable convertible preferred shares | 125,000 | 125,000 | |
EQUITY | |||
Common shares, par value $1 per share, authorized 600,000,000 shares; 226,129,626 and 243,541,431 shares issued and outstanding, after deducting 90,334,082 and 72,922,277 shares held in treasury | 226,130 | 243,541 | |
Additional paid-in capital | 1,967,781 | 2,742,244 | |
Accumulated other comprehensive loss | (379,419) | (372,143) | |
Retained earnings | 8,418,354 | 7,940,113 | |
Total Jefferies Financial Group Inc. common shareholders’ equity | 10,232,846 | 10,553,755 | |
Total liabilities and equity | $ 18,947,680 | $ 19,525,214 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Schedule I (PARENT COMPANY ON_3
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||||
Revenues | ||||||
Revenues from contracts with customers: | $ 4,742,858 | $ 6,141,801 | $ 3,923,227 | |||
Total revenues | 7,149,263 | 8,945,464 | [1] | 6,880,447 | [1] | |
Interest expense | 1,170,425 | 931,638 | [1] | 1,029,926 | [1] | |
Net revenues | 5,978,838 | 8,013,826 | [1] | 5,850,521 | [1] | |
Non-interest expenses | ||||||
Total non-interest expenses | 4,923,276 | 5,759,721 | [1] | 4,783,438 | [1] | |
Earnings before income taxes | 1,055,562 | 2,254,105 | [1] | 1,067,083 | [1] | |
Income tax expense (benefit) | 273,852 | 576,729 | [1] | 298,673 | [1] | |
Net earnings | 781,710 | 1,677,376 | [1] | 768,410 | [1] | |
Preferred stock dividends | 8,281 | 6,949 | [1] | 5,634 | [1] | |
Net earnings attributable to Jefferies Financial Group Inc. | 777,168 | 1,667,403 | [1] | 769,605 | [1] | |
Other comprehensive income (loss), net of tax: | ||||||
Currency translation and other adjustments | [2] | (53,572) | (9,781) | 35,991 | ||
Change in fair value of instrument specific credit risk | [3] | 49,146 | (82,521) | (52,262) | ||
Minimum pension liability adjustments, net of tax | [4] | 3,311 | 9,320 | 21 | ||
Unrealized gain (loss) on available-for-sale securities | (6,161) | (244) | 372 | |||
Total other comprehensive loss, net of tax | [5] | (7,276) | (83,226) | (15,878) | ||
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | 769,892 | 1,584,177 | 753,727 | |||
Investment banking | ||||||
Revenues | ||||||
Revenues from contracts with customers: | 2,807,822 | 4,365,699 | 2,501,494 | |||
Total revenues | 2,807,822 | 4,365,699 | [1] | 2,501,494 | [1] | |
Parent company | ||||||
Revenues | ||||||
Principal transactions | (61,407) | 98,373 | 111,688 | |||
Interest | 317,020 | 213,910 | 217,159 | |||
Other | (66,539) | 101,203 | (43,375) | |||
Total revenues | 189,074 | 413,486 | 285,472 | |||
Interest expense | 317,916 | 318,138 | 338,535 | |||
Net revenues | (128,842) | 95,348 | (53,063) | |||
Non-interest expenses | ||||||
Total non-interest expenses | 69,962 | 147,761 | 85,339 | |||
Earnings before income taxes | (198,804) | (52,413) | (138,402) | |||
Income tax expense (benefit) | (78,338) | (11,806) | (35,770) | |||
Net earnings | (120,466) | (40,607) | (102,632) | |||
Undistributed earnings of subsidiaries | 905,915 | 1,714,959 | 877,871 | |||
Net earnings | 785,449 | 1,674,352 | 775,239 | |||
Preferred stock dividends | 8,281 | 6,949 | 5,634 | |||
Net earnings attributable to Jefferies Financial Group Inc. | 777,168 | 1,667,403 | 769,605 | |||
Other comprehensive income (loss), net of tax: | ||||||
Currency translation and other adjustments | (53,572) | (9,781) | 35,991 | |||
Change in fair value of instrument specific credit risk | 49,146 | (82,521) | (52,262) | |||
Minimum pension liability adjustments, net of tax | 3,311 | 9,320 | 21 | |||
Unrealized gain (loss) on available-for-sale securities | (6,161) | (244) | 372 | |||
Total other comprehensive loss, net of tax | (7,276) | (83,226) | (15,878) | |||
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders | $ 769,892 | $ 1,584,177 | $ 753,727 | |||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group.[2]The amounts include income tax benefits (expenses) of approximately $15.6 million, $0.6 million and $(11.4) million during the years ended November 30, 2022, 2021 and 2020, respectively.[3]The amounts include income tax benefits (expenses) of approximately $(15.6) million, $26.7 million and $16.4 million for the years ended November 30, 2022, 2021 and 2020, respectively. The amounts for the years ended November 30, 2022, 2021 and 2020 include net gains (losses) of $0.1 million, $(1.9) million and $(0.4) million, respectively, net of tax benefits (expenses) of $41 thousand, $0.6 million and $0.1 million, respectively, for fair value changes related to instrument specific risk, which were reclassified to Principal transactions revenues within the Consolidated Statements of Earnings.[4]The amounts include income tax benefits (expense) of $(1.2) million, $(3.1) million and $13 thousand for the years ended November 30, 2022, 2021 and 2020, respectively. The amounts during the years ended November 30, 2022, 2021 and 2020, include pension net losses of $2.5 million, $3.1 million and $2.9 million, respectively, net of tax benefits of $0.8 million, $1.1 million and $1.0 million, respectively, which were reclassified to Compensation and benefits expenses within the Consolidated Statements of Earnings.[5]None of the components of other comprehensive income (loss) are attributable to noncontrolling interests, redeemable noncontrolling interest or preferred stock dividends. |
Schedule I (PARENT COMPANY ON_4
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |||
Cash flows from operating activities: | |||||
Net earnings | $ 781,710 | $ 1,677,376 | [1] | $ 768,410 | [1] |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||
Deferred income taxes | (70,396) | 96,890 | 64,667 | ||
Share-based compensation | 43,919 | 78,160 | 40,038 | ||
(Income) loss on investments in and loans to related parties | 36,287 | (149,885) | 75,177 | ||
Other adjustments | (601,303) | (89,004) | 320,611 | ||
Net change in assets and liabilities: | |||||
Financial instruments owned | (773,523) | (1,314,603) | (877,088) | ||
Other assets | (230,722) | (225,916) | 167,889 | ||
Financial instruments sold, not yet purchased | 1,875,957 | 992,199 | (1,014,535) | ||
Accrued expenses and other liabilities | (715,432) | 527,910 | 1,179,136 | ||
Net cash provided by operating activities | 1,804,849 | 1,582,290 | 2,055,439 | ||
Cash flows from investing activities: | |||||
Contributions to investments in and loans to related parties | (351,645) | (2,339,447) | (1,666,323) | ||
Capital distributions from investments and repayments of loans from related parties | 286,578 | 2,310,186 | 1,552,161 | ||
Originations and purchases of automobile loans, notes and other receivables | (527,929) | (611,486) | (813,867) | ||
Other | 8,641 | (1,174) | 4,215 | ||
Net cash used in investing activities | (60,539) | (409,865) | (165,683) | ||
Cash flows from financing activities: | |||||
Proceeds from short-term borrowings | 3,659,098 | 1,005,000 | 1,619,820 | ||
Payments on short-term borrowings | (3,338,000) | (1,556,090) | (1,368,255) | ||
Proceeds from issuance of long-term debt, net of issuance costs | 1,198,565 | 2,488,493 | 1,516,693 | ||
Repayment of long-term debt | (824,894) | (1,646,224) | (1,716,276) | ||
Purchase of common shares for treasury | (859,593) | (269,400) | (816,871) | ||
Dividends paid | (280,104) | (222,798) | (160,940) | ||
Net cash provided by (used in) financing activities | (2,843,225) | 994,294 | (723,525) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,121,060) | 2,163,332 | 1,184,537 | ||
Cash, cash equivalents and restricted cash at beginning of period | 11,828,304 | 9,664,972 | 8,480,435 | ||
Cash, cash equivalents and restricted cash at end of period | 10,707,244 | 11,828,304 | 9,664,972 | ||
Cash paid during the period for: | |||||
Interest | 1,164,093 | 936,272 | 1,080,368 | ||
Income taxes, net | 214,066 | 727,126 | 25 | ||
Parent company | |||||
Cash flows from operating activities: | |||||
Net earnings | 785,449 | 1,674,352 | 775,239 | ||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||
Deferred income taxes | (38,875) | 27,933 | (1,787) | ||
Share-based compensation | 43,919 | 78,160 | 40,038 | ||
Amortization | 1,322 | (24,379) | (36,708) | ||
Undistributed earnings of subsidiaries | (905,915) | (1,714,959) | (877,871) | ||
(Income) loss on investments in and loans to related parties | 71,405 | (101,302) | 42,412 | ||
Other adjustments | (560,325) | (203,947) | 187,486 | ||
Net change in assets and liabilities: | |||||
Financial instruments owned | 200,903 | (76,852) | 78,592 | ||
Other assets | 129,322 | (171,933) | (4,069) | ||
Financial instruments sold, not yet purchased | 1,382 | 3,491 | (2,307) | ||
Income taxes receivable/payable, net | (158,732) | (62,531) | 65,057 | ||
Accrued expenses and other liabilities | 233,217 | (126,894) | 446,386 | ||
Net cash provided by operating activities | (196,928) | (698,861) | 712,468 | ||
Cash flows from investing activities: | |||||
Contributions to investments in and loans to related parties | (118) | 0 | (50,000) | ||
Capital distributions from investments and repayments of loans from related parties | 22 | 50,000 | 0 | ||
Originations and purchases of automobile loans, notes and other receivables | 0 | (50,000) | (23,000) | ||
Principal collections of loan receivables | 0 | 0 | 23,000 | ||
Distribution (to) from subsidiaries, net | 2,921,528 | 456,220 | 441,063 | ||
Proceeds from sales of subsidiaries | 0 | 0 | 180,664 | ||
Other | 0 | (611) | 0 | ||
Net cash used in investing activities | 2,921,432 | 455,609 | 571,727 | ||
Cash flows from financing activities: | |||||
Proceeds from short-term borrowings | 4,068 | 0 | 11,820 | ||
Payments on short-term borrowings | 0 | 5,090 | 20,263 | ||
Proceeds from issuance of long-term debt, net of issuance costs | 400,059 | 1,681,058 | 1,169,722 | ||
Repayment of long-term debt | (202,172) | (1,256,495) | (1,494,696) | ||
Advances (to) from subsidiaries, net | 30,428 | (341,327) | 1,159,495 | ||
Issuances of common shares | 2,752 | 2,107 | 1,034 | ||
Purchase of common shares for treasury | (859,593) | (269,400) | (816,871) | ||
Dividends paid | (280,104) | (222,798) | (160,940) | ||
Net cash provided by (used in) financing activities | (904,562) | (411,945) | (150,699) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,819,942 | (655,197) | 1,133,496 | ||
Cash, cash equivalents and restricted cash at beginning of period | 649,204 | 1,304,401 | 170,905 | ||
Cash, cash equivalents and restricted cash at end of period | 2,469,146 | 649,204 | 1,304,401 | ||
Cash paid during the period for: | |||||
Interest | 484,349 | 381,117 | 324,782 | ||
Income taxes, net | 124,516 | 625,072 | 1,811 | ||
Investments contributed to subsidiary | 0 | 5,451 | 51,190 | ||
Dividends received from subsidiaries | $ 0 | $ 1,970 | $ 40,805 | ||
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Schedule I (PARENT COMPANY ON_5
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 9,703,109 | $ 10,755,133 | [1] | ||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 957,302 | 1,015,107 | |||
Total cash, cash equivalents and restricted cash | 10,707,244 | 11,828,304 | $ 9,664,972 | $ 8,480,435 | |
Parent company | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 2,411,270 | 640,985 | |||
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations | 57,876 | 8,219 | |||
Total cash, cash equivalents and restricted cash | $ 2,469,146 | $ 649,204 | $ 1,304,401 | $ 170,905 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Schedule I (PARENT COMPANY ON_6
Schedule I (PARENT COMPANY ONLY) - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 8,774,086 | $ 9,125,745 | [1] |
Unsecured long-term debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 7,474,530 | 8,002,852 | |
Unsecured long-term debt | Structured notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,583,828 | 1,843,598 | |
Parent company | |||
Debt Instrument [Line Items] | |||
Maximum amount payable under guarantees | 876,200 | ||
Long-term debt | $ 7,474,530 | $ 8,002,852 | |
[1]See Note 1 for a description of financial statement presentation changes made as a result of our Merger with Jefferies Group. |
Schedule I (PARENT COMPANY ON_7
Schedule I (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF FINANCIAL CONDITION (PARENTHETICAL) (Details) - $ / shares | Nov. 30, 2022 | Nov. 30, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common shares, issued after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 |
Common shares, outstanding after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 |
Treasury stock, shares (in shares) | 90,334,082 | 72,922,277 |
Parent company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized (in shares) | 600,000,000 | 600,000,000 |
Common shares, issued after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 |
Common shares, outstanding after deducting shares held in treasury (in shares) | 226,129,626 | 243,541,431 |
Treasury stock, shares (in shares) | 90,334,082 | 72,922,277 |