Fair Value Disclosures (Tables)

3 Months Ended

Feb. 29, 2016

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 NAV of $32.8 million and $36.7 million at February 29, 2016 and November 30, 2015, respectively, by level within the fair value hierarchy (in thousands):

	February 29, 2016
	Level 1(1)		Level 2(1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,708,230	$	140,168	$	30,540	$	—		$	1,878,938
Corporate debt securities	—		2,516,929		25,634		—			2,542,563
Collateralized debt obligations	—		61,290		67,348		—			128,638
U.S. government and federal agency securities	1,018,909		310,273		—		—			1,329,182
Municipal securities	—		609,169		—		—			609,169
Sovereign obligations	1,490,358		799,541		119		—			2,290,018
Residential mortgage-backed securities	—		2,243,865		68,019		—			2,311,884
Commercial mortgage-backed securities	—		816,047		21,994		—			838,041
Other asset-backed securities	—		263,877		33,124		—			297,001
Loans and other receivables	—		820,132		155,442		—			975,574
Derivatives	754		6,159,142		22,975		(5,850,803		)	332,068
Investments at fair value	—		54		63,582		—			63,636
Total financial instruments owned, excluding     Investments at fair value based on NAV	$	4,218,251	$	14,740,487	$	488,777	$	(5,850,803	)	$	13,596,712
Cash and cash equivalents	$	2,599,637	$	—	$	—	$	—		$	2,599,637
Cash and securities segregated and on deposit for     regulatory purposes (3)	$	679,812	$	—	$	—	$	—		$	679,812
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,593,560	$	75,166	$	38	$	—		$	1,668,764
Corporate debt securities	—		1,877,856		—		—			1,877,856
U.S. government and federal agency securities	1,299,982		—		—		—			1,299,982
Sovereign obligations	1,131,337		710,989		—		—			1,842,326
Residential mortgage-backed securities	—		20,585		—		—			20,585
Loans	—		432,782		7,744		—			440,526
Derivatives	186		6,170,891		34,732		(5,879,190		)	326,619
Total financial instruments sold, not yet      purchased	$	4,025,065	$	9,288,269	$	42,514	$	(5,879,190	)	$	7,476,658
Other secured financings	$	—	$	—	$	538	$	—		$	538
Long-term debt	$	—	$	37,118	$	—	$	—		$	37,118

(1) There were no material transfers between Level 1 and Level 2 for the three months ended February 29, 2016.

(2) Represents counterparty and cash collateral netting across the levels of the fair value hierarchy for positions with the same counterparty.

(3) Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations includes U.S. treasury securities with a fair value of $99.9 million.

	November 30, 2015
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	1,853,351	$	133,732	$	40,906	$	—		$	2,027,989
Corporate debt securities	—		2,867,165		25,876		—			2,893,041
Collateralized debt obligations	—		89,144		85,092		—			174,236
U.S. government and federal agency securities	2,555,018		90,633		—		—			2,645,651
Municipal securities	—		487,141		—		—			487,141
Sovereign obligations	1,251,366		1,407,955		120		—			2,659,441
Residential mortgage-backed securities	—		2,731,070		70,263		—			2,801,333
Commercial mortgage-backed securities	—		1,014,913		14,326		—			1,029,239
Other asset-backed securities	—		118,629		42,925		—			161,554
Loans and other receivables	—		1,123,044		189,289		—			1,312,333
Derivatives	1,037		4,395,704		19,785		(4,165,446		)	251,080
Investments at fair value	—		26,224		53,120		—			79,344
Physical commodities	—		—		—		—			—
Total financial instruments owned, excluding     Investments at fair value based on NAV	$	5,660,772	$	14,485,354	$	541,702	$	(4,165,446	)	$	16,522,382
Cash and cash equivalents	$	3,510,163	$	—	$	—	$	—		$	3,510,163
Cash and securities segregated and on deposit for     regulatory purposes	$	751,084	$	—	$	—	$	—		$	751,084
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,382,377	$	36,518	$	38	$	—		$	1,418,933
Corporate debt securities	—		1,556,941		—		—			1,556,941
Collateralized debt obligations	—		—		—		—			—
U.S. government and federal agency securities	1,488,121		—		—		—			1,488,121
Sovereign obligations	837,614		505,382		—		—			1,342,996
Residential mortgage-backed securities	—		117		—		—			117
Loans	—		758,939		10,469		—			769,408
Derivatives	364		4,446,639		19,543		(4,257,998		)	208,548
Total financial instruments sold, not yet      purchased	$	3,708,476	$	7,304,536	$	30,050	$	(4,257,998	)	$	6,785,064
Other secured financings	$	—	$	—	$	544	$	—		$	544

(1) There were no material transfers between Level 1 and Level 2 for the year ended November 30, 2015.

(2) 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):

	February 29, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	48,951	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	1,321		—		—
Fund of Funds (4)	279		—		—
Equity Funds (5)	39,496		20,512		—
Total	$	90,047	$	20,512

	November 30, 2015
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	78,083	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	1,703		—		—
Fund of Funds (4)	287		94		—
Equity Funds (5)	42,111		20,791		—
Convertible Bond Funds (6)	326		—		At Will
Total	$	122,510	$	20,885

(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, in primarily equity securities in domestic and international markets in both the public and private sectors. At February 29, 2016 and November 30, 2015, investments representing approximately 100% and 100%, respectively, of the fair value of investments in this category are redeemable with 30-90 days prior written notice.

(3) Includes investments in funds that invest in loans secured by a first trust deed on property, domestic and international public high yield debt, private high yield investments, senior bank loans, public leveraged equities, distressed debt, and private equity investments. There are no redemption provisions. At February 29, 2016 and November 30, 2015, the underlying assets of 7% and 8%, respectively, of these funds are being liquidated and we are unable to estimate when the underlying assets will be fully liquidated.

(4) Includes investments in fund of funds that invest in various private equity funds. At February 29, 2016 and November 30, 2015, approximately 69% and 95%, respectively, of the fair value of investments in this category are managed by us and have no redemption provisions, instead distributions are received through the liquidation of the underlying assets of the fund of funds, which are estimated to start liquidating in the next nine months. For the remaining investments, we have requested redemption; however, we are unable to estimate when these funds will be received.

(5) At February 29, 2016 and November 30, 2015, approximately 99% and 100%, respectively, of the fair value of investments in this category include investments in equity funds that invest in the equity of various U.S. and foreign private companies in the energy, technology, internet service and telecommunication service industries. These investments cannot be redeemed, instead distributions are received through the liquidation of the underlying assets of the funds which are expected to liquidate in one to eight years.

(6) This category represents an investment in the Jefferies Umbrella Fund, an open-ended investment company managed by us that invests primarily in convertible bonds. The remaining investments were in liquidation at November 30, 2015 and the underlying assets were fully liquidated during the three months ended February 29, 2016.

Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended February 29, 2016 (in thousands):

	Three Months Ended February 29, 2016
	Balance at November 30, 2015			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at February 29, 2016		Change in unrealized gains/ (losses) relating to instruments still held at February 29, 2016 (1)
Assets:
Financial instruments    owned:
Corporate equity     securities	$	40,906		$	3,071		$	2,087		$	—		$	—		$	—	$	(15,524	)	$	30,540	$	3,560
Corporate debt     securities	25,876			(2,602		)	15,337			(15,129		)	(111		)	—		2,263			25,634		(2,540		)
Collateralized debt     obligations	85,092			(16,573		)	1,021			(20,178		)	(463		)	—		18,449			67,348		(17,003		)
Sovereign obligations	120			(1		)	—			—			—			—		—			119		(1		)
Residential     mortgage-backed     securities	70,263			(4,548		)	62,844			(64,926		)	(114		)	—		4,500			68,019		(3,358		)
Commercial     mortgage-backed     securities	14,326			(971		)	2,962			—			(878		)	—		6,555			21,994		(1,387		)
Other asset-backed     securities	42,925			1,662			15,425			(2,100		)	(1		)	—		(24,787		)	33,124		1,679
Loans and other     receivables	189,289			(5,772		)	181,264			(114,667		)	(95,354		)	—		682			155,442		(9,113		)
Investments at fair     value	53,120			(16,515		)	1,187			—			(273		)	—		26,063			63,582		(16,515		)
Liabilities:
Financial instruments     sold, not yet purchased:
Corporate equity     securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38	$	—
Net derivatives (2)	(242		)	10,304			—			—			2,558			554		(1,417		)	11,757		(8,135		)
Loans	10,469			(345		)	(2,240		)	1,033			(1,077		)	—		(96		)	7,744		345
Other secured financings	544			(6		)	—			—			—			—		—			538		—

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in the Consolidated Statements of Earnings.

(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 three months ended February 28, 2015 (in thousands):

	Three Months Ended February 28, 2015
	Balance at November 30, 2014			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at February 28, 2015		Change in unrealized gains/ (losses) relating to instruments still held at February 28, 2015 (1)
Assets:
Financial instruments     owned:
Corporate equity     securities	$	20,964		$	63		$	—		$	(168	)	$	—		$	—	$	(2,649	)	$	18,210	$	243
Corporate debt     securities	22,766			(311		)	469			(533		)	—			—		2,404			24,795		43
Collateralized debt     obligations	124,650			(17,642		)	—			(13,519		)	(1,296		)	—		4,644			96,837		(17,506		)
Sovereign    obligations	—			13			—			(1		)	—			—		321			333		12
Residential     mortgage-backed     securities	82,557			(2,863		)	2,100			(1,375		)	(23		)	—		(443		)	79,953		783
Commercial     mortgage-backed     securities	26,655			(531		)	—			(382		)	(6,864		)	—		5,751			24,629		(1,369		)
Other asset-backed     securities	2,294			(167		)	26			(1		)	—			—		4,994			7,146		(167		)
Loans and other     receivables	97,258			(5,033		)	40,019			(16,122		)	(15,448		)	—		10,736			111,410		(3,262		)
Investments, at fair     value	53,224			1,256			5,010			(184		)	(277		)	—		69,203			128,232		1,262
Liabilities:
Financial instruments sold,     not yet purchased:
Corporate equity     securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38	$	—
Corporate debt     securities	223			(115		)	(6,683		)	6,698			—			—		(123		)	—		—
Net derivatives (2)	(4,638		)	6,938			—			—			(58		)	1,072		—			3,314		(8,771		)
Loans	14,450			(39		)	(2,877		)	825			—			—		(3,032		)	9,327		39
Other secured financings	30,825			—			—			—			(2,218		)	36,995		—			65,602		—
Embedded conversion     option	693			132			—			—			—			—		—			825		(132		)

(1) Realized and unrealized gains/losses are reported in Principal transaction revenues in the Consolidated Statements of Earnings.

(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.

February 29, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	27,079
Non-exchange traded securities			Market approach	EBITDA (a) multiple	15.2	—
				Underlying stock price	$1-$102	$	15.2
Corporate debt securities	$	21,487
			Convertible bond model	Discount rate/yield	13%	—
				Volatility	40%	—
			Comparable pricing	Comparable bond price	$39	—
Collateralized debt obligations	$	38,604	Discounted cash flows	Constant prepayment rate	10%-20%	19		%
				Constant default rate	2%-10%	3		%
				Loss severity	25%-70%	31		%
				Yield	5%-20%	13		%
Residential mortgage-backed      securities	$	68,019	Discounted cash flows	Constant prepayment rate	0%-50%	12		%
				Constant default rate	1%-9%	1		%
				Loss severity	25%-70%	30		%
				Yield	2%-11%	6		%
Commercial mortgage-backed       securities	$	21,994	Discounted cash flows	Yield	8%-29%	14		%
				Cumulative loss rate	2%-69%	16		%
Other asset-backed securities	$	27,298	Discounted cash flows	Constant prepayment rate	0%-20%	15		%
				Constant default rate	0%-15%	11		%
				Loss severity	0%-100%	83		%
				Yield	4%-24%	19		%
Loans and other receivables	$	120,475	Comparable pricing	Comparable loan price	$100	—
			Market approach	Discount rate/yield	2%-51%	21		%
				Transaction level	$81	—
			Scenario analysis	Estimated recovery percentage	6%-100%	76		%
Derivatives	$	22,975
Commodity forwards			Market approach	Discount rate/yield	60%	—
				Transaction level	$6,500,000	—
Unfunded commitments			Comparable pricing	Comparable loan price	$100	—
Credit default swaps			Market approach	Credit spread	292 bps	—
Interest rate swaps					667 bps - 800 bps	718 bps
Total return swaps			Comparable pricing	Comparable loan price	$90	—
Investments at fair value
Private equity securities	$	13,662	Market approach	EBITDA (a) multiple	8.4	—
				Transaction level	$0-$74	$	55
				Enterprise value	$5,200,000	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	34,732
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable loan price	$100	—
			Market approach	Discount rate/yield	3%-35%	26		%
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	14%	—
Foreign exchange forwards			Market approach	Credit spread	500bps	—
Total return swaps			Comparable pricing	Comparable loan price	$90	—
Loans and other receivables	$	7,744	Comparable pricing	Comparable loan price	$100	—

(a) Earnings before interest, taxes, depreciation and amortization (“EBITDA”).

November 30, 2015
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable  Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	20,285
Non-exchange traded securities			Market approach	EBITDA multiple	4.4	—
				Transaction level	$1	—
				Underlying stock price	$5-$102	$	19
Corporate debt securities	$	20,257	Convertible bond model	Discount rate/yield	86%	—
			Market approach	Transaction level	$59	—
Collateralized debt obligations	$	49,923	Discounted cash flows	Constant prepayment rate	5%-20%	13		%
				Constant default rate	2%-8%	2		%
				Loss severity	25%-90%	52		%
				Yield	6%-13%	10		%
Residential mortgage-backed      securities	$	70,263	Discounted cash flows	Constant prepayment rate	0%-50%	13		%
				Constant default rate	1%-9%	3		%
				Loss severity	25%-70%	39		%
				Yield	1%-9%	6		%
Commercial mortgage-backed      securities	$	14,326	Discounted cash flows	Yield	7%-30%	16		%
				Cumulative loss rate	2%-63%	23		%
Other asset-backed securities	$	21,463	Discounted cash flows	Constant prepayment rate	6%-8%	7		%
				Constant default rate	3%-5%	4		%
				Loss severity	55%-75%	62		%
				Yield	7%-22%	18		%
			Over-collateralization	Over-collateralization percentage	117%-125%	118		%
Loans and other receivables	$	161,470	Comparable pricing	Comparable loan price	$99-$100	$	99.7
			Market approach	Yield	2%-17%	12		%
				EBITDA multiple	10.0	—
			Scenario analysis	Estimated recovery percentage	6%-100%	83		%
Derivatives	$	19,785
Commodity forwards			Market approach	Discount rate/yield	47%	—		%
				Transaction level	$9,500,000	—
Unfunded commitments			Comparable pricing	Comparable loan price	$100	—
			Market approach	Credit spread	298 bps	—
Total return swaps			Comparable pricing	Comparable loan price	$91.7-$92.4	$	92.1
Investments at fair value	$	7,693
Private equity securities			Market approach	Transaction level	$64	—
				Enterprise value	$5,200,000	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	19,543
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable loan price	$79-$100	$	82.6
			Market approach	Discount rate/yield	3%-10%	10		%
			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	11%	—
Total return swaps			Comparable pricing	Comparable loan price	$91.7-92.4	$	92.1
Loans and other receivables	$	10,469	Comparable pricing	Comparable loan price	$100	—

Summary of Gains (Losses) Due to Changes in Instrument Specific Credit Risk and Summary of Contractual Principal Exceeds Fair Value for Loans and Other Receivables

The following is a summary of gains (losses) due to changes in instrument specific credit risk on loans, other receivables and debt instruments and gains (losses) due to other changes in fair value on long-term debt measured at fair value under the fair value option (in thousands):

	Three Months Ended   February 29, 2016			Three Months Ended   February 28, 2015
Financial Instruments Owned:
Loans and other receivables	$	(15,462	)	$	5,389
Financial Instruments Sold:
Loans	$	48		$	(1,022	)
Loan commitments	(3,746		)	(7,166		)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(302	)	$	—
Other changes in fair value (2)	6,816			—

(1)    Changes in instrument-specific credit risk related to structured notes are included in the Consolidated Statements of               Comprehensive Income.

(2)    Other changes in fair value include $6.9 million included within Principal transactions revenues and $42,000 included               within Interest expenses on the Consolidated Statements of Earnings.

The following is a summary of the amount by which contractual principal exceeds fair value for loans and other receivables and long-term debt measured at fair value under the fair value option (in thousands).

	February 29, 2016		November 30, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	494,444	$	408,369
Loans and other receivables greater than 90 days past due (1)	29,555		29,720
Loans and other receivables on nonaccrual status (1) (2)	154,319		54,652
Long-term debt	6,420		—

(1) Interest income is recognized separately from other changes in fair value and is included within Interest revenues on the Consolidated Statements of Earnings.

(2) Amounts include all loans and other receivables greater than 90 days past due.