10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2016

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-14947

JEFFERIES GROUP LLC

(Exact name of registrant as specified in its charter)

Delaware	95-4719745
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
520 Madison Avenue, New York, New York	10022
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 284-2550

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The Registrant is a wholly-owned subsidiary of Leucadia National Corporation and meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with a reduced disclosure format as permitted by Instruction H(2).

JEFFERIES GROUP LLC

INDEX TO QUARTERLY REPORT ON FORM 10-Q

August 31, 2016

PART I. FINANCIAL INFORMATION
	Page
Item 1. Financial Statements	2
Consolidated Statements of Financial Condition (Unaudited)- August 31, 2016 and November 30, 2015	2
Consolidated Statements of Earnings (Unaudited)- Three and Nine Months Ended August 31, 2016 and 2015	3
Consolidated Statements of Comprehensive Income (Unaudited)- Three and Nine Months Ended August 31, 2016 and 2015	4
Consolidated Statements of Changes in Equity (Unaudited)- Nine Months Ended August 31, 2016 and Year Ended November 30, 2015	5
Consolidated Statements of Cash Flows (Unaudited)- Nine Months Ended August 31, 2016 and 2015	6
Notes to Consolidated Financial Statements (Unaudited)	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	64
Item 3. Quantitative and Qualitative Disclosures About Market Risk	93
Item 4. Controls and Procedures	94
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	95
Item 1A. Risk Factors	95
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	95
Item 6. Exhibits	95

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

(In thousands)

	August 31, 2016			November 30, 2015
ASSETS
Cash and cash equivalents ($10,442 and $2,015 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	$	3,159,143		$	3,510,163
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	1,026,865			751,084
Financial instruments owned, at fair value, (including securities pledged of $10,458,629 and $12,207,123 at August 31, 2016 and November 30, 2015, respectively; and $91,146 and $68,951 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	14,327,919			16,559,116
Investments in managed funds	191,692			85,775
Loans to and investments in related parties	657,074			825,908
Securities borrowed	8,460,736			6,975,136
Securities purchased under agreements to resell	4,038,194			3,857,306
Receivables:
Brokers, dealers and clearing organizations	1,938,174			1,574,759
Customers	849,317			1,191,316
Fees, interest and other ($549 and $329 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	293,072			260,924
Premises and equipment	254,674			243,486
Goodwill	1,645,293			1,656,588
Other assets	1,285,524			1,072,411
Total assets	$	38,127,677		$	38,563,972
LIABILITIES AND EQUITY
Short-term borrowings	$	432,235		$	310,659
Financial instruments sold, not yet purchased, at fair value	7,944,072			6,785,064
Collateralized financings:
Securities loaned	2,930,376			2,979,300
Securities sold under agreements to repurchase	8,130,434			10,004,428
Other secured financings (includes $53,586 and $68,345 at fair value at August 31, 2016 and November 30, 2015, respectively; and $606,307 and $762,909 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	606,307			762,909
Payables:
Brokers, dealers and clearing organizations	3,495,173			2,742,001
Customers	2,749,325			2,780,493
Accrued expenses and other liabilities ($764 and $893 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	1,030,425			1,049,019
Long-term debt (includes $204,422 and $0 at fair value at August 31, 2016 and November 30, 2015, respectively)	5,482,738			5,640,722
Total liabilities	32,801,085			33,054,595
EQUITY
Member’s paid-in capital	5,450,923			5,526,855
Accumulated other comprehensive loss:
Currency translation adjustments	(116,859		)	(36,811		)
Changes in instrument specific credit risk	(4,771		)	—
Additional minimum pension liability	(7,891		)	(8,135		)
Total accumulated other comprehensive loss	(129,521		)	(44,946		)
Total member’s equity	5,321,402			5,481,909
Noncontrolling interests	5,190			27,468
Total equity	5,326,592			5,509,377
Total liabilities and equity	$	38,127,677		$	38,563,972

See accompanying notes to consolidated financial statements.

2

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(In thousands)

	Three Months Ended August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Revenues:
Commissions and other fees	$	152,044		$	172,284		$	454,025		$	512,714
Principal transactions	167,483			(50,297		)	382,290			211,142
Investment banking	294,930			389,820			778,906			1,066,077
Asset management fees and investment income (loss) from managed funds	15,877			4,182			29,743			(5		)
Interest	213,716			230,805			655,836			700,227
Other	19,791			34,329			(6,937		)	82,810
Total revenues	863,841			781,123			2,293,863			2,572,965
Interest expense	209,391			202,195			621,018			610,811
Net revenues	654,450			578,928			1,672,845			1,962,154
Non-interest expenses:
Compensation and benefits	376,438			336,499			1,141,497			1,182,484
Non-compensation expenses:
Floor brokerage and clearing fees	40,189			45,307			124,259			159,100
Technology and communications	64,512			89,378			196,000			234,126
Occupancy and equipment rental	24,987			25,967			74,498			74,571
Business development	20,259			30,527			67,700			78,865
Professional services	29,761			24,684			82,799			76,359
Other	17,582			19,473			52,649			51,960
Total non-compensation expenses	197,290			235,336			597,905			674,981
Total non-interest expenses	573,728			571,835			1,739,402			1,857,465
Earnings (loss) before income taxes	80,722			7,093			(66,557		)	104,689
Income tax expense	39,564			4,609			5,112			29,470
Net earnings (loss)	41,158			2,484			(71,669		)	75,219
Net earnings (loss) attributable to noncontrolling interests	(11		)	427			77			1,647
Net earnings (loss) attributable to Jefferies Group LLC	$	41,169		$	2,057		$	(71,746	)	$	73,572

See accompanying notes to consolidated financial statements.

3

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(In thousands)

	Three Months Ended August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Net earnings (loss)	$	41,158		$	2,484		$	(71,669	)	$	75,219
Other comprehensive income (loss), net of tax:
Currency translation and other adjustments	(55,945		)	(319		)	(79,804		)	(11,376		)
Changes in instrument specific credit risk (1)	(2,466		)	—			(4,771		)	—
Total other comprehensive income (loss), net of tax (2)	(58,411		)	(319		)	(84,575		)	(11,376		)
Comprehensive income (loss)	(17,253		)	2,165			(156,244		)	63,843
Net earnings attributable to noncontrolling interests	(11		)	427			77			1,647
Comprehensive income (loss) attributable to Jefferies Group LLC	$	(17,242	)	$	1,738		$	(156,321	)	$	62,196

(1) Includes income tax benefit of approximately $1.6 million and $3.1 million for the three and nine months ended August 31, 2016, respectively.

(2) None of the components of other comprehensive income (loss) are attributable to noncontrolling interests.

See accompanying notes to consolidated financial statements.

4

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(In thousands)

	Nine Months Ended   August 31, 2016			Year Ended   November 30, 2015
Member’s paid-in capital:
Balance, beginning of period	$	5,526,855		$	5,439,256
Net earnings (loss) attributable to Jefferies Group LLC	(71,746		)	93,534
Tax detriment for issuance of share-based awards	(4,186		)	(5,935		)
Balance, end of period	$	5,450,923		$	5,526,855
Accumulated other comprehensive income (loss) (1) (2):
Balance, beginning of period	$	(44,946	)	$	(14,673	)
Currency adjustments	(80,048		)	(27,157		)
Changes in instrument specific credit risk, net of tax	(4,771		)	—
Pension adjustment, net of tax	244			(3,116		)
Balance, end of period	(129,521		)	(44,946		)
Total member’s equity	$	5,321,402		$	5,481,909
Noncontrolling interests:
Balance, beginning of period	$	27,468		$	38,848
Net earnings attributable to noncontrolling interests	77			1,795
Contributions	4,500			—
Distributions	(563		)	(4,982		)
Deconsolidation of asset management company	(26,292		)	(8,193		)
Balance, end of period	$	5,190		$	27,468
Total equity	$	5,326,592		$	5,509,377

(1) The components of other comprehensive income (loss) are attributable to Jefferies Group LLC. None of the components of other comprehensive income (loss) are attributable to noncontrolling interests.

(2) There were no material reclassifications out of Accumulated other comprehensive income (loss) during the nine months ended August 31, 2016 and the year ended November 30, 2015.

See accompanying notes to consolidated financial statements.

5

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	Nine Months Ended August 31,
	2016			2015
Cash flows from operating activities:
Net earnings (loss)	$	(71,669	)	$	75,219
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Depreciation and amortization	(2,888		)	10,784
Loss (income) on loans to and investments in related parties	15,862			(87,692		)
Distributions received on investments in related parties	11,187			70,825
Other adjustments	13,359			(64,479		)
Net change in assets and liabilities:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(277,019		)	2,538,334
Receivables:
Brokers, dealers and clearing organizations	(392,632		)	100,690
Customers	341,930			(52,530		)
Fees, interest and other	(35,514		)	(41,759		)
Securities borrowed	(1,510,588		)	(852,183		)
Financial instruments owned	2,079,134			(321,076		)
Investments in managed funds	(132,941		)	14,508
Securities purchased under agreements to resell	(248,931		)	(351,875		)
Other assets	(237,291		)	(8,988		)
Payables:
Brokers, dealers and clearing organizations	781,782			192,867
Customers	(31,159		)	(3,454,703		)
Securities loaned	(22,326		)	1,049,172
Financial instruments sold, not yet purchased	1,269,261			601,758
Securities sold under agreements to repurchase	(1,824,027		)	176,960
Accrued expenses and other liabilities	68,024			(228,986		)
Net cash used in operating activities	(206,446		)	(633,154		)
Cash flows from investing activities:
Contributions to loans to and investments in related parties	(343,835		)	(1,111,830		)
Distributions from loans to and investments in related parties	485,620			1,119,775
Net payments on premises and equipment	(51,001		)	(51,348		)
Payment on purchase of aircraft	(27,500		)	—
Proceeds from sale of aircraft	29,450			—
Deconsolidation of asset management entity	(39		)	(16,512		)
Cash received from contingent consideration	1,211			2,541
Net cash provided by (used in) investing activities	93,906			(57,374		)

Continued on next page.

6

JEFFERIES GROUP LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS – CONTINUED (UNAUDITED)

(In thousands)

	Nine Months Ended August 31,
	2016			2015
Cash flows from financing activities:
Excess tax benefits from the issuance of share-based awards	$	384		$	423
Proceeds from short-term borrowings	8,350,534			14,422,000
Payments on short-term borrowings	(8,229,669		)	(14,422,000		)
Proceeds from secured credit facility	—			903,000
Payments on secured credit facility	—			(1,073,000		)
Net (payments on) proceeds from other secured financings	(156,602		)	200,810
Net proceeds from issuance of long-term debt, net of issuance costs	239,779			—
Repayment of long-term debt	(373,246		)	—
Net change in bank overdrafts	(56,126		)	24,466
Net proceeds from noncontrolling interests	3,937			—
Net cash (used in) provided by financing activities	(221,009		)	55,699
Effect of exchange rate changes on cash and cash equivalents	(17,471		)	(3,354		)
Net decrease in cash and cash equivalents	(351,020		)	(638,183		)
Cash and cash equivalents at beginning of period	3,510,163			4,079,968
Cash and cash equivalents at end of period	$	3,159,143		$	3,441,785
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	675,896		$	621,279
Income taxes, net	(8,011		)	1,574

See accompanying notes to consolidated financial statements.

7

JEFFERIES GROUP LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Index

Note	Page
Note 1. Organization and Basis of Presentation	9
Note 2. Summary of Significant Accounting Policies	10
Note 3. Accounting Developments	16
Note 4. Fair Value Disclosures	18
Note 5. Derivative Financial Instruments	36
Note 6. Collateralized Transactions	40
Note 7. Securitization Activities	43
Note 8. Variable Interest Entities	44
Note 9. Investments	48
Note 10. Goodwill and Other Intangible Assets	50
Note 11. Short-Term Borrowings	52
Note 12. Long-Term Debt	53
Note 13. Noncontrolling Interests	54
Note 14. Benefit Plans	54
Note 15. Compensation Plans	55
Note 16. Income Taxes	56
Note 17. Commitments, Contingencies and Guarantees	57
Note 18. Net Capital Requirements	59
Note 19. Segment Reporting	60
Note 20. Related Party Transactions	61
Note 21. Exit Costs	62

8

JEFFERIES GROUP LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Note 1. Organization and Basis of Presentation

Organization

Jefferies Group LLC and its subsidiaries operate as a global full service, integrated securities and investment banking firm. The accompanying Consolidated Financial Statements represent the accounts of Jefferies Group LLC and all our subsidiaries (together “we” or “us”). The subsidiaries of Jefferies Group LLC include Jefferies LLC (“Jefferies”), Jefferies Execution Services, Inc. (“Jefferies Execution”), Jefferies International Limited, Jefferies Hong Kong Limited, Jefferies Financial Services, Inc., Jefferies Funding LLC, Jefferies Financial Products, LLC, Jefferies Leveraged Credit Products, LLC and all other entities in which we have a controlling financial interest or are the primary beneficiary. On April 9, 2015, we entered into an agreement to transfer certain of the client activities of our Futures business to Société Générale S.A. and initiated a plan to substantially exit the remaining aspects of our futures business. During the second quarter of 2016, we completed the exit of the futures business. For further information on the exit of the Bache business, refer to Note 21, Exit Costs.

Jefferies Group LLC is an indirect wholly owned subsidiary of Leucadia National Corporation (“Leucadia”). Leucadia does not guarantee any of our outstanding debt securities. Our 3.875% Convertible Senior Debentures due 2029 are convertible into Leucadia common shares (see Note 12, Long-Term Debt, for further details). Jefferies Group LLC operates as a full-service investment banking firm and, as the holding company of its various regulated and unregulated operating subsidiaries, retains a credit rating separate from Leucadia and is a Securities and Exchange Commission (“SEC”) reporting company, filing annual, quarterly and periodic financial reports. Richard Handler, our Chief Executive Officer and Chairman, is the Chief Executive Officer of Leucadia, as well as a Director of Leucadia. Brian P. Friedman, our Chairman of the Executive Committee, is Leucadia’s President and a Director of Leucadia.

We operate in two business segments, Capital Markets and Asset Management. Capital Markets, which represents substantially our entire business, includes our securities, commodities, futures and foreign exchange trading and investment banking activities, which provides the research, sales, trading, origination and advisory effort for various equity, fixed income and advisory products and services. Asset Management provides investment management services to various private investment funds and separate accounts.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with our Annual Report on Form 10-K for the year ended November 30, 2015.

We have 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.

Consolidation

Our policy is to consolidate all entities that we control by ownership 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 the 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 to noncontrolling interests in the 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 within Other revenues or Principal transaction 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.

9

JEFFERIES GROUP LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Immaterial Adjustments

We made immaterial correcting adjustments (referred to as “adjustments”) to our Consolidated Statement of Cash Flows for the nine months ended August 31, 2015. The adjustments had the impact of decreasing the Net change in accrued expenses and other liabilities by $24.5 million ($204.5 million as originally reported and $228.9 million as revised), increasing the Net change in bank overdrafts by $24.5 million ($0.0 as originally reported and $24.5 million as revised), decreasing the Net cash used in operating activities by $24.5 million ($608.7 million as originally reported and $633.1 million as revised) and increasing the Net cash provided by financing activities by $24.5 million ($31.2 million as originally reported and $55.7 million as revised) on the Consolidated Statements of Cash Flows for the nine months ended August 31, 2015. The adjustments relate to a classification error in the reporting of net change in bank overdrafts within our Consolidated Statements of Cash Flows. The adjustments have no effect on our Consolidated Statements of Financial Condition, the Consolidated Statements of Earnings, the Consolidated Statements of Changes in Equity or the Consolidated Statements of Comprehensive Income for the nine months ended August 31, 2015. We do not believe these adjustments are material to our financial statements for any previously reported period.

Note 2. Summary of Significant Accounting Policies

Revenue Recognition Policies

Commissions and Other Fees. All customer securities transactions are reported on the 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 not the primary obligor for these arrangements, netted against commission revenues in the 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, but not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transaction revenues in the Consolidated Statements of Earnings on a trade date basis. Fees received on loans carried at fair value are also recorded within Principal transaction revenues.

Investment Banking. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Business development and Professional services expenses in the Consolidated Statements of Earnings.

Asset Management Fees and Investment Income from Managed Funds. Asset management fees and investment income from managed funds include revenues we earn from management, administrative and performance fees from funds and accounts managed by us, revenues from management and performance fees we earn from related-party managed funds and investment income from our investments in these funds. We earn fees in connection with management and investment advisory services performed for various funds and managed accounts. These fees are based on assets under management or an agreed upon notional amount and may include performance fees based upon the performance of the funds. Management and administrative fees are generally recognized over the period that the related service is provided. Generally, performance fees are earned when the return on assets under management exceeds certain benchmark returns, “high-water marks” or other performance targets. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized.

10

JEFFERIES GROUP LLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, but 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 transaction revenues in the Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis with related interest recorded 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. In addition, 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.

Cash Equivalents

Cash equivalents include highly liquid investments, including certificates of deposit and money market funds, 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 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 transaction 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).

Fair Value Hierarchy

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.
Level 2:	Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments that fair values for which 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 instruments that are fair valued using other 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.

Financial instruments are valued at quoted market prices, if available. 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 upon consideration of available information, including types of financial instruments, current financial information, restrictions on dispositions, fair values of underlying financial instruments and quotations for similar instruments.

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The valuation of financial instruments may include the use of valuation models and other techniques. Adjustments to valuations derived from valuation models may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions require that an adjustment be made to the value derived from the models. 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. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Valuation Process for Financial Instruments

Our Independent Price Verification (“IPV”) Group, which is part of our Finance department, in partnership with Risk Management, is responsible for establishing our valuation policies and procedures. The IPV Group and Risk Management, which are independent of our business functions, play an important role and serve as a control function in determining that our financial instruments are appropriately reflected at fair value. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The IPV Group reports to the Global Controller and is subject to the oversight of the IPV Committee, which comprises our Chief Financial Officer, Global Controller, Chief Risk Officer and Principal Accounting Officer, among other personnel. Our independent price verification policies and procedures are reviewed, at a minimum, annually, and changes to the policies require the approval of the IPV Committee.

Price Testing Process. The business units are responsible for determining the fair value of our financial instruments using approved valuation models and methodologies. In order to ensure that the business unit valuations represent a fair value exit price, the IPV Group tests and validates the fair value of our financial instruments inventory. In the testing process, the IPV Group obtains prices and valuation inputs from independent sources, consistently adheres to established procedures set forth in our valuation policies for sourcing prices and valuation inputs and utilizing valuation methodologies. Sources used to validate fair value prices and inputs include, but are not limited to, exchange data, recently executed transactions, pricing data obtained from third party vendors, pricing and valuation services, broker quotes and observed comparable transactions.

To the extent discrepancies between the business unit valuations and the pricing or valuations resulting from the price testing process are identified, such discrepancies are investigated by the IPV Group and fair values are adjusted, as appropriate. The IPV Group maintains documentation of its testing, results, rationale and recommendations and prepares a monthly summary of its valuation results. This process also forms the basis for our classification of fair values within the fair value hierarchy (i.e., Level 1, Level 2 or Level 3). The IPV Group utilizes the additional expertise of Risk Management personnel in valuing more complex financial instruments and financial instruments with less or limited pricing observability. The results of the valuation testing are reported to the IPV Committee on a monthly basis, which discusses the results and determines the financial instrument fair values in the consolidated financial statements. This process specifically assists the Chief Financial Officer in asserting as to the fair presentation of our financial condition and results of operations as included within our Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. At each quarter end, the overall valuation results, as determined by the IPV Committee, are presented to the Audit Committee.

Judgment exercised in determining Level 3 fair value measurements is supplemented by daily analysis of profit and loss performed by the Product Control functions. Gains and losses, which result from changes in fair value, are evaluated and corroborated daily based on an understanding of each trading desk’s overall risk positions and developments in a particular market on the given day. Valuation techniques generally rely on recent transactions of suitably comparable financial instruments and use the observable inputs from those comparable transactions as a validation basis for Level 3 inputs. Level 3 fair value measurements are further validated through subsequent sales testing and market comparable sales, if such information is available. Level 3 fair value measurements require documentation of the valuation rationale applied, which is reviewed for consistency in application from period to period.

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Third Party Pricing Information. Pricing information obtained from external data providers (including independent pricing services and brokers) may incorporate a range of market quotes from dealers, recent market transactions and benchmarking model derived prices to quoted market prices and trade data for comparable securities. External pricing data is subject to evaluation for reasonableness by the IPV Group using a variety of means including comparisons of prices to those of similar product types, quality and maturities, consideration of the narrowness or wideness of the range of prices obtained, knowledge of recent market transactions and an assessment of the similarity in prices to comparable dealer offerings in a recent time period. Our processes challenge the appropriateness of pricing information obtained from external data providers (including independent pricing services and brokers) to validate the data for consistency with the definition of a fair value exit price. Our process includes understanding and evaluating the external data providers’ valuation methodologies. For corporate, U.S. government and agency and municipal debt securities, and loans, to the extent we use independent pricing services or broker quotes in our valuation process, the vendor service providers are collecting and aggregating observable market information as to recent trade activity and active bid-ask submissions. The composite pricing information received from the independent pricing service is thus not based on unobservable inputs or proprietary models. For mortgage- and other asset-backed securities, collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs"), our independent pricing services use a matrix evaluation approach, incorporating both observable yield curves and market yields on comparable securities as well as implied inputs from observed trades for comparable securities in order to determine prepayment speeds, cumulative default rates and loss severity. Further, we consider pricing data from multiple service providers as available as well as compare pricing data to prices we have observed for recent transactions, if any, in order to corroborate our valuation inputs.

Model Review Process. If a pricing model is used to determine fair value, the pricing model is reviewed for theoretical soundness and appropriateness by Risk Management, independent from the trading desks, and then approved by Risk Management to be used in the valuation process. Review and approval of a model for use may include benchmarking the model against relevant third party valuations, testing sample trades in the model, backtesting the results of the model against actual trades and stress-testing the sensitivity of the pricing model using varying inputs and assumptions. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model. Models are independently reviewed and validated by Risk Management annually or more frequently if market conditions or use of the valuation model changes.

Investments in Managed Funds

Investments in managed funds include our investments in funds managed by us and our investments in related-party managed funds in which we are entitled to a portion of the management and/or performance fees. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value ("NAV") of the funds provided by the fund managers with gains or losses included in Asset management fees and investment income (loss) from managed funds in the Consolidated Statements of Earnings.

Loans to and Investments in Related Parties

Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in the Consolidated Statements of Earnings. See Note 9, Investments, and Note 20, Related Party Transactions, for additional information regarding certain of these investments.

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. We have an active securities borrowed and lending matched book business in which we borrow securities from one party and lend them to another party. 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.

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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 on our Consolidated Statements of Earnings on an accrual basis. Repos are presented in the 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.

Premises and Equipment

Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to ten years). Leasehold improvements are amortized using the straight-line method over the term of the related leases or the estimated useful lives of the assets, whichever is shorter. Premises and equipment includes internally developed software. The carrying values of internally developed software ready for its intended use are depreciated over the remaining useful life.

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 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. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. 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 estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill.

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 significant 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 magnitude 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 amortizable intangible assets, impairment exists when the carrying amount of the intangible asset 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. Our annual indefinite-lived intangible asset impairment testing date is August 1.

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 10, Goodwill and Other Intangible Assets, for further information.

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Income Taxes

Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Leucadia. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities.

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. Under acquisition accounting, the recognition of certain assets and liabilities at fair value created a change in the financial reporting basis for our assets and liabilities, while the tax basis of our assets and liabilities remained the same. As a result, deferred tax assets and liabilities were recognized for the change in the basis differences. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. 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.

The tax benefits related to share-based awards are recognized as an increase to Additional paid-in capital. These amounts, and other windfall tax benefits/(detriments), are included in Tax benefit/(detriment) for issuance of share-based awards on the Consolidated Statements of Changes in Equity. In the event tax deductions associated with share-based awards are less than the cumulative compensation cost recognized for financial reporting purposes, we look to Leucadia’s consolidated pool of windfall tax benefits in the calculation of our income tax provision. During the first quarter of fiscal 2016, the consolidated pool of windfall tax benefits had been exhausted. As a result, these tax detriments are now recognized in our Consolidated Statement of Earnings until such time the Leucadia consolidated cumulative compensation cost recognized for tax purposes exceeds the amount recognized for financial reporting purposes.

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.

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 the 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 that could be reasonably estimated of potential loss or range of potential loss in excess of what has been provided in the consolidated financial statements is not material.

Share-based Compensation

Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Expected forfeitures are included in determining share-based compensation expense.

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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 transaction revenues in the Consolidated Statements of Earnings.

Securitization Activities

We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Such transfers of financial assets 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 within Financial instruments owned in the Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized within Principal transactions revenues in the 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 the Consolidated Statements of Financial Condition.

Note 3. Accounting Developments

Accounting Standards to be Adopted in Future Periods

Statement of Cash Flows. In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated statements of cash flows.

Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021 and early adoption is permitted in the first quarter of fiscal 2020. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Employee Share-Based Payments. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The guidance simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include income tax consequences, the accounting for forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective in the first quarter of fiscal 2018 and early adoption is permitted if all amendments are adopted in the same period. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases onto the balance sheet. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. We are currently evaluating the impact of the new guidance related to equity investments and the presentation and disclosure requirements of financial instruments on our consolidated financial statements. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material effect on our consolidated financial statements.

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Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and in August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of Effective Date. The accounting guidance defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. We intend to adopt the new guidance on December 1, 2017 and are currently evaluating the impact of the new guidance on our consolidated financial statements.

Adopted Accounting Standards

Debt Issuance Costs. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported in the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The guidance is effective retrospectively and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material impact on our Consolidated Statements of Financial Condition.

Consolidation. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The guidance is effective beginning in the first quarter of fiscal 2017 and we adopted it in the first quarter of fiscal 2016 using a modified retrospective approach. The adoption of this accounting guidance resulted in the deconsolidation of an asset management vehicle, which resulted in the following adjustment to the Consolidated Statement of Financial Condition on December 1, 2015: a decrease of $27.0 million in Investments in managed funds, a decrease of $0.7 million in Accrued expense and other liabilities and a decrease of $26.3 million in Noncontrolling interests. For further information on the adoption of ASU No. 2015-02, refer to Note 8, Variable Interest Entities.

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Note 4. 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 NAV of $29.5 million and $36.7 million at August 31, 2016 and November 30, 2015, respectively, by level within the fair value hierarchy (in thousands):

	August 31, 2016
	Level 1(1)		Level 2(1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	2,019,490	$	108,194	$	22,195	$	—		$	2,149,879
Corporate debt securities	—		2,494,303		35,007		—			2,529,310
CDOs and CLOs	—		99,794		44,070		—			143,864
U.S. government and federal agency securities	3,029,251		114,601		—		—			3,143,852
Municipal securities	—		550,210		27,257		—			577,467
Sovereign obligations	904,592		1,130,443		—		—			2,035,035
Residential mortgaged-backed securities	—		1,331,959		46,881		—			1,378,840
Commercial mortgage-backed securities	—		320,912		24,593		—			345,505
Other asset-backed securities	—		116,388		61,112		—			177,500
Loans and other receivables	—		1,323,092		78,457		—			1,401,549
Derivatives	2,530		6,206,366		9,560		(5,887,874		)	330,582
Investments at fair value	—		—		85,036		—			85,036
Total financial instruments owned, excluding Investments at fair value based on NAV	$	5,955,863	$	13,796,262	$	434,168	$	(5,887,874	)	$	14,298,419
Cash and cash equivalents	$	3,159,143	$	—	$	—	$	—		$	3,159,143
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (3)	$	1,026,865	$	—	$	—	$	—		$	1,026,865
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,682,196	$	58,834	$	38	$	—		$	1,741,068
Corporate debt securities	—		1,704,627		523		—			1,705,150
U.S. government and federal agency securities	1,213,672		—		—		—			1,213,672
Sovereign obligations	940,451		1,432,580		—		—			2,373,031
Loans	—		538,180		848		—			539,028
Derivatives	373		6,321,172		20,607		(5,970,029		)	372,123
Total financial instruments sold, not yet purchased	$	3,836,692	$	10,055,393	$	22,016	$	(5,970,029	)	$	7,944,072
Other secured financings	$	—	$	53,318	$	268	$	—		$	53,586
Long-term debt	$	—	$	204,422	$	—	$	—		$	204,422

(1) There were no material transfers between Level 1 and Level 2 for the nine months ended August 31, 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.

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	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
CDOs and CLOs	—		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
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 or deposited with clearing and depository organizations	$	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
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 (3)	$	—	$	67,801	$	544	$	—		$	68,345

(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.

(3) Level 2 liabilities include $67.8 million of other secured financings that were previously not disclosed in our Annual Report on Form 10-K for the year ended November 30, 2015.

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.

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• 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 for 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/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for 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 generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation, including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date.

Corporate Debt Securities

• Corporate Bonds: Corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed for recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds.

• High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed for recently executed market transactions of comparable size. Where pricing data is less observable, valuations are categorized within Level 3 and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financings or recapitalizations, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers.

CDOs and CLOs

CDOs and CLOs are measured based on prices observed for 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 severity.

U.S. Government and Federal Agency Securities

• U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy.

• U.S. Agency Issued Debt Securities: Callable and non-callable U.S. agency issued debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy.

Municipal Securities

Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy.

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Sovereign Obligations

Foreign 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. To the extent external price quotations are not available or recent transactions have not been observed, valuation techniques incorporating interest rate yield curves and country spreads for bonds of similar issuers, seniority and maturity are used to determine fair value of sovereign bonds or obligations. Foreign sovereign government obligations are classified in Level 1, Level 2 or Level 3 of the fair value hierarchy, primarily based on the country of issuance.

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 interest-only and principal-only securities and are generally measured using market price quotations from external pricing services and categorized within Level 2 of the fair value hierarchy.

• Agency Residential Interest-Only and Inverse Interest-Only Securities (“Agency Inverse IOs”): The fair value of Agency Inverse IOs is estimated using expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral. We use prices observed for recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer, and weighted average loan age. Agency Inverse IOs are categorized within Level 2 of the fair value hierarchy. We also use vendor data in developing our assumptions, as appropriate.

• Non-Agency RMBS: Fair values are determined primarily using discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability and significance of the pricing inputs used. Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate. Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields.

Commercial Mortgage-Backed Securities

• Agency Commercial Mortgage-Backed Securities ("CMBS"): Government National Mortgage Association (“GNMA”) project loans are measured based on inputs corroborated from and benchmarked to observed prices of recent securitization transactions of similar securities with adjustments incorporating an evaluation for various factors, including prepayment speeds, default rates, and cash flow structures as well as the likelihood of pricing levels in the current market environment. Federal National Mortgage Association (“FNMA”) Delegated Underwriting and Servicing (“DUS”) mortgage-backed securities are generally measured by using prices observed for recently executed market transactions to estimate market-clearing spread levels for purposes of estimating fair value. GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy.

• Non-Agency CMBS: Non-agency CMBS are measured using pricing data obtained from external pricing services and prices observed for recently executed market transactions and are categorized within Level 2 and Level 3 of the fair value hierarchy.

Other Asset-Backed Securities

Other asset-backed securities include, but are not limited to, securities backed by auto loans, credit card receivables, student loans and other consumer loans and are categorized within Level 2 and Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services and broker quotes and prices observed for recently executed market transactions.

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Loans and Other Receivables

• Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market price quotations where market price quotations from external pricing services are supported by transaction data. Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent, market prices for debt securities of the same creditor, and estimates of future cash flow incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer’s capital structure.

• Participation Certificates in Agency Residential Loans: Valuations of participation certificates in agency residential loans are based on observed market prices of recently executed purchases and sales of similar loans. The loan participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions and availability of data provider pricing.

• Project Loans and Participation Certificates in GNMA Project and Construction Loans:  Valuations of participation certificates in GNMA project and construction loans are based on inputs corroborated from and benchmarked to observed prices of recent securitizations of assets with similar underlying loan collateral to derive an implied spread.  Securitization prices are adjusted to estimate the fair value of the loans incorporating an evaluation for various factors, including prepayment speeds, default rates, and cash flow structures as well as the likelihood of pricing levels in the current market environment.  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 incorporating additional valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy.

• Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent trade activity in the same security.

Derivatives

• Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy. Listed derivatives for which there is limited trading activity are measured based on incorporating the closing auction price of the underlying equity security, use similar valuation approaches as those applied to over-the-counter derivative contracts and are categorized within Level 2 of the fair value hierarchy.

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• OTC Derivative Contracts: Over-the-counter (“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 period transaction. Inputs to valuation models are appropriately calibrated to market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy.

OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as the Black-Scholes, with key inputs impacting the valuation including the underlying security, foreign exchange spot rate or 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. External prices are available as inputs in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are 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 and Investments in Managed Funds

Investments at fair value based on NAV and Investments in Managed Funds include investments in hedge funds, fund of funds, private equity funds, convertible bond funds and commodity funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Additionally, investments at fair value include investments in insurance contracts relating to our defined benefit plan in Germany. Fair value for the insurance contracts is determined using a third party and is categorized within Level 3 of the fair value hierarchy.

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The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands):

	August 31, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	46,195	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	807		—		—
Fund of Funds (4)	226		—		—
Equity Funds (5)	41,716		20,295		—
Multi-asset Funds (6)	132,248		—		Monthly, Quarterly
Total	$	221,192	$	20,295

	November 30, 2015 (7)
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	54,725	$	—	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		—
Multi-asset Funds (6)	23,358		—		Monthly, Quarterly
Convertible Bond Funds (8)	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, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2016, approximately 2% of the fair value of investments in this category is classified as being in liquidation.

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

(4) This category includes investments in fund of funds that invest in various private equity funds. At August 31, 2016 and November 30, 2015, approximately 98% and 95%, respectively, of the fair value of investments in this category are managed by us and have no redemption provisions. The investments in this category are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received.

(5) At August 31, 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 includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2016 and November 30, 2015, investments representing approximately 12% and 100%, respectively, of the fair value of investments in this category are redeemable with 30-90 days prior written notice.

(7) Prior period amounts have been recast to conform to the current year's presentation due to the presentation of multi-asset funds. Previously, these investments had been classified within equity long/short hedge funds.

(8) This category represents an investment in the Jefferies Umbrella Fund, an open-ended investment company managed by us that invested primarily in convertible bonds. The underlying assets were fully liquidated during the nine months ended August 31, 2016.

Other Secured Financings

Other secured financings that are accounted for at fair value include notes issued by consolidated VIEs, which are classified as Level 2 or Level 3 within the fair value hierarchy. Fair value is based on recent transaction prices for similar assets.

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Long-term Debt-Structured Notes

Long-term debt includes variable rate and fixed to floating rate structured notes that contain various interest rate payment terms and are generally measured using valuation models for the derivative and debt portions of the notes. These models incorporate market price quotations from external pricing sources referencing the appropriate interest rate curves and are generally categorized within Level 2 of the fair value hierarchy. The impact of the Company’s own credit spreads is also included based on observed secondary bond market spreads and asset-swap spreads.

Long-term Debt - Embedded Conversion Option

The embedded conversion option presented within long-term debt represents the fair value of the conversion option on Leucadia shares within our 3.875% Convertible Senior Debentures, due November 1, 2029 and categorized as Level 3 within the fair value hierarchy. The conversion option was valued using a convertible bond model using as inputs the price of Leucadia's common stock, the conversion strike price, 252-day historical volatility, a maturity date of November 1, 2017 (the first put date), dividend yield and the risk-free interest rate curve.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2016 (in thousands):

	Three Months Ended August 31, 2016
	Balance at May 31, 2016		Total gains/ losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	48,816	$	(6,492	)	$	291	$	(49	)	$	—		$	—	$	(20,371	)	$	22,195	$	(892	)
Corporate debt securities	24,113		(145		)	10,696		(5,046		)	—			—		5,389			35,007		405
CDOs and CLOs	52,710		(4,067		)	4,205		(5,203		)	—			—		(3,575		)	44,070		(4,606		)
Municipal securities	—		(7,074		)	—		—			—			—		34,331			27,257		(7,074		)
Sovereign obligations	120		5			—		(125		)	—			—		—			—		—
RMBS	63,308		(2,343		)	1,884		(10,874		)	(463		)	—		(4,631		)	46,881		(183		)
CMBS	24,983		(1,531		)	—		—			—			—		1,141			24,593		(236		)
Other asset-backed securities	43,033		(2,247		)	3,416		(2,727		)	(1,429		)	—		21,066			61,112		(2,202		)
Loans and other receivables	104,399		(23,445		)	31,512		(10,140		)	(16,804		)	—		(7,065		)	78,457		(16,044		)
Investments at fair value	57,765		(966		)	—		(485		)	(278		)	—		29,000			85,036		(1,113		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	—	$	—		$	—	$	—		$	—		$	—	$	38		$	38	$	—
Corporate debt securities	—		(27		)	—		550			—			—		—			523		(27		)
Net derivatives (2)	4,424		(4,736		)	—		11,101			32			601		(375		)	11,047		(1,589		)
Loans	1,896		(402		)	—		170			—			—		(816		)	848		(400		)
Other secured financings	468		(200		)	—		—			—			—		—			268		200

(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.

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Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2016

During the three months ended August 31, 2016, transfers of assets of $147.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• Other asset-backed securities of $27.3 million, CDOs and CLOs of $23.7 million and RMBS of $13.7 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Municipals securities of $34.3 million and investments at fair value of $29.0 million due to a lack of observable market transactions.

During the three months ended August 31, 2016, transfers of assets of $91.8 million from Level 3 to Level 2 are primarily attributed to:

• CDOs and CLOs of $27.3 million and RMBS of $18.3 million, for which market trades were observed in the period for either identical or similar securities;

• Corporate equity securities of $20.5 million due to an increase in observable market transactions;

• Loans and other receivables of $15.8 million due to a greater number of contributors for certain vendor quotes to support classification within Level 2.

Net losses on Level 3 assets were $48.3 million and net gains on Level 3 liabilities were $5.4 million for the three months ended August 31, 2016. Net losses on Level 3 assets were primarily due to decreased valuations in loans and other receivables, municipal securities, corporate equity securities, CDOs and CLOs, RMBS, other asset-backed securities and CMBS. Net gains on level 3 liabilities were primarily due to decreased valuations of certain derivative liabilities.

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The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2016 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	40,906		$	(8,388	)	$	5,225	$	(49	)	$	—		$	—	$	(15,499	)	$	22,195	$	(727	)
Corporate debt securities	25,876			5,239			29,629		(20,331		)	—			—		(5,406		)	35,007		1,456
CDOs and CLOs	85,092			(24,356		)	61,707		(69,397		)	(605		)	—		(8,371		)	44,070		(13,196		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
RMBS	70,263			(7,243		)	1,948		(13,203		)	(1,078		)	—		(3,806		)	46,881		228
CMBS	14,326			(4,606		)	1,256		(2,023		)	—			—		15,640			24,593		(3,337		)
Other asset-backed securities	42,925			(2,420		)	66,503		(60,525		)	(6,678		)	—		21,307			61,112		(9,993		)
Loans and other receivables	189,289			(30,843		)	305,920		(206,587		)	(163,913		)	—		(15,409		)	78,457		(27,714		)
Investments at fair value	53,120			(19,055		)	26,227		(485		)	(834		)	—		26,063			85,036		(11,988		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—	$	—		$	—		$	—	$	—		$	38	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (2)	(242		)	3,104			—		11,101			(14		)	1,606		(4,508		)	11,047		(5,745		)
Loans	10,469			7			—		681			(213		)	—		(10,096		)	848		45
Other secured financings	544			(276		)	—		—			—			—		—			268		276

(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.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2016

During the nine months ended August 31, 2016, transfers of assets of $157.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• Other asset-backed securities of $38.5 million, RMBS of $21.7 million, CMBS of $17.2 and CDOs and CLOs of $16.9 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Municipals securities of $28.7 million and investments at fair value of $26.1 million due to a lack of observable market transactions;

During the nine months ended August 31, 2016, transfers of assets of $114.5 million from Level 3 to Level 2 are primarily attributed to:

• CDOs and CLOs of $25.3 million, RMBS of $25.5 million and other asset-backed securities of $17.0 million, for which market trades were observed in the period for either identical or similar securities;

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• Loans and other receivables of $19.8 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $19.2 million due to an increase in observable market transactions.

There were $10.2 million transfers of loan liabilities from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net losses on Level 3 assets were $93.1 million and net losses on Level 3 liabilities were $2.8 million for the nine months ended August 31, 2016. Net losses on Level 3 assets were primarily due to decreased valuations of loans and other receivables, CDOs and CLOs, investments at fair value, corporate equity securities, RMBS and municipal securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain derivative instruments.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2015 (in thousands):

	Three Months Ended August 31, 2015
	Balance at May 31, 2015			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,547		$	3,901		$	21,162		$	(5,173	)	$	—		$	—	$	(1,935	)	$	38,502	$	3,803
Corporate debt securities	31,917			(5,276		)	10,395			(17,197		)	(1		)	—		4,493			24,331		(5,544		)
CDOs and CLOs	89,007			(12,560		)	14,961			—			(13,230		)	—		2,872			81,050		(12,561		)
RMBS	88,695			(3,009		)	10,034			(8,424		)	(195		)	—		(679		)	86,422		655
CMBS	17,862			(510		)	—			(680		)	—			—		(1,525		)	15,147		(545		)
Other asset-backed securities	11,857			870			21,913			—			(1,167		)	—		(877		)	32,596		813
Loans and other receivables	108,756			(2,111		)	31,269			(603		)	(42,529		)	—		617			95,399		(6,182		)
Investments, at fair value	131,343			83,580			—			(127,427		)	(277		)	—		(21,010		)	66,209		19,675
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	452			(226		)	—			—			—			—		—			226		226
Net derivatives (2)	(1,586		)	(1,020		)	(1,432		)	11,618			24			416		(857		)	7,163		551
Loans	10,732			109			(3,012		)	—			—			—		2,542			10,371		(110		)
Other secured financings	56,060			—			—			—			(3,914		)	—		(51,572		)	574		—
Embedded conversion option	725			(611		)	—			—			—			—		—			114		611

(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.

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(Unaudited)

Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2015

During the three months ended August 31, 2015, transfers of assets of $73.4 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• CDOs and CLOs of $42.8 million, non-agency RMBS of $17.8 million and CMBS of $3.7 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $4.1 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $5.0 million due to a lack of observable market transactions.

During the three months ended August 31, 2015, transfers of assets of $91.4 million from Level 3 to Level 2 are primarily attributed to:

• Non-agency RMBS of $18.5 million and CMBS of $5.2 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $39.9 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $21.0 million due to an increase in observable market transactions;

• Loans and other receivables of $3.5 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $1.9 million due to an increase in observable market transactions.

There were $2.5 million transfers of loan liabilities from Level 2 to Level 3 due to a decrease in observable inputs in the valuation and $51.6 million transfers of other secured financings from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $64.9 million and net gains on Level 3 liabilities were $1.7 million for the three months ended August 31, 2015. Net gains on Level 3 assets were primarily due to increased valuations of corporate equity securities and investments at fair value, partially offset by a decrease in valuation of CDOs and CLOs, corporate debt securities, RMBS and loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain derivative instruments.

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(Unaudited)

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2015 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,964		$	10,247		$	22,631		$	(5,176	)	$	—		$	—	$	(10,164	)	$	38,502	$	10,210
Corporate debt securities	22,766			(5,425		)	83,613			(88,711		)	(1		)	—		12,089			24,331		(5,797		)
CDOs and CLOs	124,650			(28,999		)	63,038			(47,570		)	(20,481		)	—		(9,588		)	81,050		(22,654		)
RMBS	82,557			(6,776		)	30,865			(25,222		)	(358		)	—		5,356			86,422		(2,507		)
CMBS	26,655			(2,053		)	3,366			(9,973		)	(6,981		)	—		4,133			15,147		(1,851		)
Other asset-backed securities	2,294			666			69,892			(40,000		)	(1,438		)	—		1,182			32,596		607
Loans and other receivables	97,258			(7,331		)	115,370			(40,978		)	(82,100		)	—		13,180			95,399		(8,850		)
Investments, at fair value	53,224			88,195			—			(124,854		)	(3,818		)	—		53,462			66,209		24,372
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	223			(1		)	(6,677		)	6,804			—			—		(123		)	226		(226		)
Net derivatives (2)	(4,638		)	3,022			(4,527		)	11,340			(30		)	1,901		95			7,163		(5,211		)
Loans	14,450			(102		)	(3,487		)	—			—			—		(490		)	10,371		102
Other secured financings	30,825			—			—			—			(15,674		)	36,995		(51,572		)	574		—
Embedded conversion option	693			(579		)	—			—			—			—		—			114		579

(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.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2015

During the nine months ended August 31, 2015, transfers of assets of $157.7 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• CDOs and CLOs of $16.0 million, non-agency RMBS of $21.3 million, CMBS of $9.8 million and other asset-backed securities of $1.4 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $19.2 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $12.2 million, corporate equity securities of $1.6 million and investments at fair value of $76.2 million due to a lack of observable market transactions.

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(Unaudited)

During the nine months ended August 31, 2015, transfers of assets of $88.1 million from Level 3 to Level 2 are primarily attributed to:

• Non-agency RMBS of $15.9 million and CMBS of $5.6 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $25.6 million and loans and other receivables of $6.1 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $22.7 million due to an increase in observable market transactions;

• Corporate equity securities of $11.8 million due to an increase in observable market transactions.

There were $51.6 million transfers of other secured financings from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $48.5 million and net losses on Level 3 liabilities were $2.3 million for the nine months ended August 31, 2015. Net gains on Level 3 assets were primarily due to increased valuations of certain investments at fair value and corporate equity securities, partially offset by decreased valuations of CDOs and CLOs, loans and other receivables, and residential and CMBS, and corporate debt securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain derivative instruments.

Quantitative Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements at August 31, 2016 and November 30, 2015

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.

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(Unaudited)

August 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	22,195
Non-exchange traded securities			Market approach	EBITDA (a) multiple	5.1 - 16.3	12.1
				Underlying stock price	$3-$75	$	15
			Comparable pricing	Discount factor	60%	—
				Underlying stock price	$218	—
			Present value	Average silver production (tons per day)	783	—
Corporate debt securities	$	35,007
			Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Price	$30-$100	$	65
CDOs and CLOs	$	32,832	Discounted cash flows	Constant prepayment rate	0%-20%	17		%
				Constant default rate	2%-7%	3		%
				Loss severity	25%-75%	40		%
				Yield	3%-35%	15		%
Municipal securities	$	27,257	Scenario analysis	Price	$4	—
RMBS	$	46,881	Discounted cash flows	Constant prepayment rate	0%-25%	6		%
				Constant default rate	2%-50%	4		%
				Loss severity	10%-100%	55		%
				Yield	3%-9%	5		%
CMBS	$	24,593	Discounted cash flows	Yield	6%-12%	9		%
				Cumulative loss rate	1%-70%	25		%
Other asset-backed securities	$	61,112	Discounted cash flows	Constant prepayment rate	0%-55%	24		%
				Constant default rate	0%-9%	6		%
				Loss severity	0%-100%	85		%
				Yield	3%-15%	12		%
			Market approach	Price	$33-$70,000,000	$	39,000,000
Loans and other receivables	$	52,216	Market approach	EBITDA (a) multiple	3.6	—
				Discount rate/yield	2%-3%	3		%
			Comparable pricing	Comparable loan price	$98	—
			Present value	Average silver production (tons per day)	783	—
			Scenario analysis	Estimated recovery percentage	6%-82%	44		%
Derivatives	$	9,560
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Interest rate swaps				Credit spread	800 bps	—
Investments at fair value
Private equity securities	$	30,724	Market approach	Transaction level	$250	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	20,607
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable loan price	$98	—
			Market approach	Discount rate/yield	3%-56%	54		%
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	14%	—

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

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(Unaudited)

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	—
CDOs and CLOs	$	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		%
RMBS	$	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		%
CMBS	$	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	—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The fair values of certain Level 3 assets and liabilities that were determined based on third-party pricing information, unadjusted past transaction prices, reported net asset value or a percentage of the reported enterprise fair value are excluded from the above tables. At August 31, 2016 and November 30, 2015, asset exclusions consisted of $91.8 million and $156.2 million, respectively, primarily comprised of investments at fair value, private equity securities, CDOs and CLOs, sovereign obligations and loans and other receivables. At August 31, 2016 and November 30, 2015, liability exclusions consisted of $1.7 million and $0.6 million, respectively, of other secured financings, loans and other receivables and corporate debt and equity securities.

Sensitivity of Fair Values to Changes in Significant Unobservable Inputs

For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs (if any) are described below:

• Loans and other receivables, unfunded commitments, corporate equity securities, and total return swaps using comparable pricing valuation techniques. A significant increase (decrease) in the comparable loan and underlying stock price in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount factor would result in a significantly lower (higher) fair value measurement.

• Corporate debt securities using a convertible bond model. A significant increase (decrease) in the bond discount rate/yield would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement.

• Non-exchange traded securities, corporate debt securities, loans and other receivables, unfunded commitments, commodity forwards, credit default swaps, interest rate swaps, other asset backed securities and private equity securities using a market approach valuation technique. A significant increase (decrease) in the EBITDA or other multiples in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount rate/yield of a corporate debt security, loan and other receivable or certain derivatives would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the transaction level of a private equity security, non-exchange traded security or corporate debt security would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the enterprise value of a private equity security would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the underlying stock price of the non-exchange traded securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the credit spread of certain derivatives would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the price of the corporate debt securities or other asset backed securities would result in a significantly higher (lower) fair value measurement.

• Loans and other receivables and municipal securities using scenario analysis. A significant increase (decrease) in the possible recovery rates of the cash flow outcomes underlying the investment would result in a significantly higher (lower) fair value measurement for the financial instrument. A significant increase (decrease) in the price of the municipal securities would result in a significantly higher (lower) fair value measurement for the financial instrument.

• CDOs and CLOs, RMBS and CMBS and other asset-backed securities, variable funding notes and unfunded commitments using a discounted cash flow valuation technique. A significant increase (decrease) in isolation in the constant default rate, and loss severities would result in a significantly lower (higher) fair value measurement. The impact of changes in the constant prepayment rate would have differing impacts depending on the capital structure of the security. A significant increase (decrease) in the loan or bond yield would result in a significantly lower (higher) fair value measurement.

• Certain other asset-backed securities using an over-collateralization model. A significant increase (decrease) in the over-collateralization percentage would result in a significantly higher (lower) fair value measurement.

• Derivative equity options using an option model. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement.

• Derivative equity options using a default rate model. A significant increase (decrease) in default probability would result in a significantly lower (higher) fair value measurement.

• Non-exchange traded securities and loans and other receivables using a present value model. A significant increase (decrease) in average silver production would result in higher (lower) fair value measurement.

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(Unaudited)

Fair Value Option Election

We have elected the fair value option for all loans and loan commitments made by our capital markets businesses. These loans and loan commitments include loans entered into by our Investment Banking division in connection with client bridge financing and loan syndications, loans purchased by our leveraged credit trading desk as part of its bank loan trading activities and mortgage and consumer loan commitments, purchases and fundings in connection with mortgage- and other asset-backed securitization activities. Loans and loan commitments originated or purchased by our leveraged credit and mortgage-backed businesses are managed on a fair value basis. Loans are included in Financial instruments owned and loan commitments are included in Financial instruments owned and Financial instruments sold, not yet purchased on the Consolidated Statements of Financial Condition. The fair value option election is not applied to loans made to affiliate entities as such loans are entered into as part of ongoing, strategic business ventures. Loans to affiliate entities are included within Loans to and investments in related parties on the Consolidated Statements of Financial Condition and are accounted for on an amortized cost basis. We have also elected the fair value option for certain of our structured notes, which are managed by our capital markets businesses and are included in Long-term debt on the Consolidated Statements of Financial Condition. We have elected the fair value option for certain financial instruments held by subsidiaries as the investments are risk managed by us on a fair value basis. The fair value option has also been elected for certain secured financings that arise in connection with our securitization activities and other structured financings. Other secured financings, Receivables – Brokers, dealers and clearing organizations, Receivables – Customers, Receivables – Fees, interest and other, Payables – Brokers, dealers and clearing organizations and Payables – Customers, are accounted for at cost plus accrued interest rather than at fair value; however, the recorded amounts approximate fair value due to their liquid or short-term nature.

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 August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Financial Instruments Owned:
Loans and other receivables	$	(24,874	)	$	(13,566	)	$	(48,658	)	$	(25,686	)
Financial Instruments Sold:
Loans	$	212		$	38		$	229		$	112
Loan commitments	4,769			(51		)	2,196			(1,673		)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(4,093	)	$	—		$	(7,848	)	$	—
Other changes in fair value (2)	3,225			—			13,530			—

(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 for the three and nine months ended August 31, 2016 include $4.5 million and $15.2 million, respectively, included within Principal transactions revenues, and $1.3 million and $1.7 million, respectively, 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).

	August 31, 2016		November 30, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	843,458	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	223,581		54,652
Long-term debt	7,485		—

(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 loans and other receivables greater than 90 days past due of $59.7 million and $29.7 million at August 31, 2016 and November 30, 2015, respectively.

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(Unaudited)

The aggregate fair value of loans and other receivables on nonaccrual status and/or greater than 90 days past due was $55.1 million and $307.5 million at August 31, 2016 and November 30, 2015, respectively, which includes loans and other receivables greater than 90 days past due of $19.1 million and $11.3 million at August 31, 2016 and November 30, 2015, respectively.

Note 5. Derivative Financial Instruments

Off-Balance Sheet Risk

We have contractual commitments arising in the ordinary course of business for securities loaned or purchased under agreements to resell, repurchase agreements, future purchases and sales of foreign currencies, securities transactions on a when-issued basis and underwriting. Each of these financial instruments and activities contains varying degrees of off-balance sheet risk whereby the fair values of the securities underlying the financial instruments may be in excess of, or less than, the contract amount. The settlement of these transactions is not expected to have a material effect upon our consolidated financial statements.

Derivative Financial Instruments

Our derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Financial instruments owned and Financial instruments sold, not yet purchased, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. Net realized and unrealized gains and losses are recognized in Principal transaction revenues in the Consolidated Statements of Earnings on a trade date basis and as a component of cash flows from operating activities in the Consolidated Statements of Cash Flows. Acting in a trading capacity, we may enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks resulting from our trading activities. (See Note 4, Fair Value Disclosures, and Note 17, 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 International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements or similar agreements 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. In addition, we enter into customized bilateral trading agreements and other customer agreements that provide for the netting of receivables and payables with a given counterparty as a single net obligation.

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.

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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 derivative contracts.

The following tables present the fair value and related number of derivative contracts at August 31, 2016 and November 30, 2015 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	2,286		26,232	$	372		33,205
Cleared OTC	4,282,590			3,450	4,218,171			3,307
Bilateral OTC	588,640			2,046	558,296			1,234
Foreign exchange contracts:
Exchange-traded	—			358	—			470
Bilateral OTC	428,868			9,639	447,085			9,567
Equity contracts:
Exchange-traded	799,932			3,463,584	960,272			2,999,406
Bilateral OTC	93,547			1,086	117,374			1,265
Commodity contracts:
Exchange-traded	—			1,624	—			888
Credit contracts:
Cleared OTC	1,747			10	8,539			18
Bilateral OTC	20,846			152	32,043			189
Total gross derivative assets/ liabilities:
Exchange-traded	802,218				960,644
Cleared OTC	4,284,337				4,226,710
Bilateral OTC	1,131,901				1,154,798
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(779,958		)		(779,958		)
Cleared OTC	(4,233,022		)		(4,212,004		)
Bilateral OTC	(874,894		)		(978,067		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	330,582			$	372,123

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

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	November 30, 2015 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	998		52,605	$	364		70,672
Cleared OTC	2,213,730			2,742	2,202,836			2,869
Bilateral OTC	695,365			1,401	646,758			1,363
Foreign exchange contracts:
Exchange-traded	—			441	—			112
Bilateral OTC (4)	453,202			7,646	466,021			7,264
Equity contracts:
Exchange-traded	955,287			3,054,315	1,004,699			2,943,657
Bilateral OTC	61,004			1,039	81,085			1,070
Commodity contracts:
Exchange-traded	—			1,726	—			1,684
Bilateral OTC (4)	19,342			29	4,628			28
Credit contracts:
Cleared OTC	621			39	841			44
Bilateral OTC	16,977			100	59,314			135
Total gross derivative assets/liabilities:
Exchange-traded	956,285				1,005,063
Cleared OTC	2,214,351				2,203,677
Bilateral OTC	1,245,890				1,257,806
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(938,482		)		(938,482		)
Cleared OTC	(2,184,438		)		(2,184,438		)
Bilateral OTC	(1,042,526		)		(1,135,078		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	251,080			$	208,548

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

(4) Bilateral OTC commodity contracts increased in assets by a fair value of $19.3 million and by 29 contracts and in liabilities by a fair value of $4.6 million and by 28 contracts with corresponding decreases in bilateral OTC foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of bilateral OTC contracts remained unchanged.

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The following table presents unrealized and realized gains (losses) on derivative contracts:

	Three Months Ended						Nine Months Ended
Gains (Losses)	August 31, 2016			August 31, 2015			August 31, 2016			August 31, 2015
Interest rate contracts	$	(16,631	)	$	25,308		$	(96,715	)	$	580
Foreign exchange contracts	7,886			6,893			14,000			30,417
Equity contracts	(185,264		)	68,649			(509,476		)	28,008
Commodity contracts	4,089			(4,757		)	1,899			15,480
Credit contracts	4,024			(4,375		)	1,441			(612		)
Total	$	(185,896	)	$	91,718		$	(588,851	)	$	73,873

OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at August 31, 2016 (in thousands):

	OTC Derivative Assets (1) (2) (3)
	0 – 12 Months		1 – 5 Years		Greater Than  5 Years		Cross-Maturity Netting (4)			Total
Equity swaps and options	$	27,781	$	5,370	$	—	$	—		$	33,151
Credit default swaps	—		7,948		230		(177		)	8,001
Total return swaps	27,796		874		—		(613		)	28,057
Foreign currency forwards, swaps and options	84,564		29,937		—		(7,150		)	107,351
Interest rate swaps, options and forwards	42,055		229,950		88,205		(97,075		)	263,135
Total	$	182,196	$	274,079	$	88,435	$	(105,015	)	439,695
Cross product counterparty netting										(754		)
Total OTC derivative assets included in Financial instruments owned										$	438,941

(1) At August 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.6 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 on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral received was $134.0 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
Equity swaps and options	$	13,408	$	23,617	$	—	$	—		$	37,025
Credit default swaps	28		12,639		1,672		(177		)	14,162
Total return swaps	26,824		16,967		—		(613		)	43,178
Foreign currency forwards, swaps and options	112,699		20,024		—		(7,150		)	125,573
Fixed income forwards	5,044		—		—		—			5,044
Interest rate swaps, options and forwards	23,709		119,675		124,541		(97,075		)	170,850
Total	$	181,712	$	192,922	$	126,213	$	(105,015	)	395,832
Cross product counterparty netting										(754		)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased										$	395,078

(1) At August 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $193.2 million, which are not included in this table.

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(2) OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral pledged was $216.1 million.

(3) Derivative fair values include counterparty netting within product category.

(4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.

At August 31, 2016, the counterparty credit quality with respect to the fair value of our OTC derivatives assets was as follows (in thousands):

Counterparty credit quality (1):
A- or higher	$	214,650
BBB- to BBB+	77,419
BB+ or lower	64,975
Unrated	81,897
Total	$	438,941

(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.

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 aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position at August 31, 2016 and November 30, 2015 is $85.9 million and $114.5 million, respectively, for which we have posted collateral of $65.4 million and $97.2 million, respectively, in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on August 31, 2016 and November 30, 2015, we would have been required to post an additional $22.6 million and $19.7 million, respectively, of collateral to our counterparties.

Note 6. Collateralized Transactions

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 within Financial instruments owned and noted parenthetically as Securities pledged on our Consolidated Statements of Financial Condition.

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The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged (in thousands):

	August 31, 2016
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,341,506	$	174,077	$	2,515,583
Corporate debt securities	578,451		1,701,732		2,280,183
Mortgage- and asset-backed securities	—		2,358,531		2,358,531
U.S. government and federal agency securities	10,419		8,759,548		8,769,967
Municipal securities	—		420,957		420,957
Sovereign obligations	—		2,120,421		2,120,421
Loans and other receivables	—		478,693		478,693
Total	$	2,930,376	$	16,013,959	$	18,944,335

	November 30, 2015
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,195,912	$	275,880	$	2,471,792
Corporate debt securities	748,405		1,752,222		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,006,081		12,041,064
Municipal securities	—		357,350		357,350
Sovereign obligations	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	2,979,300	$	20,195,982	$	23,175,282

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by remaining contractual maturity (in thousands):

	August 31, 2016
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,629,631	$	85,895	$	794,824	$	420,026	$	2,930,376
Repurchase agreements	7,832,265		3,952,072		2,763,570		1,466,052		16,013,959
Total	$	9,461,896	$	4,037,967	$	3,558,394	$	1,886,078	$	18,944,335

	November 30, 2015
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	483,624	$	2,979,300
Repurchase agreements	7,850,791		5,218,059		5,291,729		1,835,403		20,195,982
Total	$	9,373,266	$	5,218,059	$	6,264,930	$	2,319,027	$	23,175,282

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We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract or custom to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At August 31, 2016 and November 30, 2015, the approximate fair value of securities received as collateral by us that may be sold or repledged was $26.6 billion and $26.2 billion, respectively. At August 31, 2016 and November 30, 2015, 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). 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. In addition, we enter into customized bilateral trading agreements and other customer agreements that provide for the netting of receivables and payables with a given counterparty as a single net obligation.

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. 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 repurchase and/or securities lending transactions.

The following tables provide information regarding repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016
	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	$	8,460,736	$	—		$	8,460,736	$	(831,732	)	$	(1,063,399	)	$	6,565,605
Reverse repurchase agreements	11,921,719		(7,883,525		)	4,038,194		(133,611		)	(3,878,141		)	26,442
Liabilities:
Securities lending arrangements	$	2,930,376	$	—		$	2,930,376	$	(831,732	)	$	(2,038,342	)	$	60,302
Repurchase agreements	16,013,959		(7,883,525		)	8,130,434		(133,611		)	(6,707,666		)	1,289,157

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	November 30, 2015
	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	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	14,048,860		(10,191,554		)	3,857,306		(83,452		)	(3,745,215		)	28,639
Liabilities:
Securities lending arrangements	$	2,979,300	$	—		$	2,979,300	$	(478,991	)	$	(2,464,395	)	$	35,914
Repurchase agreements	20,195,982		(10,191,554		)	10,004,428		(83,452		)	(8,103,468		)	1,817,508

(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 counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet 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 $6,520.3 million of securities borrowing arrangements, for which we have received securities collateral of $6,315.7 million, and $1,278.2 million of repurchase agreements, for which we have pledged securities collateral of $1,326.2 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

(4) Amounts include $5,796.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,613.3 million, and $1,807.2 million of repurchase agreements, for which we have pledged securities collateral of $1,875.3 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations

Cash and securities deposited with clearing and depository organizations and segregated in accordance with regulatory regulations totaled $1,026.9 million and $751.1 million at August 31, 2016 and November 30, 2015, respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies 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.

Note 7. Securitization Activities

We engage in securitization activities related to corporate loans, commercial 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 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 the Consolidated Statement 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- and other-asset backed securities or CLOs), which are included within Financial instruments owned and are generally initially categorized as Level 2 within the fair value hierarchy. We apply fair value accounting to the securities.

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The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Transferred assets	$	1,390.7	$	853.9	$	4,523.5	$	3,931.5
Proceeds on new securitizations	1,394.0		888.1		4,541.3		3,979.6
Cash flows received on retained interests	6.3		10.7		24.9		28.6

We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at August 31, 2016 and November 30, 2015.

The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions):

	August 31, 2016
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	16,661.6	$	32.6
U.S. government agency CMBS	4,027.5		22.7
CLOs	3,747.5		55.9
Consumer and other loans	737.3		31.2

	November 30, 2015
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	10,901.9	$	203.6
U.S. government agency CMBS	2,313.4		87.2
CLOs	4,538.4		51.5
Consumer and other loans	655.0		31.0

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 transaction 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 within total Financial instruments owned on 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, although the securities are included in Financial instruments owned. 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- and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 8, Variable Interest Entities.

Note 8. 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,

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• Retained interests held as a result of securitization activities, including the resecuritization of mortgage- and other asset-backed securities and the securitization of commercial mortgage, corporate and consumer loans,

• Acting as placement agent and/or underwriter in connection with client-sponsored securitizations,

• Financing of agency and non-agency mortgage- and other asset-backed securities,

• Warehousing funding arrangements for client-sponsored consumer loan vehicles and CLOs through participation certificates and revolving loan and note commitments, and

• Loans to, investments in and fees from various investment vehicles.

We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires significant judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the “power” criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the “power” criteria of the primary beneficiary.

We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires significant judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests.

Consolidated VIEs

The following table presents information about our consolidated VIEs at August 31, 2016 and November 30, 2015 (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.

	August 31, 2016				November 30, 2015
	Securitization Vehicles		Other		Securitization Vehicles		Other
Cash	$	9.7	$	0.7	$	0.5	$	1.5
Financial instruments owned	90.6		0.6		68.3		0.6
Securities purchased under agreement to resell (1)	604.0		—		717.3		—
Fees, interest and other receivables	0.5		—		0.3		0.2
Total assets	$	704.8	$	1.3	$	786.4	$	2.3
Other secured financings (2)	$	692.8	$	—	$	785.0	$	—
Other liabilities	11.3		0.2		1.4		0.3
Total liabilities	$	704.1	$	0.2	$	786.4	$	0.3

(1) Securities purchased under agreement to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation.

(2) Approximately $86.5 million and $22.1 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at August 31, 2016 and November 30, 2015, respectively.

Securitization Vehicles. We are the primary beneficiary of securitization vehicles associated with our financing of consumer and small business loans. In the creation of the securitization vehicles, we were involved in the decisions made during the establishment and design of the entities and hold variable interests consisting of the securities retained that could potentially be significant. The assets of the VIEs consist of the small business loans and term loans backed by consumer installment receivables, which are available for the benefit of the vehicles’ beneficial interest holders. The creditors of the VIEs do not have recourse to our general credit and the assets of the VIEs are not available to satisfy any other debt.

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We are also the primary beneficiary of mortgage-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans and mortgage-backed securities pursuant to the terms of a master repurchase agreement. We manage the assets within these vehicles. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle’s debt holders. The creditors of these VIEs do not have recourse to our general credit and each such VIE's assets are not available to satisfy any other debt.

Other. We are the primary beneficiary of certain investment vehicles set up for the benefit of our employees. We manage and invest alongside our employees in these vehicles. The assets of these VIEs consist of private equity securities, and are available for the benefit of the entities’ equity holders. Our variable interests in these vehicles consist of equity securities. The creditors of these VIEs do not have recourse to our general credit and each such VIE's assets are not available to satisfy any other debt.

Nonconsolidated VIEs

The following tables present information about our variable interests in nonconsolidated VIEs (in millions):

	August 31, 2016
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.3	$	7.6	$	326.7	$	4,879.1
Consumer loan vehicles	170.0		—		607.2		1,231.4
Related party private equity vehicles	38.3		—		64.2		157.5
Other private investment vehicles	57.4		—		58.9		3,977.7
Total	$	339.0	$	7.6	$	1,057.0	$	10,245.7

	November 30, 2015
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.6	$	0.2	$	458.1	$	6,368.7
Consumer loan vehicles	188.3		—		845.8		1,133.0
Related party private equity vehicles	39.3		—		65.8		168.2
Other private investment vehicles	51.3		—		52.8		4,312.0
Total	$	352.5	$	0.2	$	1,422.5	$	11,981.9

Our maximum exposure to loss often differs from the carrying value of the variable interests. The maximum exposure to loss is dependent on the nature of 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 and sub-investment grade and senior secured U.S. loans. We underwrite securities issued in CLO transactions on behalf of sponsors and provide advisory services to the sponsors. We may also sell corporate loans to the CLOs. Our variable interests in connection with CLOs where we have been involved in providing underwriting and/or advisory services consist of the following:

• Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs,

• Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests,

• Trading positions in securities issued in a CLO transaction,

• Investments in variable funding notes issued by CLOs,

• A guarantee to a CLO managed by Jefferies Finance, LLC ("Jefferies Finance"), whereby we guarantee certain of the obligations of Jefferies Finance to the CLO.

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In addition, we own variable interests in CLOs previously managed by us. Our variable interests consist of debt securities and a right to a portion of the CLO's management and incentive fees. Our exposure to loss from these CLOs is limited to our investments in the debt securities held. Management and incentive fees are accrued as the amounts become realizable. These CLOs represent interests in assets consisting primarily of senior secured loans, unsecured loans and high yield bonds.

Consumer Loan Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities and forward purchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans. In addition, 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 have committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, we have committed to invest equity 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. Our total equity commitment in the JCP Entities is $148.1 million, of which $125.1 million and $124.6 million was funded at August 31, 2016 and November 30, 2015, respectively. The carrying value of our equity investments in the JCP Entities was $38.3 million and $39.3 million at August 31, 2016 and November 30, 2015, 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.

We have also provided a guarantee of a portion of Energy Partners I, LP's obligations under a credit agreement. Energy Partners I, LP, is a private equity fund owned and managed by our employees. The maximum exposure to loss of the guarantee was $3.0 million at August 31, 2016 and November 30, 2015. Energy Partners I, LP, has assets consisting primarily of debt and equity investments.

Other Private Investment Vehicles. As of August 31, 2016 and November 30, 2015, we had equity commitments to invest $75.8 million and $50.8 million, respectively, in various other private investment vehicles, of which $74.3 million and $49.3 million was funded, respectively. The carrying value of our equity investments was $57.4 million and $51.3 million at August 31, 2016 and November 30, 2015, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These private investment vehicles have assets primarily consisting of private and public equity investments, debt instruments and various oil and gas assets.

Mortgage- and Other Asset-Backed Securitization Vehicles. In connection with our secondary trading and market making activities, we buy and sell agency and nonagency mortgage-backed securities and other asset-backed securities, which are issued by third party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, auto loans and student loans. These securities are accounted for at fair value and included in Financial instruments owned on 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 (FNMA ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") or GNMA ("Ginnie Mae")) or nonagency sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and auto loans. We do not consolidate agency sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of nonagency-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.

We transfer existing securities, typically mortgage-backed securities, into resecuritization vehicles. These transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests occur in connection with both agency and nonagency sponsored VIEs. Our consolidation analysis is largely dependent on our role and interest in the resecuritization trusts. Most resecuritizations in which we are involved are in connection with investors seeking securities with specific risk and return characteristics. As such, we have concluded that the decision-making power is shared between us and the investor(s), considering the joint efforts involved in structuring the trust and selecting the underlying assets as well as the level of security interests the investor(s) hold in the SPE; therefore, we do not consolidate the resecuritization VIEs.

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(Unaudited)

At August 31, 2016 and November 30, 2015, we held $1,341.1 million and $3,359.1 million of agency mortgage-backed securities, respectively, and $515.0 million and $630.5 million of nonagency mortgage and other asset-backed securities, respectively, as a result of our secondary trading and market making activities, underwriting, placement and structuring activities and resecuritization activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. Mortgage- and other asset-backed securitization vehicles discussed within this section are not included in the above table containing information about our variable interests in nonconsolidated VIEs.

Note 9. Investments

We have investments in Jefferies Finance and Jefferies LoanCore LLC (“Jefferies LoanCore”). Our investments in Jefferies Finance and Jefferies LoanCore are accounted for under the equity method and are included in Loans to and investments in related parties on the Consolidated Statements of Financial Condition with our share of the investees’ earnings recognized in Other revenues in the Consolidated Statements of Earnings. We have limited partnership interests of 11% and 50% in Jefferies Capital Partners V L.P. and the SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee.

Jefferies Finance

On October 7, 2004, we entered into an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”) and Babson Capital Management LLC to form Jefferies Finance, a joint venture entity. Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies. Jefferies Finance may also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market.

At August 31, 2016, we and MassMutual each have equity commitments to Jefferies Finance of $600.0 million for a combined total commitment of $1.2 billion. At August 31, 2016, we have funded $497.4 million of our $600.0 million commitment, leaving $102.6 million unfunded. The investment commitment is scheduled to expire on March 1, 2017 with automatic one year extensions absent a 60 day 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. The Secured Revolving Credit Facility 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 is a committed amount of $500.0 million at August 31, 2016. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2017 with automatic one year extensions absent a 60 day termination notice by either party. At August 31, 2016 and November 30, 2015, we have funded $0.0 and $19.3 million, respectively, of each of our $250.0 million and $250.0 million commitments, respectively.

The following is a summary of selected financial information for Jefferies Finance (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	7,344.9	$	7,292.1
Total liabilities	6,406.2		6,297.3
Total equity	938.7		994.8
Our total equity balance	469.3		497.4

The results of Jefferies Finance were net earnings of $22.8 million and a net loss of $55.0 million for the three and nine months ended August 31, 2016, respectively, and net earnings of $47.8 million and $109.8 million for the three and nine months ended August 31, 2015, respectively.

We engage in debt capital markets transactions with Jefferies Finance related to the originations of loans by Jefferies Finance. In connection with such transactions, we earned fees of $19.0 million and $42.1 million during the three and nine months ended August 31, 2016, respectively, and $53.3 million and $108.8 million during the three and nine months ended August 31, 2015, respectively, recognized in Investment banking revenues in the Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $1.6 million during the nine months ended August 31, 2016, and $1.5 million and $3.1 million during the three and nine months ended August 31, 2015, respectively, which are recognized as Business development expenses in the Consolidated Statements of Earnings.

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(Unaudited)

We acted as placement agent in connection with several CLOs managed by Jefferies Finance for which we recognized fees of $1.3 million for both the three and nine months ended August 31, 2016 and $3.1 million during the nine months ended August 31, 2015, which are included in Investment banking revenues on the Consolidated Statement of Earnings. At August 31, 2016 and November 30, 2015, we held securities issued by CLOs managed by Jefferies Finance, which are included within Financial instruments owned, and provided a guarantee whereby we are required to make certain payments to a CLO in the event that Jefferies Finance is unable to meet its obligations to the CLO. Additionally, we have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO.

We acted as underwriter in connection with senior notes issued by Jefferies Finance, for which we recognized underwriting fees of $1.3 million during the nine months ended August 31, 2015.

Under a service agreement, we charged Jefferies Finance $7.2 million and $35.8 million for services provided during the three and nine months ended August 31, 2016, respectively, and $8.4 million and $43.3 million during the three and nine months ended August 31, 2015, respectively. Receivables from Jefferies Finance, included within Other assets on the Consolidated Statements of Financial Condition, were $0.0 million and $7.8 million at August 31, 2016 and November 30, 2015, respectively.

Jefferies LoanCore

On February 23, 2011, we entered into a joint venture agreement with the Government of Singapore Investment Corporation ("GIC") and LoanCore, LLC and formed Jefferies LoanCore, a commercial real estate finance company. In March 2016, the Canada Pension Plan Investment Board acquired a 24% equity interest in Jefferies LoanCore through a direct acquisition from the GIC. Jefferies LoanCore originates and purchases commercial real estate loans throughout the U.S. with the support of the investment banking and securitization capabilities of Jefferies and the real estate and mortgage investment expertise of the GIC and LoanCore, LLC. During the second quarter of 2016, Jefferies LoanCore aggregate equity commitments were reduced from $600.0 million to $400.0 million. At August 31, 2016 and November 30, 2015, we had funded $89.6 million and $207.4 million, respectively, of each of our $194.0 million and $291.0 million equity commitments, respectively, and have a 48.5% voting interest in Jefferies LoanCore.

The following is a summary of selected financial information for Jefferies LoanCore (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	1,610.4	$	2,069.1
Total liabilities	1,264.6		1,469.8
Total equity	345.8		599.3
Our total equity balance	167.7		290.7

The net earnings of Jefferies LoanCore were $13.4 million and $36.1 million for the three and nine months ended August 31, 2016, respectively, and $25.1 million and $61.6 million for the three and nine months ended August 31, 2015, respectively.

Under a service agreement, we charged Jefferies LoanCore $47,000 and $142,000 for the three and nine months ended August 31, 2016, respectively, and $47,000 and $143,000 for the three and nine months ended August 31, 2015, respectively. Receivables from Jefferies LoanCore, included within Other assets on the Consolidated Statements of Financial Condition, were $16,000 and $16,000 at August 31, 2016 and November 30, 2015, respectively.

In connection with the securitization of commercial real estate loans originated by Jefferies LoanCore, we earned placement fees of $1.0 million and $1.6 million during the three and nine months ended August 31, 2015, respectively.

JCP Fund V

The amount of our investments in JCP Fund V included within Investments in managed funds on the Consolidated Statements of Financial Condition was $28.8 million and $29.7 million at August 31, 2016 and November 30, 2015, 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). The results from these investments were a gain of $5.8 million for the three months ended August 31, 2016, a loss of $1.4 million for the nine months ended August 31, 2016 and losses of $3.4 million and $26.3 million for the three and nine months August 31, 2015, respectively, and are included in Asset management fees and investment income (loss) from managed funds in the Consolidated Statements of Earnings.

At August 31, 2016 and November 30, 2015, we were committed to invest equity of up to $85.0 million in JCP Fund V. At August 31, 2016, our unfunded commitment relating to JCP Fund V was $11.3 million.

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(Unaudited)

The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we own effectively 35.2% of the combined equity interests (in thousands):

												June 30,  2016 (1)		December 31, 2015 (1)
Total assets												$	81,855	$	76,555
Total liabilities												68		99
Total partners' capital												81,787		76,456
	Three Months Ended
	June 30, 2016 (1)		March 31, 2016 (1)			December 31, 2015 (1)			June 30, 2015 (1)			March 31, 2015 (1)		December 31, 2014 (1)
Net increase (decrease) in net assets resulting from operations	$	17,137	$	(11,806	)	$	(7,886	)	$	(8,875	)	$	1,478	$	(65,700	)

(1) Financial information for JCP Fund V within our financial position and results of operations at August 31, 2016 and November 30, 2015 and for the three and nine months ended August 31, 2016 and August 31, 2015 is included based on the presented periods.

Note 10. Goodwill and Other Intangible Assets

Goodwill

Goodwill attributed to our reportable segments are as follows (in thousands):

	August 31, 2016		November 30, 2015
Capital Markets	$	1,642,293	$	1,653,588
Asset Management	3,000		3,000
Total goodwill	$	1,645,293	$	1,656,588

The following table is a summary of the changes to goodwill for the nine months ended August 31, 2016 (in thousands):

Balance at November 30, 2015	$	1,656,588
Translation adjustments	(11,295		)
Balance at August 31, 2016	$	1,645,293

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 and consists of two steps. In the first step, 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 a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit's goodwill.

Allocated equity plus allocated goodwill and intangible assets are used as a proxy for the carrying amount of each reporting unit. The amount of 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.

Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using a market valuation method that incorporate price-to-earnings and price-to-book multiples of comparable public companies. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2016.

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(Unaudited)

Our annual goodwill impairment testing at August 1, 2016 did not indicate any goodwill impairment in any of our reporting units. Substantially all of our goodwill is allocated to our Investment Banking, Equities, and Fixed Income reporting units for which the results of our assessment indicated that these reporting units had a fair value in excess of their carrying amounts based on current projections. At August 31, 2016, goodwill allocated to these reporting units is $1,642.3 million of total goodwill of $1,645.3 million. For the remaining less significant reporting unit, we have used a net asset approach for valuation and the fair value of each of the reporting units is equal to its book value.

Intangible Assets

Intangible assets are included in Other assets in the Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, dispositions, accumulated amortization, net carrying amount and weighted average amortization period of identifiable intangible assets at August 31, 2016 and November 30, 2015 (dollars in thousands):

	August 31, 2016													Weighted average remaining lives (years)
	Gross cost		Disposals (1)			Impairment losses			Accumulated amortization			Net carrying amount
Customer relationships	$	126,081	$	—		$	—		$	(40,453	)	$	85,628	12.3
Trade name	128,845		—			—			(12,884		)	115,961		31.5
Exchange and clearing organization membership interests and registrations	11,860		(1,379		)	(1,284		)	—			9,197		N/A
Total	$	266,786	$	(1,379	)	$	(1,284	)	$	(53,337	)	$	210,786

(1) Activity is related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business.

	November 30, 2015							Weighted average remaining lives (years)
	Gross cost		Accumulated amortization			Net carrying amount
Customer relationships	$	127,667	$	(34,754	)	$	92,913	12.9
Trade name	131,288		(10,315		)	120,973		32.3
Exchange and clearing organization membership interests and registrations	11,897		—			11,897		N/A
Total	$	270,852	$	(45,069	)	$	225,783

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, 2016. We elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. A qualitative assessment was performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessment, we recognized an impairment loss of $1.3 million on certain exchange membership interests and registrations. With regard to our qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, we 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 $3.0 million and $9.1 million for the three and nine months ended August 31, 2016, respectively, and $3.1 million and $9.2 million for the three and nine months ended August 31, 2015, respectively. These expenses are included in Other expenses on the Consolidated Statements of Earnings.

The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands):

Remainder of fiscal 2016	$	3,049
Year ended November 30, 2017	12,198
Year ended November 30, 2018	12,198
Year ended November 30, 2019	12,198
Year ended November 30, 2020	12,198

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(Unaudited)

Note 11. Short-Term Borrowings

Short-term borrowings at August 31, 2016 and November 30, 2015 include bank loans and overdrafts that are payable on demand and that must be repaid within one year or less, as well as borrowings under revolving loan and credit facilities as follows (in thousands):

	August 31, 2016		November 30, 2015
Bank loans (1)	$	262,711	$	262,000
Secured revolving loan facility	67,986		48,659
Floating rate puttable notes	101,538		—
Total short-term borrowings	$	432,235	$	310,659

(1) Amount includes $0.7 million related to bank overdrafts at August 31, 2016.

At August 31, 2016, the weighted average interest rate on short-term borrowings outstanding is 1.47% per annum. Average daily short-term borrowings outstanding were $414.4 million and $372.3 million for the three and nine months ended August 31, 2016, respectively, and $18.5 million and $44.9 million for the three and nine months ended August 31, 2015, respectively. Bank loans are typically overnight loans used to finance financial instruments owned or clearing related balances, but are not part of our systemic funding model and generally bear interest at a spread over the federal funds rate.

On April 8, 2016, May 3, 2016 and July 29, 2016, under our $2.0 billion Euro Medium Term Note Program, we issued floating rate puttable notes with principal amounts of €30.0 million, €11.0 million and €50.0 million, respectively. These notes are puttable three months after the issuance date.

On February 19, 2016, we entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of our margin obligations. Interest is based on an annual rate equal to weighted average LIBOR as defined in the Demand Loan Facility agreement plus 150 basis points. There were no borrowings outstanding at August 31, 2016.

On October 29, 2015, we entered into a secured revolving loan facility (“Secured Revolving Loan Facility”) whereby the lender agrees to make available a revolving loan facility in a maximum principal amount of $50.0 million in U.S. dollars to purchase eligible receivables that meet certain requirements as defined in the Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus three and three-quarters percent or the maximum rate as defined in the Secured Revolving Loan Facility agreement.

The Bank of New York Mellon agrees to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $300.0 million in U.S. dollars. The Intraday Credit Facility contains a financial covenant, which includes a minimum regulatory net capital requirement. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At August 31, 2016, we were in compliance with debt covenants under the Intraday Credit Facility.

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(Unaudited)

Note 12. Long-Term Debt

The following summarizes our long-term debt carrying values (including unamortized discounts and premiums and valuation adjustment, where applicable) at August 31, 2016 and November 30, 2015 (in thousands):

	August 31,   2016		November 30, 2015
Unsecured long-term debt
5.5% Senior Notes, due March 15, 2016 (effective interest rate of 2.52%)	$	—	$	353,025
5.125% Senior Notes, due April 13, 2018 (effective interest rate of 3.46%)	820,974		830,298
8.5% Senior Notes, due July 15, 2019 (effective interest rate of 4.00%)	785,411		806,125
2.375% Euro Medium Term Notes, due May 20, 2020 (effective rate of 2.42%)	555,962		526,436
6.875% Senior Notes, due April 15, 2021 (effective interest rate of 4.40%)	827,601		838,765
2.25% Euro Medium Term Notes, due July 13, 2022 (effective rate of 4.08%)	4,035		3,779
5.125% Senior Notes, due January 20, 2023 (effective interest rate of 4.55%)	619,000		620,890
6.45% Senior Debentures, due June 8, 2027 (effective interest rate of 5.46%)	378,292		379,711
3.875% Convertible Senior Debentures, due November 1, 2029 (effective interest rate of 3.50%) (1)	346,473		347,307
6.25% Senior Debentures, due January 15, 2036 (effective interest rate of 6.03%)	512,481		512,730
6.50% Senior Notes, due January 20, 2043 (effective interest rate of 6.09%)	421,415		421,656
Structured Notes (2)	211,094		—
Total long-term debt	$	5,482,738	$	5,640,722

(1) The change in fair value of the conversion feature, which is included within Principal transaction revenues in the Consolidated Statements of Earnings, was not material for the three and nine months ended August 31, 2016 and 2015.

(2) Includes $204.4 million at fair value at August 31, 2016.

During the nine months ended August 31, 2016, we issued structured notes with a total principal amount of approximately $218.6 million. Certain of the 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 transaction revenues. During the nine months ended August 31, 2016, approximately $350.0 million of long-term borrowings matured or were retired.

In addition, on January 21, 2016, we issued $15.0 million of Class A Notes, due 2022, and $7.5 million of Class B Notes, due 2022, secured by aircraft and related operating leases and which are non-recourse to us. In June 2016, the Class A Notes and the Class B Notes were repurchased and retired.

Our 3.875% convertible debentures due 2029 (principal amount of $345.0 million) (the “debentures”) remain issued and outstanding and are convertible into common shares of Leucadia. At September 15, 2016, each $1,000 debenture is currently convertible into 22.7041 shares of Leucadia’s common stock (equivalent to a conversion price of approximately $44.04 per share of Leucadia’s common stock). The debentures are convertible at the holders’ option any time beginning on August 1, 2029 and convertible at any time if: 1) Leucadia’s common stock price is greater than or equal to 130% of the conversion price for at least 20 trading days in a period of 30 consecutive trading days; 2) if the trading price per debenture is less than 95% of the price of the common stock times the conversion ratio for any 10 consecutive trading days; 3) if the debentures are called for redemption; or 4) upon the occurrence of specific corporate actions. The debentures may be redeemed for par, plus accrued interest, on or after November 1, 2012 if the price of Leucadia’s common stock is greater than 130% of the conversion price for at least 20 days in a period of 30 consecutive trading days and we may redeem the debentures for par, plus accrued interest, at our election any time on or after November 1, 2017. Holders may require us to repurchase the debentures for par, plus accrued interest, on November 1, 2017, 2019 and 2024. In addition to ordinary interest, commencing November 1, 2017, contingent interest will accrue at 0.375% if the average trading price of a debenture for five trading days ending on and including the third trading day immediately preceding a six-month interest period equals or exceed $1,200 per $1,000 debenture. At March 1, 2013, the conversion option to Leucadia common shares embedded within the debentures meets the definition of a derivative contract, does not qualify to be accounted for within member’s equity and is not clearly and closely related to the economic interest rate or credit risk characteristics of our debt. Accordingly, the conversion option is accounted for on a standalone basis at fair value with changes in fair value recognized in Principal transaction revenues and is presented within Long-term debt in the Consolidated Statements of Financial Condition. At August 31, 2016 and November 30, 2015, the fair value of the conversion option was not material.

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Note 13. Noncontrolling Interests

Noncontrolling interests represent equity interests in consolidated subsidiaries, composed primarily of asset management entities and investment vehicles set up for the benefit of our employees that are not attributable, either directly or indirectly, to us (i.e., minority interests). The following table presents noncontrolling interests at August 31, 2016 and November 30, 2015 (in thousands):

	August 31, 2016		November 30, 2015
Global Equity Event Opportunity Fund, LLC (1)	$	4,547	$	26,292
Other	643		1,176
Noncontrolling interests	$	5,190	$	27,468

(1) On December 1, 2015, the entity was deconsolidated due to the adoption of ASU No. 2015-02. (See Note 3, Accounting Developments, for further information on the adoption of this guidance.) No gain or loss was recognized upon deconsolidation. Noncontrolling interests attributed to Leucadia were $26.3 million at November 30, 2015. During the nine months ended August 31, 2016, the entity was consolidated due to investments by us and a third party.

Note 14. Benefit Plans

U.S. Pension Plan.We maintain a defined benefit pension plan, Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”), which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and covers certain of our employees. Under the U.S. Pension Plan, benefits to participants are based on years of service and the employee’s career average pay. Effective December 31, 2005, benefits under the U.S. Pension Plan were frozen with no further benefit accruing to participants for future service after December 31, 2005.

German Pension Plan.In connection with the acquisition of Jefferies Bache from Prudential on July 1, 2011, we acquired a defined benefits pension plan located in Germany (the “German Pension Plan”) for the benefit of eligible employees of Jefferies Bache in that territory. The German Pension Plan has no plan assets and is therefore unfunded. We have purchased insurance contracts from multi-national insurers held in the name of Jefferies Bache Limited to provide for the plan’s future obligations. The investment in these insurance contracts is included in Financial Instruments owned in the Consolidated Statements of Financial Condition and has a fair value of $16.0 million and $15.3 million at August 31, 2016 and November 30, 2015, respectively. We expect to pay our pension obligations from the cash flows available to us under the insurance contracts. All costs relating to the plan (including insurance premiums and other costs as computed by the insurers) are paid by us. In connection with the acquisition, it was agreed with Prudential that any insurance premiums and funding obligations related to pre-acquisition date service will be reimbursed to us by Prudential.

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The components of net periodic pension cost (income) for our pension plans are as follows (in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
U.S. Pension Plan	2016			2015			2016			2015
Components of net periodic pension cost (income):
Service cost	$	100		$	63		$	300		$	189
Interest cost on projected benefit obligation	587			585			1,761			1,755
Expected return on plan assets	(730		)	(848		)	(2,190		)	(2,544		)
Net periodic pension income	$	(43	)	$	(200	)	$	(129	)	$	(600	)

	Three Months Ended August 31,				Nine Months Ended August 31,
German Pension Plan	2016		2015		2016		2015
Components of net periodic pension cost:
Interest cost on projected benefit obligation	$	133	$	132	$	398	$	395
Net amortization	83		82		246		245
Net periodic pension cost	$	216	$	214	$	644	$	640

Employer Contributions. Our funding policy is to contribute to the plans at least the minimum amount required for funding purposes under applicable employee benefit and tax laws. We contributed $3.0 million to the U.S. Pension Plan during the nine months endedAugust 31, 2016. We did not contribute to the German Pension Plan during the nine months endedAugust 31, 2016. We do not expect to make any additional contributions to the plans during the remainder of the fiscal year.

Note 15. Compensation Plans

Leucadia sponsors our following share-based compensation plans: Incentive Compensation Plan, Employee Stock Purchase Plan ("ESPP") and the Deferred Compensation Plan. The outstanding and future share-based awards relating to these plans relate to Leucadia common shares. The fair value of share-based awards is estimated on the date of grant based on the market price of the underlying common stock less the impact of market conditions and selling restrictions subsequent to vesting, if any, and is amortized as compensation expense over the related requisite service periods. We are allocated costs associated with awards granted to our employees under such plans.

In addition, we sponsor non-share-based compensation plans. Non-share-based compensation plans sponsored by us include a profit sharing plan and other forms of restricted cash awards.

The components of total compensation cost associated with certain of our compensation plans are as follows (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Components of compensation cost:
Restricted cash awards	$	56.0	$	39.4	$	190.1	$	142.9
Restricted stock and RSUs (1)	6.4		13.8		17.8		53.8
Profit sharing plan	1.0		0.6		5.3		5.3
Total compensation cost	$	63.4	$	53.8	$	213.2	$	202.0

(1) Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan.

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Remaining unamortized amounts related to certain compensation plans at August 31, 2016 are as follows (dollars in millions):

	Remaining Unamortized Amounts		Weighted Average Vesting Period (in Years)
Non-vested share-based awards	$	29.2	2
Restricted cash awards	499.8		3
Total	$	529.0

The following are descriptions of the compensation plans.

Incentive Compensation Plan. The Incentive Compensation Plan (“Incentive Plan”) allows for 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, dividend equivalents or other share-based awards. Restricted stock units (“RSUs”) give a participant the right to receive fully vested common shares at the end of a specified 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. Awards issued and outstanding related to the Incentive Plan relate to shares of Leucadia.

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 awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four-year service period and are amortized as compensation expense on a straight line basis over the related four years. Restricted stock and RSUs are granted to certain senior executives with market, performance and service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if we determine that it is probable that the performance condition will be achieved. Awards granted to senior executives related to the 2015 fiscal year did not meet performance targets, and as a result, compensation expense has been adjusted to reflect the reduced number of shares that have vested.

Employee Stock Purchase Plan. There is also an ESPP which we consider noncompensatory effective January 1, 2007. The ESPP permits all regular full-time employees and employees who work part time over 20 hours per week to purchase, at a discount, Leucadia common shares. Annual employee contributions are limited to $21,250, are voluntary and made through payroll deduction. The stock purchase price is equal to 95% of the closing price of common stock on the last day of the applicable session (monthly).

Deferred Compensation Plan. There is also a Deferred Compensation Plan, which was established in 2001. Eligible employees are able to defer compensation on a pre-tax basis, with deferred amounts deemed invested at a discount in Leucadia common shares, or by allocating among any combination of other investment funds available under the Deferred Compensation Plan. We often invest directly, as a principal, in investments corresponding to the other investment funds, relating to our obligations to perform under the Deferred Compensation Plan. The compensation deferred by our employees is expensed in the period earned. The change in fair value of our investments in assets corresponding to the specified other investment funds are recognized in Principal transaction revenues and changes in the corresponding deferred compensation liability are reflected as Compensation and benefits expense in our Consolidated Statements of Earnings.

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.

Note 16. Income Taxes

At August 31, 2016 and November 30, 2015, we had approximately $106.1 million and $107.9 million, respectively, of total gross unrecognized tax benefits. The total amount of unrecognized benefit that, if recognized, would favorably affect the effective tax rate was $71.0 million and $71.9 million (net of benefits of taxes) at August 31, 2016 and November 30, 2015, respectively.

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We recognize interest accrued related to unrecognized tax benefits in Interest expense. Penalties, if any, are recognized in Other expenses in the Consolidated Statements of Earnings. At August 31, 2016 and November 30, 2015, we had interest accrued of approximately $38.3 million and $32.8 million, respectively, included in Accrued expenses and other liabilities. No material penalties were accrued for the nine months ended August 31, 2016 and the year ended November 30, 2015.

We are currently under examination by the Internal Revenue Service and other major tax jurisdictions. We do not expect that resolution of these examinations will have a material effect on our consolidated financial position, but could have a material impact on the consolidated results of operations for the period in which resolution occurs.

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	2007
California	2007
New Jersey	2010
New York State	2001
New York City	2003
United Kingdom	2014
Hong Kong	2009

Note 17. Commitments, Contingencies and Guarantees

Commitments

The following table summarizes our commitments at August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Maximum Payout
Equity commitments (1)	$	1.5	$	7.9	$	—	$	11.3	$	213.7	$	234.4
Loan commitments (1)	—		306.4		82.2		54.4		—		443.0
Mortgage-related and other purchase commitments	838.0		263.2		1,265.2		21.6		—		2,388.0
Underwriting commitments	—		223.2		—		—		—		223.2
Forward starting reverse repos and repos	166.3		—		—		—		—		166.3
Other unfunded commitments (1)	65.8		142.6		26.8		5.1		32.3		272.6
Total commitments	$	1,071.6	$	943.3	$	1,374.2	$	92.4	$	246.0	$	3,727.5

(1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand.

In addition, in March 2016, we entered into a lease agreement for office space in London. Beginning in fiscal 2020, we will have a contractual obligation to pay approximately £8.1 million per year for 18 years.

Equity Commitments. Includes commitments to invest in our joint ventures, Jefferies Finance and Jefferies LoanCore, 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 Brian P. Friedman, one of our directors and Chairman of the Executive Committee. At August 31, 2016, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $23.1 million.

See Note 9, Investments, for additional information regarding our investments in Jefferies Finance and Jefferies LoanCore.

Additionally, at August 31, 2016, we had other outstanding equity commitments to invest up to $4.3 million in various other investments.

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Loan Commitments. From time to time we make commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At August 31, 2016, we had $192.9 million of outstanding loan commitments to clients.

Loan commitments outstanding at August 31, 2016 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance to support loan underwritings by Jefferies Finance.

Mortgage-Related and Other Purchase Commitments. We enter into forward contracts to purchase mortgage participation certificates, mortgage-backed securities and consumer loans. The mortgage participation certificates evidence interests in mortgage loans insured by the Federal Housing Administration and the mortgage-backed securities are insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We frequently securitize the mortgage participation certificates and mortgage-backed securities. The fair value of mortgage-related and other purchase commitments recorded in the Consolidated Statements of Financial Condition was $185.2 million at August 31, 2016.

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 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 August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Notional/ Maximum Payout
Guarantee Type:
Derivative contracts—non-credit related	$	20,564.3	$	5,702.8	$	377.9	$	—	$	437.4	$	27,082.4
Written derivative contracts—credit related	—		—		91.7		258.7		—		350.4
Total derivative contracts	$	20,564.3	$	5,702.8	$	469.6	$	258.7	$	437.4	$	27,432.8

At August 31, 2016 the external credit ratings of the underlyings or referenced assets for our credit related derivatives contracts (in millions):

	External Credit Rating
	AAA/ Aaa		AA/Aa		A		BBB/ Baa		Below Investment Grade		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	24.0	$	—	$	—	$	83.7	$	—	$	107.7
Single name credit default swaps	$	—	$	—	$	59.9	$	38.6	$	144.2	$	242.7

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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 August 31, 2016, the fair value of derivative contracts meeting the definition of a guarantee is approximately $320.3 million.

Loan Guarantee. We have provided a guarantee to Jefferies Finance that matures in January 2021, whereby we are required to make certain payments to an SPE sponsored by Jefferies Finance in the event that Jefferies Finance is unable to meet its obligations to the SPE and a guarantee of a credit agreement with an indefinite term for a fund owned by employees. At August 31, 2016, the maximum amount payable under these guarantees is $21.3 million.

Standby Letters of Credit. At August 31, 2016, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $36.5 million, which expire within two years. 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 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. 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.

Note 18. Net Capital Requirements

As broker-dealers registered with the SEC and member firms of the Financial Industry Regulatory Authority (“FINRA”), Jefferies and Jefferies Execution are subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and have elected to calculate minimum capital requirements under the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies is also registered as an FCM and is subject to Rule 1.17 of the CFTC, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17.

At August 31, 2016, Jefferies and Jefferies Execution’s net capital and excess net capital were as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies	$	1,424,378	$	1,340,682
Jefferies Execution	7,330		7,080

FINRA is the designated self-regulatory organization (“DSRO”) for our U.S. broker-dealers and the National Futures Association is the DSRO for Jefferies 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 authorized and regulated by 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.

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Note 19. Segment Reporting

We operate in two principal segments – Capital Markets and Asset Management. The Capital Markets segment includes our securities, commodities, futures and foreign exchange brokerage trading activities and investment banking, which is composed of underwriting and financial advisory activities. The Capital Markets reportable segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management segment provides investment management services to investors in the U.S. and overseas.

Our reportable business segment information is prepared using the following methodologies:

• Net revenues and expenses directly associated with each reportable business segment are included in determining earnings before taxes.

• Net revenues and 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.

Our net revenues and expenses by segment are summarized below (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Capital Markets:
Net revenues	$	641.9	$	565.1	$	1,601.6	$	1,916.7
Expenses	$	558.2	$	564.5	$	1,693.6	$	1,829.3
Asset Management:
Net revenues	$	12.6	$	13.8	$	71.2	$	45.5
Expenses	$	15.5	$	7.3	$	45.8	$	28.2
Total:
Net revenues	$	654.5	$	578.9	$	1,672.8	$	1,962.2
Expenses	$	573.7	$	571.8	$	1,739.4	$	1,857.5

The following table summarizes our total assets by segment (in millions):

	August 31, 2016		November 30, 2015
Segment assets:
Capital Markets	$	37,305.7	$	37,804.9
Asset Management	821.9		759.0
Total assets	$	38,127.7	$	38,564.0

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Net Revenues by Geographic Region

Net revenues for the Capital Market 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 Asset Management, net revenues are allocated according to the location of the investment advisor. Net revenues by geographic region were as follows (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Americas (1)	$	500,190	$	454,996	$	1,257,192	$	1,508,639
Europe (2)	126,476		103,959		349,700		392,163
Asia	27,784		19,973		65,953		61,352
Net revenues	$	654,450	$	578,928	$	1,672,845	$	1,962,154

(1) Substantially all relates to U.S. results.

(2) Substantially all relates to U.K. results.

Note 20. Related Party Transactions

Jefferies Capital Partners Related Funds. We have equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee (“Private Equity Related Funds”). At August 31, 2016 and November 30, 2015, our equity investments in Private Equity Related Funds were in aggregate $38.4 million and $39.6 million, respectively. We also charge the JCP Manager for certain services under a service agreement. The following table presents other revenues and investment income (loss) related to net gains and losses on our investment in Private Equity Related Funds and service charges (in thousands):

	Three Months Ended August 31,					Nine Months Ended August 31,
	2016		2015			2016			2015
Other revenues and investment income (loss)	$	6,048	$	(3,495	)	$	(1,664	)	$	(27,707	)
Service charges	201		630			537			1,089

For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Note 17, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At August 31, 2016 and November 30, 2015, we have commitments to purchase $685.0 million and $752.4 million, respectively, in agency CMBS from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

HRG Group Inc. ("HRG"). As part of our loan secondary trading activities we had unsettled purchases and sales of loans pertaining to portfolio companies within funds managed by HRG, which is partially owned by Leucadia, of $261.6 million at November 30, 2015. Additionally, we recognized investment banking and advisory revenues of $1.3 million during the nine months August 31, 2015.

Officers, Directors and Employees. At August 31, 2016 and November 30, 2015, we had $40.7 million and $28.3 million, respectively, of loans outstanding to certain of our employees (none of whom are executive officers or directors) that are included in Other assets on the Consolidated Statements of Financial Condition. 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. At August 31, 2016 and November 30, 2015, we have provided a guarantee of a credit agreement for a private equity fund owned by our employees.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Leucadia. The following is a description of related party transactions with Leucadia:

• Under a service agreement, we charge Leucadia for certain services, which amounted to $5.1 million and $19.6 million for the three and nine months ended August 31, 2016, respectively, and $11.0 million and $22.2 million for the three and nine months ended August 31, 2015, respectively. At August 31, 2016 and November 30, 2015, we had a receivable from Leucadia of $2.1 million and $10.2 million, respectively, which is included within Other assets on the Consolidated Statements of Financial Condition. At August 31, 2016 and November 30, 2015, we had a payable to Leucadia of $3.3 million and $0.6 million, respectively, related to certain services provided by Leucadia, which is included within Other liabilities on the Consolidated Statements of Financial Condition.

• Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. At August 31, 2016 and November 30, 2015, a net current tax receivable from Leucadia of $146.3 million and $109.5 million, respectively, is included in Other assets on the Consolidated Statements of Financial Condition.

• Of the total noncontrolling interests in asset management entities that are consolidated by us at November 30, 2015, $26.3 million are attributed to Leucadia.

• In March 2016, we made a capital contribution of $114.0 million to a hedge fund managed by a subsidiary of Leucadia.

• In July 2016, Leucadia Funding LLC, a subsidiary of Leucadia, made a $30.0 million capital contribution to a hedge fund managed by us.

• We provide capital markets and asset management services to Leucadia and its affiliates. The following table presents the revenues earned by type of services provided (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Investment banking and advisory	$	—	$	—	$	1,786	$	21,200
Asset management	10		102		155		405
Commissions and other fees	—		1		88		38

For information on transactions with our equity method investees, see Note 9, Investments.

Note 21. Exit Costs

Jefferies Bache. On April 9, 2015, we entered into an agreement with Société Générale S.A. (the “Agreement”) to transfer certain client exchange and OTC transactions associated with our Jefferies Bache business for the net book value of the over-the-counter transactions, calculated in accordance with certain principles set forth in the agreement, plus the repayment of certain margin loans in respect of certain exchange transactions. In addition, we initiated a plan to substantially exit the remaining aspects of the business, which was completed during the second quarter of 2016. The pre-tax losses of the Jefferies Bache business were $1.9 million for the nine months ended August 31, 2016 and $64.1 million and $114.8 million for the three and nine months ended August 31, 2015, respectively.

In addition, we terminated our $750.0 million Credit Facility on July 31, 2015. During the three and nine months ended August 31, 2015, we recognized costs of $2.7 million and $3.8 million, respectively, related to Credit Facility.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following summarizes our recorded restructuring and impairment costs (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Severance costs	$	—	$	11,373	$	279	$	26,932
Accelerated amortization of restricted stock and restricted cash awards	—		2,442		41		6,902
Accelerated amortization of capitalized software	—		6,719		—		12,979
Contract termination costs	—		11,216		1,234		11,216
Other expenses	—		1,523		300		3,814
Total	$	—	$	33,273	$	1,854	$	61,843

Of the above costs, $341,000 for the nine months ended August 31, 2016 and $10.2 million and $21.0 million for the three and nine months ended August 31, 2015, respectively, are of a non-cash nature. Restructuring and exit costs are wholly attributed to our Capital Markets segment and were recorded in the following categories on the Consolidated Statement of Earnings (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Compensation and benefits	$	—	$	13,815	$	320	$	33,834
Technology and communications	—		17,935		1,234		24,195
Professional services	—		444		—		2,477
Other expenses	—		1,079		300		1,337
Total	$	—	$	33,273	$	1,854	$	61,843

The following summarizes our restructuring reserve activity (in thousands):

	Severance costs			Other costs			Contract termination costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Total
Balance at November 30, 2015	$	4,805		$	—		$	—		$	4,805
Expenses	279			300			1,234			1,813			$	41	$	1,854
Payments	(5,084		)	(300		)	(1,234		)	(6,618		)
Liability at August 31, 2016	$	—		$	—		$	—		$	—

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This report contains or incorporates by reference “forward looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements include statements about our future and statements that are not historical facts. These forward looking statements are usually preceded by the words “believe,” “intend,” “may,” “will,” or similar expressions. Forward looking statements may contain expectations regarding revenues, earnings, operations and other results, and may include statements of future performance, plans and objectives. Forward looking statements also include statements pertaining to our strategies for future development of our business and products. Forward looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors that could cause actual results to differ, perhaps materially, from those in our forward looking statements is contained in this report and other documents we file. You should read and interpret any forward looking statement together with these documents, including the following:

• the description of our business and risk factors contained in our Annual Report on Form 10-K for the year ended November 30, 2015 and filed with the SEC on January 29, 2016;

• the discussion of our analysis of financial condition and results of operations contained in this report under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein;

• the discussion of our risk management policies, procedures and methodologies contained in this report under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Risk Management” herein;

• the notes to the consolidated financial statements contained in this report; and

• cautionary statements we make in our public documents, reports and announcements.

Any forward looking statement speaks only as of the date on which that statement is made. We will not update any forward looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as required by applicable law.

Our business, by its nature, does not produce predictable or necessarily recurring earnings. Our results in any given period can be materially affected by conditions in global financial markets, economic conditions generally and our own activities and positions. For a further discussion of the factors that may affect our future operating results, see “Risk Factors” in Part I, Item IA of our Annual Report on Form 10-K for the year ended November 30, 2015.

Consolidated Results of Operations

The following table provides an overview of our consolidated results of operations (dollars in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Net revenues	$	654,450		$	578,928		$	1,672,845		$	1,962,154
Non-interest expenses	573,728			571,835			1,739,402			1,857,465
Earnings (loss) before income taxes	80,722			7,093			(66,557		)	104,689
Income tax expense	39,564			4,609			5,112			29,470
Net earnings (loss)	41,158			2,484			(71,669		)	75,219
Net earnings (loss) to noncontrolling interests	(11		)	427			77			1,647
Net earnings (loss) attributable to Jefferies Group LLC	41,169			2,057			(71,746		)	73,572
Effective tax rate	49.0		%	65.0		%	(7.7		)%	28.2		%

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Introduction

Jefferies is a full-service, global investment banking firm that is a leader in providing insight, expertise and execution to investors, companies and governments. We provide a full range of investment banking, sales, trading, research and strategy services. Founded in 1962, we now have our global headquarters in New York City, our European headquarters in London and our Asia headquarters in Hong Kong. We have over thirty offices worldwide, including in Boston, Houston, Los Angeles, San Francisco, Frankfurt, Paris, Singapore, Tokyo, Mumbai, and Dubai.

We report our activities in two business segments: Capital Markets and Asset Management. Capital Markets includes our investment banking, sales and trading and other related services. Investment banking provides capital markets and financial advisory services to our clients across most industry sectors in the Americas, Europe and Asia. Our sales and trading businesses include market-making, sales and financing across the spectrum of equities, fixed income and foreign exchange products. Related services include among other things prime brokerage, research and corporate lending. Asset Management provides investment management services to investors in the U.S. and overseas.

During our fiscal third quarter, the business climate continued the stabilization trend that began in the second quarter. Although markets were subjected to volatility after the June 23, 2016 referendum vote by the United Kingdom to exit the European Union (the so-called "Brexit"), the trading environment was generally constructive. The equity markets saw an upward trend in stock prices (for example, the NASDAQ Composite Index, S&P 500 Index and the Dow Jones Industrial Average increased by 5.4%, 1.9% and 3.5%, respectively). Likewise, fixed-income markets experienced improved conditions as a neutral monetary policy in the United States and monetary easing in Europe continued to support the market and increase trading volumes as investors sought higher yielding securities. The investment banking industry, however, generally continued to experience lackluster volume in the equity capital and leveraged finance markets and lower merger-and-acquisition activity.

Executive Summary

Three Months Ended August 31, 2016

Net revenues for the three months ended August 31, 2016 increased by $75.6 million, or 13.0%, to $654.5 million compared to the $578.9 million recorded for the three months ended August 31, 2015. This increase primarily reflects solid net revenues in fixed income, as our mortgage, corporates, leveraged credit and emerging markets businesses particularly performed well on improved market conditions, compared with the prior year quarter. These results were partially offset by lower revenues in investment banking and equities. Investment banking results were impacted by lower transaction volume in equity and debt capital markets during the three months ended August 31, 2016. Equities net revenues were lower because net mark-to-market gains from other investments in equity securities in the prior year quarter were not repeated during the three months ended August 31, 2016. Our results were generally unaffected by the Brexit vote.

Non-interest expenses for the three months ended August 31, 2016increased$1.9 million, or 0.3%, to $573.7 million compared with $571.8 million for the three months ended August 31, 2015, reflecting an increase in Compensation and benefits expense, partially offset by a decrease in Non-compensation expenses. Compensation and benefits expense for the three months ended August 31, 2016 was $376.4 million, an increase of $39.9 million, or 11.9% from the prior year quarter. Compensation and benefits expense as a percentage of Net revenues was 57.5% for the three months ended August 31, 2016 compared with 58.1% in the prior year quarter. Non-compensation expenses for the three months ended August 31, 2016 were $197.3 million, a decrease of $38.0 million, or 16.2% from the comparable prior year quarter, which included Bache.

At August 31, 2016, we had 3,323 employees globally, a decrease of 342 employees from our headcount of 3,665 at the end of the prior year quarter. Our headcount decreased as the result of exiting of the Bache business, continued discipline in headcount and productivity management, and corporate services outsourcing.

On April 9, 2015, we entered into an agreement to transfer certain of the client activities of our Jefferies Bache business to Société Générale S.A. During the second quarter of 2016, we completed the exit of the futures business. Negative revenues globally from this business activity, which are included within our fixed income results, and expenses directly related to the Bache business, which are included within non-interest expenses, were $4.3 million and $59.8 million, respectively, for the prior year quarter. There were no meaningful revenues or expenses from the Bache business during fiscal 2016. For further information, refer to Note 21, Exit Costs in our consolidated financial statements.

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Nine Months Ended August 31, 2016

Net revenues for the nine months ended August 31, 2016 were $1,672.8 million compared with $1,962.2 million for the nine months ended August 31, 2015, a decrease of $289.4 million, or 14.7%. The results in the nine months ended August 31, 2016 were impacted by an extremely volatile bear market environment during the first three months of the nine month period, with meaningful improvement in the second and third quarters of the period. The beginning of the period was characterized by concerns about the pace of global economic growth, outflows from the high yield market, forced selling from hedge funds, the potential Brexit and an overall reduction in liquidity. In the second and third quarters of the period, most of our core businesses increased amid improved market conditions. The nine month period was characterized at various points by monetary easing by the European Central Bank, rising oil prices, a low interest rate environment, moderate economic growth in the U.S., uncertainty around the U.S. Federal Reserve's monetary policy and the impact of the Brexit.

The decrease in total net revenues for the nine months ended August 31, 2016, as compared to the nine months ended August 31, 2015, primarily reflects lower net revenues in investment banking and equities, partially offset by higher revenues in fixed income. Lower investment banking results are primarily attributable to lower transaction volume as new issue equity and leveraged finance capital markets were virtually closed throughout January and February and remained slow throughout the period. The increase in fixed income revenues is due to higher levels of trading activity due to improved markets conditions compared with the prior year period. The decline in equities revenues was primarily attributable to a net loss of $20.0 million recognized during the nine months ended August 31, 2016 from our investment in two equity securities, including KCG, compared with gains of $41.3 million in the comparable prior year period from these two equity securities. The decline in results was also due to net mark-to-market gains from certain equity inventory positions in the nine months ended August 31, 2015, which were not repeated during the nine months ended August 31, 2016. Equities revenues also include a net loss of $27.5 million from our share of our Jefferies Finance joint venture, compared with net revenues of $54.9 million in the prior year period.

Net revenues in the nine months ended August 31, 2016 included investment income from managed funds of $4.0 million, compared with investment losses from managed funds of $26.0 million in the prior year period, primarily due to lower valuations in the energy and shipping sectors in the prior year period. Net revenues globally from the Bache business for the nine months ended August 31, 2015, which are included within our fixed income results, were $80.6 million. There were no meaningful revenues from the Bache business for the nine months ended August 31, 2016.

Non-interest expenses for the nine months ended August 31, 2016decreased$118.1 million, or 6.4%, to $1,739.4 million compared with $1,857.5 million for the nine months ended August 31, 2015, reflecting a decrease in both Compensation and benefits expense and Non-compensation expenses. Compensation and benefits expense for the nine months ended August 31, 2016 was $1,141.5 million, a decrease of $41.0 million, or 3.5% from the comparable prior year period. Compensation and benefits expense as a percentage of Net revenues was 68.2% for the nine months ended August 31, 2016 compared with 60.3% in the prior year period. The unusually high compensation ratio is due to the exceptionally low net revenues and certain higher fixed compensation costs in the nine months ended August 31, 2016. Non-compensation expenses for the nine months ended August 31, 2016 were $597.9 million, a decrease of $77.1 million, or 11.4% from the comparable prior year period. Expenses directly related to the Bache business, which are included within non-interest expenses, for the nine months ended August 31, 2015 were $195.4 million. There were no meaningful expenses from the Bache business for the nine months ended August 31, 2016. For further information, refer to Note 21, Exit Costs in our consolidated financial statements.

Revenues by Source

For presentation purposes, the remainder of “Results of Operations” is presented on a detailed product and expense basis, rather than on a business segment basis. Net revenues presented for our equities and fixed income businesses include allocations of interest income and interest expense as we assess the profitability of these businesses inclusive of the net interest revenue or expense associated with the respective activities, which is a function of the mix of each business’s associated assets and liabilities and the related funding costs.

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The composition of our net revenues has varied over time as financial markets and the scope of our operations have changed. The composition of net revenues can also vary from period to period due to fluctuations in economic and market conditions, and our own performance. The following provides a summary of “Revenues by Source” (dollars in thousands):

	Three Months Ended August 31,									Nine Months Ended August 31,
	2016				2015					2016				2015
	Amount		% of Net Revenues		Amount			% of Net Revenues		Amount		% of Net Revenues		Amount			% of Net Revenues
Equities	$	148,308	22.7	%	$	203,077		35.1	%	$	373,593	22.3	%	$	634,754		32.3	%
Fixed income	195,335		29.8		(18,151		)	(3.1	)	490,603		29.4		261,328			13.3
Total sales and trading	343,643		52.5		184,926			32.0		864,196		51.7		896,082			45.6
Equity	68,218		10.4		127,051			22.0		173,122		10.3		314,927			16.1
Debt	72,473		11.1		113,928			19.6		175,870		10.5		329,474			16.9
Capital markets	140,691		21.5		240,979			41.6		348,992		20.8		644,401			33.0
Advisory	154,239		23.6		148,841			25.7		429,914		25.7		421,676			21.5
Total investment banking	294,930		45.1		389,820			67.3		778,906		46.5		1,066,077			54.5
Asset management fees and investment income (loss) from managed funds:
Asset management fees	7,610		1.2		7,067			1.2		25,779		1.5		25,955			1.2
Investment income (loss) from managed funds	8,267		1.2		(2,885		)	(0.5	)	3,964		0.3		(25,960		)	(1.3	)
Total	15,877		2.4		4,182			0.7		29,743		1.8		(5		)	(0.1	)
Net revenues	$	654,450	100.0	%	$	578,928		100.0	%	$	1,672,845	100.0	%	$	1,962,154		100.0	%

Equities Net Revenues

Equities net revenues include equity commissions, principal transactions (including our investments in KCG Holdings, Inc. ("KCG") and other equity securities), and net interest revenue relating to cash equities, electronic trading, equity derivatives, convertible securities, prime brokerage, securities finance and alternative investment strategies generated by our equities sales and trading, equity finance and wealth management businesses. Equities revenues also include our share of the net earnings from our joint venture investments in Jefferies Finance, LLC ("Jefferies Finance") and Jefferies LoanCore, LLC ("Jefferies LoanCore"), which are accounted for under the equity method.

Three Months Ended August 31, 2016

Total equities net revenues were $148.3 million for the three months ended August 31, 2016, compared with $203.1 million for the three months ended August 31, 2015, a decrease of $54.8 million. For the three months ended August 31, 2016, our results include a net gain of $6.1 million from our investment in KCG, compared with a net loss of $28.3 million in the prior year quarter.

During the three months ended August 31, 2016, U.S. equity markets were characterized by an upward trend in stock prices. The NASDAQ Composite Index, S&P 500 Index and the Dow Jones Industrial Average increased by 5.4%, 1.9% and 3.5%, respectively. Equities trading revenues were solid across most of our equities sales and trading businesses driven by increased client flows. These results were partially offset by lower equity derivatives trading revenues. The net decline in equities net revenues was primarily due to net mark-to-market gains from other investments in equity securities in the prior year quarter, which were not repeated during the three months ended August 31, 2016.

Equities results during the three months ended August 31, 2016 also included net revenues of $11.4 million from our share of Jefferies Finance, compared with net revenues of $23.9 million in the prior year quarter. Net revenue from our share of Jefferies LoanCore during the three months ended August 31, 2016 decreased compared to the prior year quarter. Results in both Jefferies Finance and Jefferies LoanCore are lower due to fewer loan closings and securitizations in the three months ended August 31, 2016 over the comparable quarter.

Nine Months Ended August 31, 2016

Total equities net revenues were $373.6 million for the nine months ended August 31, 2016, a decrease of $261.2 million compared with $634.8 million for the nine months ended August 31, 2015. Results during the nine months ended August 31, 2016 include a net loss of $20.0 million from our investment in two equity securities, including KCG, compared with gains of $41.3 million in the prior year period from these two equity securities. In addition, equities net revenues for the nine months ended August 31, 2015 included significant gains on additional securities positions.

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During the nine months ended August 31, 2016, U.S. equity market conditions were characterized by a downward trend in stock prices during the first quarter, with higher stock prices during the second and third quarters. In the nine months ended August 31, 2016, the NASDAQ Composite Index increased by 2.0% while the S&P 500 Index and the Dow Jones Industrial Average increased 2.7% and 3.8%, respectively. Our U.S and European cash equities and our electronic trading businesses increased trading revenues on higher client flows for the nine months ended August 31, 2016, as compared to the prior year period, while our Asia cash equities revenues declined because of a challenging market environment. Convertibles trading revenues declined driven by weakness in the energy sector over the nine month 2016 period. Additionally, certain strategic investments contributed positively to equities revenues due to strategic positioning within the energy markets and as a result of volatility and financial and U.S. currency exposures.

Equities revenues during the nine months ended August 31, 2016 included a net loss of $27.5 million from our share of Jefferies Finance, primarily due to the mark down of certain loans held for sale compared with net revenues of $54.9 million in the prior year period. Net revenue from our share of Jefferies LoanCore also decreased during the nine months ended August 31, 2016 as compared to the prior year period due to a decrease in loan closings and syndications as compared to the prior year period.

Fixed Income Net Revenues

Fixed income revenues include commissions, principal transactions and net interest revenue from investment grade corporate bonds, mortgage- and asset-backed securities, government and agency securities, municipal bonds, emerging markets debt, high yield and distressed securities, bank loans, foreign exchange and commodities trading activities generated by our fixed income sales and trading businesses.

Three Months Ended August 31, 2016

Fixed income net revenues increased by $213.5 million to $195.3 million for the three months ended August 31, 2016, compared with negative revenues of $18.2 million in the three months ended August 31, 2015. The 2015 quarter included $4.3 million of negative revenues globally from the futures business activity and we completed the exit of the futures business during the second quarter of 2016. We recorded higher revenues in largely all of our core fixed income businesses compared with the prior year quarter due to improving financial market and secondary market trading conditions and reduced risk exposure, partially offset by lower revenues in our international rates business on lower trading volumes.

The three months ended August 31, 2016 were characterized by improved market conditions amid monetary easing by the European Central Bank, corporate new issuances, a continued low interest rate environment driving investors toward higher yielding assets and moderate economic growth in the U.S., partially offset by continued concerns about global economic growth and uncertainty around the impact of the Brexit. Revenues for the quarter from our corporates business increased as compared to the prior year quarter due to an increase in new issuances resulting from increased client activity. Results in our emerging markets business were higher due to increased trading volumes, an upgraded sales and trading team and increased levels of volatility during the quarter. The municipal securities business performed well compared with the prior year quarter as market technicals drove increased client activity compared with net outflows in the prior year quarter. Revenues were significantly up in our leveraged credit business from the prior year quarter, driven by increased trading volumes within distressed and high yield and a reduction in risk, compared with mark-to-market write-downs in our inventory in the prior year quarter on global economic uncertainty and lower energy prices. Our mortgage business was positively impacted by increased demand for spread products, particularly, demand for higher yielding asset classes, after the Brexit vote, resulting in higher trading volumes and revenues.

Nine Months Ended August 31, 2016

Fixed income net revenues totaled $490.6 million for the nine months ended August 31, 2016, an increase of $229.3 million compared with net revenues of $261.3 million in the nine months ended August 31, 2015. The 2015 period included $80.6 million of net revenues globally from the futures business activity and we completed the exit of the futures business during the second quarter of 2016. There were no meaningful revenues from the Bache business during the nine months ended August 31, 2016. Excluding revenues from the futures business activity, revenues increased $309.9 million or 171.5%. We recorded higher revenues compared with the prior year period due to improved trading conditions across most core businesses, partially offset by lower revenues in our international rates and U.S. mortgages businesses.

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The beginning of the nine month period was characterized by concerns about the pace of global economic growth, outflows from the high yield market, forced selling from hedge funds, uncertainty over the weakness in the Chinese economy and the potential Brexit and an overall lack of liquidity. In the second and third quarters of the period, our core businesses mostly improved amid monetary easing by the European Central Bank and new issuances by most European governments, corporate new issuances, rising oil prices, a low interest rate environment and moderate U.S. economic growth. Results in our emerging markets business throughout the period were higher due to an upgraded sales and trading team and increased levels of volatility during the period. The municipal securities business performed well during the period as improved trading activity was driven by market technicals compared with net outflows in the prior year period. Revenues in our leveraged credit business were strong on increased trading volumes within distressed and high yield, as a result of an improved credit environment and reduced risk, as well as strategic growth in the business, compared with mark-to-market write-downs in the prior year period. Revenues from our corporates businesses increased as compared to the prior year period due to increased client activity on new issuance demand and demand for higher yielding investments. Volatility during the nine months ended August 31, 2016 due to fluctuating and then reduced expectations as to future Federal Reserve interest rate increases contributed to increased revenues in our U.S. rates business as compared to the prior year period.

Investment Banking Revenues

Investment banking revenues include capital markets and advisory revenues. Capital markets revenues include underwriting and placement revenues related to corporate debt, municipal bonds, mortgage- and asset-backed securities and equity and equity-linked securities. Advisory revenues consist primarily of advisory and transaction fees generated in connection with merger, acquisition and restructuring transactions.

The following table sets forth our investment banking revenues (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Equity	$	68,218	$	127,051	$	173,122	$	314,927
Debt	72,473		113,928		175,870		329,474
Capital markets	140,691		240,979		348,992		644,401
Advisory	154,239		148,841		429,914		421,676
Total	$	294,930	$	389,820	$	778,906	$	1,066,077

Three Months Ended August 31, 2016

Total investment banking revenues were $294.9 million for the three months ended August 31, 2016, $94.9 millionlower than the three months ended August 31, 2015, due to a decrease in equity and debt capital markets transaction volume, as new issue equity and leveraged finance capital markets remained slow throughout the three months ended August 31, 2016. Advisory revenues for the three months ended August 31, 2016increased3.6% compared to the prior year quarter and capital markets revenues for the three months ended August 31, 2016decreased41.6% from the prior year quarter.

From equity and debt capital raising activities, we generated $68.2 million and $72.5 million in revenues, respectively, for the three months ended August 31, 2016. During the three months ended August 31, 2016, we completed 316 public and private debt financings that raised $47.1 billion in aggregate and we completed 35 public equity and convertible offerings that raised $5.8 billion (33 of which we acted as sole or joint bookrunner). Financial advisory revenues totaled $154.2 million, including revenues from 40 merger and acquisition transactions and five restructuring transactions with an aggregate transaction value of $31.9 billion.

Investment banking revenues were $389.8 million for the three months ended August 31, 2015. From equity and debt capital raising activities, we generated $127.1 million and $113.9 million in revenues, respectively. During the three months ended August 31, 2015, we completed 297 public and private debt financings that raised $49.8 billion in aggregate and we completed 53 public equity and convertible offerings that raised $15.8 billion (50 of which we acted as sole or joint bookrunner). Financial advisory revenues totaled $148.8 million, including revenues from 44 merger and acquisition transactions and three restructuring transactions with an aggregate transaction value of $26.3 billion.

Nine Months Ended August 31, 2016

Total investment banking revenues were $778.9 million for the nine months ended August 31, 2016, $287.2 millionlower than the nine months ended August 31, 2015, due to lower equity and debt capital markets transaction volume, as new issue equity and leveraged finance capital markets were virtually closed throughout January and February and remained slow throughout the nine months ended August 31, 2016. Overall, advisory revenues for the nine months ended August 31, 2016increased2.0% compared to the prior year period and capital markets revenues in the nine months ended August 31, 2016decreased45.8% from the prior year period.

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From equity and debt capital raising activities, we generated $173.1 million and $175.9 million in revenues, respectively, for the nine months ended August 31, 2016. During the nine months ended August 31, 2016, we completed 674 public and private debt financings that raised $126.3 billion in aggregate and we completed 78 public equity and convertible offerings that raised $14.6 billion (74 of which we acted as sole or joint bookrunner). Financial advisory revenues totaled $429.9 million, including revenues from 106 merger and acquisition transactions and nine restructuring transactions with an aggregate transaction value of $90.3 billion.

Investment banking revenues were $1,066.1 million for the nine months ended August 31, 2015. From equity and debt capital raising activities, we generated $314.9 million and $329.5 million in revenues, respectively. During the nine months ended August 31, 2015, we completed 804 public and private debt financings that raised $161.2 billion in aggregate and we completed 151 public equity and convertible offerings that raised $37.4 billion (138 of which we acted as sole or joint bookrunner). Financial advisory revenues totaled $421.7 million, including revenues from 116 merger and acquisition transactions and seven restructuring transactions with an aggregate transaction value of $89.9 billion.

Asset Management Fees and Investment Income (Loss) from Managed Funds

Asset management revenues include management and performance fees from funds and accounts managed by us, management and performance fees from related party managed funds and accounts and investment income (loss) from our investments in these funds, accounts and related party managed funds. The key components of asset management revenues are the level of assets under management and the performance return, whether on an absolute basis or relative to a benchmark or hurdle. These components can be affected by financial markets, profits and losses in the applicable investment portfolios and client capital activity. Further, asset management fees vary with the nature of investment management services. The terms under which clients may terminate our investment management authority, and the requisite notice period for such termination, varies depending on the nature of the investment vehicle and the liquidity of the portfolio assets.

The following summarizes the results of our Asset Management businesses by asset class (in thousands):

	Three Months Ended August 31,					Nine Months Ended August 31,
	2016		2015 (1)			2016		2015 (1)
Asset management fees:
Fixed income (2)	$	383	$	1,678		$	1,150	$	3,242
Equities	634		40			1,375		4,805
Multi-asset	6,593		5,322			23,254		15,227
Convertibles (3)	—		27			—		2,681
Total asset management fees	7,610		7,067			25,779		25,955
Investment income (loss) from managed funds	8,267		(2,885		)	3,964		(25,960		)
Total	$	15,877	$	4,182		$	29,743	$	(5	)

(1) Prior period amounts have been recast to conform to the current year’s presentation due to the presentation of the multi-asset asset class. Previously, these fees have been classified within the equities asset class. We have also concluded that certain fees previously reported within the convertibles asset class are better aligned within the equities asset class. The total amount of asset management fees remains unchanged in the prior period.

(2) Fixed income asset management fees represent ongoing consideration we receive from the sale of contracts to manage certain collateralized loan obligations (“CLOs”) to Babson Capital Management, LLC in January 2010. As sale consideration, we are entitled to a portion of the asset management fees earned under the contracts for their remaining lives. Investment income (loss) from managed funds primarily is comprised of net unrealized markups (markdowns) in private equity funds managed by related parties.

(3) During the fourth quarter of 2014, as part of a strategic review of our business, we decided to liquidate our International Asset Management business, which provided long only investment solutions in global convertible bonds to institutional investors. Asset management fees from this business comprise our convertibles asset strategy in the table above.

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Assets under Management

Period end assets under management by predominant asset strategy were as follows (in millions):

	August 31, 2016		November 30, 2015
Assets under management (1):
Equities	$	128	$	18
Multi-asset	835		688
Total	$	963	$	706

(1) Assets under management include assets actively managed by us, including hedge funds and certain managed accounts. Assets under management do not include the assets of funds that are consolidated due to the level or nature of our investment in such funds.

Non-interest Expenses

Non-interest expenses were as follows (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Compensation and benefits	$	376,438	$	336,499	$	1,141,497	$	1,182,484
Non-compensation expenses:
Floor brokerage and clearing fees	40,189		45,307		124,259		159,100
Technology and communications	64,512		89,378		196,000		234,126
Occupancy and equipment rental	24,987		25,967		74,498		74,571
Business development	20,259		30,527		67,700		78,865
Professional services	29,761		24,684		82,799		76,359
Other	17,582		19,473		52,649		51,960
Total non-compensation expenses	197,290		235,336		597,905		674,981
Total non-interest expenses	$	573,728	$	571,835	$	1,739,402	$	1,857,465

Compensation and Benefits

Compensation and benefits expense consists of salaries, benefits, cash bonuses, commissions, annual cash compensation awards and the amortization of certain non-annual share-based and cash compensation awards to employees. Cash and historical share-based awards granted to employees as part of year end compensation generally contain provisions such that employees who terminate their employment or are terminated without cause may continue to vest in their awards, so long as those awards are not forfeited as a result of other forfeiture provisions (primarily non-compete clauses) of those awards. Accordingly, the compensation expense for a portion of awards granted at year end as part of annual compensation is recorded in the year of the award.

Included within Compensation and benefits expense are share-based amortization expense for senior executive awards granted in September 2012 and February 2016, non-annual share-based and cash-based awards to other employees and certain year end awards that contain future service requirements for vesting. Such senior executive awards contain market and performance conditions and are being amortized over their respective future service periods. Compensation expense related to the amortization of share- and cash-based awards amounted to $62.4 million and $207.9 million for the three and nine months ended August 31, 2016, respectively, and $53.2 million and $196.7 million for the three and nine months ended August 31, 2015, respectively. Compensation and benefits expense directly related to the activities of our Bache business was $22.1 million and $80.6 million for the three and nine months ended August 31, 2015, respectively.

Compensation and benefits expense as a percentage of Net revenues was 57.5% and 68.2% for the three and nine months ended August 31, 2016, respectively, and 58.1% and 60.3% for the three and nine months ended August 31, 2015, respectively. The increase in the compensation ratio for the nine months ended August 31, 2016 as compared to the prior year period is due to the exceptionally low net revenues and certain higher fixed compensation costs.

Employee headcount was 3,323 at August 31, 2016 and 3,665 at August 31, 2015. Since August 31, 2015, our headcount has decreased as the result of exiting of the Bache business, continued discipline in headcount and productivity management and corporate services outsourcing.

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Non-Compensation Expenses

Three Months Ended August 31, 2016

Non-compensation expenses were $197.3 million for the three months ended August 31, 2016, a decrease of $38.0 million, or 16.2% compared with $235.3 million in the three months ended August 31, 2015. Non-compensation expenses as a percentage of Net revenues was 30.1% and 40.7% for the three months ended August 31, 2016 and August 31, 2015, respectively.

The decrease in Non-compensation expenses during the three months ended August 31, 2016 was due to a decrease in expenses generally across almost all expense categories. Floor brokerage and clearing expenses during the three months ended August 31, 2016decreased11.3%, primarily reflecting the wind down of the Jefferies Bache business and lower trading volumes in our equities options and Asia equities trading businesses. Technology and communications expense decreased27.8% during the three months ended August 31, 2016, primarily due to accelerated depreciation on capitalized software related to our Jefferies Bache business recognized during the three months ended August 31, 2015. Business development expense decreased33.6%, primarily reflecting lower costs in respect of travel and conferences. In both quarters, we continued to incur legal and consulting fees as part of implementing various regulatory requirements, which are recognized in Professional services expense. Non-compensation expenses associated directly with the activities of the Bache business were $37.7 million for the three months ended August 31, 2015. We completed the exit of the Bache business during the second quarter of 2016.

Nine Months Ended August 31, 2016

Non-compensation expenses were $597.9 million for the nine months ended August 31, 2016, a decrease of $77.1 million, or 11.4% compared with $675.0 million in the nine months ended August 31, 2015. The decrease was primarily due to a decrease in Floor brokerage and clearing expenses, Technology and communications expenses and Business development expenses. Non-compensation expenses as a percentage of Net revenues was 35.7% and 34.4% for the nine months ended August 31, 2016 and August 31, 2015, respectively. Non-compensation expenses associated directly with the activities of the Bache business were $114.8 million for the nine months ended August 31, 2015, which we completed the exit of at May 31, 2016.

Income Taxes

For the three and nine months ended August 31, 2016, the income tax expense was $39.6 million and $5.1 million, respectively, equating to an effective tax rate of 49.0% and (7.7)%, respectively. For the three and nine months ended August 31, 2015, the provision for income taxes was $4.6 million and $29.5 million, respectively, equating to an effective tax rate of 65.0% and 28.2%, respectively. The change in the effective tax rate during the three months ended August 31, 2016 as compared with the prior year quarter is primarily due to a change in the geographical mix of earnings and a change in the forecasted full year projected effective tax rate.

Accounting Developments

For a discussion of recently issued accounting developments and their impact on our consolidated financial statements, see Note 3, Accounting Developments, in our consolidated financial statements.

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Critical Accounting Policies

The consolidated financial statements are prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes. Actual results can and may differ from estimates. These differences could be material to the financial statements.

We believe our application of U.S. GAAP and the associated estimates are reasonable. Our accounting estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

We believe our critical accounting policies (policies that are both material to the financial condition and results of operations and require our most subjective or complex judgments) are our valuation of financial instruments, assessment of goodwill and our use of estimates related to compensation and benefits during the year.

Valuation of Financial Instruments

Financial instruments owned and Financial instruments sold, not yet purchased are recorded at fair value. 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). Unrealized gains or losses are generally recognized in Principal transaction revenues in our Consolidated Statements of Earnings.

The following is a summary of the fair value of major categories of financial instruments owned and financial instruments sold, not yet purchased at August 31, 2016 and November 30, 2015 (in thousands):

	August 31, 2016				November 30, 2015
	Financial Instruments Owned		Financial Instruments Sold, Not Yet Purchased		Financial Instruments Owned		Financial Instruments Sold, Not Yet Purchased
Corporate equity securities	$	2,149,879	$	1,741,068	$	2,027,989	$	1,418,933
Corporate debt securities	2,529,310		1,705,150		2,893,041		1,556,941
Government, federal agency and other sovereign obligations	5,756,354		3,586,703		5,792,233		2,831,117
Mortgage- and asset-backed securities	2,045,709		—		4,166,362		117
Loans and other receivables	1,401,549		539,028		1,312,333		769,408
Derivatives	330,582		372,123		251,080		208,548
Investments at fair value	114,536		—		116,078		—
Total	$	14,327,919	$	7,944,072	$	16,559,116	$	6,785,064

Fair Value Hierarchy - 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, where Level 1 uses observable prices in active markets and Level 3 uses valuation techniques that incorporate significant unobservable inputs and broker quotes that are considered less observable. Greater use of management judgment is required in determining fair value when inputs are less observable or unobservable in the marketplace, such as when the volume or level of trading activity for a financial instrument has decreased and when certain factors suggest that observed transactions may not be reflective of orderly market transactions. Judgment must be applied in determining the appropriateness of available prices, particularly in assessing whether available data reflects current prices and/or reflects the results of recent market transactions. Prices or quotes are weighed when estimating fair value with greater reliability placed on information from transactions that are considered to be representative of orderly market transactions.

Fair value is a market based measure; therefore, when market observable inputs are not available, our judgment is applied to reflect those judgments that a market participant would use in valuing the same asset or liability. The availability of observable inputs can vary for different products. We use prices and inputs that are current as of the measurement date even in periods of market disruption or illiquidity. The valuation of financial instruments classified in Level 3 of the fair value hierarchy involves the greatest amount of management judgment. (See Note 2, Summary of Significant Accounting Policies, and Note 4, Fair Value Disclosures, in our consolidated financial statements for further information on the definitions of fair value, Level 1, Level 2 and Level 3 and related valuation techniques.)

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Level 3 Assets and Liabilities – The following table reflects the composition of our Level 3 assets and Level 3 liabilities included within financial instruments by asset class at August 31, 2016 and November 30, 2015 (in thousands):

	Financial Instruments Owned						Financial Instruments Sold, Not Yet Purchased
	August 31, 2016			November 30, 2015			August 31, 2016			November 30, 2015
Investments at fair value	$	85,036		$	53,120		$	—		$	—
Loans and other receivables	78,457			189,289			848			10,469
Other asset-backed securities	61,112			42,925			—			—
Residential mortgage-backed securities	46,881			70,263			—			—
Collateralized debt obligations	44,070			85,092			—			—
Corporate debt securities	35,007			25,876			523			—
Municipal securities	27,257			—			—			—
Commercial mortgage-backed securities	24,593			14,326			—			—
Corporate equity securities	22,195			40,906			38			38
Derivatives	9,560			19,785			20,607			19,543
Sovereign obligations	—			120			—			—
Total Level 3 financial instruments	$	434,168		$	541,702		$	22,016		$	30,050
Total Level 3 financial instruments as a percentage of total financial instruments	3.0		%	3.3		%	0.3		%	0.4		%

For additional information on other assets and liabilities measured at fair value, see Note 4, Fair Value Disclosures, in our consolidated financial statements.

The following table reflects activity with respect to our Level 3 assets and net liabilities (in millions):

	Three Months Ended August 31,					Nine Months Ended August 31,
	2016			2015		2016			2015
Assets:
Transfers from Level 3 to Level 2	$	91.8		$	91.4	$	114.5		$	88.1
Transfers from Level 2 to Level 3	147.0			73.4		157.8			157.7
Net gains (losses)	(48.3		)	64.9		(93.1		)	48.5
Net liabilities:
Transfers from Level 3 to Level 2	$	2.1		$	51.5	$	14.7		$	54.8
Transfers from Level 2 to Level 3	0.9			1.5		0.1			2.6
Net gains (losses)	5.4			1.7		(2.8		)	(2.3		)

For additional discussion on transfers of assets and liabilities among the fair value hierarchy levels, see Note 4, Fair Value Disclosures, in our consolidated financial statements.

Controls Over the Valuation Process for Financial Instruments – Our Independent Price Verification Group, independent of the trading function, plays an important role in determining that our financial instruments are appropriately valued and that fair value measurements are reliable. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. Where a pricing model is used to determine fair value, these control processes include reviews of the pricing model’s theoretical soundness and appropriateness by risk management personnel with relevant expertise who are independent from the trading desks. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model.

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Goodwill

At August 31, 2016, goodwill recorded on our Consolidated Statement of Financial Condition is $1,645.3 million (4.3% of total assets). The nature and accounting for goodwill is discussed in Note 2, Summary of Significant Accounting Policies and Note 10, Goodwill and Other Intangible Assets, in our consolidated financial statements. Goodwill must be allocated to reporting units and tested for impairment at least annually, or when circumstances or events make it more likely than not that an impairment occurred. Goodwill is tested by comparing the estimated fair value of each reporting unit with its carrying value. Our annual goodwill impairment testing date is August 1, which did not indicate any goodwill impairment in any of our reporting units at August 1, 2016.

We use allocated tangible equity plus allocated goodwill and intangible assets as a proxy for the carrying amount of each reporting unit. The amount of 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. For further information on our Cash Capital Policy, refer to the Liquidity, Financial Condition and Capital Resources section herein. 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.

Estimating the fair value of a reporting unit requires management judgment and often involves the use of estimates and assumptions that could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. Estimated fair values for our reporting units utilize market valuation methods that incorporate price-to-earnings and price-to-book multiples of comparable public companies. Under the market approach, the key assumptions are the selected multiples and our internally developed forecasts 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 approach represent a noncontrolling interest, we apply a control premium to arrive at the estimate fair value of each reporting unit on a controlling basis.

The carrying values of goodwill by reporting unit at August 31, 2016 are as follows: $564.8 million in Investment Banking, $160.4 million in Equities and Wealth Management, $917.1 million in Fixed Income and $3.0 million in Strategic Investments.

The results of our assessment on August 1, 2016 indicated that all our reporting units had a fair value in excess of their carrying amounts based on current projections. While no goodwill impairment was identified, the valuation methodology for our reporting units are sensitive to management’s forecasts of future profitability, which comes with a level of uncertainty regarding U.S. and global economic conditions, trading volumes and equity and debt capital market transaction levels.

Refer to Note 10, Goodwill and Other Intangible Assets, for further details on goodwill.

Compensation and Benefits

A portion of our compensation and benefits represents discretionary bonuses, which are finalized at year end. In addition to the level of net revenues, our overall compensation expense in any given year is influenced by prevailing labor markets, revenue mix, profitability, individual and business performance metrics, and our use of share-based compensation programs. We believe the most appropriate way to allocate estimated annual total compensation among interim periods is in proportion to net revenues earned. Consequently, during the year we accrue compensation and benefits based on annual targeted compensation ratios, taking into account the mix of our revenues and the timing of expense recognition.

For further discussion of these and other significant accounting policies, see Note 2, Summary of Significant Accounting Policies, in our consolidated financial statements.

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Liquidity, Financial Condition and Capital Resources

Our Chief Financial Officer and Global Treasurer are responsible for developing and implementing our liquidity, funding and capital management strategies. These policies are determined by the nature and needs of our day to day business operations, business opportunities, regulatory obligations, and liquidity requirements.

Our actual levels of capital, total assets and financial leverage are a function of a number of factors, including asset composition, business initiatives and opportunities, regulatory requirements and cost and availability of both long term and short term funding. We have historically maintained a balance sheet consisting of a large portion of our total assets in cash and liquid marketable securities, arising principally from traditional securities brokerage and trading activity. The liquid nature of these assets provides us with flexibility in financing and managing our business.

Analysis of Financial Condition

A business unit level balance sheet and cash capital analysis is prepared and reviewed with senior management on a weekly basis. As a part of this balance sheet review process, capital is allocated to all assets and gross and adjusted balance sheet limits are established. This process ensures that the allocation of capital and costs of capital are incorporated into business decisions. The goals of this process are to protect the firm’s platform, enable our businesses to remain competitive, maintain the ability to manage capital proactively and hold businesses accountable for both balance sheet and capital usage.

We actively monitor and evaluate our financial condition and the composition of our assets and liabilities. We continually monitor our overall securities inventory, including the inventory turnover rate, which confirms the liquidity of our overall assets. Substantially all of our Financial instruments owned and Financial instruments sold, not yet purchased are valued on a daily basis and we monitor and employ balance sheet limits for our various businesses. In connection with our government and agency fixed income business and our role as a primary dealer in these markets, a sizable portion of our securities inventory is comprised of U.S. government and agency securities and other G-7 government securities.

The following table provides detail on key balance sheet asset and liability line items (dollars in millions):

	August 31,   2016		November 30, 2015		% Change
Total assets	$	38,127.7	$	38,564.0	(1.1	)%
Cash and cash equivalents	3,159.1		3,510.2		(10.0	)%
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	1,026.9		751.1		36.7	%
Financial instruments owned	14,327.9		16,559.1		(13.5	)%
Financial instruments sold, not yet purchased	7,944.1		6,785.1		17.1	%
Total Level 3 assets	434.2		541.7		(19.8	)%
Securities borrowed	$	8,460.7	$	6,975.1	21.3	%
Securities purchased under agreements to resell	4,038.2		3,857.3		4.7	%
Total securities borrowed and securities purchased under agreements to resell	$	12,498.9	$	10,832.4	15.4	%
Securities loaned	$	2,930.4	$	2,979.3	(1.6	)%
Securities sold under agreements to repurchase	8,130.4		10,004.4		(18.7	)%
Total securities loaned and securities sold under agreements to repurchase	$	11,060.8	$	12,983.7	(14.8	)%

Total assets at August 31, 2016 and November 30, 2015 were $38.1 billion and $38.6 billion, respectively, a decline of 1.1%. This decline reflects reductions that we implemented beginning in the fourth quarter of 2015 given our view of the market environment, which is also reflected in an overall reduction in risk at the comparable period ends. During the three and nine months ended August 31, 2016, average total assets were approximately 10.9% and 14.0%, respectively, higher than total assets at August 31, 2016.

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Our total Financial instruments owned inventory at August 31, 2016 was $14.3 billion, a decrease of 13.5% from inventory of $16.6 billion at November 30, 2015, primarily due to decreases in mortgage- and asset-backed securities due to global market and economic concerns in the nine months ended August 31, 2016. Financial instruments sold, not yet purchased inventory was $7.9 billion and $6.8 billion at August 31, 2016 and November 30, 2015, respectively, with the increase primarily driven by government, federal agency and other sovereign obligations and corporate debt and equity securities inventory due to increased market volatility caused by concerns about the pace of global economic growth, uncertainty around the U.S. Federal Reserve's monetary policy and the impact of the Brexit vote, partially offset by a decrease in loans and other receivables due to settlements during the nine months ended August 31, 2016. Our overall net inventory position was $6.4 billion and $9.8 billion at August 31, 2016 and November 30, 2015, respectively. The change in our net inventory balance is attributed to a reduction in most net inventory positions, primarily mortgage- and asset-backed securities and government, federal agency and other sovereign obligations, partially offset by an increase in net loans. While our total Financial instruments owned declined from November 30, 2015 to August 31, 2016, our Level 3 financial instruments owned as a percentage of total financial instruments owned also declined to 3.0% at August 31, 2016 from 3.3% at November 30, 2015.

Securities financing assets and liabilities include both financing for our financial instruments trading activity and matched book transactions. Matched book transactions accommodate customers, as well as obtain securities for the settlement and financing of inventory positions. The aggregate outstanding balance of our securities borrowed and securities purchased under agreements to resell increased by 15.4% from November 30, 2015 to August 31, 2016, due to an increase in firm financing of our short inventory and a decrease in the netting benefit for our collateralized financing transactions, partially offset by a decrease in our matched book activity. The outstanding balance of our securities loaned and securities sold under agreement to repurchase decreased by 14.8% from November 30, 2015 to August 31, 2016 due to decreases in our matched book activity and firm financing of our inventory, partially offset by a decrease in the netting benefit for our collateralized financing transactions. Our average month end balances of total reverse repos and stock borrows during the three and nine months ended August 31, 2016 were 14.0% and 14.1% higher, respectively, than the August 31, 2016 balances. Our average month end balances of total repos and stock loans during the three and nine months ended August 31, 2016 were 21.9% and 33.6%, respectively, higher than the August 31, 2016 balances.

The following table presents our period end balance, average balance and maximum balance at any month end within the periods presented for Securities purchased under agreements to resell and Securities sold under agreements to repurchase (dollars in millions):

	Nine Months Ended   August 31,   2016		Year Ended   November 30, 2015
Securities Purchased Under Agreements to Resell:
Period end	$	4,038	$	3,857
Month end average	5,274		5,719
Maximum month end	7,001		7,577
Securities Sold Under Agreements to Repurchase:
Period end	$	8,130	$	10,004
Month end average	11,858		14,026
Maximum month end	16,620		18,629

Fluctuations in the balance of our repurchase agreements from period to period and intraperiod are dependent on business activity in those periods. Additionally, the fluctuations in the balances of our securities purchased under agreements to resell over the periods presented are influenced in any given period by our clients’ balances and our clients’ desires to execute collateralized financing arrangements via the repurchase market or via other financing products. Average balances and period end balances will fluctuate based on market and liquidity conditions and we consider the fluctuations intraperiod to be typical for the repurchase market.

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Leverage Ratios

The following table presents total assets, adjusted assets, total equity, total member’s equity, tangible equity and tangible member’s equity with the resulting leverage ratios at August 31, 2016 and November 30, 2015 (dollars in thousands):

		August 31,   2016			November 30, 2015
Total assets		$	38,127,677		$	38,563,972
Deduct:	Securities borrowed	(8,460,736		)	(6,975,136		)
	Securities purchased under agreements to resell	(4,038,194		)	(3,857,306		)
Add:	Financial instruments sold, not yet purchased	7,944,072			6,785,064
	Less derivative liabilities	(372,123		)	(208,548		)
Subtotal		7,571,949			6,576,516
Deduct:	Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(1,026,865		)	(751,084		)
	Goodwill and intangible assets	(1,856,079		)	(1,882,371		)
Adjusted assets		$	30,317,752		$	31,674,591
Total equity		$	5,326,592		$	5,509,377
Deduct:	Goodwill and intangible assets	(1,856,079		)	(1,882,371		)
Tangible total equity		$	3,470,513		$	3,627,006
Total member’s equity (4)		$	5,321,402		$	5,481,909
Deduct:	Goodwill and intangible assets	(1,856,079		)	(1,882,371		)
Tangible member’s equity (4)		$	3,465,323		$	3,599,538
Leverage ratio (1) (4)		7.2			7.0
Tangible gross leverage ratio (2) (4)		10.5			10.2
Adjusted leverage ratio (3) (4)		8.7			8.7

(1) Leverage ratio equals total assets divided by total equity.

(2) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible member’s equity. The tangible gross leverage ratio is used by Rating Agencies in assessing our leverage ratio.

(3) Adjusted leverage ratio (a non-GAAP financial measure) equals adjusted assets divided by tangible total equity.

(4) The decline in total member's equity from November 30, 2015 to August 31, 2016 was primarily attributable to a net loss for the nine months ended August 31, 2016, as well as the decline in the British pound rate of exchange against the U.S. dollar, due to the Brexit vote, which negatively impacted our investment in our U.K.-based subsidiaries.

Adjusted assets is a non-GAAP financial measure and excludes certain assets that are considered of lower risk as they are generally self-financed by customer liabilities through our securities lending activities. We view the resulting measure of adjusted leverage, also a non-GAAP financial measure, as a more relevant measure of financial risk when comparing financial services companies.

Liquidity Management

The key objectives of the liquidity management framework are to support the successful execution of our business strategies while ensuring sufficient liquidity through the business cycle and during periods of financial distress. Our liquidity management policies are designed to mitigate the potential risk that we may be unable to access adequate financing to service our financial obligations without material franchise or business impact.

The principal elements of our liquidity management framework are our Contingency Funding Plan, our Cash Capital Policy and our assessment of Maximum Liquidity Outflow.

Contingency Funding Plan. Our Contingency Funding Plan is based on a model of a potential liquidity contraction over a one year time period. This incorporates potential cash outflows during a liquidity stress event, including, but not limited to, the following: (a) repayment of all unsecured debt maturing within one year and no incremental unsecured debt issuance; (b) maturity rolloff of outstanding letters of credit with no further issuance and replacement with cash collateral; (c) higher margin requirements than currently exist on assets on securities financing activity, including repurchase agreements; (d) liquidity outflows related to possible credit downgrade; (e) lower availability of secured funding; (f) client cash withdrawals; (g) the anticipated funding of outstanding investment and loan commitments; and (h) certain accrued expenses and other liabilities and fixed costs.

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Cash Capital Policy. We maintain a cash capital model that measures long-term funding sources against requirements. Sources of cash capital include our equity and the noncurrent portion of long-term borrowings. Uses of cash capital include the following: (a) illiquid assets such as equipment, goodwill, net intangible assets, exchange memberships, deferred tax assets and certain investments; (b) a portion of securities inventory that is not expected to be financed on a secured basis in a credit stressed environment (i.e., margin requirements) and (c) drawdowns of unfunded commitments. To ensure that we do not need to liquidate inventory in the event of a funding crisis, we seek to maintain surplus cash capital, which is reflected in the leverage ratios we maintain. Our total long-term capital of $10.8 billion at August 31, 2016 exceeded our cash capital requirements.

Maximum Liquidity Outflow. Our businesses are diverse, and our liquidity needs are determined by many factors, including market movements, collateral requirements and client commitments, all of which can change dramatically in a difficult funding environment. During a liquidity crisis, credit-sensitive funding, including unsecured debt and some types of secured financing agreements, may be unavailable, and the terms (e.g., interest rates, collateral provisions and tenor) or availability of other types of secured financing may change. As a result of our policy to ensure we have sufficient funds to cover what we estimate may be needed in a liquidity crisis, we hold more cash and unencumbered securities and have greater long-term debt balances than our businesses would otherwise require. As part of this estimation process, we calculate a Maximum Liquidity Outflow that could be experienced in a liquidity crisis. Maximum Liquidity Outflow is based on a scenario that includes both a market-wide stress and firm-specific stress, characterized by some or all of the following elements:

• Global recession, default by a medium-sized sovereign, low consumer and corporate confidence, and general financial instability.

• Severely challenged market environment with material declines in equity markets and widening of credit spreads.

• Damaging follow-on impacts to financial institutions leading to the failure of a large bank.

• A firm-specific crisis potentially triggered by material losses, reputational damage, litigation, executive departure, and/or a ratings downgrade.

The following are the critical modeling parameters of the Maximum Liquidity Outflow:

• Liquidity needs over a 30-day scenario.

• A two-notch downgrade of our long-term senior unsecured credit ratings.

• No support from government funding facilities.

• A combination of contractual outflows, such as upcoming maturities of unsecured debt, and contingent outflows (e.g., actions though not contractually required, we may deem necessary in a crisis). We assume that most contingent outflows will occur within the initial days and weeks of a crisis.

• No diversification benefit across liquidity risks. We assume that liquidity risks are additive.

The calculation of our Maximum Liquidity Outflow under the above stresses and modeling parameters considers the following potential contractual and contingent cash and collateral outflows:

• All upcoming maturities of unsecured long-term debt, commercial paper, promissory notes and other unsecured funding products assuming we will be unable to issue new unsecured debt or rollover any maturing debt.

• Repurchases of our outstanding long-term debt in the ordinary course of business as a market maker.

• A portion of upcoming contractual maturities of secured funding trades due to either the inability to refinance or the ability to refinance only at wider haircuts (i.e., on terms which require us to post additional collateral). Our assumptions reflect, among other factors, the quality of the underlying collateral and counterparty concentration.

• Collateral postings to counterparties due to adverse changes in the value of our Over-the-counter ("OTC") derivatives and other outflows due to trade terminations, collateral substitutions, collateral disputes, collateral calls or termination payments required by a two-notch downgrade in our credit ratings.

• Variation margin postings required due to adverse changes in the value of our outstanding exchange-traded derivatives and any increase in initial margin and guarantee fund requirements by derivative clearing houses.

• Liquidity outflows associated with our prime brokerage business, including withdrawals of customer credit balances, and a reduction in customer short positions.

• Liquidity outflows to clearing banks to ensure timely settlements of cash and securities transactions.

• Draws on our unfunded commitments considering, among other things, the type of commitment and counterparty.

• Other upcoming large cash outflows, such as tax payments.

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Based on the sources and uses of liquidity calculated under the Maximum Liquidity Outflow scenarios we determine, based on a calculated surplus or deficit, additional long-term funding that may be needed versus funding through the repurchase financing market and consider any adjustments that may be necessary to our inventory balances and cash holdings. At August 31, 2016, we have sufficient excess liquidity to meet all contingent cash outflows detailed in the Maximum Liquidity Outflow. We regularly refine our model to reflect changes in market or economic conditions and the firm’s business mix.

Sources of Liquidity

The following are financial instruments that are cash and cash equivalents or are deemed by management to be generally readily convertible into cash, marginable or accessible for liquidity purposes within a relatively short period of time (dollars in thousands):

	August 31, 2016			Average balance Quarter ended August 31, 2016 (1)		November 30, 2015
Cash and cash equivalents:
Cash in banks	$	874,359		$	729,142	$	973,796
Certificates of deposit	25,013			25,000		75,000
Money market investments	2,259,771			1,660,460		2,461,367
Total cash and cash equivalents	3,159,143			2,414,602		3,510,163
Other sources of liquidity:
Debt securities owned and securities purchased under agreements to resell (2)	1,448,764			1,238,322		1,265,840
Other (3)	412,027			655,682		305,123
Total other sources	1,860,791			1,894,004		1,570,963
Total cash and cash equivalents and other liquidity sources	$	5,019,934		$	4,308,606	$	5,081,126
Total cash and cash equivalents and other liquidity sources as % of Total Assets	13.2		%			13.2		%
Total cash and cash equivalents and other liquidity sources as % of Total Assets less Goodwill and Intangible assets	13.8		%			13.9		%

(1) Average balances are calculated based on weekly balances.

(2) Consists of high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities; deposits with a central bank within the European Economic Area, Canada, Australia, Japan, Switzerland or the USA; and securities issued by a designated multilateral development bank and reverse repurchase agreements with underlying collateral comprised of these securities.

(3) Other includes unencumbered inventory representing an estimate of the amount of additional secured financing that could be reasonably expected to be obtained from our financial instruments owned that are currently not pledged after considering reasonable financing haircuts.

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In addition to the cash balances and liquidity pool presented above, the majority of financial instruments (both long and short) in our trading accounts are actively traded and readily marketable. At August 31, 2016, we had the ability to readily obtain repurchase financing for 78.0% of our inventory at haircuts of 10% or less, which reflects the liquidity of our inventory. In addition, as a matter of our policy, all of these assets have internal capital assessed, which is in addition to the funding haircuts provided in the securities finance markets. Additionally, certain of our Financial instruments owned primarily consisting of bank loans, consumer loans and investments are predominantly funded by long term capital. Under our cash capital policy, we model capital allocation levels that are more stringent than the haircuts used in the market for secured funding; and we maintain surplus capital at these more stringent levels. We continually assess the liquidity of our inventory based on the level at which we could obtain financing in the market place for a given asset. Assets are considered to be liquid if financing can be obtained in the repurchase market or the securities lending market at collateral haircut levels of 10% or less. The following summarizes our financial instruments by asset class that we consider to be of a liquid nature and the amount of such assets that have not been pledged as collateral at August 31, 2016 and November 30, 2015 (in thousands):

	August 31, 2016				November 30, 2015
	Liquid Financial Instruments		Unencumbered Liquid Financial Instruments (2)		Liquid Financial Instruments		Unencumbered Liquid Financial Instruments (2)
Corporate equity securities	$	2,060,436	$	316,705	$	1,881,419	$	268,664
Corporate debt securities	2,079,906		52,437		1,999,162		89,230
U.S. government, agency and municipal securities	3,588,411		600,532		2,987,784		317,518
Other sovereign obligations	1,893,097		861,107		2,444,339		1,026,842
Agency mortgage-backed securities (1)	1,557,192		—		3,371,680		—
Total	$	11,179,042	$	1,830,781	$	12,684,384	$	1,702,254

(1) Consists solely of agency mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. These securities include pass-through securities, securities backed by adjustable rate mortgages (“ARMs”), collateralized mortgage obligations, commercial mortgage-backed securities and interest- and principal-only securities.

(2) Unencumbered liquid balances represent assets that can be sold or used as collateral for a loan, but have not been.

Average liquid financial instruments were $11.6 billion and $12.7 billion for the three and nine months ended August 31, 2016, respectively, and $15.3 billion and $15.2 billion for the three and twelve months ended November 30, 2015, respectively. Average unencumbered liquid financial instruments were $2.0 billion and $1.9 billion for the three and nine months ended August 31, 2016, respectively, and $1.9 billion for both the three and twelve months ended November 30, 2015.

In addition to being able to be readily financed at modest haircut levels, we estimate that each of the individual securities within each asset class above could be sold into the market and converted into cash within three business days under normal market conditions, assuming that the entire portfolio of a given asset class was not simultaneously liquidated. There are no restrictions on the unencumbered liquid securities, nor have they been pledged as collateral.

Sources of Funding and Capital Resources

Our assets are funded by equity capital, senior debt, convertible debt, securities loaned, securities sold under agreements to repurchase, customer free credit balances, bank loans and other payables.

Secured Financing

We rely principally on readily available secured funding to finance our inventory of financial instruments. Our ability to support increases in total assets is largely a function of our ability to obtain short and intermediate-term secured funding, primarily through securities financing transactions. We finance a portion of our long inventory and cover some of our short inventory by pledging and borrowing securities in the form of repurchase or reverse repurchase agreements (collectively “repos”), respectively. Approximately 75.6% of our repurchase financing activities use collateral that is considered eligible collateral by central clearing corporations. Central clearing corporations are situated between participating members who borrow cash and lend securities (or vice versa); accordingly repo participants contract with the central clearing corporation and not one another individually. Therefore, counterparty credit risk is borne by the central clearing corporation which mitigates the risk through initial margin demands and variation margin calls from repo participants. The comparatively large proportion of our total repo activity that is eligible for central clearing reflects the high quality and liquid composition of the inventory we carry in our trading books. For those asset classes not eligible for central clearinghouse financing, we seek to execute our bi-lateral financings on an extended term basis and the tenor of our repurchase and reverse repurchase agreements generally exceeds the expected holding period of the assets we are financing. Weighted average maturity of repurchase agreements for non-clearing corporation eligible funded inventory is approximately three months at August 31, 2016.

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Our ability to finance our inventory via central clearinghouses and bi-lateral arrangements is augmented by our ability to draw bank loans on an uncommitted basis under our various banking arrangements. At August 31, 2016, short-term borrowings, which must be repaid within one year or less and include bank loans and overdrafts, borrowings under revolving credit facilities, structured notes and a demand loan margin financing facility, totaled $432.2 million. Interest under the bank lines is generally at a spread over the federal funds rate. Letters of credit are used in the normal course of business mostly to satisfy various collateral requirements in favor of exchanges in lieu of depositing cash or securities. Average daily short-term borrowings outstanding were $414.4 million and $372.3 million for the three and nine months ended August 31, 2016, respectively.

In addition to the above financing arrangements, we issue notes backed by eligible collateral under a master repurchase agreement, which provides an additional financing source for our inventory (our “repurchase agreement financing program”). The notes issued under the program are presented within Other secured financings in the Consolidated Statement of Financial Condition. At August 31, 2016, the outstanding notes are as follows:

Series	Issued	Principal	Maturity
2014-4 (1)	December 19, 2014	$60.0 million	December 16, 2016
2014-5 (2)	January 20, 2015	$108.6 million	January 18, 2017
2016-1 (1)	February 5, 2016	$206.3 million	February 4, 2017
2016-3 (1)	May 12, 2016	$178.3 million	May 11, 2017

(1) These notes bear interest at a spread over one month LIBOR.

(2) This note bears interest at a spread over three month LIBOR.

For additional discussion on the program, refer to Note 8, Variable Interest Entities, in our consolidated financial statements.

On February 19, 2016, we entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of our margin obligations. Interest is based on an annual rate equal to the weighted average LIBOR as defined in the Demand Loan Facility agreement plus 150 basis points.

On October 29, 2015, we entered into a secured revolving loan facility (“Secured Revolving Loan Facility”) whereby the lender agrees to make available a revolving loan facility in a maximum principal amount of $50.0 million in U.S. dollars to purchase eligible receivables that meet certain requirements as defined in the Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus three and three-quarters percent or the maximum rate as defined in the Secured Revolving Loan Facility agreement.

The Bank of New York Mellon agrees to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $300.0 million in U.S. dollars. The Intraday Credit Facility contains a financial covenant, which includes a minimum regulatory net capital requirement. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At August 31, 2016, we were in compliance with all debt covenants under the Intraday Credit Facility.

Total Long-Term Capital

At August 31, 2016 and November 30, 2015, we had total long-term capital of $10.8 billion resulting in a long-term debt to equity capital ratio of 1.03:1 and 0.96:1, respectively. Our total long-term capital base at August 31, 2016 and November 30, 2015 was as follows (in thousands):

	August 31,   2016		November 30, 2015
Long-Term Debt (1) (2)	$	5,476,066	$	5,287,697
Total Equity	5,326,592		5,509,377
Total Long-Term Capital	$	10,802,658	$	10,797,074

(1) Long-term capital at August 31, 2016 excludes $6.7 million of our Structured Notes, as these notes are puttable on May 4, 2017.

(2) Long-term capital at November 30, 2015 excludes $353.0 million of our 5.5% Senior Notes, as these notes matured on March 15, 2016.

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Long-Term Debt

During the nine months ended August 31, 2016, we issued structured notes with a total principal amount of approximately $218.6 million. Certain of the 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 transaction revenues. The fair value of the structured notes was $204.4 million at August 31, 2016. During the nine months ended August 31, 2016, approximately $350.0 million of long-term borrowings matured or were retired.

In addition, on January 21, 2016, we issued $15.0 million of Class A Notes, due 2022, and $7.5 million of Class B Notes, due 2022, secured by aircraft and related operating leases and which were non-recourse to us. In June 2016, the Class A Notes and the Class B Notes were repurchased and retired.

At August 31, 2016, our long-term debt has a weighted average maturity of approximately eight years.

Our long-term debt ratings at August 31, 2016 are as follows:

	Rating	Outlook
Moody’s Investors Service (1)	Baa3	Stable
Standard and Poor’s	BBB-	Stable
Fitch Ratings (2)	BBB-	Stable

(1) On January 21, 2016, Moody's affirmed our long-term debt rating of Baa3 and our rating outlook was changed from negative to stable. On March 15, 2016, Moody's reaffirmed this rating and rating outlook.

(2) On February 29, 2016, Fitch reaffirmed our long-term debt rating of BBB- and our rating outlook of stable.

At August 31, 2016, the long-term ratings on our principal operating broker-dealers, Jefferies LLC (“Jefferies”) (a U.S. broker-dealer) and Jefferies International Limited (a U.K. broker-dealer) are as follows:

	Jefferies		Jefferies International Limited
	Rating	Outlook	Rating	Outlook
Moody’s Investors Service (1)	Baa2	Stable	Baa2	Stable
Standard and Poor’s	BBB	Stable	BBB	Stable

(1) On January 21, 2016, Moody's affirmed these long-term debt ratings and the rating outlook was changed from negative to stable.

Access to external financing to finance our day to day operations, as well as the cost of that financing, is dependent upon various factors, including our debt ratings. Our current debt ratings are dependent upon many factors, including industry dynamics, operating and economic environment, operating results, operating margins, earnings trend and volatility, balance sheet composition, liquidity and liquidity management, our capital structure, our overall risk management, business diversification and our market share and competitive position in the markets in which we operate. Deteriorations in any of these factors could impact our credit ratings. While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact on our business and trading results in future periods is inherently uncertain and depends on a number of factors, including the magnitude of the downgrade, the behavior of individual clients and future mitigating action taken by us.

In connection with certain over-the-counter derivative contract arrangements and certain other trading arrangements, we may be required to provide additional collateral to counterparties, exchanges and clearing organizations in the event of a credit rating downgrade. At August 31, 2016, the amount of additional collateral that could be called by counterparties, exchanges and clearing organizations under the terms of such agreements in the event of a downgrade of our long-term credit rating below investment grade was $67.0 million. For certain foreign clearing organizations credit rating is only one of several factors employed in determining collateral that could be called. The above represents management’s best estimate for additional collateral to be called in the event of credit rating downgrade. The impact of additional collateral requirements is considered in our Contingency Funding Plan and calculation of Maximum Liquidity Outflow, as described above.

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Contractual Obligations and Commitments

The tables below provide information about our commitments related to debt obligations, investments and derivative contracts at August 31, 2016. The table presents principal cash flows with expected maturity dates (in millions):

	Expected Maturity Date
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Total
Debt obligations:
Unsecured long-term debt (contractual principal payments net of unamortized discounts and premiums)	$	—	$	346.5	$	1,624.2	$	1,383.6	$	2,128.4	$	5,482.7
Interest payment obligations on senior notes	298.7		295.9		477.3		327.0		1,206.0		2,604.9
	$	298.7	$	642.4	$	2,101.5	$	1,710.6	$	3,334.4	$	8,087.6
Commitments and guarantees:
Equity commitments	$	1.5	$	7.9	$	—	$	11.3	$	213.7	$	234.4
Loan commitments	—		306.4		82.2		54.4		—		443.0
Mortgage-related and other purchase commitments	838.0		263.2		1,265.2		21.6		—		2,388.0
Underwriting commitments	—		223.2		—		—		—		223.2
Forward starting reverse repos and repos	166.3		—		—		—		—		166.3
Other unfunded commitments	65.8		142.6		26.8		5.1		32.3		272.6
Derivative contracts (1):
Derivative contracts – non-credit related	20,564.3		5,702.8		377.9		—		437.4		27,082.4
Derivative contracts – credit related	—		—		91.7		258.7		—		350.4
	$	21,635.9	$	6,646.1	$	1,843.8	$	351.1	$	683.4	$	31,160.3

(1) Certain of our derivative contracts meet the definition of a guarantee and are therefore included in the above table. For additional information on commitments, see Note 17, Commitments, Contingencies and Guarantees, in our consolidated financial statements.

In addition, in March 2016, we entered into an lease agreement for office space in London. Beginning in fiscal 2020, we will have a contractual obligation to pay approximately £8.1 million per year for 18 years.

In the normal course of business we engage in other off balance sheet arrangements, including derivative contracts. Neither derivatives’ notional amounts nor underlying instrument values are reflected as assets or liabilities in our Consolidated Statements of Financial Condition. Rather, the fair value of derivative contracts are reported in the Consolidated Statements of Financial Condition as Financial instruments owned or Financial instruments sold, not yet purchased as applicable. Derivative contracts are reflected net of cash paid or received pursuant to credit support agreements and are reported on a net by counterparty basis when a legal right of offset exists under an enforceable master netting agreement. For additional information about our accounting policies and our derivative activities see Note 2, Summary of Significant Accounting Policies, Note 4, Fair Value Disclosures, and Note 5, Derivative Financial Instruments, in our consolidated financial statements.

We are routinely involved with variable interest entities (“VIEs”) in the normal course of business. At August 31, 2016, we did not have any commitments to purchase assets from our VIEs. For additional information regarding our involvement with VIEs, see Note 7, Securitization Activities, and Note 8, Variable Interest Entities, in our consolidated financial statements.

Due to the uncertainty regarding the timing and amounts that will ultimately be paid, our liability for unrecognized tax benefits has been excluded from the above contractual obligations table. See Note 16, Income Taxes, in our consolidated financial statements for further information.

Equity Capital

As compared to November 30, 2015, the decrease to total member’s equity at August 31, 2016 is attributed to a net loss during the nine months ended August 31, 2016 and foreign currency translation adjustments. The change in foreign currency translation adjustments was primarily due to the decline in the British pound rate of exchange against the U.S. dollar, due to the Brexit vote.

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Net Capital

As broker-dealers registered with the SEC and member firms of the Financial Industry Regulatory Authority (“FINRA”), Jefferies and Jefferies Execution are subject to the Securities and Exchange Commission Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and have elected to calculate minimum capital requirements using the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies, as a dually-registered U.S. broker-dealer and 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.

At August 31, 2016, Jefferies and Jefferies Execution's net capital and excess net capital were as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies	$	1,424,378	$	1,340,682
Jefferies Execution	7,330		7,080

FINRA is the designated self-regulatory organization ("DSRO") for our U.S. broker-dealers and the National Futures Association is the DSRO for Jefferies 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 United Kingdom. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law on July 21, 2010. The Dodd-Frank Act contains provisions that require the registration of all swap dealers, major swap participants, security-based swap dealers, and/or major security-based swap participants. While entities that register under these provisions will be subject to regulatory capital requirements, these regulatory capital requirements have not yet been finalized. We expect that these provisions will result in modifications to the regulatory capital requirements of some of our entities, and will result in some of our other entities becoming subject to regulatory capital requirements for the first time, including Jefferies Derivative Products, LLC and Jefferies Financial Services, Inc., which registered as swap dealers with the CFTC during January 2013 and Jefferies Financial Products LLC, which registered during August 2014.

The regulatory capital requirements referred to above may restrict our ability to withdraw capital from our regulated subsidiaries.

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Risk Management

Overview

Risk is an inherent part of our business and activities. The extent to which we properly and effectively identify, assess, monitor and manage each of the various types of risk involved in our activities is critical to our financial soundness, viability and profitability. Accordingly, we have a comprehensive risk management approach, with a formal governance structure and processes to identify, assess, monitor and manage risk. Principal risks involved in our business activities include market, credit, liquidity and capital, operational, legal and compliance, new business, and reputational risk.

Risk management is a multifaceted process that requires communication, judgment and knowledge of financial products and markets. Accordingly, our risk management process encompasses the active involvement of executive and senior management, and also many departments independent of the revenue-producing business units, including the Risk Management, Operations, Compliance, Legal and Finance Departments. Our risk management policies, procedures and methodologies are fluid in nature and are subject to ongoing review and modification.

For discussion of liquidity and capital risk management, refer to the “Liquidity, Financial Condition and Capital Resources” section herein.

Governance and Risk Management Structure

Our Board of Directors. Our Board of Directors and its Audit Committee play an important role in reviewing our risk management process and risk tolerance. Our Board of Directors and Audit Committee are provided with data relating to risk at each of its regularly scheduled meetings. Our Chief Risk Officer and Global Treasurer meet with the Board of Directors on not less than a quarterly basis to present our risk profile and liquidity profile and to respond to questions.

Risk Committees. We make extensive use of internal committees to govern risk taking and ensure that business activities are properly identified, assessed, monitored and managed. Our Risk Management Committee meets weekly to discuss our risk, capital, and liquidity profile in detail. In addition, business or market trends and their potential impact on the risk profile are discussed. Membership is comprised of our Chief Executive Officer and Chairman, Chairman of the Executive Committee, Chief Financial Officer, Chief Risk Officer and Global Treasurer. The Committee approves limits for us as a whole, and across risk categories and business lines. It also reviews all limit breaches. Limits are reviewed on at least an annual basis. Other risk related committees include Market Risk Management, Credit Risk Management, New Business, Underwriting Acceptance, Margin Oversight, Executive Management and Operating Committees. These Committees govern risk taking and ensure that business activities are properly managed for their area of oversight.

Risk Related Policies. We make use of various policies in the risk management process:

• Market Risk Policy- This policy sets out roles, responsibilities, processes and escalation procedures regarding market risk management.

• Independent Price Verification Policy- This policy sets out roles, responsibilities, processes and escalation procedures regarding independent price verification for securities and other financial instruments.

• Operational Risk Policy- This policy sets out roles, responsibilities, processes and escalation procedures regarding operational risk management.

• Credit Risk Policy- This policy provides standards and controls for credit risk-taking throughout our global business activities. This policy also governs credit limit methodology and counterparty review.

• Model Validation Policy-This policy sets out roles, processes and escalation procedures regarding model validation and model risk management.

Risk Management Key Metrics

We apply a comprehensive framework of limits on a variety of key metrics to constrain the risk profile of our business activities. The size of the limit reflects our risk tolerance for a certain activity under normal business conditions. Key metrics included in our framework include inventory position and exposure limits on a gross and net basis, scenario analysis and stress tests, Value-at-Risk, sensitivities (greeks), exposure concentrations, aged inventory, amount of Level 3 assets, counterparty exposure, leverage, cash capital, and performance analysis metrics.

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Market Risk

The potential for changes in the value of financial instruments is referred to as market risk. Our market risk generally represents the risk of loss that may result from a change in the value of a financial instrument as a result of fluctuations in interest rates, credit spreads, equity prices, commodity prices and foreign exchange rates, along with the level of volatility. Interest rate risks result primarily from exposure to changes in the yield curve, the volatility of interest rates, and credit spreads. Equity price risks result from exposure to changes in prices and volatilities of individual equities, equity baskets and equity indices. Commodity price risks result from exposure to the changes in prices and volatilities of individual commodities, commodity baskets and commodity indices. Market risk arises from market making, proprietary trading, underwriting, specialist and investing activities. We seek to manage our exposure to market risk by diversifying exposures, controlling position sizes, and establishing economic hedges in related securities or derivatives. Due to imperfections in correlations, gains and losses can occur even for positions that are hedged. Position limits in trading and inventory accounts are established and monitored on an ongoing basis. Each day, consolidated position and exposure reports are prepared and distributed to various levels of management, which enable management to monitor inventory levels and results of the trading groups.

Value-at-Risk

We estimate Value-at-Risk (“VaR”) using a model that simulates revenue and loss distributions on substantially all financial instruments by applying historical market changes to the current portfolio. Using the results of this simulation, VaR measures the potential loss in value of our financial instruments due to adverse market movements over a specified time horizon at a given confidence level. We calculate a one-day VaR using a one year look-back period measured at a 95% confidence level.

As with all measures of VaR, our estimate has inherent limitations due to the assumption that historical changes in market conditions are representative of the future. Furthermore, the VaR model measures the risk of a current static position over a one-day horizon and might not capture the market risk of positions that cannot be liquidated or offset with hedges in a one-day period. Published VaR results reflect past trading positions while future risk depends on future positions.

While we believe the assumptions and inputs in our risk model are reasonable, we could incur losses greater than the reported VaR because the historical market prices and rates changes may not be an accurate measure of future market events and conditions. Consequently, this VaR estimate is only one of a number of tools we use in our daily risk management activities. During the first quarter of 2016, we experienced sizable losses given the exceptionally volatile and turbulent market, which were more dramatic than the estimates included in our VaR which are based on historical observations.

When comparing our VaR numbers to those of other firms, it is important to remember that different methodologies and assumptions could produce significantly different results.

Our average daily VaR decreased to $6.62 million for the three months ended August 31, 2016 from $8.25 million for the three months ended May 31, 2016. The decrease reflects both a reduction in risk, as well as lower asset price volatility. Excluding our investment in KCG, our average VaR decreased to $4.48 million for the three months ended August 31, 2016 from $6.04 million in the three months ended May 31, 2016.

The following table illustrates each separate component of VaR for each component of market risk by interest rate, equity, currency and commodity products, as well as for our overall trading positions using the past 365 days of historical data (in millions):

				Daily VaR (1) Value-at-Risk In Trading Portfolios
	VaR at August 31, 2016										VaR at May 31, 2016
Risk Categories				Daily VaR for the Three Months Ended August 31, 2016										Daily VaR for the Three Months Ended May 31, 2016
				Average			High		Low					Average			High		Low
Interest Rates	$	4.97		$	4.90		$	6.56	$	3.43	$	4.50		$	4.71		$	6.41	$	3.50
Equity Prices	6.72			4.48			7.46		2.60		5.42			5.40			6.87		4.33
Currency Rates	0.20			0.21			0.35		0.07		0.11			0.77			3.01		0.09
Commodity Prices	1.04			1.09			2.44		0.44		0.52			0.72			1.43		0.44
Diversification Effect (2)	(5.30		)	(4.06		)	N/A		N/A		(2.83		)	(3.35		)	N/A		N/A
Firmwide	$	7.63		$	6.62		$	9.36	$	4.30	$	7.72		$	8.25		$	10.46	$	6.49

(1) For the VaR numbers reported above, a one-day time horizon, with a one year look-back period, and a 95% confidence level were used.

(2) The diversification effect is not applicable for the maximum and minimum VaR values as the firmwide VaR and the VaR values for the four risk categories might have occurred on different days during the period.

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The aggregated VaR presented here is less than the sum of the individual components (i.e., interest rate risk, foreign exchange rate risk, equity risk and commodity price risk) due to the benefit of diversification among the four risk categories. Diversification benefit equals the difference between aggregated VaR and the sum of VaRs for the four risk categories and arises because the market risk categories are not perfectly correlated.

The chart below reflects our daily VaR over the last four quarters:

The primary method used to test the efficacy of the VaR model is to compare our actual daily net revenue for those positions included in our VaR calculation with the daily VaR estimate. This evaluation is performed at various levels of the trading portfolio, from the holding company level down to specific business lines. For the VaR model, trading related revenue is defined as principal transaction revenue, trading related commissions, revenue from securitization activities and net interest income. For a 95% confidence one day VaR model (i.e., no intra-day trading), assuming current changes in market value are consistent with the historical changes used in the calculation, net trading losses would not be expected to exceed the VaR estimates more than twelve times on an annual basis (i.e., once in every 20 days). During the three months ended August 31, 2016, results of the evaluation at the aggregate level demonstrated no days when the net trading loss exceeded the 95% one day VaR.

Certain positions within financial instruments are not included in the VaR model because VaR is not the most appropriate measure of risk. Accordingly, Risk Management has additional procedures in place to assure that the level of potential loss that would arise from market movements are within acceptable levels. Such procedures include performing stress tests, monitoring concentration risk and tracking price target/stop loss levels. The table below presents the potential reduction in net income associated with a 10% stress of the fair value of the positions that are not included in the VaR model at August 31, 2016 (in thousands):

	10% Sensitivity
Private investments	$	24,175
Corporate debt securities in default	7,200
Trade claims	503

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Daily Net Trading Revenue

Excluding trading losses associated with the daily marking to market of our investment in KCG, there were four days with trading losses out of a total of 65 trading days in the three months ended August 31, 2016. Including these losses, there were eight days with trading losses. The histogram below presents the distribution of our actual daily net trading revenue for substantially all of our trading activities for the three months ended August 31, 2016 (in millions).

Scenario Analysis and Stress Tests

While VaR measures potential losses due to adverse changes in historical market prices and rates, we use stress testing to analyze the potential impact of specific events or moderate or extreme market moves on our current portfolio both firm wide and within business segments. Stress scenarios comprise both historical market price and rate changes and hypothetical market environments, and generally involve simultaneous changes of many risk factors. Indicative market changes in our scenarios include, but are not limited to, a large widening of credit spreads, a substantial decline in equities markets, significant moves in selected emerging markets, large moves in interest rates, changes in the shape of the yield curve and large moves in European markets. In addition, we also perform ad hoc stress tests and add new scenarios as market conditions dictate. Because our stress scenarios are meant to reflect market moves that occur over a period of time, our estimates of potential loss assume some level of position reduction for liquid positions. Unlike our VaR, which measures potential losses within a given confidence interval, stress scenarios do not have an associated implied probability; rather, stress testing is used to estimate the potential loss from market moves that tend to be larger than those embedded in the VaR calculation.

Stress testing is performed and reported regularly as part of the risk management process. Stress testing is used to assess our aggregate risk position as well as for limit setting and risk/reward analysis.

Counterparty Credit Risk and Issuer Country Exposure

Counterparty Credit Risk

Credit risk is the risk of loss due to adverse changes in a counterparty’s credit worthiness or its ability or willingness to meet its financial obligations in accordance with the terms and conditions of a financial contract. We are exposed to credit risk as trading counterparty to other broker-dealers and customers, as a direct lender and through extending loan commitments, as a holder of securities and as a member of exchanges and clearing organizations.

It is critical to our financial soundness and profitability that we properly and effectively identify, assess, monitor, and manage the various credit and counterparty risks inherent in our businesses. Credit is extended to counterparties in a controlled manner in order to generate acceptable returns, whether such credit is granted directly or is incidental to a transaction. All extensions of credit are monitored and managed on an enterprise level in order to limit exposure to loss related to credit risk.

Our Credit Risk Framework is responsible for identifying credit risks throughout the operating businesses, establishing counterparty limits and managing and monitoring those credit limits. Our framework includes:

• defining credit limit guidelines and credit limit approval processes;

• providing a consistent and integrated credit risk framework across the enterprise;

• approving counterparties and counterparty limits with parameters set by the Risk Management Committee;

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• negotiating, approving and monitoring credit terms in legal and master documentation;

• delivering credit limits to all relevant sales and trading desks;

• maintaining credit reviews for all active and new counterparties;

• operating a control function for exposure analytics and exception management and reporting;

• determining the analytical standards and risk parameters for on-going management and monitoring of global credit risk books;

• actively managing daily exposure, exceptions, and breaches;

• monitoring daily margin call activity and counterparty performance (in concert with the Margin Department); and

• setting the minimum global requirements for systems, reports, and technology.

Credit Exposures

Credit exposure exists across a wide-range of products including cash and cash equivalents, loans, securities finance transactions and over-the-counter derivative contracts.

• Loans and lending arise in connection with our capital markets activities and represents the current exposure, amount at risk on a default event with no recovery of loans. Current exposure represents loans that have been drawn by the borrower and lending commitments that were outstanding. In addition, credit exposures on forward settling traded loans are included within our loans and lending exposures for consistency with the balance sheet categorization of these items.

• Securities and margin finance includes credit exposure arising on securities financing transactions (reverse repurchase agreements, repurchase agreements and securities lending agreements) to the extent the fair value of the underlying collateral differs from the contractual agreement amount and from margin provided to customers.

• Derivatives represent OTC derivatives, which are reported net by counterparty when a legal right of setoff exists under an enforceable master netting agreement. Derivatives are accounted for at fair value net of cash collateral received or posted under credit support agreements. In addition, credit exposures on forward settling trades are included within our derivative credit exposures.

• Cash and cash equivalents include both interest-bearing and non-interest bearing deposits at banks.

Current counterparty credit exposures at August 31, 2016 and November 30, 2015 are summarized in the tables below and provided by credit quality, region and industry (in millions). Credit exposures presented take netting and collateral into consideration by counterparty and master agreement. Collateral taken into consideration includes both collateral received as cash as well as collateral received in the form of securities or other arrangements. Current exposure is the loss that would be incurred on a particular set of positions in the event of default by the counterparty, assuming no recovery. Current exposure equals the fair value of the positions less collateral. Issuer risk is the credit risk arising from inventory positions (for example, corporate debt securities and secondary bank loans). Issuer risk is included in our country risk exposure tables below. Of our counterparty credit exposure at August 31, 2016, excluding cash and cash equivalents, the percentage of exposure from investment grade counterparties increased3% to 82% from 79% at November 30, 2015, and is mainly concentrated in North America.

When comparing our credit exposure at August 31, 2016 with credit exposure at November 30, 2015, excluding cash and cash equivalents, current exposure decreased a marginal amount. Counterparty credit exposure from loans and lending decreased by 27%, primarily attributable to North American loans. Counterparty credit exposure increased over the period by 21% from OTC derivatives and by 6% over the period from securities and margin finance.

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Counterparty Credit Exposure by Credit Rating
	Loans and Lending				Securities and Margin Finance				OTC Derivatives				Total				Cash and Cash Equivalents				Total with Cash and Cash Equivalents
	At				At				At				At				At				At
	August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)
AAA Range	$	—	$	—	$	5.2	$	11.8	$	—	$	—	$	5.2	$	11.8	$	2,263.5	$	2,461.4	$	2,268.7	$	2,473.2
AA Range	44.0		—		108.9		152.3		0.5		4.4		153.4		156.7		96.7		175.0		250.1		331.7
A Range	0.1		1.0		603.7		556.4		141.8		96.0		745.6		653.4		772.1		846.3		1,517.7		1,499.7
BBB Range	0.3		86.6		168.4		107.9		14.9		31.7		183.6		226.2		26.5		25.8		210.1		252.0
BB or Lower	102.4		181.6		8.7		14.8		39.3		30.1		150.4		226.5		—		—		150.4		226.5
Unrated	89.9		56.3		—		—		—		0.1		89.9		56.4		0.3		1.7		90.2		58.1
Total	$	236.7	$	325.5	$	894.9	$	843.2	$	196.5	$	162.3	$	1,328.1	$	1,331.0	$	3,159.1	$	3,510.2	$	4,487.2	$	4,841.2
Counterparty Credit Exposure by Region
	Loans and Lending				Securities and Margin Finance				OTC Derivatives				Total				Cash and Cash Equivalents				Total with Cash and Cash Equivalents
	At				At				At				At				At				At
	August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)
Asia/Latin America/Other	$	5.9	$	10.1	$	8.3	$	15.3	$	31.3	$	40.6	$	45.5	$	66.0	$	200.6	$	159.6	$	246.1	$	225.6
Europe	—		0.4		290.7		212.2		17.2		43.4		307.9		256.0		273.6		341.8		581.5		597.8
North America	230.8		315.0		595.9		615.7		148.0		78.3		974.7		1,009.0		2,684.9		3,008.8		3,659.6		4,017.8
Total	$	236.7	$	325.5	$	894.9	$	843.2	$	196.5	$	162.3	$	1,328.1	$	1,331.0	$	3,159.1	$	3,510.2	$	4,487.2	$	4,841.2
Counterparty Credit Exposure by Industry
	Loans and Lending				Securities and Margin Finance				OTC Derivatives				Total				Cash and Cash Equivalents				Total with Cash and Cash Equivalents
	At				At				At				At				At				At
	August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)		August 31, 2016		November 30, 2015		August 31, 2016		November 30, 2015 (1)
Asset Managers	$	—	$	—	$	37.6	$	69.8	$	—	$	—	$	37.6	$	69.8	$	2,259.7	$	2,461.3	$	2,297.3	$	2,531.1
Banks, Broker-dealers	0.1		0.9		557.2		464.9		131.3		95.2		688.6		561.0		899.4		1,048.9		1,588.0		1,609.9
Commodities	—		—		—		—		4.0		16.7		4.0		16.7		—		—		4.0		16.7
Corporates	205.7		193.9		—		—		28.9		11.3		234.6		205.2		—		—		234.6		205.2
Other	30.9		130.7		300.1		308.5		32.3		39.1		363.3		478.3		—		—		363.3		478.3
Total	$	236.7	$	325.5	$	894.9	$	843.2	$	196.5	$	162.3	$	1,328.1	$	1,331.0	$	3,159.1	$	3,510.2	$	4,487.2	$	4,841.2

(1) Loans and lending amounts have been recast to conform to the current period's presentation. Loans and lending amounts include the current exposure, the amount at risk on a default event with no recovery of loans. Previously, loans and lending amounts represented the notional value.

For additional information regarding credit exposure to OTC derivative contracts, refer to Note 5, Derivative Financial Instruments, in our consolidated financial statements included within this Quarterly Report on Form 10-Q.

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Country Risk Exposure

Country risk is the risk that events or developments that occur in the general environment of a country or countries due to economic, political, social, regulatory, legal or other factors, will affect the ability of obligors of the country to honor their obligations. We define the country of risk as the country of jurisdiction or domicile of the obligor. The following tables reflect our top exposure at August 31, 2016 and November 30, 2015 to the sovereign governments, corporations and financial institutions in those non- U.S. countries in which we have a net long issuer and counterparty exposure (in millions):

	August 31, 2016
	Issuer Risk								Counterparty Risk								Issuer and Counterparty Risk
	Fair Value of Long Debt Securities		Fair Value of Short Debt Securities			Net Derivative Notional Exposure			Loans and Lending		Securities and Margin Finance		OTC Derivatives		Cash and Cash Equivalents		Excluding Cash and Cash Equivalents		Including Cash and Cash Equivalents
Germany	$	178.3	$	(353.2	)	$	625.6		$	—	$	112.2	$	1.7	$	110.2	$	564.6	$	674.8
Italy	906.7		(710.2		)	283.6			—		—		—		—		480.1		480.1
United Kingdom	435.5		(259.1		)	(8.0		)	—		54.4		8.1		36.9		230.9		267.8
France	246.5		(223.3		)	191.6			—		13.0		4.1		—		231.9		231.9
Belgium	282.9		(256.3		)	(1.2		)	—		—		—		79.7		25.4		105.1
Hong Kong	37.4		(22.8		)	(2.5		)	—		0.5		—		74.4		12.6		87.0
Japan	52.6		(35.4		)	—			—		—		—		44.4		17.2		61.6
Ireland	85.1		(33.7		)	4.8			—		2.5		—		—		58.7		58.7
Portugal	116.3		(62.2		)	—			—		—		—		—		54.1		54.1
India	21.7		(4.4		)	—			—		—		—		35.4		17.3		52.7
Total	$	2,363.0	$	(1,960.6	)	$	1,093.9		$	—	$	182.6	$	13.9	$	381.0	$	1,692.8	$	2,073.8
	November 30, 2015
	Issuer Risk								Counterparty Risk								Issuer and Counterparty Risk
	Fair Value of		Fair Value of			Net Derivative									Cash and		Excluding Cash		Including Cash
	Long Debt		Short Debt			Notional			Loans and		Securities and		OTC		Cash		and Cash		and Cash
	Securities		Securities			Exposure			Lending		Margin Finance		Derivatives		Equivalents		Equivalents		Equivalents
Belgium	$	413.8	$	(48.8	)	$	6.2		$	—	$	—	$	—	$	157.8	$	371.2	$	529.0
United Kingdom	711.6		(359.3		)	52.4			0.4		31.6		25.4		26.3		462.1		488.4
Netherlands	543.5		(139.6		)	(23.4		)	—		36.2		2.0		—		418.7		418.7
Italy	1,112.2		(662.4		)	(105.6		)	—		—		0.2		—		344.4		344.4
Ireland	164.3		(27.4		)	3.3			—		3.5		—		—		143.7		143.7
Spain	394.0		(291.9		)	(1.6		)	—		—		0.2		26.6		100.7		127.3
Australia	86.6		(24.9		)	9.6			37.4		—		0.3		0.8		109.0		109.8
Hong Kong	38.1		(22.3		)	(2.9		)	—		0.4		—		74.8		13.3		88.1
Switzerland	79.5		(28.9		)	(6.6		)	—		34.5		5.2		3.7		83.7		87.4
Portugal	111.9		(38.2		)	—			—		—		—		—		73.7		73.7
Total	$	3,655.5	$	(1,643.7	)	$	(68.6	)	$	37.8	$	106.2	$	33.3	$	290.0	$	2,120.5	$	2,410.5

In addition, our issuer and counterparty risk exposure to Puerto Rico was $17.4 million, which is in connection with our municipal securities market-making activities. The government of Puerto Rico is seeking to restructure much of its $70.0 billion in debt on a voluntary basis. At August 31, 2016, we had no other material exposure to countries where either sovereign or non-sovereign sectors potentially pose potential default risk as the result of liquidity concerns.

Operational Risk

Operational risk refers to the risk of loss resulting from our operations, including, but not limited to, improper or unauthorized execution and processing of transactions, deficiencies in our operating systems, business disruptions and inadequacies or breaches in our internal control processes. Our businesses are highly dependent on our ability to process, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies. In addition, the transactions we process have become increasingly complex. If our financial, accounting or other data processing systems do not operate properly or are disabled or if there are other shortcomings or failures in our internal processes, people or systems, we could suffer an impairment to our liquidity, financial loss, a disruption of our businesses, liability to clients, regulatory intervention or reputational damage.

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These systems may fail to operate properly or become disabled as a result of events that are wholly or partially beyond our control, including a disruption of electrical or communications services or our inability to occupy one or more of our buildings. The inability of our systems to accommodate an increasing volume of transactions could also constrain our ability to expand our businesses. We also face the risk of operational failure or termination of any of the clearing agents, exchanges, clearing houses or other financial intermediaries we use to facilitate our securities transactions. Any such failure or termination could adversely affect our ability to effect transactions and manage our exposure to risk. In addition, despite the contingency plans we have in place, our ability to conduct business may be adversely impacted by a disruption in the infrastructure that supports our businesses and the communities in which they are located. This may include a disruption involving electrical, communications, transportation or other services used by us or third parties with which we conduct business.

Our operations rely on the secure processing, storage and transmission of confidential and other information in our computer systems and networks. Although we take protective measures and endeavor to modify them as circumstances warrant, our computer systems, software and networks may be vulnerable to unauthorized access, computer viruses or other malicious code, and other events that could have a security impact. If one or more of such events occur, this potentially could jeopardize our or our clients’ or counterparties’ confidential and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our, our clients’, our counterparties’ or third parties’ operations. We may be required to expend significant additional resources to modify our protective measures or to investigate and remediate vulnerabilities or other exposures, and we may be subject to litigation and financial losses that are either not insured against or not fully covered through any insurance maintained by us.

Our Operational Risk framework includes governance, collection of operational risk incidents, proactive operational risk management, and periodic review and analysis of business metrics to identify and recommend controls and process-related enhancements.

Each revenue producing and support department is responsible for the management and reporting of operational risks and the implementation of the Operational Risk policy and processes within the department. Operational Risk policy, framework, infrastructure, methodology, processes, guidance and oversight of the operational risk processes are centralized and consistent firm wide and also subject to regional operational risk governance.

Legal and Compliance Risk

Legal and compliance risk includes the risk of noncompliance with applicable legal and regulatory requirements. We are subject to extensive regulation in the different jurisdictions in which we conduct our business. We have various procedures addressing issues such as regulatory capital requirements, sales and trading practices, use of and safekeeping of customer funds, credit granting, collection activities, anti-money laundering and record keeping. These risks also reflect the potential impact that changes in local and international laws and tax statutes have on the economics and viability of current or future transactions. In an effort to mitigate these risks, we continuously review new and pending regulations and legislation and participate in various industry interest groups. We also maintain an anonymous hotline for employees or others to report suspected inappropriate actions by us or by our employees or agents.

New Business Risk

New business risk refers to the risks of entering into a new line of business or offering a new product. By entering a new line of business or offering a new product, we may face risks that we are unaccustomed to dealing with and may increase the magnitude of the risks we currently face. The New Business Committee reviews proposals for new businesses and new products to determine if we are prepared to handle the additional or increased risks associated with entering into such activities.

Reputational Risk

We recognize that maintaining our reputation among clients, investors, regulators and the general public is an important aspect of minimizing legal and operational risks. Maintaining our reputation depends on a large number of factors, including the selection of our clients and the conduct of our business activities. We seek to maintain our reputation by screening potential clients and by conducting our business activities in accordance with high ethical standards. Our reputation and business activity can be affected by statements and actions of third parties, even false or misleading statements by them. We actively monitor public comment concerning us and are vigilant in seeking to assure accurate information and perception prevails.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Quantitative and qualitative disclosures about market risk are set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Risk Management” in Part I, Item 2 of this Form 10-Q.

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Item 4. Controls and Procedures.

Our Management, under the direction of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of August 31, 2016. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of August 31, 2016 are functioning effectively to provide reasonable assurance that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

No change in our internal control over financial reporting occurred during the quarter ended August 31, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Many aspects of our business involve substantial risks of legal and regulatory liability. In the normal course of business, we have been named as defendants or co-defendants in lawsuits involving primarily claims for damages. We are also involved in a number of judicial and regulatory matters, including exams, investigations and similar reviews, arising out of the conduct of our business. Based on currently available information, we do not believe that any matter will have a material adverse effect on our financial condition.

Item 1A. Risk Factors

The U.K. exit from the European Union could adversely affect our business.

The referendum held in the U.K. on June 23, 2016 resulted in a determination that the U.K. should exit the European Union. Such an exit from the European Union is unprecedented and it is unclear how the U.K.’s access to the EU Single Market, and the wider trading, legal and regulatory environment in which we, our customers and our counterparties operate, will be impacted and how this will affect our and their businesses and the global macroeconomic environment. The uncertainty surrounding the terms of the U.K.’s exit and its consequences could adversely impact customer and investor confidence, result in additional market volatility and adversely affect our businesses, including our revenues from trading and investment banking activities, particularly in Europe, and our results of operations and financial condition.

Information regarding other risk factors appears in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended November 30, 2015 filed with the SEC on January 29, 2016. These risk factors describe some of the assumptions, risks, uncertainties and other factors that could adversely affect our business or that could otherwise result in changes that differ materially from our expectations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 6. Exhibits

Exhibit No.	Description
4	Instruments defining the rights of holders of long-term debt securities of the Registrant and its subsidiaries are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. Registrant hereby agrees to furnish copies of these instruments to the Commission upon request.
5.1*	Opinion of Sidley Austin LLP as to the legality of certain debt securities of Jefferies Group LLC and Jefferies Group Capital Finance Inc.
8.1*	Tax Opinion of Sidley Austin LLP relating to certain debt securities of Jefferies Group LLC and Jefferies Group Capital Finance Inc.
12*	Computation of Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends.
23.1*	Consents of Sidley Austin LLP (included in Exhibits 5.1 and 8.1 above)
31.1*	Rule 13a-14(a)/15d-14(a) Certification by Chief Financial Officer.
31.2*	Rule 13a-14(a)/15d-14(a) Certification by Chief Executive Officer.
32*	Rule 13a-14(b)/15d-14(b) and Section 1350 of Title 18 U.S.C. Certification by the Chief Executive Officer and Chief Financial Officer.
101*	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Financial Condition as of August 31, 2016 and November 30, 2015; (ii) the Consolidated Statements of Earnings for the three and nine months ended August 31, 2016 and 2015; (iii) the Consolidated Statements of Comprehensive Income for the three and nine months ended August 31, 2016 and 2015; (iv) the Consolidated Statements of Changes in Equity for the nine months ended August 31, 2016 and the year ended November 30, 2015; (v) the Consolidated Statements of Cash Flows for the nine months ended August 31, 2016 and 2015; and (vi) the Notes to Consolidated Financial Statements.

* Filed herewith.

95

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			JEFFERIES GROUP LLC           (Registrant)
Date:	October 5, 2016	By:	/s/ Peregrine C. Broadbent
			Peregrine C. Broadbent Chief Financial Officer (duly authorized officer)

96

EX-5.1

	SIDLEY AUSTIN LLP 787 SEVENTH AVENUE NEW YORK, NY 10019 +1 212 839 5300 +1 212 839 5599 FAX	BEIJING BOSTON BRUSSELS CENTURY CITY CHICAGO DALLAS GENEVA	HONG KONG HOUSTON LONDON LOS ANGELES MUNICH NEW YORK PALO ALTO	SAN FRANCISCO SHANGHAI SINGAPORE SYDNEY TOKYO WASHINGTON, D.C.
		FOUNDED 1866

October 5, 2016

Jefferies Group LLC

520 Madison Avenue

New York, NY 10022

Jefferies Group Capital Finance Inc.

520 Madison Avenue

New York, NY 10022

Ladies and Gentlemen:

Jefferies Group LLC, a Delaware limited liability company (the “Company”), and Jefferies Group Capital Finance Inc., a Delaware corporation (the “Co-Issuer,” and each of the Company and the Co-Issuer, an “Issuer” and, collectively, the “Issuers”), have filed with the Securities and Exchange Commission (the “Commission”) on February 4, 2016 a registration statement on Form S-3, File No. 333-209385 (the “Registration Statement”), for the purpose of registering under the Securities Act of 1933 (the “Act”), among other securities, an unspecified principal amount of senior, unsecured debt securities of the Issuers (the “Notes”), which Notes may include the Issuers’ senior, unsecured debt securities titled “Global Medium-Term Notes, Series A,” to be issued from time to time under an indenture, dated as of May 26, 2016 (as it may be amended or supplemented from time to time, the “Indenture”), between the Issuers and The Bank of New York Mellon, as trustee, in each case with such terms as are to be determined at the time of issue pursuant to the Indenture. We act as counsel to you in connection with certain issuances of the Notes.

We have examined such corporate records, certificates and other documents relating to the Notes covered by the Registration Statement and such questions of law as we have considered necessary or appropriate for the purposes of this opinion. Based upon the foregoing, we advise you that, in our opinion, when the specific terms of a particular issuance of Notes have been duly authorized and established in accordance with the Indenture and such Notes have been duly executed, authenticated, issued and delivered in accordance with the Indenture and the applicable underwriting or other distribution agreement against payment therefor, such Notes will constitute valid and binding obligations of each Issuer, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), provided that we express no opinion as to the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above.

Sidley Austin (NY) LLP is a Delaware limited liability partnership doing business as Sidley Austin LLP and practicing in affiliation with other Sidley Austin partnerships.

October 5, 2016
Page 2

In connection with the opinion expressed above, we have assumed that, at or prior to the time of the delivery of any such Note, (i) the Board of Directors of each Issuer, a duly authorized committee thereof or a duly authorized officer of such Issuer shall have duly established the terms of such Note and duly authorized the issuance and sale of such Note and such authorization shall not have been modified or rescinded; (ii) the Company shall remain validly existing as a limited liability company in good standing under the laws of the State of Delaware and the Co-Issuer shall remain validly existing as a corporation in good standing under the laws of the State of Delaware; (iii) the effectiveness of the Registration Statement shall not have been terminated or rescinded; and (iv) the Indenture and the Notes have been duly authorized, executed and delivered by, and are each valid, binding and enforceable agreements of, each party thereto (other than as expressly covered above in respect of the Issuers). We have also assumed that none of the terms of any Note to be established subsequent to the date hereof, nor the issuance and delivery of such Note, nor the compliance by either Issuer with the terms of such Note will violate any applicable law or public policy or will result in a violation of any provision of any instrument or agreement then binding upon such Issuer, or any restriction imposed by any court or governmental body having jurisdiction over such Issuer.

We note that, as of the date of this opinion, a judgment for money in an action based on a Note denominated in a foreign currency or currency unit in a Federal or state court in the United States ordinarily would be enforced in the United States only in United States dollars. The date used to determine the rate of conversion of the foreign currency or currency unit in which a particular Note is denominated into United States dollars will depend on various factors, including which court renders the judgment. A state court in the State of New York rendering a judgment on such Note would be required under Section 27 of the New York Judiciary Law to render such judgment in the foreign currency in which the Note is denominated, and such judgment would be converted into United States dollars at the exchange rate prevailing on the date of entry of the judgment.

The foregoing opinion is limited to the Federal laws of the United States, the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act as in effect on the date hereof, and we are expressing no opinion as to the effect of the laws of any other jurisdiction or as of any other date.

We have relied as to certain factual matters on information obtained from public officials, officers of the Issuers and other sources believed by us to be responsible, and we have assumed, without independent verification, that the signatures on all documents examined by us are genuine.

October 5, 2016
Page 3

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement filed by the Issuers with the Commission on the date hereof and its incorporation by reference into the Registration Statement. In addition, if a prospectus supplement or pricing supplement relating to the offer and sale of any particular Note or Notes is prepared and filed by the Issuers with the Commission on a future date and the prospectus supplement or pricing supplement contains our opinion and a reference to us substantially in the form set forth below, this consent shall apply to our opinion and the reference to us in substantially such form:

“In the opinion of Sidley Austin LLP, as counsel to the issuers, when the notes offered by this [prospectus][pricing] supplement have been executed and issued by the issuers and authenticated by the trustee pursuant to the indenture, and delivered against payment as contemplated herein, such notes will be valid and binding obligations of the issuers, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith), provided that such counsel expresses no opinion as to the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above. This opinion is given as of the date hereof and is limited to the Federal laws of the United States, the laws of the State of New York, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act as in effect on the date hereof. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and the genuineness of signatures and certain factual matters, all as stated in the letter of such counsel dated October 5, 2016, which has been filed as Exhibit 5.1 to the Company’s quarterly report of Form 10-Q filed with the Securities and Exchange Commission on October 5, 2016. [This opinion is also subject to the discussion, as stated in such letter, of the enforcement of notes denominated in a foreign currency or currency unit.]”

In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act.

Very truly yours,

/s/ Sidley Austin LLP

EX-8.1

	SIDLEY AUSTIN LLP 787 SEVENTH AVENUE NEW YORK, NY 10019 +1 212 839 5300 +1 212 839 5599 FAX	BEIJING BOSTON BRUSSELS CENTURY CITY CHICAGO DALLAS GENEVA	HONG KONG HOUSTON LONDON LOS ANGELES MUNICH NEW YORK PALO ALTO	SAN FRANCISCO SHANGHAI SINGAPORE SYDNEY TOKYO WASHINGTON, D.C.
		FOUNDED 1866

October 5, 2016

Jefferies Group LLC

520 Madison Avenue

New York, NY 10022

Jefferies Group Capital Finance Inc.

520 Madison Avenue

New York, NY 10022

Ladies and Gentlemen:

As United States tax counsel to Jefferies Group LLC (the “Company”) and Jefferies Group Capital Finance Inc. (the “Co-Issuer,” and, together with the Company, the “Issuers”) in connection with the registration statement (the “Registration Statement”) filed with the Securities and Exchange Commission (the “Commission”) on February 4, 2016 (File No. 333-209385) to register under the Securities Act of 1933 Debt Securities, Warrants, Purchase Contracts and Units issued by the Company, either separately or together with the Co-Issuer, we hereby confirm to you that the discussion set forth under the heading “Material United States Federal Income Tax Consequences” in the prospectus forming a part of the Registration Statement is our opinion and the discussion set forth under the heading “United States Federal Taxation” in the prospectus supplement dated February 4, 2016 and filed with the Commission pursuant to Rule 424(b) under the Securities Act of 1933 on the same date relating to the Issuers’ Global Medium-Term Notes, Series A, is our opinion, in each case subject to the qualifications and limitations set forth therein.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. If a prospectus supplement or pricing supplement relating to the offer and sale of any particular security referenced above is prepared and filed by the Issuers with the Commission on a future date and such prospectus supplement or pricing supplement contains our opinion and a reference to us, this consent shall apply to our opinion and the reference to us. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.

Very truly yours,

/s/ Sidley Austin LLP

Sidley Austin (NY) LLP is a Delaware limited liability partnership doing business as Sidley Austin LLP and practicing in affiliation with other Sidley Austin partnerships.

EX-12

Exhibit 12

JEFFERIES GROUP LLC

Ratio of Earnings to Fixed Charges and

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

(Dollar amounts in thousands)

				Successor									Predecessor
	Nine  Months Ended  August 31, 2016			Twelve Months Ended November 30, 2015			Twelve  Months Ended  November 30, 2014			Nine  Months  Ended November 30,  2013			Three  Months Ended February 28, 2013			Twelve  Months  Ended  November 30,  2012			Twelve Months  Ended November 30, 2011
Fixed Charges:
Interest expense on long-term indebtedness	$	175,928		$	250,101		$	250,424		$	184,954		$	79,918		$	292,987		$	280,046
Interest portion of rent expense	13,852			19,136			19,130			14,400			4,024			16,137			14,774
Total fixed charges	$	189,780		$	269,237		$	269,554		$	199,354		$	83,942		$	309,124		$	294,820
Convertible Preferred Stock Dividends	$	—		$	—		$	—		$	—		$	1,016		$	4,063		$	4,063
Earnings:
Earnings (loss) before income taxes	$	(66,557	)	$	114,227		$	303,021		$	264,295		$	139,487		$	491,795		$	419,334
Total fixed charges	189,780			269,237			269,554			199,354			83,942			309,124			294,820
Total earnings before income taxes and fixed charges	$	123,223		$	383,464		$	572,575		$	463,649		$	223,429		$	800,919		$	714,154
Ratio of Earnings to Fixed Charges (1)	0.6		x	1.4		x	2.1		x	2.3		x	2.7		x	2.6		x	2.4		x
Ratio of Earnings to Combined Fixed Charges and Convertible Preferred Stock Dividends (2)	0.6		x	1.4		x	2.1		x	2.3		x	2.6		x	2.6		x	2.4		x

(1) The ratio of earnings to fixed charges is computed by dividing (a) income from continuing operations before income taxes plus fixed charges by (b) fixed charges. Fixed charges consist of interest expense on all long-term indebtedness and the portion of operating lease rental expense that is representative of the interest factor (deemed to be one-third of operating lease rentals).

(2) The ratio of earnings to combined fixed charges and preferred dividends is computed by dividing (a) income from continuing operations before income taxes plus fixed charges by the sum of (b) fixed charges and (c) convertible preferred stock dividends. Fixed charges consist of interest expense on all long-term indebtedness and the portion of operating lease rental expense that is representative of the interest factor (deemed to be one-third of operating lease rentals.)

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a)

CERTIFICATION BY THE CHIEF FINANCIAL OFFICER

I, Peregrine C. Broadbent, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jefferies Group LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 5, 2016	By:	/s/ Peregrine C. Broadbent
			Peregrine C. Broadbent Chief Financial Officer

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a)

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER

I, Richard B. Handler, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jefferies Group LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 5, 2016	By:	/s/ Richard B. Handler
			Richard B. Handler Chief Executive Officer

EX-32

Exhibit 32

Rule 13a-14(b)/15d-14(b) and Section 1350 of Title 18 U.S.C.

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

I, Richard B. Handler, Chief Executive Officer, and I, Peregrine C. Broadbent, Chief Financial Officer, of Jefferies Group LLC, a Delaware limited liability company (the “Company”), each hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Company’s periodic report on Form 10-Q for the period ended August 31, 2016 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

*        *        *

CHIEF EXECUTIVE OFFICER		CHIEF FINANCIAL OFFICER
/s/ Richard B. Handler		/s/ Peregrine C. Broadbent
Richard B. Handler		Peregrine C. Broadbent
Date:	October 5, 2016	Date:	October 5, 2016

A signed original of this written statement required by Section 906 has been provided to Jefferies Group LLC and will be retained by Jefferies Group LLC and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
ASSETS
Cash and cash equivalents ($10,442 and $2,015 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	$ 3,159,143	$ 3,510,163
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	1,026,865	751,084
Financial instruments owned, at fair value, (including securities pledged of $10,458,629 and $12,207,123 at August 31, 2016 and November 30, 2015, respectively; and $91,146 and $68,951 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	14,327,919	16,559,116
Investments in managed funds	191,692	85,775
Loans to and investments in related parties	657,074	825,908
Securities borrowed	8,460,736	6,975,136
Securities purchased under agreements to resell	4,038,194	3,857,306
Receivables:
Brokers, dealers and clearing organizations	1,938,174	1,574,759
Customers	849,317	1,191,316
Fees, interest and other ($549 and $329 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	293,072	260,924
Premises and equipment	254,674	243,486
Goodwill	1,645,293	1,656,588
Other assets	1,285,524	1,072,411
Total assets	38,127,677	38,563,972
LIABILITIES AND EQUITY
Short-term borrowings	432,235	310,659
Financial instruments sold, not yet purchased, at fair value	7,944,072	6,785,064
Collateralized financings:
Securities loaned	2,930,376	2,979,300
Securities sold under agreements to repurchase	8,130,434	10,004,428
Other secured financings (includes $53,586 and $68,345 at fair value at August 31, 2016 and November 30, 2015, respectively; and $606,307 and $762,909 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	606,307	762,909
Payables:
Brokers, dealers and clearing organizations	3,495,173	2,742,001
Customers	2,749,325	2,780,493
Accrued expenses and other liabilities ($764 and $893 at August 31, 2016 and November 30, 2015, respectively, related to consolidated VIEs)	1,030,425	1,049,019
Long-term debt (includes $204,422 and $0 at fair value at August 31, 2016 and November 30, 2015, respectively)	5,482,738	5,640,722
Total liabilities	32,801,085	33,054,595
EQUITY
Member’s paid-in capital	5,450,923	5,526,855
Accumulated other comprehensive loss:
Currency translation adjustments	(116,859)	(36,811)
Changes in instrument specific credit risk	(4,771)	0
Additional minimum pension liability	(7,891)	(8,135)
Total accumulated other comprehensive loss	(129,521)	(44,946)
Total member’s equity	5,321,402	5,481,909
Noncontrolling interests	5,190	27,468
Total equity	5,326,592	5,509,377
Total liabilities and equity	$ 38,127,677	$ 38,563,972

XML

Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Cash and cash equivalents	$ 3,159,143	$ 3,510,163
Pledged financial instruments	10,458,629	12,207,123
Financial instruments, owned, at fair value	14,327,919	16,559,116
Fees, interest and other	293,072	260,924
Other secured financings at fair value	53,586	68,345
Other secured financings	606,307	762,909
Accrued expenses and other liabilities	1,030,425	1,049,019
Long-term debt at fair value	204,422	0
Variable Interest Entities [Member]
Cash and cash equivalents	10,442	2,015
Financial instruments, owned, at fair value	91,146	68,951
Fees, interest and other	549	329
Other secured financings	606,307	762,909
Accrued expenses and other liabilities	$ 764	$ 893

XML

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Revenues:
Commissions and other fees	$ 152,044	$ 172,284	$ 454,025	$ 512,714
Principal transactions	167,483	(50,297)	382,290	211,142
Investment banking	294,930	389,820	778,906	1,066,077
Asset management fees and investment income (loss) from managed funds	15,877	4,182	29,743	(5)
Interest	213,716	230,805	655,836	700,227
Other	19,791	34,329	(6,937)	82,810
Total revenues	863,841	781,123	2,293,863	2,572,965
Interest expense	209,391	202,195	621,018	610,811
Net revenues	654,450	578,928	1,672,845	1,962,154
Non-interest expenses:
Compensation and benefits	376,438	336,499	1,141,497	1,182,484
Non-compensation expenses:
Floor brokerage and clearing fees	40,189	45,307	124,259	159,100
Technology and communications	64,512	89,378	196,000	234,126
Occupancy and equipment rental	24,987	25,967	74,498	74,571
Business development	20,259	30,527	67,700	78,865
Professional services	29,761	24,684	82,799	76,359
Other	17,582	19,473	52,649	51,960
Total non-compensation expenses	197,290	235,336	597,905	674,981
Total non-interest expenses	573,728	571,835	1,739,402	1,857,465
Earnings (loss) before income taxes	80,722	7,093	(66,557)	104,689
Income tax expense	39,564	4,609	5,112	29,470
Net earnings (loss)	41,158	2,484	(71,669)	75,219
Net earnings (loss) attributable to noncontrolling interests	(11)	427	77	1,647
Net earnings (loss) attributable to Jefferies Group LLC	$ 41,169	$ 2,057	$ (71,746)	$ 73,572

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Statement of Comprehensive Income [Abstract]
Net earnings (loss)		$ 41,158	$ 2,484	$ (71,669)	$ 75,219
Other comprehensive income (loss), net of tax:
Currency translation and other adjustments		(55,945)	(319)	(79,804)	(11,376)
Changes in instrument specific credit risk, net of tax	[1]	(2,466)	0	(4,771)	0
Total other comprehensive income (loss), net of tax	[2]	(58,411)	(319)	(84,575)	(11,376)
Comprehensive income (loss)		(17,253)	2,165	(156,244)	63,843
Net earnings (loss) attributable to noncontrolling interests		(11)	427	77	1,647
Comprehensive income (loss) attributable to Jefferies Group LLC		$ (17,242)	$ 1,738	$ (156,321)	$ 62,196

[1] Includes income tax benefit of approximately $1.6 million and $3.1 million for the three and nine months ended August 31, 2016

[2] None of the components of other comprehensive income (loss) are attributable to noncontrolling interests.

XML

Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Aug. 31, 2016	Aug. 31, 2016
Statement of Comprehensive Income [Abstract]
Changes in instrument specific credit risk, tax benefit	$ 1.6	$ 3.1

XML

Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands		Total		Member's paid-in capital [Member]	Accumulated other comprehensive income (loss) [Member]		Noncontrolling interests [Member]
Beginning Balance at Nov. 30, 2014				$ 5,439,256	$ (14,673)	[1],[2]
Increase (Decrease) in Stockholders' Equity
Net earnings (loss) attributable to Jefferies Group LLC				93,534
Tax detriment for issuance of share-based awards				(5,935)
Currency adjustments	[1],[2]				(27,157)
Changes in instrument specific credit risk, net of tax	[1],[2]				0
Pension adjustment, net of tax	[1],[2]				(3,116)
Ending Balance at Nov. 30, 2015		$ 5,481,909		5,526,855	(44,946)	[1],[2]
Beginning Balance at Nov. 30, 2014							$ 38,848
Noncontrolling interests:
Net earnings (loss) attributable to noncontrolling interests							1,795
Contributions							0
Distributions							(4,982)
Deconsolidation of asset management company							(8,193)
Ending Balance at Nov. 30, 2015		27,468					27,468
Noncontrolling interests:
Total equity		5,509,377
Net earnings (loss) attributable to Jefferies Group LLC				(71,746)
Tax detriment for issuance of share-based awards				(4,186)
Currency adjustments		(79,804)			(80,048)	[1],[2]
Changes in instrument specific credit risk, net of tax		(4,771)	[3]		(4,771)	[1],[2]
Pension adjustment, net of tax	[1],[2]				244
Ending Balance at Aug. 31, 2016		5,321,402		$ 5,450,923	$ (129,521)	[1],[2]
Noncontrolling interests:
Net earnings (loss) attributable to noncontrolling interests		77					77
Contributions							4,500
Distributions							(563)
Deconsolidation of asset management company							(26,292)
Ending Balance at Aug. 31, 2016		5,190					$ 5,190
Noncontrolling interests:
Total equity		$ 5,326,592

[1] The components of other comprehensive income (loss) are attributable to Jefferies Group LLC. None of the components of other comprehensive income (loss) are attributable to noncontrolling interests.

[2] There were no material reclassifications out of Accumulated other comprehensive income (loss) during the nine months ended August 31, 2016 and the year ended November 30, 2015.

[3] Includes income tax benefit of approximately $1.6 million and $3.1 million for the three and nine months ended August 31, 2016

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Cash flows from operating activities:
Net earnings (loss)	$ (71,669)	$ 75,219
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Depreciation and amortization	(2,888)	10,784
Loss (income) on loans to and investments in related parties	15,862	(87,692)
Distributions received on investments in related parties	11,187	70,825
Other adjustments	13,359	(64,479)
Net change in assets and liabilities:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(277,019)	2,538,334
Receivables:
Brokers, dealers and clearing organizations	(392,632)	100,690
Customers	341,930	(52,530)
Fees, interest and other	(35,514)	(41,759)
Securities borrowed	(1,510,588)	(852,183)
Financial instruments owned	2,079,134	(321,076)
Investments in managed funds	(132,941)	14,508
Securities purchased under agreements to resell	(248,931)	(351,875)
Other assets	(237,291)	(8,988)
Payables:
Brokers, dealers and clearing organizations	781,782	192,867
Customers	(31,159)	(3,454,703)
Securities loaned	(22,326)	1,049,172
Financial instruments sold, not yet purchased	1,269,261	601,758
Securities sold under agreements to repurchase	(1,824,027)	176,960
Accrued expenses and other liabilities	68,024	(228,986)
Net cash used in operating activities	(206,446)	(633,154)
Cash flows from investing activities:
Contributions to loans to and investments in related parties	(343,835)	(1,111,830)
Distributions from loans to and investments in related parties	485,620	1,119,775
Net payments on premises and equipment	(51,001)	(51,348)
Payment on purchase of aircraft	(27,500)	0
Proceeds from sale of aircraft	29,450	0
Deconsolidation of asset management entity	(39)	(16,512)
Cash received from contingent consideration	1,211	2,541
Net cash provided by (used in) investing activities	93,906	(57,374)
Cash flows from financing activities:
Excess tax benefits from the issuance of share-based awards	384	423
Proceeds from short-term borrowings	8,350,534	14,422,000
Payments on short-term borrowings	(8,229,669)	(14,422,000)
Proceeds from secured credit facility	0	903,000
Payments on secured credit facility	0	(1,073,000)
Net (payments on) proceeds from other secured financings	(156,602)	200,810
Net proceeds from issuance of long-term debt, net of issuance costs	239,779	0
Repayment of long-term debt	(373,246)	0
Net change in bank overdrafts	(56,126)	24,466
Net proceeds from noncontrolling interests	3,937	0
Net cash (used in) provided by financing activities	(221,009)	55,699
Effect of exchange rate changes on cash and cash equivalents	(17,471)	(3,354)
Net decrease in cash and cash equivalents	(351,020)	(638,183)
Cash and cash equivalents at beginning of period	3,510,163	4,079,968
Cash and cash equivalents at end of period	3,159,143	3,441,785
Cash paid (received) during the period for:
Interest	675,896	621,279
Income taxes, net	$ (8,011)	$ 1,574

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Organization and Basis of Presentation

9 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Organization and Basis of Presentation

Organization and Basis of Presentation

Organization

Jefferies Group LLC and its subsidiaries operate as a global full service, integrated securities and investment banking firm. The accompanying Consolidated Financial Statements represent the accounts of Jefferies Group LLC and all our subsidiaries (together “we” or “us”). The subsidiaries of Jefferies Group LLC include Jefferies LLC (“Jefferies”), Jefferies Execution Services, Inc. (“Jefferies Execution”), Jefferies International Limited, Jefferies Hong Kong Limited, Jefferies Financial Services, Inc., Jefferies Funding LLC, Jefferies Financial Products, LLC, Jefferies Leveraged Credit Products, LLC and all other entities in which we have a controlling financial interest or are the primary beneficiary. On April 9, 2015, we entered into an agreement to transfer certain of the client activities of our Futures business to Société Générale S.A. and initiated a plan to substantially exit the remaining aspects of our futures business. During the second quarter of 2016, we completed the exit of the futures business. For further information on the exit of the Bache business, refer to Note 21, Exit Costs.

Jefferies Group LLC is an indirect wholly owned subsidiary of Leucadia National Corporation (“Leucadia”). Leucadia does not guarantee any of our outstanding debt securities. Our 3.875% Convertible Senior Debentures due 2029 are convertible into Leucadia common shares (see Note 12, Long-Term Debt, for further details). Jefferies Group LLC operates as a full-service investment banking firm and, as the holding company of its various regulated and unregulated operating subsidiaries, retains a credit rating separate from Leucadia and is a Securities and Exchange Commission (“SEC”) reporting company, filing annual, quarterly and periodic financial reports. Richard Handler, our Chief Executive Officer and Chairman, is the Chief Executive Officer of Leucadia, as well as a Director of Leucadia. Brian P. Friedman, our Chairman of the Executive Committee, is Leucadia’s President and a Director of Leucadia.

We operate in two business segments, Capital Markets and Asset Management. Capital Markets, which represents substantially our entire business, includes our securities, commodities, futures and foreign exchange trading and investment banking activities, which provides the research, sales, trading, origination and advisory effort for various equity, fixed income and advisory products and services. Asset Management provides investment management services to various private investment funds and separate accounts.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should be read in conjunction with our Annual Report on Form 10-K for the year ended November 30, 2015.

We have 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.

Consolidation

Our policy is to consolidate all entities that we control by ownership 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 the 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 to noncontrolling interests in the 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 within Other revenues or Principal transaction 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.

Immaterial Adjustments

We made immaterial correcting adjustments (referred to as “adjustments”) to our Consolidated Statement of Cash Flows for the nine months ended August 31, 2015. The adjustments had the impact of decreasing the Net change in accrued expenses and other liabilities by $24.5 million ($204.5 million as originally reported and $228.9 million as revised), increasing the Net change in bank overdrafts by $24.5 million ($0.0 as originally reported and $24.5 million as revised), decreasing the Net cash used in operating activities by $24.5 million ($608.7 million as originally reported and $633.1 million as revised) and increasing the Net cash provided by financing activities by $24.5 million ($31.2 million as originally reported and $55.7 million as revised) on the Consolidated Statements of Cash Flows for the nine months ended August 31, 2015. The adjustments relate to a classification error in the reporting of net change in bank overdrafts within our Consolidated Statements of Cash Flows. The adjustments have no effect on our Consolidated Statements of Financial Condition, the Consolidated Statements of Earnings, the Consolidated Statements of Changes in Equity or the Consolidated Statements of Comprehensive Income for the nine months ended August 31, 2015. We do not believe these adjustments are material to our financial statements for any previously reported period.

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Summary of Significant Accounting Policies

9 Months Ended

Aug. 31, 2016

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 on the 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 not the primary obligor for these arrangements, netted against commission revenues in the 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, but not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transaction revenues in the Consolidated Statements of Earnings on a trade date basis. Fees received on loans carried at fair value are also recorded within Principal transaction revenues.

Investment Banking. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Business development and Professional services expenses in the Consolidated Statements of Earnings.

Asset Management Fees and Investment Income from Managed Funds. Asset management fees and investment income from managed funds include revenues we earn from management, administrative and performance fees from funds and accounts managed by us, revenues from management and performance fees we earn from related-party managed funds and investment income from our investments in these funds. We earn fees in connection with management and investment advisory services performed for various funds and managed accounts. These fees are based on assets under management or an agreed upon notional amount and may include performance fees based upon the performance of the funds. Management and administrative fees are generally recognized over the period that the related service is provided. Generally, performance fees are earned when the return on assets under management exceeds certain benchmark returns, “high-water marks” or other performance targets. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized.

Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, but 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 transaction revenues in the Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis with related interest recorded 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. In addition, 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.

Cash Equivalents

Cash equivalents include highly liquid investments, including certificates of deposit and money market funds, 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 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 transaction 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).

Fair Value Hierarchy

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.
Level 2:	Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments that fair values for which 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 instruments that are fair valued using other 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.

Financial instruments are valued at quoted market prices, if available. 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 upon consideration of available information, including types of financial instruments, current financial information, restrictions 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 may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions require that an adjustment be made to the value derived from the models. 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. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Valuation Process for Financial Instruments

Our Independent Price Verification (“IPV”) Group, which is part of our Finance department, in partnership with Risk Management, is responsible for establishing our valuation policies and procedures. The IPV Group and Risk Management, which are independent of our business functions, play an important role and serve as a control function in determining that our financial instruments are appropriately reflected at fair value. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The IPV Group reports to the Global Controller and is subject to the oversight of the IPV Committee, which comprises our Chief Financial Officer, Global Controller, Chief Risk Officer and Principal Accounting Officer, among other personnel. Our independent price verification policies and procedures are reviewed, at a minimum, annually, and changes to the policies require the approval of the IPV Committee.

Price Testing Process. The business units are responsible for determining the fair value of our financial instruments using approved valuation models and methodologies. In order to ensure that the business unit valuations represent a fair value exit price, the IPV Group tests and validates the fair value of our financial instruments inventory. In the testing process, the IPV Group obtains prices and valuation inputs from independent sources, consistently adheres to established procedures set forth in our valuation policies for sourcing prices and valuation inputs and utilizing valuation methodologies. Sources used to validate fair value prices and inputs include, but are not limited to, exchange data, recently executed transactions, pricing data obtained from third party vendors, pricing and valuation services, broker quotes and observed comparable transactions.

To the extent discrepancies between the business unit valuations and the pricing or valuations resulting from the price testing process are identified, such discrepancies are investigated by the IPV Group and fair values are adjusted, as appropriate. The IPV Group maintains documentation of its testing, results, rationale and recommendations and prepares a monthly summary of its valuation results. This process also forms the basis for our classification of fair values within the fair value hierarchy (i.e., Level 1, Level 2 or Level 3). The IPV Group utilizes the additional expertise of Risk Management personnel in valuing more complex financial instruments and financial instruments with less or limited pricing observability. The results of the valuation testing are reported to the IPV Committee on a monthly basis, which discusses the results and determines the financial instrument fair values in the consolidated financial statements. This process specifically assists the Chief Financial Officer in asserting as to the fair presentation of our financial condition and results of operations as included within our Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. At each quarter end, the overall valuation results, as determined by the IPV Committee, are presented to the Audit Committee.

Judgment exercised in determining Level 3 fair value measurements is supplemented by daily analysis of profit and loss performed by the Product Control functions. Gains and losses, which result from changes in fair value, are evaluated and corroborated daily based on an understanding of each trading desk’s overall risk positions and developments in a particular market on the given day. Valuation techniques generally rely on recent transactions of suitably comparable financial instruments and use the observable inputs from those comparable transactions as a validation basis for Level 3 inputs. Level 3 fair value measurements are further validated through subsequent sales testing and market comparable sales, if such information is available. Level 3 fair value measurements require documentation of the valuation rationale applied, which is reviewed for consistency in application from period to period.

Third Party Pricing Information. Pricing information obtained from external data providers (including independent pricing services and brokers) may incorporate a range of market quotes from dealers, recent market transactions and benchmarking model derived prices to quoted market prices and trade data for comparable securities. External pricing data is subject to evaluation for reasonableness by the IPV Group using a variety of means including comparisons of prices to those of similar product types, quality and maturities, consideration of the narrowness or wideness of the range of prices obtained, knowledge of recent market transactions and an assessment of the similarity in prices to comparable dealer offerings in a recent time period. Our processes challenge the appropriateness of pricing information obtained from external data providers (including independent pricing services and brokers) to validate the data for consistency with the definition of a fair value exit price. Our process includes understanding and evaluating the external data providers’ valuation methodologies. For corporate, U.S. government and agency and municipal debt securities, and loans, to the extent we use independent pricing services or broker quotes in our valuation process, the vendor service providers are collecting and aggregating observable market information as to recent trade activity and active bid-ask submissions. The composite pricing information received from the independent pricing service is thus not based on unobservable inputs or proprietary models. For mortgage- and other asset-backed securities, collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs"), our independent pricing services use a matrix evaluation approach, incorporating both observable yield curves and market yields on comparable securities as well as implied inputs from observed trades for comparable securities in order to determine prepayment speeds, cumulative default rates and loss severity. Further, we consider pricing data from multiple service providers as available as well as compare pricing data to prices we have observed for recent transactions, if any, in order to corroborate our valuation inputs.

Model Review Process. If a pricing model is used to determine fair value, the pricing model is reviewed for theoretical soundness and appropriateness by Risk Management, independent from the trading desks, and then approved by Risk Management to be used in the valuation process. Review and approval of a model for use may include benchmarking the model against relevant third party valuations, testing sample trades in the model, backtesting the results of the model against actual trades and stress-testing the sensitivity of the pricing model using varying inputs and assumptions. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model. Models are independently reviewed and validated by Risk Management annually or more frequently if market conditions or use of the valuation model changes.

Investments in Managed Funds

Investments in managed funds include our investments in funds managed by us and our investments in related-party managed funds in which we are entitled to a portion of the management and/or performance fees. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value ("NAV") of the funds provided by the fund managers with gains or losses included in Asset management fees and investment income (loss) from managed funds in the Consolidated Statements of Earnings.

Loans to and Investments in Related Parties

Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in the Consolidated Statements of Earnings. See Note 9, Investments, and Note 20, Related Party Transactions, for additional information regarding certain of these investments.

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. We have an active securities borrowed and lending matched book business in which we borrow securities from one party and lend them to another party. 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.

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 on our Consolidated Statements of Earnings on an accrual basis. Repos are presented in the 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.

Premises and Equipment

Premises and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets (generally three to ten years). Leasehold improvements are amortized using the straight-line method over the term of the related leases or the estimated useful lives of the assets, whichever is shorter. Premises and equipment includes internally developed software. The carrying values of internally developed software ready for its intended use are depreciated over the remaining useful life.

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 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. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. 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 estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill.

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 significant 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 magnitude 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 amortizable intangible assets, impairment exists when the carrying amount of the intangible asset 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. Our annual indefinite-lived intangible asset impairment testing date is August 1.

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 10, Goodwill and Other Intangible Assets, for further information.

Income Taxes

Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Leucadia. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities.

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. Under acquisition accounting, the recognition of certain assets and liabilities at fair value created a change in the financial reporting basis for our assets and liabilities, while the tax basis of our assets and liabilities remained the same. As a result, deferred tax assets and liabilities were recognized for the change in the basis differences. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. 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.

The tax benefits related to share-based awards are recognized as an increase to Additional paid-in capital. These amounts, and other windfall tax benefits/(detriments), are included in Tax benefit/(detriment) for issuance of share-based awards on the Consolidated Statements of Changes in Equity. In the event tax deductions associated with share-based awards are less than the cumulative compensation cost recognized for financial reporting purposes, we look to Leucadia’s consolidated pool of windfall tax benefits in the calculation of our income tax provision. During the first quarter of fiscal 2016, the consolidated pool of windfall tax benefits had been exhausted. As a result, these tax detriments are now recognized in our Consolidated Statement of Earnings until such time the Leucadia consolidated cumulative compensation cost recognized for tax purposes exceeds the amount recognized for financial reporting purposes.

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.

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 the 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 that could be reasonably estimated of potential loss or range of potential loss in excess of what has been provided in the consolidated financial statements is not material.

Share-based Compensation

Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Expected forfeitures are included in determining share-based compensation expense.

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 transaction revenues in the Consolidated Statements of Earnings.

Securitization Activities

We engage in securitization activities related to corporate loans, consumer loans, commercial mortgage loans and mortgage-backed and other asset-backed securities. Such transfers of financial assets 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 within Financial instruments owned in the Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized within Principal transactions revenues in the 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 the Consolidated Statements of Financial Condition.

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Accounting Developments

9 Months Ended

Aug. 31, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Accounting Developments

Accounting Developments

Accounting Standards to be Adopted in Future Periods

Statement of Cash Flows. In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated statements of cash flows.

Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021 and early adoption is permitted in the first quarter of fiscal 2020. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Employee Share-Based Payments. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The guidance simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include income tax consequences, the accounting for forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective in the first quarter of fiscal 2018 and early adoption is permitted if all amendments are adopted in the same period. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases onto the balance sheet. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. We are currently evaluating the impact of the new guidance related to equity investments and the presentation and disclosure requirements of financial instruments on our consolidated financial statements. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material effect on our consolidated financial statements.

Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and in August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of Effective Date. The accounting guidance defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. We intend to adopt the new guidance on December 1, 2017 and are currently evaluating the impact of the new guidance on our consolidated financial statements.

Adopted Accounting Standards

Debt Issuance Costs. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported in the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The guidance is effective retrospectively and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material impact on our Consolidated Statements of Financial Condition.

Consolidation. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The guidance is effective beginning in the first quarter of fiscal 2017 and we adopted it in the first quarter of fiscal 2016 using a modified retrospective approach. The adoption of this accounting guidance resulted in the deconsolidation of an asset management vehicle, which resulted in the following adjustment to the Consolidated Statement of Financial Condition on December 1, 2015: a decrease of $27.0 million in Investments in managed funds, a decrease of $0.7 million in Accrued expense and other liabilities and a decrease of $26.3 million in Noncontrolling interests. For further information on the adoption of ASU No. 2015-02, refer to Note 8, Variable Interest Entities.

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Fair Value Disclosures

9 Months Ended

Aug. 31, 2016

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 NAV of $29.5 million and $36.7 million at August 31, 2016 and November 30, 2015, respectively, by level within the fair value hierarchy (in thousands):

	August 31, 2016
	Level 1(1)		Level 2(1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	2,019,490	$	108,194	$	22,195	$	—		$	2,149,879
Corporate debt securities	—		2,494,303		35,007		—			2,529,310
CDOs and CLOs	—		99,794		44,070		—			143,864
U.S. government and federal agency securities	3,029,251		114,601		—		—			3,143,852
Municipal securities	—		550,210		27,257		—			577,467
Sovereign obligations	904,592		1,130,443		—		—			2,035,035
Residential mortgaged-backed securities	—		1,331,959		46,881		—			1,378,840
Commercial mortgage-backed securities	—		320,912		24,593		—			345,505
Other asset-backed securities	—		116,388		61,112		—			177,500
Loans and other receivables	—		1,323,092		78,457		—			1,401,549
Derivatives	2,530		6,206,366		9,560		(5,887,874		)	330,582
Investments at fair value	—		—		85,036		—			85,036
Total financial instruments owned, excluding Investments at fair value based on NAV	$	5,955,863	$	13,796,262	$	434,168	$	(5,887,874	)	$	14,298,419
Cash and cash equivalents	$	3,159,143	$	—	$	—	$	—		$	3,159,143
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (3)	$	1,026,865	$	—	$	—	$	—		$	1,026,865
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,682,196	$	58,834	$	38	$	—		$	1,741,068
Corporate debt securities	—		1,704,627		523		—			1,705,150
U.S. government and federal agency securities	1,213,672		—		—		—			1,213,672
Sovereign obligations	940,451		1,432,580		—		—			2,373,031
Loans	—		538,180		848		—			539,028
Derivatives	373		6,321,172		20,607		(5,970,029		)	372,123
Total financial instruments sold, not yet purchased	$	3,836,692	$	10,055,393	$	22,016	$	(5,970,029	)	$	7,944,072
Other secured financings	$	—	$	53,318	$	268	$	—		$	53,586
Long-term debt	$	—	$	204,422	$	—	$	—		$	204,422

(1) There were no material transfers between Level 1 and Level 2 for the nine months ended August 31, 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
CDOs and CLOs	—		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
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 or deposited with clearing and depository organizations	$	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
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 (3)	$	—	$	67,801	$	544	$	—		$	68,345

(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.

(3) Level 2 liabilities include $67.8 million of other secured financings that were previously not disclosed in our Annual Report on Form 10-K for the year ended November 30, 2015.

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.

• 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 for 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/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for 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 generally categorized within Level 3 of the fair value hierarchy and are measured using the Black-Scholes model with key inputs impacting the valuation, including the underlying security price, implied volatility, dividend yield, interest rate curve, strike price and maturity date.

Corporate Debt Securities

• Corporate Bonds: Corporate bonds are measured primarily using pricing data from external pricing services and broker quotations, where available, prices observed for recently executed market transactions and bond spreads or credit default swap spreads of the issuer adjusted for basis differences between the swap curve and the bond curve. Corporate bonds measured using these valuation methods are categorized within Level 2 of the fair value hierarchy. If broker quotes, pricing data or spread data is not available, alternative valuation techniques are used including cash flow models incorporating interest rate curves, single name or index credit default swap curves for comparable issuers and recovery rate assumptions. Corporate bonds measured using alternative valuation techniques are categorized within Level 3 of the fair value hierarchy and are a limited portion of our corporate bonds.

• High Yield Corporate and Convertible Bonds: A significant portion of our high yield corporate and convertible bonds are categorized within Level 2 of the fair value hierarchy and are measured primarily using broker quotations and pricing data from external pricing services, where available, and prices observed for recently executed market transactions of comparable size. Where pricing data is less observable, valuations are categorized within Level 3 and are based on pending transactions involving the issuer or comparable issuers, prices implied from an issuer’s subsequent financings or recapitalizations, models incorporating financial ratios and projected cash flows of the issuer and market prices for comparable issuers.

CDOs and CLOs

CDOs and CLOs are measured based on prices observed for 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 severity.

U.S. Government and Federal Agency Securities

• U.S. Treasury Securities: U.S. Treasury securities are measured based on quoted market prices and categorized within Level 1 of the fair value hierarchy.

• U.S. Agency Issued Debt Securities: Callable and non-callable U.S. agency issued debt securities are measured primarily based on quoted market prices obtained from external pricing services and are generally categorized within Level 1 or Level 2 of the fair value hierarchy.

Municipal Securities

Municipal securities are measured based on quoted prices obtained from external pricing services and are generally categorized within Level 2 of the fair value hierarchy.

Sovereign Obligations

Foreign 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. To the extent external price quotations are not available or recent transactions have not been observed, valuation techniques incorporating interest rate yield curves and country spreads for bonds of similar issuers, seniority and maturity are used to determine fair value of sovereign bonds or obligations. Foreign sovereign government obligations are classified in Level 1, Level 2 or Level 3 of the fair value hierarchy, primarily based on the country of issuance.

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 interest-only and principal-only securities and are generally measured using market price quotations from external pricing services and categorized within Level 2 of the fair value hierarchy.

• Agency Residential Interest-Only and Inverse Interest-Only Securities (“Agency Inverse IOs”): The fair value of Agency Inverse IOs is estimated using expected future cash flow techniques that incorporate prepayment models and other prepayment assumptions to amortize the underlying mortgage loan collateral. We use prices observed for recently executed transactions to develop market-clearing spread and yield curve assumptions. Valuation inputs with regard to the underlying collateral incorporate weighted average coupon, loan-to-value, credit scores, geographic location, maximum and average loan size, originator, servicer, and weighted average loan age. Agency Inverse IOs are categorized within Level 2 of the fair value hierarchy. We also use vendor data in developing our assumptions, as appropriate.

• Non-Agency RMBS: Fair values are determined primarily using discounted cash flow methodologies and securities are categorized within Level 2 or Level 3 of the fair value hierarchy based on the observability and significance of the pricing inputs used. Performance attributes of the underlying mortgage loans are evaluated to estimate pricing inputs, such as prepayment rates, default rates and the severity of credit losses. Attributes of the underlying mortgage loans that affect the pricing inputs include, but are not limited to, weighted average coupon; average and maximum loan size; loan-to-value; credit scores; documentation type; geographic location; weighted average loan age; originator; servicer; historical prepayment, default and loss severity experience of the mortgage loan pool; and delinquency rate. Yield curves used in the discounted cash flow models are based on observed market prices for comparable securities and published interest rate data to estimate market yields.

Commercial Mortgage-Backed Securities

• Agency Commercial Mortgage-Backed Securities ("CMBS"): Government National Mortgage Association (“GNMA”) project loans are measured based on inputs corroborated from and benchmarked to observed prices of recent securitization transactions of similar securities with adjustments incorporating an evaluation for various factors, including prepayment speeds, default rates, and cash flow structures as well as the likelihood of pricing levels in the current market environment. Federal National Mortgage Association (“FNMA”) Delegated Underwriting and Servicing (“DUS”) mortgage-backed securities are generally measured by using prices observed for recently executed market transactions to estimate market-clearing spread levels for purposes of estimating fair value. GNMA project loan bonds and FNMA DUS mortgage-backed securities are categorized within Level 2 of the fair value hierarchy.

• Non-Agency CMBS: Non-agency CMBS are measured using pricing data obtained from external pricing services and prices observed for recently executed market transactions and are categorized within Level 2 and Level 3 of the fair value hierarchy.

Other Asset-Backed Securities

Other asset-backed securities include, but are not limited to, securities backed by auto loans, credit card receivables, student loans and other consumer loans and are categorized within Level 2 and Level 3 of the fair value hierarchy. Valuations are primarily determined using pricing data obtained from external pricing services and broker quotes and prices observed for recently executed market transactions.

Loans and Other Receivables

• Corporate Loans: Corporate loans categorized within Level 2 of the fair value hierarchy are measured based on market price quotations where market price quotations from external pricing services are supported by transaction data. Corporate loans categorized within Level 3 of the fair value hierarchy are measured based on price quotations that are considered to be less transparent, market prices for debt securities of the same creditor, and estimates of future cash flow incorporating assumptions regarding creditor default and recovery rates and consideration of the issuer’s capital structure.

• Participation Certificates in Agency Residential Loans: Valuations of participation certificates in agency residential loans are based on observed market prices of recently executed purchases and sales of similar loans. The loan participation certificates are categorized within Level 2 of the fair value hierarchy given the observability and volume of recently executed transactions and availability of data provider pricing.

• Project Loans and Participation Certificates in GNMA Project and Construction Loans:  Valuations of participation certificates in GNMA project and construction loans are based on inputs corroborated from and benchmarked to observed prices of recent securitizations of assets with similar underlying loan collateral to derive an implied spread.  Securitization prices are adjusted to estimate the fair value of the loans incorporating an evaluation for various factors, including prepayment speeds, default rates, and cash flow structures as well as the likelihood of pricing levels in the current market environment.  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 incorporating additional valuation inputs including, but not limited to, delinquency and default rates, prepayment rates, borrower characteristics, loan risk grades and loan age. These assets are categorized within Level 2 or Level 3 of the fair value hierarchy.

• Escrow and Trade Claim Receivables: Escrow and trade claim receivables are categorized within Level 3 of the fair value hierarchy where fair value is estimated based on reference to market prices and implied yields of debt securities of the same or similar issuers. Escrow and trade claim receivables are categorized within Level 2 of the fair value hierarchy where fair value is based on recent trade activity in the same security.

Derivatives

• Listed Derivative Contracts: Listed derivative contracts that are actively traded are measured based on quoted exchange prices, which are generally obtained from external pricing services, and are categorized within Level 1 of the fair value hierarchy. Listed derivatives for which there is limited trading activity are measured based on incorporating the closing auction price of the underlying equity security, use similar valuation approaches as those applied to over-the-counter derivative contracts and are categorized within Level 2 of the fair value hierarchy.

• OTC Derivative Contracts: Over-the-counter (“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 period transaction. Inputs to valuation models are appropriately calibrated to market data. For many OTC derivative contracts, the valuation models do not involve material subjectivity as the methodologies do not entail significant judgment and the inputs to valuation models do not involve a high degree of subjectivity as the valuation model inputs are readily observable or can be derived from actively quoted markets. OTC derivative contracts are primarily categorized within Level 2 of the fair value hierarchy given the observability and significance of the inputs to the valuation models. Where significant inputs to the valuation are unobservable, derivative instruments are categorized within Level 3 of the fair value hierarchy.

OTC options include OTC equity, foreign exchange, interest rate and commodity options measured using various valuation models, such as the Black-Scholes, with key inputs impacting the valuation including the underlying security, foreign exchange spot rate or 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. External prices are available as inputs in measuring index credit default swaps and single-name credit default swaps. For commodity and equity total return swaps, market prices are 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 and Investments in Managed Funds

Investments at fair value based on NAV and Investments in Managed Funds include investments in hedge funds, fund of funds, private equity funds, convertible bond funds and commodity funds, which are measured at the NAV of the funds, provided by the fund managers and are excluded from the fair value hierarchy. Investments at fair value also include direct equity investments in private companies, which are measured at fair value using valuation techniques involving quoted prices of or market data for comparable companies, similar company ratios and multiples (e.g., price/EBITDA, price/book value), discounted cash flow analyses and transaction prices observed for subsequent financing or capital issuance by the company. Direct equity investments in private companies are categorized within Level 2 or Level 3 of the fair value hierarchy. Additionally, investments at fair value include investments in insurance contracts relating to our defined benefit plan in Germany. Fair value for the insurance contracts is determined using a third party and is categorized within Level 3 of the fair value hierarchy.

The following tables present information about our investments in entities that have the characteristics of an investment company (in thousands):

	August 31, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	46,195	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	807		—		—
Fund of Funds (4)	226		—		—
Equity Funds (5)	41,716		20,295		—
Multi-asset Funds (6)	132,248		—		Monthly, Quarterly
Total	$	221,192	$	20,295

	November 30, 2015 (7)
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	54,725	$	—	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		—
Multi-asset Funds (6)	23,358		—		Monthly, Quarterly
Convertible Bond Funds (8)	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, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2016, approximately 2% of the fair value of investments in this category is classified as being in liquidation.

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

(4) This category includes investments in fund of funds that invest in various private equity funds. At August 31, 2016 and November 30, 2015, approximately 98% and 95%, respectively, of the fair value of investments in this category are managed by us and have no redemption provisions. The investments in this category are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received.

(5) At August 31, 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 includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2016 and November 30, 2015, investments representing approximately 12% and 100%, respectively, of the fair value of investments in this category are redeemable with 30-90 days prior written notice.

(7) Prior period amounts have been recast to conform to the current year's presentation due to the presentation of multi-asset funds. Previously, these investments had been classified within equity long/short hedge funds.

(8) This category represents an investment in the Jefferies Umbrella Fund, an open-ended investment company managed by us that invested primarily in convertible bonds. The underlying assets were fully liquidated during the nine months ended August 31, 2016.

Other Secured Financings

Other secured financings that are accounted for at fair value include notes issued by consolidated VIEs, which are classified as Level 2 or Level 3 within the fair value hierarchy. Fair value is based on recent transaction prices for similar assets.

Long-term Debt-Structured Notes

Long-term debt includes variable rate and fixed to floating rate structured notes that contain various interest rate payment terms and are generally measured using valuation models for the derivative and debt portions of the notes. These models incorporate market price quotations from external pricing sources referencing the appropriate interest rate curves and are generally categorized within Level 2 of the fair value hierarchy. The impact of the Company’s own credit spreads is also included based on observed secondary bond market spreads and asset-swap spreads.

Long-term Debt - Embedded Conversion Option

The embedded conversion option presented within long-term debt represents the fair value of the conversion option on Leucadia shares within our 3.875% Convertible Senior Debentures, due November 1, 2029 and categorized as Level 3 within the fair value hierarchy. The conversion option was valued using a convertible bond model using as inputs the price of Leucadia's common stock, the conversion strike price, 252-day historical volatility, a maturity date of November 1, 2017 (the first put date), dividend yield and the risk-free interest rate curve.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2016 (in thousands):

	Three Months Ended August 31, 2016
	Balance at May 31, 2016		Total gains/ losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	48,816	$	(6,492	)	$	291	$	(49	)	$	—		$	—	$	(20,371	)	$	22,195	$	(892	)
Corporate debt securities	24,113		(145		)	10,696		(5,046		)	—			—		5,389			35,007		405
CDOs and CLOs	52,710		(4,067		)	4,205		(5,203		)	—			—		(3,575		)	44,070		(4,606		)
Municipal securities	—		(7,074		)	—		—			—			—		34,331			27,257		(7,074		)
Sovereign obligations	120		5			—		(125		)	—			—		—			—		—
RMBS	63,308		(2,343		)	1,884		(10,874		)	(463		)	—		(4,631		)	46,881		(183		)
CMBS	24,983		(1,531		)	—		—			—			—		1,141			24,593		(236		)
Other asset-backed securities	43,033		(2,247		)	3,416		(2,727		)	(1,429		)	—		21,066			61,112		(2,202		)
Loans and other receivables	104,399		(23,445		)	31,512		(10,140		)	(16,804		)	—		(7,065		)	78,457		(16,044		)
Investments at fair value	57,765		(966		)	—		(485		)	(278		)	—		29,000			85,036		(1,113		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	—	$	—		$	—	$	—		$	—		$	—	$	38		$	38	$	—
Corporate debt securities	—		(27		)	—		550			—			—		—			523		(27		)
Net derivatives (2)	4,424		(4,736		)	—		11,101			32			601		(375		)	11,047		(1,589		)
Loans	1,896		(402		)	—		170			—			—		(816		)	848		(400		)
Other secured financings	468		(200		)	—		—			—			—		—			268		200

(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.

Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2016

During the three months ended August 31, 2016, transfers of assets of $147.0 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• Other asset-backed securities of $27.3 million, CDOs and CLOs of $23.7 million and RMBS of $13.7 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Municipals securities of $34.3 million and investments at fair value of $29.0 million due to a lack of observable market transactions.

During the three months ended August 31, 2016, transfers of assets of $91.8 million from Level 3 to Level 2 are primarily attributed to:

• CDOs and CLOs of $27.3 million and RMBS of $18.3 million, for which market trades were observed in the period for either identical or similar securities;

• Corporate equity securities of $20.5 million due to an increase in observable market transactions;

• Loans and other receivables of $15.8 million due to a greater number of contributors for certain vendor quotes to support classification within Level 2.

Net losses on Level 3 assets were $48.3 million and net gains on Level 3 liabilities were $5.4 million for the three months ended August 31, 2016. Net losses on Level 3 assets were primarily due to decreased valuations in loans and other receivables, municipal securities, corporate equity securities, CDOs and CLOs, RMBS, other asset-backed securities and CMBS. Net gains on level 3 liabilities were primarily due to decreased valuations of certain derivative liabilities.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2016 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	40,906		$	(8,388	)	$	5,225	$	(49	)	$	—		$	—	$	(15,499	)	$	22,195	$	(727	)
Corporate debt securities	25,876			5,239			29,629		(20,331		)	—			—		(5,406		)	35,007		1,456
CDOs and CLOs	85,092			(24,356		)	61,707		(69,397		)	(605		)	—		(8,371		)	44,070		(13,196		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
RMBS	70,263			(7,243		)	1,948		(13,203		)	(1,078		)	—		(3,806		)	46,881		228
CMBS	14,326			(4,606		)	1,256		(2,023		)	—			—		15,640			24,593		(3,337		)
Other asset-backed securities	42,925			(2,420		)	66,503		(60,525		)	(6,678		)	—		21,307			61,112		(9,993		)
Loans and other receivables	189,289			(30,843		)	305,920		(206,587		)	(163,913		)	—		(15,409		)	78,457		(27,714		)
Investments at fair value	53,120			(19,055		)	26,227		(485		)	(834		)	—		26,063			85,036		(11,988		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—	$	—		$	—		$	—	$	—		$	38	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (2)	(242		)	3,104			—		11,101			(14		)	1,606		(4,508		)	11,047		(5,745		)
Loans	10,469			7			—		681			(213		)	—		(10,096		)	848		45
Other secured financings	544			(276		)	—		—			—			—		—			268		276

(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.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2016

During the nine months ended August 31, 2016, transfers of assets of $157.8 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• Other asset-backed securities of $38.5 million, RMBS of $21.7 million, CMBS of $17.2 and CDOs and CLOs of $16.9 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Municipals securities of $28.7 million and investments at fair value of $26.1 million due to a lack of observable market transactions;

During the nine months ended August 31, 2016, transfers of assets of $114.5 million from Level 3 to Level 2 are primarily attributed to:

• CDOs and CLOs of $25.3 million, RMBS of $25.5 million and other asset-backed securities of $17.0 million, for which market trades were observed in the period for either identical or similar securities;

• Loans and other receivables of $19.8 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $19.2 million due to an increase in observable market transactions.

There were $10.2 million transfers of loan liabilities from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net losses on Level 3 assets were $93.1 million and net losses on Level 3 liabilities were $2.8 million for the nine months ended August 31, 2016. Net losses on Level 3 assets were primarily due to decreased valuations of loans and other receivables, CDOs and CLOs, investments at fair value, corporate equity securities, RMBS and municipal securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain derivative instruments.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the three months ended August 31, 2015 (in thousands):

	Three Months Ended August 31, 2015
	Balance at May 31, 2015			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,547		$	3,901		$	21,162		$	(5,173	)	$	—		$	—	$	(1,935	)	$	38,502	$	3,803
Corporate debt securities	31,917			(5,276		)	10,395			(17,197		)	(1		)	—		4,493			24,331		(5,544		)
CDOs and CLOs	89,007			(12,560		)	14,961			—			(13,230		)	—		2,872			81,050		(12,561		)
RMBS	88,695			(3,009		)	10,034			(8,424		)	(195		)	—		(679		)	86,422		655
CMBS	17,862			(510		)	—			(680		)	—			—		(1,525		)	15,147		(545		)
Other asset-backed securities	11,857			870			21,913			—			(1,167		)	—		(877		)	32,596		813
Loans and other receivables	108,756			(2,111		)	31,269			(603		)	(42,529		)	—		617			95,399		(6,182		)
Investments, at fair value	131,343			83,580			—			(127,427		)	(277		)	—		(21,010		)	66,209		19,675
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	452			(226		)	—			—			—			—		—			226		226
Net derivatives (2)	(1,586		)	(1,020		)	(1,432		)	11,618			24			416		(857		)	7,163		551
Loans	10,732			109			(3,012		)	—			—			—		2,542			10,371		(110		)
Other secured financings	56,060			—			—			—			(3,914		)	—		(51,572		)	574		—
Embedded conversion option	725			(611		)	—			—			—			—		—			114		611

(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.

Analysis of Level 3 Assets and Liabilities for the Three Months Ended August 31, 2015

During the three months ended August 31, 2015, transfers of assets of $73.4 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• CDOs and CLOs of $42.8 million, non-agency RMBS of $17.8 million and CMBS of $3.7 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $4.1 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $5.0 million due to a lack of observable market transactions.

During the three months ended August 31, 2015, transfers of assets of $91.4 million from Level 3 to Level 2 are primarily attributed to:

• Non-agency RMBS of $18.5 million and CMBS of $5.2 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $39.9 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $21.0 million due to an increase in observable market transactions;

• Loans and other receivables of $3.5 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $1.9 million due to an increase in observable market transactions.

There were $2.5 million transfers of loan liabilities from Level 2 to Level 3 due to a decrease in observable inputs in the valuation and $51.6 million transfers of other secured financings from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $64.9 million and net gains on Level 3 liabilities were $1.7 million for the three months ended August 31, 2015. Net gains on Level 3 assets were primarily due to increased valuations of corporate equity securities and investments at fair value, partially offset by a decrease in valuation of CDOs and CLOs, corporate debt securities, RMBS and loans and other receivables. Net gains on Level 3 liabilities were primarily due to decreased valuations of certain derivative instruments.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the nine months ended August 31, 2015 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,964		$	10,247		$	22,631		$	(5,176	)	$	—		$	—	$	(10,164	)	$	38,502	$	10,210
Corporate debt securities	22,766			(5,425		)	83,613			(88,711		)	(1		)	—		12,089			24,331		(5,797		)
CDOs and CLOs	124,650			(28,999		)	63,038			(47,570		)	(20,481		)	—		(9,588		)	81,050		(22,654		)
RMBS	82,557			(6,776		)	30,865			(25,222		)	(358		)	—		5,356			86,422		(2,507		)
CMBS	26,655			(2,053		)	3,366			(9,973		)	(6,981		)	—		4,133			15,147		(1,851		)
Other asset-backed securities	2,294			666			69,892			(40,000		)	(1,438		)	—		1,182			32,596		607
Loans and other receivables	97,258			(7,331		)	115,370			(40,978		)	(82,100		)	—		13,180			95,399		(8,850		)
Investments, at fair value	53,224			88,195			—			(124,854		)	(3,818		)	—		53,462			66,209		24,372
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	223			(1		)	(6,677		)	6,804			—			—		(123		)	226		(226		)
Net derivatives (2)	(4,638		)	3,022			(4,527		)	11,340			(30		)	1,901		95			7,163		(5,211		)
Loans	14,450			(102		)	(3,487		)	—			—			—		(490		)	10,371		102
Other secured financings	30,825			—			—			—			(15,674		)	36,995		(51,572		)	574		—
Embedded conversion option	693			(579		)	—			—			—			—		—			114		579

(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.

Analysis of Level 3 Assets and Liabilities for the Nine Months Ended August 31, 2015

During the nine months ended August 31, 2015, transfers of assets of $157.7 million from Level 2 to Level 3 of the fair value hierarchy are primarily attributed to:

• CDOs and CLOs of $16.0 million, non-agency RMBS of $21.3 million, CMBS of $9.8 million and other asset-backed securities of $1.4 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $19.2 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $12.2 million, corporate equity securities of $1.6 million and investments at fair value of $76.2 million due to a lack of observable market transactions.

During the nine months ended August 31, 2015, transfers of assets of $88.1 million from Level 3 to Level 2 are primarily attributed to:

• Non-agency RMBS of $15.9 million and CMBS of $5.6 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $25.6 million and loans and other receivables of $6.1 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $22.7 million due to an increase in observable market transactions;

• Corporate equity securities of $11.8 million due to an increase in observable market transactions.

There were $51.6 million transfers of other secured financings from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $48.5 million and net losses on Level 3 liabilities were $2.3 million for the nine months ended August 31, 2015. Net gains on Level 3 assets were primarily due to increased valuations of certain investments at fair value and corporate equity securities, partially offset by decreased valuations of CDOs and CLOs, loans and other receivables, and residential and CMBS, and corporate debt securities. Net losses on Level 3 liabilities were primarily due to increased valuations of certain derivative instruments.

Quantitative Information about Significant Unobservable Inputs used in Level 3 Fair Value Measurements at August 31, 2016 and November 30, 2015

The tables below present information on the valuation techniques, significant unobservable inputs and their ranges for our financial assets and liabilities, subject to threshold levels related to the market value of the positions held, measured at fair value on a recurring basis with a significant Level 3 balance. The range of unobservable inputs could differ significantly across different firms given the range of products across different firms in the financial services sector. The inputs are not representative of the inputs that could have been used in the valuation of any one financial instrument (i.e., the input used for valuing one financial instrument within a particular class of financial instruments may not be appropriate for valuing other financial instruments within that given class). Additionally, the ranges of inputs presented below should not be construed to represent uncertainty regarding the fair values of our financial instruments; rather, the range of inputs is reflective of the differences in the underlying characteristics of the financial instruments in each category.

For certain categories, we have provided a weighted average of the inputs allocated based on the fair values of the financial instruments comprising the category. We do not believe that the range or weighted average of the inputs is indicative of the reasonableness of uncertainty of our Level 3 fair values. The range and weighted average are driven by the individual financial instruments within each category and their relative distribution in the population. The disclosed inputs when compared with the inputs as disclosed in other periods should not be expected to necessarily be indicative of changes in our estimates of unobservable inputs for a particular financial instrument as the population of financial instruments comprising the category will vary from period to period based on purchases and sales of financial instruments during the period as well as transfers into and out of Level 3 each period.

August 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	22,195
Non-exchange traded securities			Market approach	EBITDA (a) multiple	5.1 - 16.3	12.1
				Underlying stock price	$3-$75	$	15
			Comparable pricing	Discount factor	60%	—
				Underlying stock price	$218	—
			Present value	Average silver production (tons per day)	783	—
Corporate debt securities	$	35,007
			Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Price	$30-$100	$	65
CDOs and CLOs	$	32,832	Discounted cash flows	Constant prepayment rate	0%-20%	17		%
				Constant default rate	2%-7%	3		%
				Loss severity	25%-75%	40		%
				Yield	3%-35%	15		%
Municipal securities	$	27,257	Scenario analysis	Price	$4	—
RMBS	$	46,881	Discounted cash flows	Constant prepayment rate	0%-25%	6		%
				Constant default rate	2%-50%	4		%
				Loss severity	10%-100%	55		%
				Yield	3%-9%	5		%
CMBS	$	24,593	Discounted cash flows	Yield	6%-12%	9		%
				Cumulative loss rate	1%-70%	25		%
Other asset-backed securities	$	61,112	Discounted cash flows	Constant prepayment rate	0%-55%	24		%
				Constant default rate	0%-9%	6		%
				Loss severity	0%-100%	85		%
				Yield	3%-15%	12		%
			Market approach	Price	$33-$70,000,000	$	39,000,000
Loans and other receivables	$	52,216	Market approach	EBITDA (a) multiple	3.6	—
				Discount rate/yield	2%-3%	3		%
			Comparable pricing	Comparable loan price	$98	—
			Present value	Average silver production (tons per day)	783	—
			Scenario analysis	Estimated recovery percentage	6%-82%	44		%
Derivatives	$	9,560
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Interest rate swaps				Credit spread	800 bps	—
Investments at fair value
Private equity securities	$	30,724	Market approach	Transaction level	$250	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	20,607
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable loan price	$98	—
			Market approach	Discount rate/yield	3%-56%	54		%
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	14%	—

(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	—
CDOs and CLOs	$	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		%
RMBS	$	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		%
CMBS	$	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	—

The fair values of certain Level 3 assets and liabilities that were determined based on third-party pricing information, unadjusted past transaction prices, reported net asset value or a percentage of the reported enterprise fair value are excluded from the above tables. At August 31, 2016 and November 30, 2015, asset exclusions consisted of $91.8 million and $156.2 million, respectively, primarily comprised of investments at fair value, private equity securities, CDOs and CLOs, sovereign obligations and loans and other receivables. At August 31, 2016 and November 30, 2015, liability exclusions consisted of $1.7 million and $0.6 million, respectively, of other secured financings, loans and other receivables and corporate debt and equity securities.

Sensitivity of Fair Values to Changes in Significant Unobservable Inputs

For recurring fair value measurements categorized within Level 3 of the fair value hierarchy, the sensitivity of the fair value measurement to changes in significant unobservable inputs and interrelationships between those unobservable inputs (if any) are described below:

• Loans and other receivables, unfunded commitments, corporate equity securities, and total return swaps using comparable pricing valuation techniques. A significant increase (decrease) in the comparable loan and underlying stock price in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount factor would result in a significantly lower (higher) fair value measurement.

• Corporate debt securities using a convertible bond model. A significant increase (decrease) in the bond discount rate/yield would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement.

• Non-exchange traded securities, corporate debt securities, loans and other receivables, unfunded commitments, commodity forwards, credit default swaps, interest rate swaps, other asset backed securities and private equity securities using a market approach valuation technique. A significant increase (decrease) in the EBITDA or other multiples in isolation would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the discount rate/yield of a corporate debt security, loan and other receivable or certain derivatives would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the transaction level of a private equity security, non-exchange traded security or corporate debt security would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the enterprise value of a private equity security would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the underlying stock price of the non-exchange traded securities would result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in the credit spread of certain derivatives would result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in the price of the corporate debt securities or other asset backed securities would result in a significantly higher (lower) fair value measurement.

• Loans and other receivables and municipal securities using scenario analysis. A significant increase (decrease) in the possible recovery rates of the cash flow outcomes underlying the investment would result in a significantly higher (lower) fair value measurement for the financial instrument. A significant increase (decrease) in the price of the municipal securities would result in a significantly higher (lower) fair value measurement for the financial instrument.

• CDOs and CLOs, RMBS and CMBS and other asset-backed securities, variable funding notes and unfunded commitments using a discounted cash flow valuation technique. A significant increase (decrease) in isolation in the constant default rate, and loss severities would result in a significantly lower (higher) fair value measurement. The impact of changes in the constant prepayment rate would have differing impacts depending on the capital structure of the security. A significant increase (decrease) in the loan or bond yield would result in a significantly lower (higher) fair value measurement.

• Certain other asset-backed securities using an over-collateralization model. A significant increase (decrease) in the over-collateralization percentage would result in a significantly higher (lower) fair value measurement.

• Derivative equity options using an option model. A significant increase (decrease) in volatility would result in a significantly higher (lower) fair value measurement.

• Derivative equity options using a default rate model. A significant increase (decrease) in default probability would result in a significantly lower (higher) fair value measurement.

• Non-exchange traded securities and loans and other receivables using a present value model. A significant increase (decrease) in average silver production would result in higher (lower) fair value measurement.

Fair Value Option Election

We have elected the fair value option for all loans and loan commitments made by our capital markets businesses. These loans and loan commitments include loans entered into by our Investment Banking division in connection with client bridge financing and loan syndications, loans purchased by our leveraged credit trading desk as part of its bank loan trading activities and mortgage and consumer loan commitments, purchases and fundings in connection with mortgage- and other asset-backed securitization activities. Loans and loan commitments originated or purchased by our leveraged credit and mortgage-backed businesses are managed on a fair value basis. Loans are included in Financial instruments owned and loan commitments are included in Financial instruments owned and Financial instruments sold, not yet purchased on the Consolidated Statements of Financial Condition. The fair value option election is not applied to loans made to affiliate entities as such loans are entered into as part of ongoing, strategic business ventures. Loans to affiliate entities are included within Loans to and investments in related parties on the Consolidated Statements of Financial Condition and are accounted for on an amortized cost basis. We have also elected the fair value option for certain of our structured notes, which are managed by our capital markets businesses and are included in Long-term debt on the Consolidated Statements of Financial Condition. We have elected the fair value option for certain financial instruments held by subsidiaries as the investments are risk managed by us on a fair value basis. The fair value option has also been elected for certain secured financings that arise in connection with our securitization activities and other structured financings. Other secured financings, Receivables – Brokers, dealers and clearing organizations, Receivables – Customers, Receivables – Fees, interest and other, Payables – Brokers, dealers and clearing organizations and Payables – Customers, are accounted for at cost plus accrued interest rather than at fair value; however, the recorded amounts approximate fair value due to their liquid or short-term nature.

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 August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Financial Instruments Owned:
Loans and other receivables	$	(24,874	)	$	(13,566	)	$	(48,658	)	$	(25,686	)
Financial Instruments Sold:
Loans	$	212		$	38		$	229		$	112
Loan commitments	4,769			(51		)	2,196			(1,673		)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(4,093	)	$	—		$	(7,848	)	$	—
Other changes in fair value (2)	3,225			—			13,530			—

(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 for the three and nine months ended August 31, 2016 include $4.5 million and $15.2 million, respectively, included within Principal transactions revenues, and $1.3 million and $1.7 million, respectively, 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).

	August 31, 2016		November 30, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	843,458	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	223,581		54,652
Long-term debt	7,485		—

(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 loans and other receivables greater than 90 days past due of $59.7 million and $29.7 million at August 31, 2016 and November 30, 2015, respectively.

The aggregate fair value of loans and other receivables on nonaccrual status and/or greater than 90 days past due was $55.1 million and $307.5 million at August 31, 2016 and November 30, 2015, respectively, which includes loans and other receivables greater than 90 days past due of $19.1 million and $11.3 million at August 31, 2016 and November 30, 2015, respectively.

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Derivative Financial Instruments

9 Months Ended

Aug. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Off-Balance Sheet Risk

We have contractual commitments arising in the ordinary course of business for securities loaned or purchased under agreements to resell, repurchase agreements, future purchases and sales of foreign currencies, securities transactions on a when-issued basis and underwriting. Each of these financial instruments and activities contains varying degrees of off-balance sheet risk whereby the fair values of the securities underlying the financial instruments may be in excess of, or less than, the contract amount. The settlement of these transactions is not expected to have a material effect upon our consolidated financial statements.

Derivative Financial Instruments

Our derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Financial instruments owned and Financial instruments sold, not yet purchased, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. Net realized and unrealized gains and losses are recognized in Principal transaction revenues in the Consolidated Statements of Earnings on a trade date basis and as a component of cash flows from operating activities in the Consolidated Statements of Cash Flows. Acting in a trading capacity, we may enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks resulting from our trading activities. (See Note 4, Fair Value Disclosures, and Note 17, 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 International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements or similar agreements 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. In addition, we enter into customized bilateral trading agreements and other customer agreements that provide for the netting of receivables and payables with a given counterparty as a single net obligation.

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 derivative contracts.

The following tables present the fair value and related number of derivative contracts at August 31, 2016 and November 30, 2015 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	2,286		26,232	$	372		33,205
Cleared OTC	4,282,590			3,450	4,218,171			3,307
Bilateral OTC	588,640			2,046	558,296			1,234
Foreign exchange contracts:
Exchange-traded	—			358	—			470
Bilateral OTC	428,868			9,639	447,085			9,567
Equity contracts:
Exchange-traded	799,932			3,463,584	960,272			2,999,406
Bilateral OTC	93,547			1,086	117,374			1,265
Commodity contracts:
Exchange-traded	—			1,624	—			888
Credit contracts:
Cleared OTC	1,747			10	8,539			18
Bilateral OTC	20,846			152	32,043			189
Total gross derivative assets/ liabilities:
Exchange-traded	802,218				960,644
Cleared OTC	4,284,337				4,226,710
Bilateral OTC	1,131,901				1,154,798
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(779,958		)		(779,958		)
Cleared OTC	(4,233,022		)		(4,212,004		)
Bilateral OTC	(874,894		)		(978,067		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	330,582			$	372,123

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

	November 30, 2015 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	998		52,605	$	364		70,672
Cleared OTC	2,213,730			2,742	2,202,836			2,869
Bilateral OTC	695,365			1,401	646,758			1,363
Foreign exchange contracts:
Exchange-traded	—			441	—			112
Bilateral OTC (4)	453,202			7,646	466,021			7,264
Equity contracts:
Exchange-traded	955,287			3,054,315	1,004,699			2,943,657
Bilateral OTC	61,004			1,039	81,085			1,070
Commodity contracts:
Exchange-traded	—			1,726	—			1,684
Bilateral OTC (4)	19,342			29	4,628			28
Credit contracts:
Cleared OTC	621			39	841			44
Bilateral OTC	16,977			100	59,314			135
Total gross derivative assets/liabilities:
Exchange-traded	956,285				1,005,063
Cleared OTC	2,214,351				2,203,677
Bilateral OTC	1,245,890				1,257,806
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(938,482		)		(938,482		)
Cleared OTC	(2,184,438		)		(2,184,438		)
Bilateral OTC	(1,042,526		)		(1,135,078		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	251,080			$	208,548

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

(4) Bilateral OTC commodity contracts increased in assets by a fair value of $19.3 million and by 29 contracts and in liabilities by a fair value of $4.6 million and by 28 contracts with corresponding decreases in bilateral OTC foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of bilateral OTC contracts remained unchanged.

The following table presents unrealized and realized gains (losses) on derivative contracts:

	Three Months Ended						Nine Months Ended
Gains (Losses)	August 31, 2016			August 31, 2015			August 31, 2016			August 31, 2015
Interest rate contracts	$	(16,631	)	$	25,308		$	(96,715	)	$	580
Foreign exchange contracts	7,886			6,893			14,000			30,417
Equity contracts	(185,264		)	68,649			(509,476		)	28,008
Commodity contracts	4,089			(4,757		)	1,899			15,480
Credit contracts	4,024			(4,375		)	1,441			(612		)
Total	$	(185,896	)	$	91,718		$	(588,851	)	$	73,873

OTC Derivatives. The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities at August 31, 2016 (in thousands):

	OTC Derivative Assets (1) (2) (3)
	0 – 12 Months		1 – 5 Years		Greater Than  5 Years		Cross-Maturity Netting (4)			Total
Equity swaps and options	$	27,781	$	5,370	$	—	$	—		$	33,151
Credit default swaps	—		7,948		230		(177		)	8,001
Total return swaps	27,796		874		—		(613		)	28,057
Foreign currency forwards, swaps and options	84,564		29,937		—		(7,150		)	107,351
Interest rate swaps, options and forwards	42,055		229,950		88,205		(97,075		)	263,135
Total	$	182,196	$	274,079	$	88,435	$	(105,015	)	439,695
Cross product counterparty netting										(754		)
Total OTC derivative assets included in Financial instruments owned										$	438,941

(1) At August 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.6 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 on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral received was $134.0 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
Equity swaps and options	$	13,408	$	23,617	$	—	$	—		$	37,025
Credit default swaps	28		12,639		1,672		(177		)	14,162
Total return swaps	26,824		16,967		—		(613		)	43,178
Foreign currency forwards, swaps and options	112,699		20,024		—		(7,150		)	125,573
Fixed income forwards	5,044		—		—		—			5,044
Interest rate swaps, options and forwards	23,709		119,675		124,541		(97,075		)	170,850
Total	$	181,712	$	192,922	$	126,213	$	(105,015	)	395,832
Cross product counterparty netting										(754		)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased										$	395,078

(1) At August 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $193.2 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 on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral pledged was $216.1 million.

(3) Derivative fair values include counterparty netting within product category.

(4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.

At August 31, 2016, the counterparty credit quality with respect to the fair value of our OTC derivatives assets was as follows (in thousands):

Counterparty credit quality (1):
A- or higher	$	214,650
BBB- to BBB+	77,419
BB+ or lower	64,975
Unrated	81,897
Total	$	438,941

(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.

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 aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a liability position at August 31, 2016 and November 30, 2015 is $85.9 million and $114.5 million, respectively, for which we have posted collateral of $65.4 million and $97.2 million, respectively, in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered on August 31, 2016 and November 30, 2015, we would have been required to post an additional $22.6 million and $19.7 million, respectively, of collateral to our counterparties.

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Collateralized Transactions

9 Months Ended

Aug. 31, 2016

Banking and Thrift [Abstract]

Collateralized Transactions

Collateralized Transactions

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 within Financial instruments owned and noted parenthetically as Securities pledged on our Consolidated Statements of Financial Condition.

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged (in thousands):

	August 31, 2016
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,341,506	$	174,077	$	2,515,583
Corporate debt securities	578,451		1,701,732		2,280,183
Mortgage- and asset-backed securities	—		2,358,531		2,358,531
U.S. government and federal agency securities	10,419		8,759,548		8,769,967
Municipal securities	—		420,957		420,957
Sovereign obligations	—		2,120,421		2,120,421
Loans and other receivables	—		478,693		478,693
Total	$	2,930,376	$	16,013,959	$	18,944,335

	November 30, 2015
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,195,912	$	275,880	$	2,471,792
Corporate debt securities	748,405		1,752,222		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,006,081		12,041,064
Municipal securities	—		357,350		357,350
Sovereign obligations	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	2,979,300	$	20,195,982	$	23,175,282

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by remaining contractual maturity (in thousands):

	August 31, 2016
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,629,631	$	85,895	$	794,824	$	420,026	$	2,930,376
Repurchase agreements	7,832,265		3,952,072		2,763,570		1,466,052		16,013,959
Total	$	9,461,896	$	4,037,967	$	3,558,394	$	1,886,078	$	18,944,335

	November 30, 2015
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	483,624	$	2,979,300
Repurchase agreements	7,850,791		5,218,059		5,291,729		1,835,403		20,195,982
Total	$	9,373,266	$	5,218,059	$	6,264,930	$	2,319,027	$	23,175,282

We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract or custom to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At August 31, 2016 and November 30, 2015, the approximate fair value of securities received as collateral by us that may be sold or repledged was $26.6 billion and $26.2 billion, respectively. At August 31, 2016 and November 30, 2015, 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). 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. In addition, we enter into customized bilateral trading agreements and other customer agreements that provide for the netting of receivables and payables with a given counterparty as a single net obligation.

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. 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 repurchase and/or securities lending transactions.

The following tables provide information regarding repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016
	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	$	8,460,736	$	—		$	8,460,736	$	(831,732	)	$	(1,063,399	)	$	6,565,605
Reverse repurchase agreements	11,921,719		(7,883,525		)	4,038,194		(133,611		)	(3,878,141		)	26,442
Liabilities:
Securities lending arrangements	$	2,930,376	$	—		$	2,930,376	$	(831,732	)	$	(2,038,342	)	$	60,302
Repurchase agreements	16,013,959		(7,883,525		)	8,130,434		(133,611		)	(6,707,666		)	1,289,157

	November 30, 2015
	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	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	14,048,860		(10,191,554		)	3,857,306		(83,452		)	(3,745,215		)	28,639
Liabilities:
Securities lending arrangements	$	2,979,300	$	—		$	2,979,300	$	(478,991	)	$	(2,464,395	)	$	35,914
Repurchase agreements	20,195,982		(10,191,554		)	10,004,428		(83,452		)	(8,103,468		)	1,817,508

(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 counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet 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 $6,520.3 million of securities borrowing arrangements, for which we have received securities collateral of $6,315.7 million, and $1,278.2 million of repurchase agreements, for which we have pledged securities collateral of $1,326.2 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

(4) Amounts include $5,796.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,613.3 million, and $1,807.2 million of repurchase agreements, for which we have pledged securities collateral of $1,875.3 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations

Cash and securities deposited with clearing and depository organizations and segregated in accordance with regulatory regulations totaled $1,026.9 million and $751.1 million at August 31, 2016 and November 30, 2015, respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies 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.

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Securitization Activities

9 Months Ended

Aug. 31, 2016

Transfers and Servicing [Abstract]

Securitization Activities

Securitization Activities

We engage in securitization activities related to corporate loans, commercial 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 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 the Consolidated Statement 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- and other-asset backed securities or CLOs), which are included within Financial instruments owned and are generally initially categorized as Level 2 within the fair value hierarchy. We apply fair value accounting to the securities.

The following table presents activity related to our securitizations that were accounted for as sales in which we had continuing involvement (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Transferred assets	$	1,390.7	$	853.9	$	4,523.5	$	3,931.5
Proceeds on new securitizations	1,394.0		888.1		4,541.3		3,979.6
Cash flows received on retained interests	6.3		10.7		24.9		28.6

We have no explicit or implicit arrangements to provide additional financial support to these SPEs, have no liabilities related to these SPEs and do not have any outstanding derivative contracts executed in connection with these securitization activities at August 31, 2016 and November 30, 2015.

The following tables summarize our retained interests in SPEs where we transferred assets and have continuing involvement and received sale accounting treatment (in millions):

	August 31, 2016
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	16,661.6	$	32.6
U.S. government agency CMBS	4,027.5		22.7
CLOs	3,747.5		55.9
Consumer and other loans	737.3		31.2

	November 30, 2015
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	10,901.9	$	203.6
U.S. government agency CMBS	2,313.4		87.2
CLOs	4,538.4		51.5
Consumer and other loans	655.0		31.0

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 transaction 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 within total Financial instruments owned on 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, although the securities are included in Financial instruments owned. 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- and asset-backed securitizations in the nonconsolidated VIEs section presented in Note 8, Variable Interest Entities.

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Variable Interest Entities

9 Months Ended

Aug. 31, 2016

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, including the resecuritization of mortgage- and other asset-backed securities and the securitization of commercial mortgage, corporate and consumer loans,

• Acting as placement agent and/or underwriter in connection with client-sponsored securitizations,

• Financing of agency and non-agency mortgage- and other asset-backed securities,

• Warehousing funding arrangements for client-sponsored consumer loan vehicles and CLOs through participation certificates and revolving loan and note commitments, and

• Loans to, investments in and fees from various investment vehicles.

We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and we reassess whether we are the primary beneficiary of a VIE on an ongoing basis. Our determination of whether we are the primary beneficiary of a VIE is based upon the facts and circumstances for each VIE and requires significant judgment. Our considerations in determining the VIE’s most significant activities and whether we have power to direct those activities include, but are not limited to, the VIE’s purpose and design and the risks passed through to investors, the voting interests of the VIE, management, service and/or other agreements of the VIE, involvement in the VIE’s initial design and the existence of explicit or implicit financial guarantees. In situations where we have determined that the power over the VIE’s significant activities is shared, we assess whether we are the party with the power over the most significant activities. If we are the party with the power over the most significant activities, we meet the “power” criteria of the primary beneficiary. If we do not have the power over the most significant activities or we determine that decisions require consent of each sharing party, we do not meet the “power” criteria of the primary beneficiary.

We assess our variable interests in a VIE both individually and in aggregate to determine whether we have an obligation to absorb losses of or a right to receive benefits from the VIE that could potentially be significant to the VIE. The determination of whether our variable interest is significant to the VIE requires significant judgment. In determining the significance of our variable interest, we consider the terms, characteristics and size of the variable interests, the design and characteristics of the VIE, our involvement in the VIE and our market-making activities related to the variable interests.

Consolidated VIEs

The following table presents information about our consolidated VIEs at August 31, 2016 and November 30, 2015 (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.

	August 31, 2016				November 30, 2015
	Securitization Vehicles		Other		Securitization Vehicles		Other
Cash	$	9.7	$	0.7	$	0.5	$	1.5
Financial instruments owned	90.6		0.6		68.3		0.6
Securities purchased under agreement to resell (1)	604.0		—		717.3		—
Fees, interest and other receivables	0.5		—		0.3		0.2
Total assets	$	704.8	$	1.3	$	786.4	$	2.3
Other secured financings (2)	$	692.8	$	—	$	785.0	$	—
Other liabilities	11.3		0.2		1.4		0.3
Total liabilities	$	704.1	$	0.2	$	786.4	$	0.3

(1) Securities purchased under agreement to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation.

(2) Approximately $86.5 million and $22.1 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at August 31, 2016 and November 30, 2015, respectively.

Securitization Vehicles. We are the primary beneficiary of securitization vehicles associated with our financing of consumer and small business loans. In the creation of the securitization vehicles, we were involved in the decisions made during the establishment and design of the entities and hold variable interests consisting of the securities retained that could potentially be significant. The assets of the VIEs consist of the small business loans and term loans backed by consumer installment receivables, which are available for the benefit of the vehicles’ beneficial interest holders. The creditors of the VIEs do not have recourse to our general credit and the assets of the VIEs are not available to satisfy any other debt.

We are also the primary beneficiary of mortgage-backed financing vehicles to which we sell agency and non-agency residential and commercial mortgage loans and mortgage-backed securities pursuant to the terms of a master repurchase agreement. We manage the assets within these vehicles. Our variable interests in these vehicles consist of our collateral margin maintenance obligations under the master repurchase agreement and retained interests in securities issued. The assets of these VIEs consist of reverse repurchase agreements, which are available for the benefit of the vehicle’s debt holders. The creditors of these VIEs do not have recourse to our general credit and each such VIE's assets are not available to satisfy any other debt.

Other. We are the primary beneficiary of certain investment vehicles set up for the benefit of our employees. We manage and invest alongside our employees in these vehicles. The assets of these VIEs consist of private equity securities, and are available for the benefit of the entities’ equity holders. Our variable interests in these vehicles consist of equity securities. The creditors of these VIEs do not have recourse to our general credit and each such VIE's assets are not available to satisfy any other debt.

Nonconsolidated VIEs

The following tables present information about our variable interests in nonconsolidated VIEs (in millions):

	August 31, 2016
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.3	$	7.6	$	326.7	$	4,879.1
Consumer loan vehicles	170.0		—		607.2		1,231.4
Related party private equity vehicles	38.3		—		64.2		157.5
Other private investment vehicles	57.4		—		58.9		3,977.7
Total	$	339.0	$	7.6	$	1,057.0	$	10,245.7

	November 30, 2015
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.6	$	0.2	$	458.1	$	6,368.7
Consumer loan vehicles	188.3		—		845.8		1,133.0
Related party private equity vehicles	39.3		—		65.8		168.2
Other private investment vehicles	51.3		—		52.8		4,312.0
Total	$	352.5	$	0.2	$	1,422.5	$	11,981.9

Our maximum exposure to loss often differs from the carrying value of the variable interests. The maximum exposure to loss is dependent on the nature of 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 and sub-investment grade and senior secured U.S. loans. We underwrite securities issued in CLO transactions on behalf of sponsors and provide advisory services to the sponsors. We may also sell corporate loans to the CLOs. Our variable interests in connection with CLOs where we have been involved in providing underwriting and/or advisory services consist of the following:

• Forward sale agreements whereby we commit to sell, at a fixed price, corporate loans and ownership interests in an entity holding such corporate loans to CLOs,

• Warehouse funding arrangements in the form of participation interests in corporate loans held by CLOs and commitments to fund such participation interests,

• Trading positions in securities issued in a CLO transaction,

• Investments in variable funding notes issued by CLOs,

• A guarantee to a CLO managed by Jefferies Finance, LLC ("Jefferies Finance"), whereby we guarantee certain of the obligations of Jefferies Finance to the CLO.

In addition, we own variable interests in CLOs previously managed by us. Our variable interests consist of debt securities and a right to a portion of the CLO's management and incentive fees. Our exposure to loss from these CLOs is limited to our investments in the debt securities held. Management and incentive fees are accrued as the amounts become realizable. These CLOs represent interests in assets consisting primarily of senior secured loans, unsecured loans and high yield bonds.

Consumer Loan Vehicles. We provide financing and lending related services to certain client-sponsored VIEs in the form of revolving funding note agreements, revolving credit facilities and forward purchase agreements. The underlying assets, which are collateralizing the vehicles, are primarily composed of unsecured consumer and small business loans. In addition, 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 have committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, we have committed to invest equity 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. Our total equity commitment in the JCP Entities is $148.1 million, of which $125.1 million and $124.6 million was funded at August 31, 2016 and November 30, 2015, respectively. The carrying value of our equity investments in the JCP Entities was $38.3 million and $39.3 million at August 31, 2016 and November 30, 2015, 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.

We have also provided a guarantee of a portion of Energy Partners I, LP's obligations under a credit agreement. Energy Partners I, LP, is a private equity fund owned and managed by our employees. The maximum exposure to loss of the guarantee was $3.0 million at August 31, 2016 and November 30, 2015. Energy Partners I, LP, has assets consisting primarily of debt and equity investments.

Other Private Investment Vehicles. As of August 31, 2016 and November 30, 2015, we had equity commitments to invest $75.8 million and $50.8 million, respectively, in various other private investment vehicles, of which $74.3 million and $49.3 million was funded, respectively. The carrying value of our equity investments was $57.4 million and $51.3 million at August 31, 2016 and November 30, 2015, respectively. Our exposure to loss is limited to the total of our carrying value and unfunded equity commitment. These private investment vehicles have assets primarily consisting of private and public equity investments, debt instruments and various oil and gas assets.

Mortgage- and Other Asset-Backed Securitization Vehicles. In connection with our secondary trading and market making activities, we buy and sell agency and nonagency mortgage-backed securities and other asset-backed securities, which are issued by third party securitization SPEs and are generally considered variable interests in VIEs. Securities issued by securitization SPEs are backed by residential mortgage loans, U.S. agency collateralized mortgage obligations, commercial mortgage loans, CDOs and CLOs and other consumer loans, such as installment receivables, auto loans and student loans. These securities are accounted for at fair value and included in Financial instruments owned on 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 (FNMA ("Fannie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") or GNMA ("Ginnie Mae")) or nonagency sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts. The securitizations are backed by residential and commercial mortgage, home equity and auto loans. We do not consolidate agency sponsored securitizations as we do not have the power to direct the activities of the SPEs that most significantly impact their economic performance. Further, we are not the servicer of nonagency-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.

We transfer existing securities, typically mortgage-backed securities, into resecuritization vehicles. These transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests occur in connection with both agency and nonagency sponsored VIEs. Our consolidation analysis is largely dependent on our role and interest in the resecuritization trusts. Most resecuritizations in which we are involved are in connection with investors seeking securities with specific risk and return characteristics. As such, we have concluded that the decision-making power is shared between us and the investor(s), considering the joint efforts involved in structuring the trust and selecting the underlying assets as well as the level of security interests the investor(s) hold in the SPE; therefore, we do not consolidate the resecuritization VIEs.

At August 31, 2016 and November 30, 2015, we held $1,341.1 million and $3,359.1 million of agency mortgage-backed securities, respectively, and $515.0 million and $630.5 million of nonagency mortgage and other asset-backed securities, respectively, as a result of our secondary trading and market making activities, underwriting, placement and structuring activities and resecuritization activities. Our maximum exposure to loss on these securities is limited to the carrying value of our investments in these securities. Mortgage- and other asset-backed securitization vehicles discussed within this section are not included in the above table containing information about our variable interests in nonconsolidated VIEs.

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Investments

9 Months Ended

Aug. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

We have investments in Jefferies Finance and Jefferies LoanCore LLC (“Jefferies LoanCore”). Our investments in Jefferies Finance and Jefferies LoanCore are accounted for under the equity method and are included in Loans to and investments in related parties on the Consolidated Statements of Financial Condition with our share of the investees’ earnings recognized in Other revenues in the Consolidated Statements of Earnings. We have limited partnership interests of 11% and 50% in Jefferies Capital Partners V L.P. and the SBI USA Fund L.P. (together, “JCP Fund V”), respectively, which are private equity funds managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee.

Jefferies Finance

On October 7, 2004, we entered into an agreement with Massachusetts Mutual Life Insurance Company (“MassMutual”) and Babson Capital Management LLC to form Jefferies Finance, a joint venture entity. Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt to middle market and growth companies in the form of term and revolving loans. Loans are originated primarily through the investment banking efforts of Jefferies. Jefferies Finance may also originate other debt products such as second lien term, bridge and mezzanine loans, as well as related equity co-investments. Jefferies Finance also purchases syndicated loans in the secondary market.

At August 31, 2016, we and MassMutual each have equity commitments to Jefferies Finance of $600.0 million for a combined total commitment of $1.2 billion. At August 31, 2016, we have funded $497.4 million of our $600.0 million commitment, leaving $102.6 million unfunded. The investment commitment is scheduled to expire on March 1, 2017 with automatic one year extensions absent a 60 day 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. The Secured Revolving Credit Facility 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 is a committed amount of $500.0 million at August 31, 2016. Advances are shared equally between us and MassMutual. The facility is scheduled to mature on March 1, 2017 with automatic one year extensions absent a 60 day termination notice by either party. At August 31, 2016 and November 30, 2015, we have funded $0.0 and $19.3 million, respectively, of each of our $250.0 million and $250.0 million commitments, respectively.

The following is a summary of selected financial information for Jefferies Finance (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	7,344.9	$	7,292.1
Total liabilities	6,406.2		6,297.3
Total equity	938.7		994.8
Our total equity balance	469.3		497.4

The results of Jefferies Finance were net earnings of $22.8 million and a net loss of $55.0 million for the three and nine months ended August 31, 2016, respectively, and net earnings of $47.8 million and $109.8 million for the three and nine months ended August 31, 2015, respectively.

We engage in debt capital markets transactions with Jefferies Finance related to the originations of loans by Jefferies Finance. In connection with such transactions, we earned fees of $19.0 million and $42.1 million during the three and nine months ended August 31, 2016, respectively, and $53.3 million and $108.8 million during the three and nine months ended August 31, 2015, respectively, recognized in Investment banking revenues in the Consolidated Statements of Earnings. In addition, we paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $1.6 million during the nine months ended August 31, 2016, and $1.5 million and $3.1 million during the three and nine months ended August 31, 2015, respectively, which are recognized as Business development expenses in the Consolidated Statements of Earnings.

We acted as placement agent in connection with several CLOs managed by Jefferies Finance for which we recognized fees of $1.3 million for both the three and nine months ended August 31, 2016 and $3.1 million during the nine months ended August 31, 2015, which are included in Investment banking revenues on the Consolidated Statement of Earnings. At August 31, 2016 and November 30, 2015, we held securities issued by CLOs managed by Jefferies Finance, which are included within Financial instruments owned, and provided a guarantee whereby we are required to make certain payments to a CLO in the event that Jefferies Finance is unable to meet its obligations to the CLO. Additionally, we have entered into participation agreements and derivative contracts with Jefferies Finance based upon certain securities issued by the CLO.

We acted as underwriter in connection with senior notes issued by Jefferies Finance, for which we recognized underwriting fees of $1.3 million during the nine months ended August 31, 2015.

Under a service agreement, we charged Jefferies Finance $7.2 million and $35.8 million for services provided during the three and nine months ended August 31, 2016, respectively, and $8.4 million and $43.3 million during the three and nine months ended August 31, 2015, respectively. Receivables from Jefferies Finance, included within Other assets on the Consolidated Statements of Financial Condition, were $0.0 million and $7.8 million at August 31, 2016 and November 30, 2015, respectively.

Jefferies LoanCore

On February 23, 2011, we entered into a joint venture agreement with the Government of Singapore Investment Corporation ("GIC") and LoanCore, LLC and formed Jefferies LoanCore, a commercial real estate finance company. In March 2016, the Canada Pension Plan Investment Board acquired a 24% equity interest in Jefferies LoanCore through a direct acquisition from the GIC. Jefferies LoanCore originates and purchases commercial real estate loans throughout the U.S. with the support of the investment banking and securitization capabilities of Jefferies and the real estate and mortgage investment expertise of the GIC and LoanCore, LLC. During the second quarter of 2016, Jefferies LoanCore aggregate equity commitments were reduced from $600.0 million to $400.0 million. At August 31, 2016 and November 30, 2015, we had funded $89.6 million and $207.4 million, respectively, of each of our $194.0 million and $291.0 million equity commitments, respectively, and have a 48.5% voting interest in Jefferies LoanCore.

The following is a summary of selected financial information for Jefferies LoanCore (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	1,610.4	$	2,069.1
Total liabilities	1,264.6		1,469.8
Total equity	345.8		599.3
Our total equity balance	167.7		290.7

The net earnings of Jefferies LoanCore were $13.4 million and $36.1 million for the three and nine months ended August 31, 2016, respectively, and $25.1 million and $61.6 million for the three and nine months ended August 31, 2015, respectively.

Under a service agreement, we charged Jefferies LoanCore $47,000 and $142,000 for the three and nine months ended August 31, 2016, respectively, and $47,000 and $143,000 for the three and nine months ended August 31, 2015, respectively. Receivables from Jefferies LoanCore, included within Other assets on the Consolidated Statements of Financial Condition, were $16,000 and $16,000 at August 31, 2016 and November 30, 2015, respectively.

In connection with the securitization of commercial real estate loans originated by Jefferies LoanCore, we earned placement fees of $1.0 million and $1.6 million during the three and nine months ended August 31, 2015, respectively.

JCP Fund V

The amount of our investments in JCP Fund V included within Investments in managed funds on the Consolidated Statements of Financial Condition was $28.8 million and $29.7 million at August 31, 2016 and November 30, 2015, 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). The results from these investments were a gain of $5.8 million for the three months ended August 31, 2016, a loss of $1.4 million for the nine months ended August 31, 2016 and losses of $3.4 million and $26.3 million for the three and nine months August 31, 2015, respectively, and are included in Asset management fees and investment income (loss) from managed funds in the Consolidated Statements of Earnings.

At August 31, 2016 and November 30, 2015, we were committed to invest equity of up to $85.0 million in JCP Fund V. At August 31, 2016, our unfunded commitment relating to JCP Fund V was $11.3 million.

The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we own effectively 35.2% of the combined equity interests (in thousands):

												June 30,  2016 (1)		December 31, 2015 (1)
Total assets												$	81,855	$	76,555
Total liabilities												68		99
Total partners' capital												81,787		76,456
	Three Months Ended
	June 30, 2016 (1)		March 31, 2016 (1)			December 31, 2015 (1)			June 30, 2015 (1)			March 31, 2015 (1)		December 31, 2014 (1)
Net increase (decrease) in net assets resulting from operations	$	17,137	$	(11,806	)	$	(7,886	)	$	(8,875	)	$	1,478	$	(65,700	)

(1) Financial information for JCP Fund V within our financial position and results of operations at August 31, 2016 and November 30, 2015 and for the three and nine months ended August 31, 2016 and August 31, 2015 is included based on the presented periods.

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Goodwill and Other Intangible Assets

9 Months Ended

Aug. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

Goodwill attributed to our reportable segments are as follows (in thousands):

	August 31, 2016		November 30, 2015
Capital Markets	$	1,642,293	$	1,653,588
Asset Management	3,000		3,000
Total goodwill	$	1,645,293	$	1,656,588

The following table is a summary of the changes to goodwill for the nine months ended August 31, 2016 (in thousands):

Balance at November 30, 2015	$	1,656,588
Translation adjustments	(11,295		)
Balance at August 31, 2016	$	1,645,293

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 and consists of two steps. In the first step, 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 a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the reporting unit's goodwill.

Allocated equity plus allocated goodwill and intangible assets are used as a proxy for the carrying amount of each reporting unit. The amount of 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.

Estimating the fair value of a reporting unit requires management judgment. Estimated fair values for our reporting units were determined using a market valuation method that incorporate price-to-earnings and price-to-book multiples of comparable public companies. In addition, as the fair values determined under the market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of each reporting unit on a controlling basis. We engaged an independent valuation specialist to assist us in our valuation process at August 1, 2016.

Our annual goodwill impairment testing at August 1, 2016 did not indicate any goodwill impairment in any of our reporting units. Substantially all of our goodwill is allocated to our Investment Banking, Equities, and Fixed Income reporting units for which the results of our assessment indicated that these reporting units had a fair value in excess of their carrying amounts based on current projections. At August 31, 2016, goodwill allocated to these reporting units is $1,642.3 million of total goodwill of $1,645.3 million. For the remaining less significant reporting unit, we have used a net asset approach for valuation and the fair value of each of the reporting units is equal to its book value.

Intangible Assets

Intangible assets are included in Other assets in the Consolidated Statements of Financial Condition. The following tables present the gross carrying amount, dispositions, accumulated amortization, net carrying amount and weighted average amortization period of identifiable intangible assets at August 31, 2016 and November 30, 2015 (dollars in thousands):

	August 31, 2016													Weighted average remaining lives (years)
	Gross cost		Disposals (1)			Impairment losses			Accumulated amortization			Net carrying amount
Customer relationships	$	126,081	$	—		$	—		$	(40,453	)	$	85,628	12.3
Trade name	128,845		—			—			(12,884		)	115,961		31.5
Exchange and clearing organization membership interests and registrations	11,860		(1,379		)	(1,284		)	—			9,197		N/A
Total	$	266,786	$	(1,379	)	$	(1,284	)	$	(53,337	)	$	210,786

(1) Activity is related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business.

	November 30, 2015							Weighted average remaining lives (years)
	Gross cost		Accumulated amortization			Net carrying amount
Customer relationships	$	127,667	$	(34,754	)	$	92,913	12.9
Trade name	131,288		(10,315		)	120,973		32.3
Exchange and clearing organization membership interests and registrations	11,897		—			11,897		N/A
Total	$	270,852	$	(45,069	)	$	225,783

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, 2016. We elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as certain other membership interests and registrations that have declined in utilization. A qualitative assessment was performed on the remainder of our indefinite-life intangible assets. In applying our quantitative assessment, we recognized an impairment loss of $1.3 million on certain exchange membership interests and registrations. With regard to our qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and the replacement costs associated with the assets, we 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 $3.0 million and $9.1 million for the three and nine months ended August 31, 2016, respectively, and $3.1 million and $9.2 million for the three and nine months ended August 31, 2015, respectively. These expenses are included in Other expenses on the Consolidated Statements of Earnings.

The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands):

Remainder of fiscal 2016	$	3,049
Year ended November 30, 2017	12,198
Year ended November 30, 2018	12,198
Year ended November 30, 2019	12,198
Year ended November 30, 2020	12,198

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Short-Term Borrowings

9 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings at August 31, 2016 and November 30, 2015 include bank loans and overdrafts that are payable on demand and that must be repaid within one year or less, as well as borrowings under revolving loan and credit facilities as follows (in thousands):

	August 31, 2016		November 30, 2015
Bank loans (1)	$	262,711	$	262,000
Secured revolving loan facility	67,986		48,659
Floating rate puttable notes	101,538		—
Total short-term borrowings	$	432,235	$	310,659

(1) Amount includes $0.7 million related to bank overdrafts at August 31, 2016.

At August 31, 2016, the weighted average interest rate on short-term borrowings outstanding is 1.47% per annum. Average daily short-term borrowings outstanding were $414.4 million and $372.3 million for the three and nine months ended August 31, 2016, respectively, and $18.5 million and $44.9 million for the three and nine months ended August 31, 2015, respectively. Bank loans are typically overnight loans used to finance financial instruments owned or clearing related balances, but are not part of our systemic funding model and generally bear interest at a spread over the federal funds rate.

On April 8, 2016, May 3, 2016 and July 29, 2016, under our $2.0 billion Euro Medium Term Note Program, we issued floating rate puttable notes with principal amounts of €30.0 million, €11.0 million and €50.0 million, respectively. These notes are puttable three months after the issuance date.

On February 19, 2016, we entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of our margin obligations. Interest is based on an annual rate equal to weighted average LIBOR as defined in the Demand Loan Facility agreement plus 150 basis points. There were no borrowings outstanding at August 31, 2016.

On October 29, 2015, we entered into a secured revolving loan facility (“Secured Revolving Loan Facility”) whereby the lender agrees to make available a revolving loan facility in a maximum principal amount of $50.0 million in U.S. dollars to purchase eligible receivables that meet certain requirements as defined in the Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus three and three-quarters percent or the maximum rate as defined in the Secured Revolving Loan Facility agreement.

The Bank of New York Mellon agrees to make revolving intraday credit advances ("Intraday Credit Facility") for an aggregate committed amount of $300.0 million in U.S. dollars. The Intraday Credit Facility contains a financial covenant, which includes a minimum regulatory net capital requirement. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At August 31, 2016, we were in compliance with debt covenants under the Intraday Credit Facility.

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Long-Term Debt

9 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The following summarizes our long-term debt carrying values (including unamortized discounts and premiums and valuation adjustment, where applicable) at August 31, 2016 and November 30, 2015 (in thousands):

	August 31,   2016		November 30, 2015
Unsecured long-term debt
5.5% Senior Notes, due March 15, 2016 (effective interest rate of 2.52%)	$	—	$	353,025
5.125% Senior Notes, due April 13, 2018 (effective interest rate of 3.46%)	820,974		830,298
8.5% Senior Notes, due July 15, 2019 (effective interest rate of 4.00%)	785,411		806,125
2.375% Euro Medium Term Notes, due May 20, 2020 (effective rate of 2.42%)	555,962		526,436
6.875% Senior Notes, due April 15, 2021 (effective interest rate of 4.40%)	827,601		838,765
2.25% Euro Medium Term Notes, due July 13, 2022 (effective rate of 4.08%)	4,035		3,779
5.125% Senior Notes, due January 20, 2023 (effective interest rate of 4.55%)	619,000		620,890
6.45% Senior Debentures, due June 8, 2027 (effective interest rate of 5.46%)	378,292		379,711
3.875% Convertible Senior Debentures, due November 1, 2029 (effective interest rate of 3.50%) (1)	346,473		347,307
6.25% Senior Debentures, due January 15, 2036 (effective interest rate of 6.03%)	512,481		512,730
6.50% Senior Notes, due January 20, 2043 (effective interest rate of 6.09%)	421,415		421,656
Structured Notes (2)	211,094		—
Total long-term debt	$	5,482,738	$	5,640,722

(1) The change in fair value of the conversion feature, which is included within Principal transaction revenues in the Consolidated Statements of Earnings, was not material for the three and nine months ended August 31, 2016 and 2015.

(2) Includes $204.4 million at fair value at August 31, 2016.

During the nine months ended August 31, 2016, we issued structured notes with a total principal amount of approximately $218.6 million. Certain of the 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 transaction revenues. During the nine months ended August 31, 2016, approximately $350.0 million of long-term borrowings matured or were retired.

In addition, on January 21, 2016, we issued $15.0 million of Class A Notes, due 2022, and $7.5 million of Class B Notes, due 2022, secured by aircraft and related operating leases and which are non-recourse to us. In June 2016, the Class A Notes and the Class B Notes were repurchased and retired.

Our 3.875% convertible debentures due 2029 (principal amount of $345.0 million) (the “debentures”) remain issued and outstanding and are convertible into common shares of Leucadia. At September 15, 2016, each $1,000 debenture is currently convertible into 22.7041 shares of Leucadia’s common stock (equivalent to a conversion price of approximately $44.04 per share of Leucadia’s common stock). The debentures are convertible at the holders’ option any time beginning on August 1, 2029 and convertible at any time if: 1) Leucadia’s common stock price is greater than or equal to 130% of the conversion price for at least 20 trading days in a period of 30 consecutive trading days; 2) if the trading price per debenture is less than 95% of the price of the common stock times the conversion ratio for any 10 consecutive trading days; 3) if the debentures are called for redemption; or 4) upon the occurrence of specific corporate actions. The debentures may be redeemed for par, plus accrued interest, on or after November 1, 2012 if the price of Leucadia’s common stock is greater than 130% of the conversion price for at least 20 days in a period of 30 consecutive trading days and we may redeem the debentures for par, plus accrued interest, at our election any time on or after November 1, 2017. Holders may require us to repurchase the debentures for par, plus accrued interest, on November 1, 2017, 2019 and 2024. In addition to ordinary interest, commencing November 1, 2017, contingent interest will accrue at 0.375% if the average trading price of a debenture for five trading days ending on and including the third trading day immediately preceding a six-month interest period equals or exceed $1,200 per $1,000 debenture. At March 1, 2013, the conversion option to Leucadia common shares embedded within the debentures meets the definition of a derivative contract, does not qualify to be accounted for within member’s equity and is not clearly and closely related to the economic interest rate or credit risk characteristics of our debt. Accordingly, the conversion option is accounted for on a standalone basis at fair value with changes in fair value recognized in Principal transaction revenues and is presented within Long-term debt in the Consolidated Statements of Financial Condition. At August 31, 2016 and November 30, 2015, the fair value of the conversion option was not material.

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Noncontrolling Interests

9 Months Ended

Aug. 31, 2016

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests

Noncontrolling interests represent equity interests in consolidated subsidiaries, composed primarily of asset management entities and investment vehicles set up for the benefit of our employees that are not attributable, either directly or indirectly, to us (i.e., minority interests). The following table presents noncontrolling interests at August 31, 2016 and November 30, 2015 (in thousands):

	August 31, 2016		November 30, 2015
Global Equity Event Opportunity Fund, LLC (1)	$	4,547	$	26,292
Other	643		1,176
Noncontrolling interests	$	5,190	$	27,468

(1) On December 1, 2015, the entity was deconsolidated due to the adoption of ASU No. 2015-02. (See Note 3, Accounting Developments, for further information on the adoption of this guidance.) No gain or loss was recognized upon deconsolidation. Noncontrolling interests attributed to Leucadia were $26.3 million at November 30, 2015. During the nine months ended August 31, 2016, the entity was consolidated due to investments by us and a third party.

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Benefit Plans

9 Months Ended

Aug. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Benefit Plans

U.S. Pension Plan.We maintain a defined benefit pension plan, Jefferies Group LLC Employees’ Pension Plan (the “U.S. Pension Plan”), which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and covers certain of our employees. Under the U.S. Pension Plan, benefits to participants are based on years of service and the employee’s career average pay. Effective December 31, 2005, benefits under the U.S. Pension Plan were frozen with no further benefit accruing to participants for future service after December 31, 2005.

German Pension Plan.In connection with the acquisition of Jefferies Bache from Prudential on July 1, 2011, we acquired a defined benefits pension plan located in Germany (the “German Pension Plan”) for the benefit of eligible employees of Jefferies Bache in that territory. The German Pension Plan has no plan assets and is therefore unfunded. We have purchased insurance contracts from multi-national insurers held in the name of Jefferies Bache Limited to provide for the plan’s future obligations. The investment in these insurance contracts is included in Financial Instruments owned in the Consolidated Statements of Financial Condition and has a fair value of $16.0 million and $15.3 million at August 31, 2016 and November 30, 2015, respectively. We expect to pay our pension obligations from the cash flows available to us under the insurance contracts. All costs relating to the plan (including insurance premiums and other costs as computed by the insurers) are paid by us. In connection with the acquisition, it was agreed with Prudential that any insurance premiums and funding obligations related to pre-acquisition date service will be reimbursed to us by Prudential.

The components of net periodic pension cost (income) for our pension plans are as follows (in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
U.S. Pension Plan	2016			2015			2016			2015
Components of net periodic pension cost (income):
Service cost	$	100		$	63		$	300		$	189
Interest cost on projected benefit obligation	587			585			1,761			1,755
Expected return on plan assets	(730		)	(848		)	(2,190		)	(2,544		)
Net periodic pension income	$	(43	)	$	(200	)	$	(129	)	$	(600	)

	Three Months Ended August 31,				Nine Months Ended August 31,
German Pension Plan	2016		2015		2016		2015
Components of net periodic pension cost:
Interest cost on projected benefit obligation	$	133	$	132	$	398	$	395
Net amortization	83		82		246		245
Net periodic pension cost	$	216	$	214	$	644	$	640

Employer Contributions. Our funding policy is to contribute to the plans at least the minimum amount required for funding purposes under applicable employee benefit and tax laws. We contributed $3.0 million to the U.S. Pension Plan during the nine months endedAugust 31, 2016. We did not contribute to the German Pension Plan during the nine months endedAugust 31, 2016. We do not expect to make any additional contributions to the plans during the remainder of the fiscal year.

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Compensation Plans

9 Months Ended

Aug. 31, 2016

Compensation Related Costs [Abstract]

Compensation Plans

Compensation Plans

Leucadia sponsors our following share-based compensation plans: Incentive Compensation Plan, Employee Stock Purchase Plan ("ESPP") and the Deferred Compensation Plan. The outstanding and future share-based awards relating to these plans relate to Leucadia common shares. The fair value of share-based awards is estimated on the date of grant based on the market price of the underlying common stock less the impact of market conditions and selling restrictions subsequent to vesting, if any, and is amortized as compensation expense over the related requisite service periods. We are allocated costs associated with awards granted to our employees under such plans.

In addition, we sponsor non-share-based compensation plans. Non-share-based compensation plans sponsored by us include a profit sharing plan and other forms of restricted cash awards.

The components of total compensation cost associated with certain of our compensation plans are as follows (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Components of compensation cost:
Restricted cash awards	$	56.0	$	39.4	$	190.1	$	142.9
Restricted stock and RSUs (1)	6.4		13.8		17.8		53.8
Profit sharing plan	1.0		0.6		5.3		5.3
Total compensation cost	$	63.4	$	53.8	$	213.2	$	202.0

(1) Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan.

Remaining unamortized amounts related to certain compensation plans at August 31, 2016 are as follows (dollars in millions):

	Remaining Unamortized Amounts		Weighted Average Vesting Period (in Years)
Non-vested share-based awards	$	29.2	2
Restricted cash awards	499.8		3
Total	$	529.0

The following are descriptions of the compensation plans.

Incentive Compensation Plan. The Incentive Compensation Plan (“Incentive Plan”) allows for 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, dividend equivalents or other share-based awards. Restricted stock units (“RSUs”) give a participant the right to receive fully vested common shares at the end of a specified 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. Awards issued and outstanding related to the Incentive Plan relate to shares of Leucadia.

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 awards for multiple years. Sign-on and retention awards are generally subject to annual ratable vesting over a four-year service period and are amortized as compensation expense on a straight line basis over the related four years. Restricted stock and RSUs are granted to certain senior executives with market, performance and service conditions. Market conditions are incorporated into the grant-date fair value of senior executive awards using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if we determine that it is probable that the performance condition will be achieved. Awards granted to senior executives related to the 2015 fiscal year did not meet performance targets, and as a result, compensation expense has been adjusted to reflect the reduced number of shares that have vested.

Employee Stock Purchase Plan. There is also an ESPP which we consider noncompensatory effective January 1, 2007. The ESPP permits all regular full-time employees and employees who work part time over 20 hours per week to purchase, at a discount, Leucadia common shares. Annual employee contributions are limited to $21,250, are voluntary and made through payroll deduction. The stock purchase price is equal to 95% of the closing price of common stock on the last day of the applicable session (monthly).

Deferred Compensation Plan. There is also a Deferred Compensation Plan, which was established in 2001. Eligible employees are able to defer compensation on a pre-tax basis, with deferred amounts deemed invested at a discount in Leucadia common shares, or by allocating among any combination of other investment funds available under the Deferred Compensation Plan. We often invest directly, as a principal, in investments corresponding to the other investment funds, relating to our obligations to perform under the Deferred Compensation Plan. The compensation deferred by our employees is expensed in the period earned. The change in fair value of our investments in assets corresponding to the specified other investment funds are recognized in Principal transaction revenues and changes in the corresponding deferred compensation liability are reflected as Compensation and benefits expense in our Consolidated Statements of Earnings.

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.

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Income Taxes

9 Months Ended

Aug. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At August 31, 2016 and November 30, 2015, we had approximately $106.1 million and $107.9 million, respectively, of total gross unrecognized tax benefits. The total amount of unrecognized benefit that, if recognized, would favorably affect the effective tax rate was $71.0 million and $71.9 million (net of benefits of taxes) at August 31, 2016 and November 30, 2015, respectively.

We recognize interest accrued related to unrecognized tax benefits in Interest expense. Penalties, if any, are recognized in Other expenses in the Consolidated Statements of Earnings. At August 31, 2016 and November 30, 2015, we had interest accrued of approximately $38.3 million and $32.8 million, respectively, included in Accrued expenses and other liabilities. No material penalties were accrued for the nine months ended August 31, 2016 and the year ended November 30, 2015.

We are currently under examination by the Internal Revenue Service and other major tax jurisdictions. We do not expect that resolution of these examinations will have a material effect on our consolidated financial position, but could have a material impact on the consolidated results of operations for the period in which resolution occurs.

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	2007
California	2007
New Jersey	2010
New York State	2001
New York City	2003
United Kingdom	2014
Hong Kong	2009

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Commitments, Contingencies and Guarantees

9 Months Ended

Aug. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

Commitments, Contingencies and Guarantees

Commitments

The following table summarizes our commitments at August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Maximum Payout
Equity commitments (1)	$	1.5	$	7.9	$	—	$	11.3	$	213.7	$	234.4
Loan commitments (1)	—		306.4		82.2		54.4		—		443.0
Mortgage-related and other purchase commitments	838.0		263.2		1,265.2		21.6		—		2,388.0
Underwriting commitments	—		223.2		—		—		—		223.2
Forward starting reverse repos and repos	166.3		—		—		—		—		166.3
Other unfunded commitments (1)	65.8		142.6		26.8		5.1		32.3		272.6
Total commitments	$	1,071.6	$	943.3	$	1,374.2	$	92.4	$	246.0	$	3,727.5

(1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand.

In addition, in March 2016, we entered into a lease agreement for office space in London. Beginning in fiscal 2020, we will have a contractual obligation to pay approximately £8.1 million per year for 18 years.

Equity Commitments. Includes commitments to invest in our joint ventures, Jefferies Finance and Jefferies LoanCore, 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 Brian P. Friedman, one of our directors and Chairman of the Executive Committee. At August 31, 2016, our outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $23.1 million.

See Note 9, Investments, for additional information regarding our investments in Jefferies Finance and Jefferies LoanCore.

Additionally, at August 31, 2016, we had other outstanding equity commitments to invest up to $4.3 million in various other investments.

Loan Commitments. From time to time we make commitments to extend credit to investment banking and other clients in loan syndication, acquisition finance and securities transactions and to SPE sponsors in connection with the funding of CLO and other asset-backed transactions. These commitments and any related drawdowns of these facilities typically have fixed maturity dates and are contingent on certain representations, warranties and contractual conditions applicable to the borrower. At August 31, 2016, we had $192.9 million of outstanding loan commitments to clients.

Loan commitments outstanding at August 31, 2016 also include our portion of the outstanding secured revolving credit facility provided to Jefferies Finance to support loan underwritings by Jefferies Finance.

Mortgage-Related and Other Purchase Commitments. We enter into forward contracts to purchase mortgage participation certificates, mortgage-backed securities and consumer loans. The mortgage participation certificates evidence interests in mortgage loans insured by the Federal Housing Administration and the mortgage-backed securities are insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. We frequently securitize the mortgage participation certificates and mortgage-backed securities. The fair value of mortgage-related and other purchase commitments recorded in the Consolidated Statements of Financial Condition was $185.2 million at August 31, 2016.

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 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 August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Notional/ Maximum Payout
Guarantee Type:
Derivative contracts—non-credit related	$	20,564.3	$	5,702.8	$	377.9	$	—	$	437.4	$	27,082.4
Written derivative contracts—credit related	—		—		91.7		258.7		—		350.4
Total derivative contracts	$	20,564.3	$	5,702.8	$	469.6	$	258.7	$	437.4	$	27,432.8

At August 31, 2016 the external credit ratings of the underlyings or referenced assets for our credit related derivatives contracts (in millions):

	External Credit Rating
	AAA/ Aaa		AA/Aa		A		BBB/ Baa		Below Investment Grade		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	24.0	$	—	$	—	$	83.7	$	—	$	107.7
Single name credit default swaps	$	—	$	—	$	59.9	$	38.6	$	144.2	$	242.7

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 August 31, 2016, the fair value of derivative contracts meeting the definition of a guarantee is approximately $320.3 million.

Loan Guarantee. We have provided a guarantee to Jefferies Finance that matures in January 2021, whereby we are required to make certain payments to an SPE sponsored by Jefferies Finance in the event that Jefferies Finance is unable to meet its obligations to the SPE and a guarantee of a credit agreement with an indefinite term for a fund owned by employees. At August 31, 2016, the maximum amount payable under these guarantees is $21.3 million.

Standby Letters of Credit. At August 31, 2016, we provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $36.5 million, which expire within two years. 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 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. 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.

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Net Capital Requirements

9 Months Ended

Aug. 31, 2016

Brokers and Dealers [Abstract]

Net Capital Requirements

Net Capital Requirements

As broker-dealers registered with the SEC and member firms of the Financial Industry Regulatory Authority (“FINRA”), Jefferies and Jefferies Execution are subject to the SEC Uniform Net Capital Rule (“Rule 15c3-1”), which requires the maintenance of minimum net capital, and have elected to calculate minimum capital requirements under the alternative method permitted by Rule 15c3-1 in calculating net capital. Jefferies is also registered as an FCM and is subject to Rule 1.17 of the CFTC, which sets forth minimum financial requirements. The minimum net capital requirement in determining excess net capital for a dually registered U.S. broker-dealer and FCM is equal to the greater of the requirement under Rule 15c3-1 or CFTC Rule 1.17.

At August 31, 2016, Jefferies and Jefferies Execution’s net capital and excess net capital were as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies	$	1,424,378	$	1,340,682
Jefferies Execution	7,330		7,080

FINRA is the designated self-regulatory organization (“DSRO”) for our U.S. broker-dealers and the National Futures Association is the DSRO for Jefferies 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 authorized and regulated by 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.

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Segment Reporting

9 Months Ended

Aug. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate in two principal segments – Capital Markets and Asset Management. The Capital Markets segment includes our securities, commodities, futures and foreign exchange brokerage trading activities and investment banking, which is composed of underwriting and financial advisory activities. The Capital Markets reportable segment provides the sales, trading, origination and advisory effort for various fixed income, equity and advisory products and services. The Asset Management segment provides investment management services to investors in the U.S. and overseas.

Our reportable business segment information is prepared using the following methodologies:

• Net revenues and expenses directly associated with each reportable business segment are included in determining earnings before taxes.

• Net revenues and 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.

Our net revenues and expenses by segment are summarized below (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Capital Markets:
Net revenues	$	641.9	$	565.1	$	1,601.6	$	1,916.7
Expenses	$	558.2	$	564.5	$	1,693.6	$	1,829.3
Asset Management:
Net revenues	$	12.6	$	13.8	$	71.2	$	45.5
Expenses	$	15.5	$	7.3	$	45.8	$	28.2
Total:
Net revenues	$	654.5	$	578.9	$	1,672.8	$	1,962.2
Expenses	$	573.7	$	571.8	$	1,739.4	$	1,857.5

The following table summarizes our total assets by segment (in millions):

	August 31, 2016		November 30, 2015
Segment assets:
Capital Markets	$	37,305.7	$	37,804.9
Asset Management	821.9		759.0
Total assets	$	38,127.7	$	38,564.0

Net Revenues by Geographic Region

Net revenues for the Capital Market 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 Asset Management, net revenues are allocated according to the location of the investment advisor. Net revenues by geographic region were as follows (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Americas (1)	$	500,190	$	454,996	$	1,257,192	$	1,508,639
Europe (2)	126,476		103,959		349,700		392,163
Asia	27,784		19,973		65,953		61,352
Net revenues	$	654,450	$	578,928	$	1,672,845	$	1,962,154

(1) Substantially all relates to U.S. results.

(2) Substantially all relates to U.K. results.

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Related Party Transactions

9 Months Ended

Aug. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Jefferies Capital Partners Related Funds. We have equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, one of our directors and our Chairman of the Executive Committee (“Private Equity Related Funds”). At August 31, 2016 and November 30, 2015, our equity investments in Private Equity Related Funds were in aggregate $38.4 million and $39.6 million, respectively. We also charge the JCP Manager for certain services under a service agreement. The following table presents other revenues and investment income (loss) related to net gains and losses on our investment in Private Equity Related Funds and service charges (in thousands):

	Three Months Ended August 31,					Nine Months Ended August 31,
	2016		2015			2016			2015
Other revenues and investment income (loss)	$	6,048	$	(3,495	)	$	(1,664	)	$	(27,707	)
Service charges	201		630			537			1,089

For further information regarding our commitments and funded amounts to the Private Equity Related Funds, see Note 17, Commitments, Contingencies and Guarantees.

Berkadia Commercial Mortgage, LLC. At August 31, 2016 and November 30, 2015, we have commitments to purchase $685.0 million and $752.4 million, respectively, in agency CMBS from Berkadia Commercial Mortgage, LLC, which is partially owned by Leucadia.

HRG Group Inc. ("HRG"). As part of our loan secondary trading activities we had unsettled purchases and sales of loans pertaining to portfolio companies within funds managed by HRG, which is partially owned by Leucadia, of $261.6 million at November 30, 2015. Additionally, we recognized investment banking and advisory revenues of $1.3 million during the nine months August 31, 2015.

Officers, Directors and Employees. At August 31, 2016 and November 30, 2015, we had $40.7 million and $28.3 million, respectively, of loans outstanding to certain of our employees (none of whom are executive officers or directors) that are included in Other assets on the Consolidated Statements of Financial Condition. 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. At August 31, 2016 and November 30, 2015, we have provided a guarantee of a credit agreement for a private equity fund owned by our employees.

Leucadia. The following is a description of related party transactions with Leucadia:

• Under a service agreement, we charge Leucadia for certain services, which amounted to $5.1 million and $19.6 million for the three and nine months ended August 31, 2016, respectively, and $11.0 million and $22.2 million for the three and nine months ended August 31, 2015, respectively. At August 31, 2016 and November 30, 2015, we had a receivable from Leucadia of $2.1 million and $10.2 million, respectively, which is included within Other assets on the Consolidated Statements of Financial Condition. At August 31, 2016 and November 30, 2015, we had a payable to Leucadia of $3.3 million and $0.6 million, respectively, related to certain services provided by Leucadia, which is included within Other liabilities on the Consolidated Statements of Financial Condition.

• Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities. At August 31, 2016 and November 30, 2015, a net current tax receivable from Leucadia of $146.3 million and $109.5 million, respectively, is included in Other assets on the Consolidated Statements of Financial Condition.

• Of the total noncontrolling interests in asset management entities that are consolidated by us at November 30, 2015, $26.3 million are attributed to Leucadia.

• In March 2016, we made a capital contribution of $114.0 million to a hedge fund managed by a subsidiary of Leucadia.

• In July 2016, Leucadia Funding LLC, a subsidiary of Leucadia, made a $30.0 million capital contribution to a hedge fund managed by us.

• We provide capital markets and asset management services to Leucadia and its affiliates. The following table presents the revenues earned by type of services provided (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Investment banking and advisory	$	—	$	—	$	1,786	$	21,200
Asset management	10		102		155		405
Commissions and other fees	—		1		88		38

For information on transactions with our equity method investees, see Note 9, Investments.

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Exit Costs

9 Months Ended

Aug. 31, 2016

Restructuring and Related Activities [Abstract]

Exit Costs

Exit Costs

Jefferies Bache. On April 9, 2015, we entered into an agreement with Société Générale S.A. (the “Agreement”) to transfer certain client exchange and OTC transactions associated with our Jefferies Bache business for the net book value of the over-the-counter transactions, calculated in accordance with certain principles set forth in the agreement, plus the repayment of certain margin loans in respect of certain exchange transactions. In addition, we initiated a plan to substantially exit the remaining aspects of the business, which was completed during the second quarter of 2016. The pre-tax losses of the Jefferies Bache business were $1.9 million for the nine months ended August 31, 2016 and $64.1 million and $114.8 million for the three and nine months ended August 31, 2015, respectively.

In addition, we terminated our $750.0 million Credit Facility on July 31, 2015. During the three and nine months ended August 31, 2015, we recognized costs of $2.7 million and $3.8 million, respectively, related to Credit Facility.

The following summarizes our recorded restructuring and impairment costs (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Severance costs	$	—	$	11,373	$	279	$	26,932
Accelerated amortization of restricted stock and restricted cash awards	—		2,442		41		6,902
Accelerated amortization of capitalized software	—		6,719		—		12,979
Contract termination costs	—		11,216		1,234		11,216
Other expenses	—		1,523		300		3,814
Total	$	—	$	33,273	$	1,854	$	61,843

Of the above costs, $341,000 for the nine months ended August 31, 2016 and $10.2 million and $21.0 million for the three and nine months ended August 31, 2015, respectively, are of a non-cash nature. Restructuring and exit costs are wholly attributed to our Capital Markets segment and were recorded in the following categories on the Consolidated Statement of Earnings (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Compensation and benefits	$	—	$	13,815	$	320	$	33,834
Technology and communications	—		17,935		1,234		24,195
Professional services	—		444		—		2,477
Other expenses	—		1,079		300		1,337
Total	$	—	$	33,273	$	1,854	$	61,843

The following summarizes our restructuring reserve activity (in thousands):

	Severance costs			Other costs			Contract termination costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Total
Balance at November 30, 2015	$	4,805		$	—		$	—		$	4,805
Expenses	279			300			1,234			1,813			$	41	$	1,854
Payments	(5,084		)	(300		)	(1,234		)	(6,618		)
Liability at August 31, 2016	$	—		$	—		$	—		$	—

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Aug. 31, 2016

Accounting Policies [Abstract]

Revenue Recognition Policies

Revenue Recognition Policies

Commissions and Other Fees. All customer securities transactions are reported on the 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 not the primary obligor for these arrangements, netted against commission revenues in the 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, but not yet purchased (all of which are recorded on a trade-date basis) are carried at fair value with gains and losses reflected in Principal transaction revenues in the Consolidated Statements of Earnings on a trade date basis. Fees received on loans carried at fair value are also recorded within Principal transaction revenues.

Investment Banking. Underwriting revenues and fees from mergers and acquisitions, restructuring and other investment banking advisory assignments or engagements are recorded when the services related to the underlying transactions are completed under the terms of the assignment or engagement. Expenses associated with such assignments are deferred until reimbursed by the client, the related revenue is recognized or the engagement is otherwise concluded. Expenses are recorded net of client reimbursements and netted against revenues. Unreimbursed expenses with no related revenues are included in Business development and Professional services expenses in the Consolidated Statements of Earnings.

Asset Management Fees and Investment Income from Managed Funds. Asset management fees and investment income from managed funds include revenues we earn from management, administrative and performance fees from funds and accounts managed by us, revenues from management and performance fees we earn from related-party managed funds and investment income from our investments in these funds. We earn fees in connection with management and investment advisory services performed for various funds and managed accounts. These fees are based on assets under management or an agreed upon notional amount and may include performance fees based upon the performance of the funds. Management and administrative fees are generally recognized over the period that the related service is provided. Generally, performance fees are earned when the return on assets under management exceeds certain benchmark returns, “high-water marks” or other performance targets. Performance fees are accrued (or reversed) on a monthly basis based on measuring performance to date versus any relevant benchmark return hurdles stated in the investment management agreement. Performance fees are not subject to adjustment once the measurement period ends (generally annual periods) and the performance fees have been realized.

Interest Revenue and Expense. We recognize contractual interest on Financial instruments owned and Financial instruments sold, but 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 transaction revenues in the Consolidated Statements of Earnings rather than as a component of interest revenue or expense. We account for our short- and long-term borrowings on an accrual basis with related interest recorded 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. In addition, 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.

Cash Equivalents

Cash Equivalents

Cash equivalents include highly liquid investments, including certificates of deposit and money market funds, 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 Organizations

In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies 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 transaction 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).

Fair Value Hierarchy

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.
Level 2:	Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments that fair values for which 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 instruments that are fair valued using other 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.

Financial instruments are valued at quoted market prices, if available. 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 upon consideration of available information, including types of financial instruments, current financial information, restrictions 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 may be made when, in management’s judgment, features of the financial instrument such as its complexity, the market in which the financial instrument is traded and risk uncertainties about market conditions require that an adjustment be made to the value derived from the models. 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. Transfers among the levels are recognized at the beginning of each period. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Valuation Process for Financial Instruments

Our Independent Price Verification (“IPV”) Group, which is part of our Finance department, in partnership with Risk Management, is responsible for establishing our valuation policies and procedures. The IPV Group and Risk Management, which are independent of our business functions, play an important role and serve as a control function in determining that our financial instruments are appropriately reflected at fair value. This is particularly important where prices or valuations that require inputs are less observable. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and that the assumptions are reasonable. The IPV Group reports to the Global Controller and is subject to the oversight of the IPV Committee, which comprises our Chief Financial Officer, Global Controller, Chief Risk Officer and Principal Accounting Officer, among other personnel. Our independent price verification policies and procedures are reviewed, at a minimum, annually, and changes to the policies require the approval of the IPV Committee.

Price Testing Process. The business units are responsible for determining the fair value of our financial instruments using approved valuation models and methodologies. In order to ensure that the business unit valuations represent a fair value exit price, the IPV Group tests and validates the fair value of our financial instruments inventory. In the testing process, the IPV Group obtains prices and valuation inputs from independent sources, consistently adheres to established procedures set forth in our valuation policies for sourcing prices and valuation inputs and utilizing valuation methodologies. Sources used to validate fair value prices and inputs include, but are not limited to, exchange data, recently executed transactions, pricing data obtained from third party vendors, pricing and valuation services, broker quotes and observed comparable transactions.

To the extent discrepancies between the business unit valuations and the pricing or valuations resulting from the price testing process are identified, such discrepancies are investigated by the IPV Group and fair values are adjusted, as appropriate. The IPV Group maintains documentation of its testing, results, rationale and recommendations and prepares a monthly summary of its valuation results. This process also forms the basis for our classification of fair values within the fair value hierarchy (i.e., Level 1, Level 2 or Level 3). The IPV Group utilizes the additional expertise of Risk Management personnel in valuing more complex financial instruments and financial instruments with less or limited pricing observability. The results of the valuation testing are reported to the IPV Committee on a monthly basis, which discusses the results and determines the financial instrument fair values in the consolidated financial statements. This process specifically assists the Chief Financial Officer in asserting as to the fair presentation of our financial condition and results of operations as included within our Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. At each quarter end, the overall valuation results, as determined by the IPV Committee, are presented to the Audit Committee.

Judgment exercised in determining Level 3 fair value measurements is supplemented by daily analysis of profit and loss performed by the Product Control functions. Gains and losses, which result from changes in fair value, are evaluated and corroborated daily based on an understanding of each trading desk’s overall risk positions and developments in a particular market on the given day. Valuation techniques generally rely on recent transactions of suitably comparable financial instruments and use the observable inputs from those comparable transactions as a validation basis for Level 3 inputs. Level 3 fair value measurements are further validated through subsequent sales testing and market comparable sales, if such information is available. Level 3 fair value measurements require documentation of the valuation rationale applied, which is reviewed for consistency in application from period to period.

Third Party Pricing Information. Pricing information obtained from external data providers (including independent pricing services and brokers) may incorporate a range of market quotes from dealers, recent market transactions and benchmarking model derived prices to quoted market prices and trade data for comparable securities. External pricing data is subject to evaluation for reasonableness by the IPV Group using a variety of means including comparisons of prices to those of similar product types, quality and maturities, consideration of the narrowness or wideness of the range of prices obtained, knowledge of recent market transactions and an assessment of the similarity in prices to comparable dealer offerings in a recent time period. Our processes challenge the appropriateness of pricing information obtained from external data providers (including independent pricing services and brokers) to validate the data for consistency with the definition of a fair value exit price. Our process includes understanding and evaluating the external data providers’ valuation methodologies. For corporate, U.S. government and agency and municipal debt securities, and loans, to the extent we use independent pricing services or broker quotes in our valuation process, the vendor service providers are collecting and aggregating observable market information as to recent trade activity and active bid-ask submissions. The composite pricing information received from the independent pricing service is thus not based on unobservable inputs or proprietary models. For mortgage- and other asset-backed securities, collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs"), our independent pricing services use a matrix evaluation approach, incorporating both observable yield curves and market yields on comparable securities as well as implied inputs from observed trades for comparable securities in order to determine prepayment speeds, cumulative default rates and loss severity. Further, we consider pricing data from multiple service providers as available as well as compare pricing data to prices we have observed for recent transactions, if any, in order to corroborate our valuation inputs.

Model Review Process. If a pricing model is used to determine fair value, the pricing model is reviewed for theoretical soundness and appropriateness by Risk Management, independent from the trading desks, and then approved by Risk Management to be used in the valuation process. Review and approval of a model for use may include benchmarking the model against relevant third party valuations, testing sample trades in the model, backtesting the results of the model against actual trades and stress-testing the sensitivity of the pricing model using varying inputs and assumptions. In addition, recently executed comparable transactions and other observable market data are considered for purposes of validating assumptions underlying the model. Models are independently reviewed and validated by Risk Management annually or more frequently if market conditions or use of the valuation model changes.

Investments in Managed Funds

Investments in Managed Funds

Investments in managed funds include our investments in funds managed by us and our investments in related-party managed funds in which we are entitled to a portion of the management and/or performance fees. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value ("NAV") of the funds provided by the fund managers with gains or losses included in Asset management fees and investment income (loss) from managed funds in the Consolidated Statements of Earnings.

Loans to and Investments in Related Parties

Loans to and Investments in Related Parties

Loans to and investments in related parties include investments in private equity and other operating entities made in connection with our capital markets activities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such activities. Loans to and investments in related parties are accounted for using the equity method or at cost, as appropriate. Revenues on Loans to and investments in related parties are included in Other revenues in the Consolidated Statements of Earnings. See Note 9, Investments, and Note 20, Related Party Transactions, for additional information regarding certain of these investments.

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. We have an active securities borrowed and lending matched book business in which we borrow securities from one party and lend them to another party. 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.

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 on our Consolidated Statements of Earnings on an accrual basis. Repos are presented in the 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.

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 to ten years). Leasehold improvements are amortized using the straight-line method over the term of the related leases or the estimated useful lives of the assets, whichever is shorter. Premises and equipment includes internally developed software. The carrying values of internally developed software ready for its intended use are depreciated over the remaining useful life.

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 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. In testing for goodwill impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is not required. If we conclude otherwise, we are required to perform the two-step impairment test. 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 estimated fair value is less than carrying value, further analysis is necessary to determine the amount of impairment, if any, by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the reporting unit's goodwill.

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 significant 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 magnitude 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 amortizable intangible assets, impairment exists when the carrying amount of the intangible asset 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. Our annual indefinite-lived intangible asset impairment testing date is August 1.

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.

Income Taxes

Income Taxes

Our results of operations are included in the consolidated federal and applicable state income tax returns filed by Leucadia. In states that neither accept nor require combined or unitary tax returns, certain subsidiaries file separate state income tax returns. We also are subject to income tax in various foreign jurisdictions in which we operate. We account for our provision for income taxes using a “separate return” method. Amounts provided for income taxes are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable. Pursuant to a tax sharing agreement entered into between us and Leucadia, payments are made between us and Leucadia to settle current tax assets and liabilities.

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. Under acquisition accounting, the recognition of certain assets and liabilities at fair value created a change in the financial reporting basis for our assets and liabilities, while the tax basis of our assets and liabilities remained the same. As a result, deferred tax assets and liabilities were recognized for the change in the basis differences. We provide deferred taxes on our temporary differences and on any carryforwards that we could claim on our hypothetical tax return. 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.

The tax benefits related to share-based awards are recognized as an increase to Additional paid-in capital. These amounts, and other windfall tax benefits/(detriments), are included in Tax benefit/(detriment) for issuance of share-based awards on the Consolidated Statements of Changes in Equity. In the event tax deductions associated with share-based awards are less than the cumulative compensation cost recognized for financial reporting purposes, we look to Leucadia’s consolidated pool of windfall tax benefits in the calculation of our income tax provision. During the first quarter of fiscal 2016, the consolidated pool of windfall tax benefits had been exhausted. As a result, these tax detriments are now recognized in our Consolidated Statement of Earnings until such time the Leucadia consolidated cumulative compensation cost recognized for tax purposes exceeds the amount recognized for financial reporting purposes.

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.

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 the 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 that could be reasonably estimated of potential loss or range of potential loss in excess of what has been provided in the consolidated financial statements is not material.

Share-based Compensation

Share-based Compensation

Share-based awards are measured based on the grant-date fair value of the award and recognized over the period from the service inception date through the date the employee is no longer required to provide service to earn the award. Expected forfeitures are included in determining share-based compensation expense.

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 transaction revenues in the Consolidated Statements of Earnings.

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. Such transfers of financial assets 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 within Financial instruments owned in the Consolidated Statements of Financial Condition at fair value. Any changes in the fair value of such retained interests are recognized within Principal transactions revenues in the 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 the Consolidated Statements of Financial Condition.

Accounting Standards to be Adopted in Future Periods and Adopted Accounting Standards

Accounting Standards to be Adopted in Future Periods

Statement of Cash Flows. In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated statements of cash flows.

Financial Instruments-Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective in the first quarter of fiscal 2021 and early adoption is permitted in the first quarter of fiscal 2020. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Employee Share-Based Payments. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The guidance simplifies various aspects related to how share-based payments are accounted for and presented in the consolidated financial statements. The amendments include income tax consequences, the accounting for forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective in the first quarter of fiscal 2018 and early adoption is permitted if all amendments are adopted in the same period. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance affects the accounting for leases and provides for a lessee model that brings substantially all leases onto the balance sheet. The guidance is effective in the first quarter of fiscal 2019 and early adoption is permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. The guidance is effective in the first quarter of fiscal 2019. We are currently evaluating the impact of the new guidance related to equity investments and the presentation and disclosure requirements of financial instruments on our consolidated financial statements. Early adoption is permitted for the accounting guidance on financial liabilities under the fair value option and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material effect on our consolidated financial statements.

Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and in August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of Effective Date. The accounting guidance defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. We intend to adopt the new guidance on December 1, 2017 and are currently evaluating the impact of the new guidance on our consolidated financial statements.

Adopted Accounting Standards

Debt Issuance Costs. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported in the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The guidance is effective retrospectively and we adopted this guidance in the first quarter of fiscal 2016. The adoption of this accounting guidance did not have a material impact on our Consolidated Statements of Financial Condition.

Consolidation. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The guidance is effective beginning in the first quarter of fiscal 2017 and we adopted it in the first quarter of fiscal 2016 using a modified retrospective approach. The adoption of this accounting guidance resulted in the deconsolidation of an asset management vehicle, which resulted in the following adjustment to the Consolidated Statement of Financial Condition on December 1, 2015: a decrease of $27.0 million in Investments in managed funds, a decrease of $0.7 million in Accrued expense and other liabilities and a decrease of $26.3 million in Noncontrolling interests. For further information on the adoption of ASU No. 2015-02, refer to Note 8, Variable Interest Entities.

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Fair Value Disclosures (Tables)

9 Months Ended

Aug. 31, 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 $29.5 million and $36.7 million at August 31, 2016 and November 30, 2015, respectively, by level within the fair value hierarchy (in thousands):

	August 31, 2016
	Level 1(1)		Level 2(1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Financial instruments owned:
Corporate equity securities	$	2,019,490	$	108,194	$	22,195	$	—		$	2,149,879
Corporate debt securities	—		2,494,303		35,007		—			2,529,310
CDOs and CLOs	—		99,794		44,070		—			143,864
U.S. government and federal agency securities	3,029,251		114,601		—		—			3,143,852
Municipal securities	—		550,210		27,257		—			577,467
Sovereign obligations	904,592		1,130,443		—		—			2,035,035
Residential mortgaged-backed securities	—		1,331,959		46,881		—			1,378,840
Commercial mortgage-backed securities	—		320,912		24,593		—			345,505
Other asset-backed securities	—		116,388		61,112		—			177,500
Loans and other receivables	—		1,323,092		78,457		—			1,401,549
Derivatives	2,530		6,206,366		9,560		(5,887,874		)	330,582
Investments at fair value	—		—		85,036		—			85,036
Total financial instruments owned, excluding Investments at fair value based on NAV	$	5,955,863	$	13,796,262	$	434,168	$	(5,887,874	)	$	14,298,419
Cash and cash equivalents	$	3,159,143	$	—	$	—	$	—		$	3,159,143
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (3)	$	1,026,865	$	—	$	—	$	—		$	1,026,865
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	1,682,196	$	58,834	$	38	$	—		$	1,741,068
Corporate debt securities	—		1,704,627		523		—			1,705,150
U.S. government and federal agency securities	1,213,672		—		—		—			1,213,672
Sovereign obligations	940,451		1,432,580		—		—			2,373,031
Loans	—		538,180		848		—			539,028
Derivatives	373		6,321,172		20,607		(5,970,029		)	372,123
Total financial instruments sold, not yet purchased	$	3,836,692	$	10,055,393	$	22,016	$	(5,970,029	)	$	7,944,072
Other secured financings	$	—	$	53,318	$	268	$	—		$	53,586
Long-term debt	$	—	$	204,422	$	—	$	—		$	204,422

(1) There were no material transfers between Level 1 and Level 2 for the nine months ended August 31, 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
CDOs and CLOs	—		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
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 or deposited with clearing and depository organizations	$	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
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 (3)	$	—	$	67,801	$	544	$	—		$	68,345

(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.

(3) Level 2 liabilities include $67.8 million of other secured financings that were previously not disclosed in our Annual Report on Form 10-K for the year ended November 30, 2015.

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):

	August 31, 2016
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	46,195	$	—	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds (3)	807		—		—
Fund of Funds (4)	226		—		—
Equity Funds (5)	41,716		20,295		—
Multi-asset Funds (6)	132,248		—		Monthly, Quarterly
Total	$	221,192	$	20,295

	November 30, 2015 (7)
	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
Equity Long/Short Hedge Funds (2)	$	54,725	$	—	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		—
Multi-asset Funds (6)	23,358		—		Monthly, Quarterly
Convertible Bond Funds (8)	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, primarily in equity securities in domestic and international markets in both the public and private sectors. At August 31, 2016, approximately 2% of the fair value of investments in this category is classified as being in liquidation.

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

(4) This category includes investments in fund of funds that invest in various private equity funds. At August 31, 2016 and November 30, 2015, approximately 98% and 95%, respectively, of the fair value of investments in this category are managed by us and have no redemption provisions. The investments in this category are gradually being liquidated or we have requested redemption, however, we are unable to estimate when these funds will be received.

(5) At August 31, 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 includes investments in hedge funds that invest, long and short, primarily in multi-asset securities in domestic and international markets in both the public and private sectors. At August 31, 2016 and November 30, 2015, investments representing approximately 12% and 100%, respectively, of the fair value of investments in this category are redeemable with 30-90 days prior written notice.

(7) Prior period amounts have been recast to conform to the current year's presentation due to the presentation of multi-asset funds. Previously, these investments had been classified within equity long/short hedge funds.

(8) This category represents an investment in the Jefferies Umbrella Fund, an open-ended investment company managed by us that invested primarily in convertible bonds. The underlying assets were fully liquidated during the nine months ended August 31, 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 nine months ended August 31, 2016 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	40,906		$	(8,388	)	$	5,225	$	(49	)	$	—		$	—	$	(15,499	)	$	22,195	$	(727	)
Corporate debt securities	25,876			5,239			29,629		(20,331		)	—			—		(5,406		)	35,007		1,456
CDOs and CLOs	85,092			(24,356		)	61,707		(69,397		)	(605		)	—		(8,371		)	44,070		(13,196		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
RMBS	70,263			(7,243		)	1,948		(13,203		)	(1,078		)	—		(3,806		)	46,881		228
CMBS	14,326			(4,606		)	1,256		(2,023		)	—			—		15,640			24,593		(3,337		)
Other asset-backed securities	42,925			(2,420		)	66,503		(60,525		)	(6,678		)	—		21,307			61,112		(9,993		)
Loans and other receivables	189,289			(30,843		)	305,920		(206,587		)	(163,913		)	—		(15,409		)	78,457		(27,714		)
Investments at fair value	53,120			(19,055		)	26,227		(485		)	(834		)	—		26,063			85,036		(11,988		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—	$	—		$	—		$	—	$	—		$	38	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (2)	(242		)	3,104			—		11,101			(14		)	1,606		(4,508		)	11,047		(5,745		)
Loans	10,469			7			—		681			(213		)	—		(10,096		)	848		45
Other secured financings	544			(276		)	—		—			—			—		—			268		276

(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 August 31, 2016 (in thousands):

	Three Months Ended August 31, 2016
	Balance at May 31, 2016		Total gains/ losses (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into/  (out of) Level 3			Balance at August 31, 2016		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2016 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	48,816	$	(6,492	)	$	291	$	(49	)	$	—		$	—	$	(20,371	)	$	22,195	$	(892	)
Corporate debt securities	24,113		(145		)	10,696		(5,046		)	—			—		5,389			35,007		405
CDOs and CLOs	52,710		(4,067		)	4,205		(5,203		)	—			—		(3,575		)	44,070		(4,606		)
Municipal securities	—		(7,074		)	—		—			—			—		34,331			27,257		(7,074		)
Sovereign obligations	120		5			—		(125		)	—			—		—			—		—
RMBS	63,308		(2,343		)	1,884		(10,874		)	(463		)	—		(4,631		)	46,881		(183		)
CMBS	24,983		(1,531		)	—		—			—			—		1,141			24,593		(236		)
Other asset-backed securities	43,033		(2,247		)	3,416		(2,727		)	(1,429		)	—		21,066			61,112		(2,202		)
Loans and other receivables	104,399		(23,445		)	31,512		(10,140		)	(16,804		)	—		(7,065		)	78,457		(16,044		)
Investments at fair value	57,765		(966		)	—		(485		)	(278		)	—		29,000			85,036		(1,113		)
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	—	$	—		$	—	$	—		$	—		$	—	$	38		$	38	$	—
Corporate debt securities	—		(27		)	—		550			—			—		—			523		(27		)
Net derivatives (2)	4,424		(4,736		)	—		11,101			32			601		(375		)	11,047		(1,589		)
Loans	1,896		(402		)	—		170			—			—		(816		)	848		(400		)
Other secured financings	468		(200		)	—		—			—			—		—			268		200

(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 nine months ended August 31, 2015 (in thousands):

	Nine Months Ended August 31, 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 August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,964		$	10,247		$	22,631		$	(5,176	)	$	—		$	—	$	(10,164	)	$	38,502	$	10,210
Corporate debt securities	22,766			(5,425		)	83,613			(88,711		)	(1		)	—		12,089			24,331		(5,797		)
CDOs and CLOs	124,650			(28,999		)	63,038			(47,570		)	(20,481		)	—		(9,588		)	81,050		(22,654		)
RMBS	82,557			(6,776		)	30,865			(25,222		)	(358		)	—		5,356			86,422		(2,507		)
CMBS	26,655			(2,053		)	3,366			(9,973		)	(6,981		)	—		4,133			15,147		(1,851		)
Other asset-backed securities	2,294			666			69,892			(40,000		)	(1,438		)	—		1,182			32,596		607
Loans and other receivables	97,258			(7,331		)	115,370			(40,978		)	(82,100		)	—		13,180			95,399		(8,850		)
Investments, at fair value	53,224			88,195			—			(124,854		)	(3,818		)	—		53,462			66,209		24,372
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	223			(1		)	(6,677		)	6,804			—			—		(123		)	226		(226		)
Net derivatives (2)	(4,638		)	3,022			(4,527		)	11,340			(30		)	1,901		95			7,163		(5,211		)
Loans	14,450			(102		)	(3,487		)	—			—			—		(490		)	10,371		102
Other secured financings	30,825			—			—			—			(15,674		)	36,995		(51,572		)	574		—
Embedded conversion option	693			(579		)	—			—			—			—		—			114		579

(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 August 31, 2015 (in thousands):

	Three Months Ended August 31, 2015
	Balance at May 31, 2015			Total gains/ losses (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into/ (out of) Level 3			Balance at August 31, 2015		Change in unrealized gains/ (losses) relating to instruments still held at August 31, 2015 (1)
Assets:
Financial instruments owned:
Corporate equity securities	$	20,547		$	3,901		$	21,162		$	(5,173	)	$	—		$	—	$	(1,935	)	$	38,502	$	3,803
Corporate debt securities	31,917			(5,276		)	10,395			(17,197		)	(1		)	—		4,493			24,331		(5,544		)
CDOs and CLOs	89,007			(12,560		)	14,961			—			(13,230		)	—		2,872			81,050		(12,561		)
RMBS	88,695			(3,009		)	10,034			(8,424		)	(195		)	—		(679		)	86,422		655
CMBS	17,862			(510		)	—			(680		)	—			—		(1,525		)	15,147		(545		)
Other asset-backed securities	11,857			870			21,913			—			(1,167		)	—		(877		)	32,596		813
Loans and other receivables	108,756			(2,111		)	31,269			(603		)	(42,529		)	—		617			95,399		(6,182		)
Investments, at fair value	131,343			83,580			—			(127,427		)	(277		)	—		(21,010		)	66,209		19,675
Liabilities:
Financial instruments sold, not yet purchased:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	(38	)	$	—	$	—
Corporate debt securities	452			(226		)	—			—			—			—		—			226		226
Net derivatives (2)	(1,586		)	(1,020		)	(1,432		)	11,618			24			416		(857		)	7,163		551
Loans	10,732			109			(3,012		)	—			—			—		2,542			10,371		(110		)
Other secured financings	56,060			—			—			—			(3,914		)	—		(51,572		)	574		—
Embedded conversion option	725			(611		)	—			—			—			—		—			114		611

(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.

August 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation Technique	Significant Unobservable Input(s)	Input / Range	Weighted Average
Corporate equity securities	$	22,195
Non-exchange traded securities			Market approach	EBITDA (a) multiple	5.1 - 16.3	12.1
				Underlying stock price	$3-$75	$	15
			Comparable pricing	Discount factor	60%	—
				Underlying stock price	$218	—
			Present value	Average silver production (tons per day)	783	—
Corporate debt securities	$	35,007
			Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Price	$30-$100	$	65
CDOs and CLOs	$	32,832	Discounted cash flows	Constant prepayment rate	0%-20%	17		%
				Constant default rate	2%-7%	3		%
				Loss severity	25%-75%	40		%
				Yield	3%-35%	15		%
Municipal securities	$	27,257	Scenario analysis	Price	$4	—
RMBS	$	46,881	Discounted cash flows	Constant prepayment rate	0%-25%	6		%
				Constant default rate	2%-50%	4		%
				Loss severity	10%-100%	55		%
				Yield	3%-9%	5		%
CMBS	$	24,593	Discounted cash flows	Yield	6%-12%	9		%
				Cumulative loss rate	1%-70%	25		%
Other asset-backed securities	$	61,112	Discounted cash flows	Constant prepayment rate	0%-55%	24		%
				Constant default rate	0%-9%	6		%
				Loss severity	0%-100%	85		%
				Yield	3%-15%	12		%
			Market approach	Price	$33-$70,000,000	$	39,000,000
Loans and other receivables	$	52,216	Market approach	EBITDA (a) multiple	3.6	—
				Discount rate/yield	2%-3%	3		%
			Comparable pricing	Comparable loan price	$98	—
			Present value	Average silver production (tons per day)	783	—
			Scenario analysis	Estimated recovery percentage	6%-82%	44		%
Derivatives	$	9,560
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Interest rate swaps				Credit spread	800 bps	—
Investments at fair value
Private equity securities	$	30,724	Market approach	Transaction level	$250	—
Liabilities
Financial Instruments Sold, Not Yet Purchased:
Derivatives	$	20,607
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable loan price	$98	—
			Market approach	Discount rate/yield	3%-56%	54		%
Total return swaps			Comparable pricing	Comparable loan price	$100	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	14%	—

(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	—
CDOs and CLOs	$	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		%
RMBS	$	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		%
CMBS	$	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 August 31,						Nine Months Ended August 31,
	2016			2015			2016			2015
Financial Instruments Owned:
Loans and other receivables	$	(24,874	)	$	(13,566	)	$	(48,658	)	$	(25,686	)
Financial Instruments Sold:
Loans	$	212		$	38		$	229		$	112
Loan commitments	4,769			(51		)	2,196			(1,673		)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(4,093	)	$	—		$	(7,848	)	$	—
Other changes in fair value (2)	3,225			—			13,530			—

(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 for the three and nine months ended August 31, 2016 include $4.5 million and $15.2 million, respectively, included within Principal transactions revenues, and $1.3 million and $1.7 million, respectively, 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).

	August 31, 2016		November 30, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	843,458	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	223,581		54,652
Long-term debt	7,485		—

(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 loans and other receivables greater than 90 days past due of $59.7 million and $29.7 million at August 31, 2016 and November 30, 2015, respectively.

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Derivative Financial Instruments (Tables)

9 Months Ended

Aug. 31, 2016

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 August 31, 2016 and November 30, 2015 categorized by type of derivative contract and the platform on which these derivatives are transacted. The fair value of assets/liabilities represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	2,286		26,232	$	372		33,205
Cleared OTC	4,282,590			3,450	4,218,171			3,307
Bilateral OTC	588,640			2,046	558,296			1,234
Foreign exchange contracts:
Exchange-traded	—			358	—			470
Bilateral OTC	428,868			9,639	447,085			9,567
Equity contracts:
Exchange-traded	799,932			3,463,584	960,272			2,999,406
Bilateral OTC	93,547			1,086	117,374			1,265
Commodity contracts:
Exchange-traded	—			1,624	—			888
Credit contracts:
Cleared OTC	1,747			10	8,539			18
Bilateral OTC	20,846			152	32,043			189
Total gross derivative assets/ liabilities:
Exchange-traded	802,218				960,644
Cleared OTC	4,284,337				4,226,710
Bilateral OTC	1,131,901				1,154,798
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(779,958		)		(779,958		)
Cleared OTC	(4,233,022		)		(4,212,004		)
Bilateral OTC	(874,894		)		(978,067		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	330,582			$	372,123

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

	November 30, 2015 (1)
	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
Interest rate contracts:
Exchange-traded	$	998		52,605	$	364		70,672
Cleared OTC	2,213,730			2,742	2,202,836			2,869
Bilateral OTC	695,365			1,401	646,758			1,363
Foreign exchange contracts:
Exchange-traded	—			441	—			112
Bilateral OTC (4)	453,202			7,646	466,021			7,264
Equity contracts:
Exchange-traded	955,287			3,054,315	1,004,699			2,943,657
Bilateral OTC	61,004			1,039	81,085			1,070
Commodity contracts:
Exchange-traded	—			1,726	—			1,684
Bilateral OTC (4)	19,342			29	4,628			28
Credit contracts:
Cleared OTC	621			39	841			44
Bilateral OTC	16,977			100	59,314			135
Total gross derivative assets/liabilities:
Exchange-traded	956,285				1,005,063
Cleared OTC	2,214,351				2,203,677
Bilateral OTC	1,245,890				1,257,806
Amounts offset in the Consolidated Statements of Financial Condition (2):
Exchange-traded	(938,482		)		(938,482		)
Cleared OTC	(2,184,438		)		(2,184,438		)
Bilateral OTC	(1,042,526		)		(1,135,078		)
Net amounts per Consolidated Statements of Financial Condition (3)	$	251,080			$	208,548

(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) Amounts netted include both netting by counterparty and for cash collateral paid or received.

(3) We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in the Consolidated Statements of Financial Condition.

(4) Bilateral OTC commodity contracts increased in assets by a fair value of $19.3 million and by 29 contracts and in liabilities by a fair value of $4.6 million and by 28 contracts with corresponding decreases in bilateral OTC foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of bilateral OTC contracts remained unchanged.

Unrealized and Realized Gains (Losses) on Derivative Contracts

The following table presents unrealized and realized gains (losses) on derivative contracts:

	Three Months Ended						Nine Months Ended
Gains (Losses)	August 31, 2016			August 31, 2015			August 31, 2016			August 31, 2015
Interest rate contracts	$	(16,631	)	$	25,308		$	(96,715	)	$	580
Foreign exchange contracts	7,886			6,893			14,000			30,417
Equity contracts	(185,264		)	68,649			(509,476		)	28,008
Commodity contracts	4,089			(4,757		)	1,899			15,480
Credit contracts	4,024			(4,375		)	1,441			(612		)
Total	$	(185,896	)	$	91,718		$	(588,851	)	$	73,873

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 August 31, 2016 (in thousands):

	OTC Derivative Assets (1) (2) (3)
	0 – 12 Months		1 – 5 Years		Greater Than  5 Years		Cross-Maturity Netting (4)			Total
Equity swaps and options	$	27,781	$	5,370	$	—	$	—		$	33,151
Credit default swaps	—		7,948		230		(177		)	8,001
Total return swaps	27,796		874		—		(613		)	28,057
Foreign currency forwards, swaps and options	84,564		29,937		—		(7,150		)	107,351
Interest rate swaps, options and forwards	42,055		229,950		88,205		(97,075		)	263,135
Total	$	182,196	$	274,079	$	88,435	$	(105,015	)	439,695
Cross product counterparty netting										(754		)
Total OTC derivative assets included in Financial instruments owned										$	438,941

(1) At August 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.6 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 on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral received was $134.0 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
Equity swaps and options	$	13,408	$	23,617	$	—	$	—		$	37,025
Credit default swaps	28		12,639		1,672		(177		)	14,162
Total return swaps	26,824		16,967		—		(613		)	43,178
Foreign currency forwards, swaps and options	112,699		20,024		—		(7,150		)	125,573
Fixed income forwards	5,044		—		—		—			5,044
Interest rate swaps, options and forwards	23,709		119,675		124,541		(97,075		)	170,850
Total	$	181,712	$	192,922	$	126,213	$	(105,015	)	395,832
Cross product counterparty netting										(754		)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased										$	395,078

(1) At August 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $193.2 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 on the Consolidated Statements of Financial Condition. At August 31, 2016, cash collateral pledged was $216.1 million.

(3) Derivative fair values include counterparty netting within product category.

(4) Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.

Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets

At August 31, 2016, the counterparty credit quality with respect to the fair value of our OTC derivatives assets was as follows (in thousands):

Counterparty credit quality (1):
A- or higher	$	214,650
BBB- to BBB+	77,419
BB+ or lower	64,975
Unrated	81,897
Total	$	438,941

(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.

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Collateralized Transactions (Tables)

9 Months Ended

Aug. 31, 2016

Banking and Thrift [Abstract]

Schedule of Collateralized Financing Transactions

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged (in thousands):

	August 31, 2016
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,341,506	$	174,077	$	2,515,583
Corporate debt securities	578,451		1,701,732		2,280,183
Mortgage- and asset-backed securities	—		2,358,531		2,358,531
U.S. government and federal agency securities	10,419		8,759,548		8,769,967
Municipal securities	—		420,957		420,957
Sovereign obligations	—		2,120,421		2,120,421
Loans and other receivables	—		478,693		478,693
Total	$	2,930,376	$	16,013,959	$	18,944,335

	November 30, 2015
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,195,912	$	275,880	$	2,471,792
Corporate debt securities	748,405		1,752,222		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,006,081		12,041,064
Municipal securities	—		357,350		357,350
Sovereign obligations	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	2,979,300	$	20,195,982	$	23,175,282

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by remaining contractual maturity (in thousands):

	August 31, 2016
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,629,631	$	85,895	$	794,824	$	420,026	$	2,930,376
Repurchase agreements	7,832,265		3,952,072		2,763,570		1,466,052		16,013,959
Total	$	9,461,896	$	4,037,967	$	3,558,394	$	1,886,078	$	18,944,335

	November 30, 2015
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	483,624	$	2,979,300
Repurchase agreements	7,850,791		5,218,059		5,291,729		1,835,403		20,195,982
Total	$	9,373,266	$	5,218,059	$	6,264,930	$	2,319,027	$	23,175,282

Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements

The following tables provide information regarding repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under 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).

	August 31, 2016
	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	$	8,460,736	$	—		$	8,460,736	$	(831,732	)	$	(1,063,399	)	$	6,565,605
Reverse repurchase agreements	11,921,719		(7,883,525		)	4,038,194		(133,611		)	(3,878,141		)	26,442
Liabilities:
Securities lending arrangements	$	2,930,376	$	—		$	2,930,376	$	(831,732	)	$	(2,038,342	)	$	60,302
Repurchase agreements	16,013,959		(7,883,525		)	8,130,434		(133,611		)	(6,707,666		)	1,289,157

	November 30, 2015
	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	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	14,048,860		(10,191,554		)	3,857,306		(83,452		)	(3,745,215		)	28,639
Liabilities:
Securities lending arrangements	$	2,979,300	$	—		$	2,979,300	$	(478,991	)	$	(2,464,395	)	$	35,914
Repurchase agreements	20,195,982		(10,191,554		)	10,004,428		(83,452		)	(8,103,468		)	1,817,508

(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 counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet 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 $6,520.3 million of securities borrowing arrangements, for which we have received securities collateral of $6,315.7 million, and $1,278.2 million of repurchase agreements, for which we have pledged securities collateral of $1,326.2 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

(4) Amounts include $5,796.1 million of securities borrowing arrangements, for which we have received securities collateral of $5,613.3 million, and $1,807.2 million of repurchase agreements, for which we have pledged securities collateral of $1,875.3 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

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Securitization Activities (Tables)

9 Months Ended

Aug. 31, 2016

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):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Transferred assets	$	1,390.7	$	853.9	$	4,523.5	$	3,931.5
Proceeds on new securitizations	1,394.0		888.1		4,541.3		3,979.6
Cash flows received on retained interests	6.3		10.7		24.9		28.6

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):

	August 31, 2016
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	16,661.6	$	32.6
U.S. government agency CMBS	4,027.5		22.7
CLOs	3,747.5		55.9
Consumer and other loans	737.3		31.2

	November 30, 2015
Securitization Type	Total Assets		Retained Interests
U.S. government agency RMBS	$	10,901.9	$	203.6
U.S. government agency CMBS	2,313.4		87.2
CLOs	4,538.4		51.5
Consumer and other loans	655.0		31.0

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Variable Interest Entities (Tables)

9 Months Ended

Aug. 31, 2016

Variable Interest Entity [Line Items]

Assets and Liabilities of Consolidated VIEs Prior to Consolidation

The following table presents information about our consolidated VIEs at August 31, 2016 and November 30, 2015 (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.

	August 31, 2016				November 30, 2015
	Securitization Vehicles		Other		Securitization Vehicles		Other
Cash	$	9.7	$	0.7	$	0.5	$	1.5
Financial instruments owned	90.6		0.6		68.3		0.6
Securities purchased under agreement to resell (1)	604.0		—		717.3		—
Fees, interest and other receivables	0.5		—		0.3		0.2
Total assets	$	704.8	$	1.3	$	786.4	$	2.3
Other secured financings (2)	$	692.8	$	—	$	785.0	$	—
Other liabilities	11.3		0.2		1.4		0.3
Total liabilities	$	704.1	$	0.2	$	786.4	$	0.3

(1) Securities purchased under agreement to resell represent an amount due under a collateralized transaction on a related consolidated entity, which is eliminated in consolidation.

(2) Approximately $86.5 million and $22.1 million of the secured financing represents an amount held by us in inventory and is eliminated in consolidation at August 31, 2016 and November 30, 2015, respectively.

Variable Interest Entity Not Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interests in Non-Consolidated Variable Interest Entities

The following tables present information about our variable interests in nonconsolidated VIEs (in millions):

	August 31, 2016
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.3	$	7.6	$	326.7	$	4,879.1
Consumer loan vehicles	170.0		—		607.2		1,231.4
Related party private equity vehicles	38.3		—		64.2		157.5
Other private investment vehicles	57.4		—		58.9		3,977.7
Total	$	339.0	$	7.6	$	1,057.0	$	10,245.7

	November 30, 2015
	Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
CLOs	$	73.6	$	0.2	$	458.1	$	6,368.7
Consumer loan vehicles	188.3		—		845.8		1,133.0
Related party private equity vehicles	39.3		—		65.8		168.2
Other private investment vehicles	51.3		—		52.8		4,312.0
Total	$	352.5	$	0.2	$	1,422.5	$	11,981.9

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Investments (Tables)

9 Months Ended

Aug. 31, 2016

Jefferies Finance, LLC [Member]

Schedule of Equity Method Investments [Line Items]

Summary of Selected Financial Information

The following is a summary of selected financial information for Jefferies Finance (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	7,344.9	$	7,292.1
Total liabilities	6,406.2		6,297.3
Total equity	938.7		994.8
Our total equity balance	469.3		497.4

Jefferies LoanCore, LLC [Member]

Schedule of Equity Method Investments [Line Items]

Summary of Selected Financial Information

The following is a summary of selected financial information for Jefferies LoanCore (in millions):

	August 31, 2016		November 30, 2015
Total assets	$	1,610.4	$	2,069.1
Total liabilities	1,264.6		1,469.8
Total equity	345.8		599.3
Our total equity balance	167.7		290.7

JCP Funds [Member]

Schedule of Equity Method Investments [Line Items]

Summary of Selected Financial Information

The following is a summary of selected financial information for 100.0% of JCP Fund V, in which we own effectively 35.2% of the combined equity interests (in thousands):

												June 30,  2016 (1)		December 31, 2015 (1)
Total assets												$	81,855	$	76,555
Total liabilities												68		99
Total partners' capital												81,787		76,456
	Three Months Ended
	June 30, 2016 (1)		March 31, 2016 (1)			December 31, 2015 (1)			June 30, 2015 (1)			March 31, 2015 (1)		December 31, 2014 (1)
Net increase (decrease) in net assets resulting from operations	$	17,137	$	(11,806	)	$	(7,886	)	$	(8,875	)	$	1,478	$	(65,700	)

(1) Financial information for JCP Fund V within our financial position and results of operations at August 31, 2016 and November 30, 2015 and for the three and nine months ended August 31, 2016 and August 31, 2015 is included based on the presented periods

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Aug. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill Resulting from Leucadia Transaction Attributable to Reportable Segments and Summary of Changes to Goodwill

Goodwill attributed to our reportable segments are as follows (in thousands):

	August 31, 2016		November 30, 2015
Capital Markets	$	1,642,293	$	1,653,588
Asset Management	3,000		3,000
Total goodwill	$	1,645,293	$	1,656,588

The following table is a summary of the changes to goodwill for the nine months ended August 31, 2016 (in thousands):

Balance at November 30, 2015	$	1,656,588
Translation adjustments	(11,295		)
Balance at August 31, 2016	$	1,645,293

Summary of Intangible Assets

The following tables present the gross carrying amount, dispositions, accumulated amortization, net carrying amount and weighted average amortization period of identifiable intangible assets at August 31, 2016 and November 30, 2015 (dollars in thousands):

	August 31, 2016													Weighted average remaining lives (years)
	Gross cost		Disposals (1)			Impairment losses			Accumulated amortization			Net carrying amount
Customer relationships	$	126,081	$	—		$	—		$	(40,453	)	$	85,628	12.3
Trade name	128,845		—			—			(12,884		)	115,961		31.5
Exchange and clearing organization membership interests and registrations	11,860		(1,379		)	(1,284		)	—			9,197		N/A
Total	$	266,786	$	(1,379	)	$	(1,284	)	$	(53,337	)	$	210,786

(1) Activity is related to the sale of certain exchange and clearing organization membership interests in the Futures reporting unit due to the exit of the business.

	November 30, 2015							Weighted average remaining lives (years)
	Gross cost		Accumulated amortization			Net carrying amount
Customer relationships	$	127,667	$	(34,754	)	$	92,913	12.9
Trade name	131,288		(10,315		)	120,973		32.3
Exchange and clearing organization membership interests and registrations	11,897		—			11,897		N/A
Total	$	270,852	$	(45,069	)	$	225,783

Future Amortization Expense Related to Intangible Assets

The estimated future amortization expense for the five succeeding fiscal years is as follows (in thousands):

Remainder of fiscal 2016	$	3,049
Year ended November 30, 2017	12,198
Year ended November 30, 2018	12,198
Year ended November 30, 2019	12,198
Year ended November 30, 2020	12,198

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Short-Term Borrowings (Tables)

9 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Schedule of Short-term Borrowings

Short-term borrowings at August 31, 2016 and November 30, 2015 include bank loans and overdrafts that are payable on demand and that must be repaid within one year or less, as well as borrowings under revolving loan and credit facilities as follows (in thousands):

	August 31, 2016		November 30, 2015
Bank loans (1)	$	262,711	$	262,000
Secured revolving loan facility	67,986		48,659
Floating rate puttable notes	101,538		—
Total short-term borrowings	$	432,235	$	310,659

(1) Amount includes $0.7 million related to bank overdrafts at August 31, 2016.

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Long-Term Debt (Tables)

9 Months Ended

Aug. 31, 2016

Debt Disclosure [Abstract]

Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums

The following summarizes our long-term debt carrying values (including unamortized discounts and premiums and valuation adjustment, where applicable) at August 31, 2016 and November 30, 2015 (in thousands):

	August 31,   2016		November 30, 2015
Unsecured long-term debt
5.5% Senior Notes, due March 15, 2016 (effective interest rate of 2.52%)	$	—	$	353,025
5.125% Senior Notes, due April 13, 2018 (effective interest rate of 3.46%)	820,974		830,298
8.5% Senior Notes, due July 15, 2019 (effective interest rate of 4.00%)	785,411		806,125
2.375% Euro Medium Term Notes, due May 20, 2020 (effective rate of 2.42%)	555,962		526,436
6.875% Senior Notes, due April 15, 2021 (effective interest rate of 4.40%)	827,601		838,765
2.25% Euro Medium Term Notes, due July 13, 2022 (effective rate of 4.08%)	4,035		3,779
5.125% Senior Notes, due January 20, 2023 (effective interest rate of 4.55%)	619,000		620,890
6.45% Senior Debentures, due June 8, 2027 (effective interest rate of 5.46%)	378,292		379,711
3.875% Convertible Senior Debentures, due November 1, 2029 (effective interest rate of 3.50%) (1)	346,473		347,307
6.25% Senior Debentures, due January 15, 2036 (effective interest rate of 6.03%)	512,481		512,730
6.50% Senior Notes, due January 20, 2043 (effective interest rate of 6.09%)	421,415		421,656
Structured Notes (2)	211,094		—
Total long-term debt	$	5,482,738	$	5,640,722

(1) The change in fair value of the conversion feature, which is included within Principal transaction revenues in the Consolidated Statements of Earnings, was not material for the three and nine months ended August 31, 2016 and 2015.

(2) Includes $204.4 million at fair value at August 31, 2016.

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Noncontrolling Interests (Tables)

9 Months Ended

Aug. 31, 2016

Noncontrolling Interest [Abstract]

Noncontrolling Interests

The following table presents noncontrolling interests at August 31, 2016 and November 30, 2015 (in thousands):

	August 31, 2016		November 30, 2015
Global Equity Event Opportunity Fund, LLC (1)	$	4,547	$	26,292
Other	643		1,176
Noncontrolling interests	$	5,190	$	27,468

(1) On December 1, 2015, the entity was deconsolidated due to the adoption of ASU No. 2015-02. (See Note 3, Accounting Developments, for further information on the adoption of this guidance.) No gain or loss was recognized upon deconsolidation. Noncontrolling interests attributed to Leucadia were $26.3 million at November 30, 2015. During the nine months ended August 31, 2016, the entity was consolidated due to investments by us and a third party.

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Benefit Plans (Tables)

9 Months Ended

Aug. 31, 2016

U.S Pension Plan [Member]

Item Effected [Line Items]

Components of Net Periodic Pension (Benefit) Cost

The components of net periodic pension cost (income) for our pension plans are as follows (in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
U.S. Pension Plan	2016			2015			2016			2015
Components of net periodic pension cost (income):
Service cost	$	100		$	63		$	300		$	189
Interest cost on projected benefit obligation	587			585			1,761			1,755
Expected return on plan assets	(730		)	(848		)	(2,190		)	(2,544		)
Net periodic pension income	$	(43	)	$	(200	)	$	(129	)	$	(600	)

German Pension Plan [Member]

Item Effected [Line Items]

Components of Net Periodic Pension (Benefit) Cost

	Three Months Ended August 31,				Nine Months Ended August 31,
German Pension Plan	2016		2015		2016		2015
Components of net periodic pension cost:
Interest cost on projected benefit obligation	$	133	$	132	$	398	$	395
Net amortization	83		82		246		245
Net periodic pension cost	$	216	$	214	$	644	$	640

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Compensation Plans (Tables)

9 Months Ended

Aug. 31, 2016

Compensation Related Costs [Abstract]

Schedule of Components of Compensation Cost

The components of total compensation cost associated with certain of our compensation plans are as follows (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Components of compensation cost:
Restricted cash awards	$	56.0	$	39.4	$	190.1	$	142.9
Restricted stock and RSUs (1)	6.4		13.8		17.8		53.8
Profit sharing plan	1.0		0.6		5.3		5.3
Total compensation cost	$	63.4	$	53.8	$	213.2	$	202.0

(1) Total compensation cost associated with restricted stock and RSUs includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks. Additionally, we recognize compensation cost related to the discount provided to employees in electing to defer compensation under the Deferred Compensation Plan.

Schedule of Remaining Unamortized Amounts Related to Certain Compensation Plans

Remaining unamortized amounts related to certain compensation plans at August 31, 2016 are as follows (dollars in millions):

	Remaining Unamortized Amounts		Weighted Average Vesting Period (in Years)
Non-vested share-based awards	$	29.2	2
Restricted cash awards	499.8		3
Total	$	529.0

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Income Taxes (Tables)

9 Months Ended

Aug. 31, 2016

Income Tax Disclosure [Abstract]

Earliest Tax Year Subject to Examination in the Major Tax Jurisdictions in which the Company Operates

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	2007
California	2007
New Jersey	2010
New York State	2001
New York City	2003
United Kingdom	2014
Hong Kong	2009

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Commitments, Contingencies and Guarantees (Tables)

9 Months Ended

Aug. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The following table summarizes our commitments at August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Maximum Payout
Equity commitments (1)	$	1.5	$	7.9	$	—	$	11.3	$	213.7	$	234.4
Loan commitments (1)	—		306.4		82.2		54.4		—		443.0
Mortgage-related and other purchase commitments	838.0		263.2		1,265.2		21.6		—		2,388.0
Underwriting commitments	—		223.2		—		—		—		223.2
Forward starting reverse repos and repos	166.3		—		—		—		—		166.3
Other unfunded commitments (1)	65.8		142.6		26.8		5.1		32.3		272.6
Total commitments	$	1,071.6	$	943.3	$	1,374.2	$	92.4	$	246.0	$	3,727.5

(1) Equity, loan and other unfunded commitments are presented by contractual maturity date. The amounts, however, are available on demand.

Guarantees

The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under U.S. GAAP at August 31, 2016 (in millions):

	Expected Maturity Date (fiscal years)
	2016		2017		2018   and   2019		2020   and   2021		2022   and   Later		Notional/ Maximum Payout
Guarantee Type:
Derivative contracts—non-credit related	$	20,564.3	$	5,702.8	$	377.9	$	—	$	437.4	$	27,082.4
Written derivative contracts—credit related	—		—		91.7		258.7		—		350.4
Total derivative contracts	$	20,564.3	$	5,702.8	$	469.6	$	258.7	$	437.4	$	27,432.8

External Credit Ratings of Underlying or Referenced Assets for Credit Related Derivatives Contracts

At August 31, 2016 the external credit ratings of the underlyings or referenced assets for our credit related derivatives contracts (in millions):

	External Credit Rating
	AAA/ Aaa		AA/Aa		A		BBB/ Baa		Below Investment Grade		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	24.0	$	—	$	—	$	83.7	$	—	$	107.7
Single name credit default swaps	$	—	$	—	$	59.9	$	38.6	$	144.2	$	242.7

XML

Net Capital Requirements (Tables)

9 Months Ended

Aug. 31, 2016

Brokers and Dealers [Abstract]

Net Capital, Adjusted and Excess Net Capital

At August 31, 2016, Jefferies and Jefferies Execution’s net capital and excess net capital were as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies	$	1,424,378	$	1,340,682
Jefferies Execution	7,330		7,080

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Segment Reporting (Tables)

9 Months Ended

Aug. 31, 2016

Segment Reporting [Abstract]

Net Revenues, Expenses and Total Assets by Segment

Our net revenues and expenses by segment are summarized below (in millions):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Capital Markets:
Net revenues	$	641.9	$	565.1	$	1,601.6	$	1,916.7
Expenses	$	558.2	$	564.5	$	1,693.6	$	1,829.3
Asset Management:
Net revenues	$	12.6	$	13.8	$	71.2	$	45.5
Expenses	$	15.5	$	7.3	$	45.8	$	28.2
Total:
Net revenues	$	654.5	$	578.9	$	1,672.8	$	1,962.2
Expenses	$	573.7	$	571.8	$	1,739.4	$	1,857.5

The following table summarizes our total assets by segment (in millions):

	August 31, 2016		November 30, 2015
Segment assets:
Capital Markets	$	37,305.7	$	37,804.9
Asset Management	821.9		759.0
Total assets	$	38,127.7	$	38,564.0

Net Revenues by Geographic Region

Net revenues by geographic region were as follows (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Americas (1)	$	500,190	$	454,996	$	1,257,192	$	1,508,639
Europe (2)	126,476		103,959		349,700		392,163
Asia	27,784		19,973		65,953		61,352
Net revenues	$	654,450	$	578,928	$	1,672,845	$	1,962,154

(1) Substantially all relates to U.S. results.

(2) Substantially all relates to U.K. results.

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Related Party Transactions (Tables)

9 Months Ended

Aug. 31, 2016

Related Party Transactions [Abstract]

Summary of Interest Income, Other Revenues and Investment Income Attributable to Related Party Private Equity Funds

The following table presents other revenues and investment income (loss) related to net gains and losses on our investment in Private Equity Related Funds and service charges (in thousands):

	Three Months Ended August 31,					Nine Months Ended August 31,
	2016		2015			2016			2015
Other revenues and investment income (loss)	$	6,048	$	(3,495	)	$	(1,664	)	$	(27,707	)
Service charges	201		630			537			1,089

Schedule of Revenue by Service

The following table presents the revenues earned by type of services provided (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Investment banking and advisory	$	—	$	—	$	1,786	$	21,200
Asset management	10		102		155		405
Commissions and other fees	—		1		88		38

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Exit Costs (Tables)

9 Months Ended

Aug. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following summarizes our recorded restructuring and impairment costs (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Severance costs	$	—	$	11,373	$	279	$	26,932
Accelerated amortization of restricted stock and restricted cash awards	—		2,442		41		6,902
Accelerated amortization of capitalized software	—		6,719		—		12,979
Contract termination costs	—		11,216		1,234		11,216
Other expenses	—		1,523		300		3,814
Total	$	—	$	33,273	$	1,854	$	61,843

Restructuring and exit costs are wholly attributed to our Capital Markets segment and were recorded in the following categories on the Consolidated Statement of Earnings (in thousands):

	Three Months Ended August 31,				Nine Months Ended August 31,
	2016		2015		2016		2015
Compensation and benefits	$	—	$	13,815	$	320	$	33,834
Technology and communications	—		17,935		1,234		24,195
Professional services	—		444		—		2,477
Other expenses	—		1,079		300		1,337
Total	$	—	$	33,273	$	1,854	$	61,843

Schedule of Restructuring Reserve

The following summarizes our restructuring reserve activity (in thousands):

	Severance costs			Other costs			Contract termination costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Total
Balance at November 30, 2015	$	4,805		$	—		$	—		$	4,805
Expenses	279			300			1,234			1,813			$	41	$	1,854
Payments	(5,084		)	(300		)	(1,234		)	(6,618		)
Liability at August 31, 2016	$	—		$	—		$	—		$	—

XML

Organization and Basis of Presentation (Detail) $ in Thousands	9 Months Ended
	Aug. 31, 2016 USD ($) segment	Aug. 31, 2015 USD ($)
Debt Instrument [Line Items]
Number of operating segments | segment	2
Accrued expenses and other liabilities	$ 68,024	$ (228,986)
Net change in bank overdrafts	(56,126)	24,466
Net cash used in operating activities	206,446	633,154
Net cash provided by financing activities	$ (221,009)	55,699
3.875% Convertible Senior Debentures due 2029 [Member]
Debt Instrument [Line Items]
Convertible Senior Debentures, interest rate	3.875%
Classification Error [Member]
Debt Instrument [Line Items]
Accrued expenses and other liabilities		(228,900)
Net change in bank overdrafts		24,500
Net cash used in operating activities		633,100
Net cash provided by financing activities		55,700
Restatement Adjustment [Member] | Classification Error [Member]
Debt Instrument [Line Items]
Accrued expenses and other liabilities		(24,500)
Net change in bank overdrafts		24,500
Net cash used in operating activities		24,500
Net cash provided by financing activities		24,500
Scenario, Previously Reported [Member] | Classification Error [Member]
Debt Instrument [Line Items]
Accrued expenses and other liabilities		(204,500)
Net change in bank overdrafts		0
Net cash used in operating activities		608,700
Net cash provided by financing activities		$ 31,200

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Summary of Significant Accounting Policies (Detail)	9 Months Ended
	Aug. 31, 2016
Property, Plant and Equipment [Line Items]
More than percentage of tax benefit realized upon ultimate settlement with taxing authority	50.00%
Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life of premises and equipment	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life of premises and equipment	10 years

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Accounting Developments (Details) - USD ($) $ in Thousands	Aug. 31, 2016	Dec. 01, 2015	Nov. 30, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investments in managed funds	$ 191,692		$ 85,775
Accrued expenses and other liabilities	1,030,425		1,049,019
Noncontrolling interests	$ 5,190		$ 27,468
Accounting Standards Update, Consolidation [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Investments in managed funds		$ (27,000)
Accrued expenses and other liabilities		(700)
Noncontrolling interests		$ (26,300)

XML

Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investments at fair value	$ 29,500		$ 29,500		$ 36,700
Transfers of assets from Level 2 to Level 3	147,000	$ 73,400	157,800	$ 157,700
Transfers of assets from Level 3 to Level 2	91,800	91,400	114,500	88,100
Transfers of liabilities from Level 2 to Level 3		2,500
Transfers of liabilities from Level 3 to Level 2		51,600	10,200	51,600
Net gains/(losses) on Level 3 assets (realized and unrealized)	(48,300)	64,900	(93,100)	48,500
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	5,400	1,700	(2,800)	(2,300)
Unadjusted net asset value of the funds	91,800		91,800		156,200
Unadjusted net liability value of the funds	1,700		1,700		600
Loan and other receivables on nonaccrual status	55,100		55,100		307,500
Aggregate fair value of loans and other receivables	19,100		19,100		$ 11,300
Long-term Debt [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Other changes in fair value	3,225	0	13,530	0
Long-term Debt [Member] | Principal Transactions Revenue [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Other changes in fair value	4,500		15,200
Long-term Debt [Member] | Interest Expense [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Other changes in fair value	1,300		1,700
CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	23,700	42,800	16,900	16,000
Transfers of assets from Level 3 to Level 2	27,300	39,900	25,300	25,600
Net gains/(losses) on Level 3 assets (realized and unrealized)	(4,067)	(12,560)	(24,356)	(28,999)
Municipal securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	34,300		28,700
Net gains/(losses) on Level 3 assets (realized and unrealized)	(7,074)		(1,462)
RMBS [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	13,700	17,800	21,700	21,300
Transfers of assets from Level 3 to Level 2	18,300	18,500	25,500	15,900
Net gains/(losses) on Level 3 assets (realized and unrealized)	(2,343)	(3,009)	(7,243)	(6,776)
Investments at fair value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	29,000		26,100	76,200
Transfers of assets from Level 3 to Level 2		21,000		22,700
Net gains/(losses) on Level 3 assets (realized and unrealized)	(966)	83,580	(19,055)	88,195
Other asset-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	27,300		38,500	1,400
Transfers of assets from Level 3 to Level 2			17,000
Net gains/(losses) on Level 3 assets (realized and unrealized)	(2,247)	870	(2,420)	666
Corporate equity securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3				1,600
Transfers of assets from Level 3 to Level 2	20,500	1,900	19,200	11,800
Net gains/(losses) on Level 3 assets (realized and unrealized)	(6,492)	3,901	(8,388)	10,247
Commercial mortgage-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3		3,700	17,200	9,800
Transfers of assets from Level 3 to Level 2		5,200		5,600
Net gains/(losses) on Level 3 assets (realized and unrealized)	(1,531)	(510)	(4,606)	(2,053)
Loans and other receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3		4,100		19,200
Transfers of assets from Level 3 to Level 2	15,800	3,500	19,800	6,100
Net gains/(losses) on Level 3 assets (realized and unrealized)	(23,445)	(2,111)	(30,843)	(7,331)
Corporate debt securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3		5,000		12,200
Net gains/(losses) on Level 3 assets (realized and unrealized)	$ (145)	$ (5,276)	$ 5,239	$ (5,425)
3.875% Convertible Senior Debentures due 2029 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt instrument interest rate	3.875%		3.875%
3.875% Convertible Senior Debentures due 2029 [Member] | Leucadia [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt instrument interest rate	3.875%		3.875%
Long-term debt embedded conversion option [Member] | Leucadia [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Volatility curve used in valuing embedded option			252 days

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Fair Value Disclosures - Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Financial instruments owned:
Corporate equity securities	$ 2,149,879	$ 2,027,989
Corporate debt securities	2,529,310	2,893,041
CDOs and CLOs	143,864	174,236
U.S. government and federal agency securities	3,143,852	2,645,651
Municipal securities	577,467	487,141
Sovereign obligations	2,035,035	2,659,441
Loans and other receivables	1,401,549	1,312,333
Derivatives	330,582	251,080
Investments at fair value	85,036	79,344
Total financial instruments owned, excluding Investments at fair value based on NAV	14,298,419	16,522,382
Counterparty and Cash Collateral Netting	(5,887,874)	(4,165,446)
Cash and cash equivalents	3,159,143	3,510,163
Cash and securities segregated and on deposit for regulatory purposes	1,026,865	751,084
Financial instruments sold, not yet purchased:
Corporate equity securities	1,741,068	1,418,933
Corporate debt securities	1,705,150	1,556,941
U.S. government and federal agency securities	1,213,672	1,488,121
Sovereign obligations	2,373,031	1,342,996
Loans	539,028	769,408
Derivatives	372,123	208,548
Total financial instruments sold, not yet purchased	7,944,072	6,785,064
Counterparty and Cash Collateral Netting	(5,970,029)	(4,257,998)
Other secured financings	53,586	68,345
Long-term debt	204,422	0
US Treasury Securities [Member]
Financial instruments owned:
Cash and securities segregated and on deposit for regulatory purposes	99,900
RMBS [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	1,378,840	2,801,333
Financial instruments sold, not yet purchased:
Residential mortgaged-backed securities		117
Commercial mortgage-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	345,505	1,029,239
Other asset-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	177,500	161,554
Level 1 [Member]
Financial instruments owned:
Corporate equity securities	2,019,490	1,853,351
Corporate debt securities	0	0
CDOs and CLOs	0	0
U.S. government and federal agency securities	3,029,251	2,555,018
Municipal securities	0	0
Sovereign obligations	904,592	1,251,366
Loans and other receivables	0	0
Derivatives	2,530	1,037
Investments at fair value	0	0
Total financial instruments owned, excluding Investments at fair value based on NAV	5,955,863	5,660,772
Cash and cash equivalents	3,159,143	3,510,163
Cash and securities segregated and on deposit for regulatory purposes	1,026,865	751,084
Financial instruments sold, not yet purchased:
Corporate equity securities	1,682,196	1,382,377
Corporate debt securities	0	0
U.S. government and federal agency securities	1,213,672	1,488,121
Sovereign obligations	940,451	837,614
Loans	0	0
Derivatives	373	364
Total financial instruments sold, not yet purchased	3,836,692	3,708,476
Other secured financings	0	0
Long-term debt	0
Level 1 [Member] | RMBS [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	0	0
Financial instruments sold, not yet purchased:
Residential mortgaged-backed securities		0
Level 1 [Member] | Commercial mortgage-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Other asset-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	0	0
Level 2 [Member]
Financial instruments owned:
Corporate equity securities	108,194	133,732
Corporate debt securities	2,494,303	2,867,165
CDOs and CLOs	99,794	89,144
U.S. government and federal agency securities	114,601	90,633
Municipal securities	550,210	487,141
Sovereign obligations	1,130,443	1,407,955
Loans and other receivables	1,323,092	1,123,044
Derivatives	6,206,366	4,395,704
Investments at fair value	0	26,224
Total financial instruments owned, excluding Investments at fair value based on NAV	13,796,262	14,485,354
Cash and cash equivalents	0	0
Cash and securities segregated and on deposit for regulatory purposes	0	0
Financial instruments sold, not yet purchased:
Corporate equity securities	58,834	36,518
Corporate debt securities	1,704,627	1,556,941
U.S. government and federal agency securities	0	0
Sovereign obligations	1,432,580	505,382
Loans	538,180	758,939
Derivatives	6,321,172	4,446,639
Total financial instruments sold, not yet purchased	10,055,393	7,304,536
Other secured financings	53,318	67,801
Long-term debt	204,422
Level 2 [Member] | RMBS [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	1,331,959	2,731,070
Financial instruments sold, not yet purchased:
Residential mortgaged-backed securities		117
Level 2 [Member] | Commercial mortgage-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	320,912	1,014,913
Level 2 [Member] | Other asset-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	116,388	118,629
Level 3 [Member]
Financial instruments owned:
Corporate equity securities	22,195	40,906
Corporate debt securities	35,007	25,876
CDOs and CLOs	44,070	85,092
U.S. government and federal agency securities	0	0
Municipal securities	27,257	0
Sovereign obligations	0	120
Loans and other receivables	78,457	189,289
Derivatives	9,560	19,785
Investments at fair value	85,036	53,120
Total financial instruments owned, excluding Investments at fair value based on NAV	434,168	541,702
Cash and cash equivalents	0	0
Cash and securities segregated and on deposit for regulatory purposes	0	0
Financial instruments sold, not yet purchased:
Corporate equity securities	38	38
Corporate debt securities	523	0
U.S. government and federal agency securities	0	0
Sovereign obligations	0	0
Loans	848	10,469
Derivatives	20,607	19,543
Total financial instruments sold, not yet purchased	22,016	30,050
Other secured financings	268	544
Long-term debt	0
Level 3 [Member] | RMBS [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	46,881	70,263
Financial instruments sold, not yet purchased:
Residential mortgaged-backed securities		0
Level 3 [Member] | Commercial mortgage-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	24,593	14,326
Level 3 [Member] | Other asset-backed securities [Member]
Financial instruments owned:
Mortgage- and asset-backed securities, assets	$ 61,112	$ 42,925

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Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Aug. 31, 2016	Nov. 30, 2015
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 221,192	$ 122,510
Unfunded Commitments	20,295	20,885
Equity Long/Short Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	46,195	54,725
Unfunded Commitments	$ 0	$ 0
Redemption Frequency (if currently eligible)	Monthly, Quarterly	Monthly, Quarterly
Fixed Income and High Yield Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 807	$ 1,703
Unfunded Commitments	0	0
Fund of Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	226	287
Unfunded Commitments	0	94
Equity Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	41,716	42,111
Unfunded Commitments	20,295	20,791
Multi-asset Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	132,248	23,358
Unfunded Commitments	$ 0	$ 0
Redemption Frequency (if currently eligible)	Monthly, Quarterly	Monthly, Quarterly
Convertible Bond Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value		$ 326
Unfunded Commitments		$ 0
Redemption Frequency (if currently eligible)		At Will

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Fair Value Disclosures - Investments Measured at Fair Value Based on Net Asset Value Per Share (Footnote) (Detail)	9 Months Ended
	Aug. 31, 2016	Nov. 30, 2015
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of investment at fair value in liquidation	2.00%
Fixed Income and High Yield Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of investments with no redemption provisions		8.00%
Fund of Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of investments with no redemption provisions	98.00%	95.00%
Private equity funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of investments at fair value expected to liquidate	99.00%	100.00%
Estimated period for the liquidation of the underlying assets, Minimum	1 year
Estimated period for the liquidation of the underlying assets, Maximum	8 years
Multi-asset Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of redeemable investments	12.00%	100.00%
Minimum [Member] | Multi-asset Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investment prior written notice period	30 days
Maximum [Member] | Multi-asset Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investment prior written notice period	90 days

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Fair Value Disclosures - Summary of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Assets:
Total gains/(losses) (realized and unrealized)	$ (48,300)	$ 64,900	$ (93,100)	$ 48,500
Liabilities:
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	5,400	1,700	(2,800)	(2,300)
Corporate equity securities [Member]
Liabilities:
Beginning Balance	0	38	38	38
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	38	(38)	0	(38)
Ending Balance	38	0	38	0
Change in unrealized gains/ (losses) relating to instruments still held	0	0	0	0
Corporate debt securities [Member]
Liabilities:
Beginning Balance	0	452	0	223
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	(27)	(226)	(27)	(1)
Purchases	0	0	0	(6,677)
Sales	550	0	550	6,804
Settlements	0	0	0	0
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	0	0	0	(123)
Ending Balance	523	226	523	226
Change in unrealized gains/ (losses) relating to instruments still held	(27)	226	0	(226)
Net derivatives [Member]
Liabilities:
Beginning Balance	4,424	(1,586)	(242)	(4,638)
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	(4,736)	(1,020)	3,104	3,022
Purchases	0	(1,432)	0	(4,527)
Sales	11,101	11,618	11,101	11,340
Settlements	32	24	(14)	(30)
Issuances	601	416	1,606	1,901
Net transfers into/ (out of) Level 3	(375)	(857)	(4,508)	95
Ending Balance	11,047	7,163	11,047	7,163
Change in unrealized gains/ (losses) relating to instruments still held	(1,589)	551	(5,745)	(5,211)
Loans [Member]
Liabilities:
Beginning Balance	1,896	10,732	10,469	14,450
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	(402)	109	7	(102)
Purchases	0	(3,012)	0	(3,487)
Sales	170	0	681	0
Settlements	0	0	(213)	0
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	(816)	2,542	(10,096)	(490)
Ending Balance	848	10,371	848	10,371
Change in unrealized gains/ (losses) relating to instruments still held	(400)	(110)	45	102
Other secured financings [Member]
Liabilities:
Beginning Balance	468	56,060	544	30,825
Net gains/(losses) on Level 3 liabilities (realized and unrealized)	(200)	0	(276)	0
Purchases	0	0	0	0
Sales	0	0	0	0
Settlements	0	(3,914)	0	(15,674)
Issuances	0	0	0	36,995
Net transfers into/ (out of) Level 3	0	(51,572)	0	(51,572)
Ending Balance	268	574	268	574
Change in unrealized gains/ (losses) relating to instruments still held	200	0	276	0
Embedded conversion option [Member]
Liabilities:
Beginning Balance		725		693
Net gains/(losses) on Level 3 liabilities (realized and unrealized)		(611)		(579)
Purchases		0		0
Sales		0		0
Settlements		0		0
Issuances		0		0
Net transfers into/ (out of) Level 3		0		0
Ending Balance		114		114
Change in unrealized gains/ (losses) relating to instruments still held		611		579
Corporate equity securities [Member]
Assets:
Beginning Balance	48,816	20,547	40,906	20,964
Total gains/(losses) (realized and unrealized)	(6,492)	3,901	(8,388)	10,247
Purchases	291	21,162	5,225	22,631
Sales	(49)	(5,173)	(49)	(5,176)
Settlements	0	0	0	0
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	(20,371)	(1,935)	(15,499)	(10,164)
Ending Balance	22,195	38,502	22,195	38,502
Change in unrealized gains/(losses) relating to instruments still held	(892)	3,803	(727)	10,210
Corporate debt securities [Member]
Assets:
Beginning Balance	24,113	31,917	25,876	22,766
Total gains/(losses) (realized and unrealized)	(145)	(5,276)	5,239	(5,425)
Purchases	10,696	10,395	29,629	83,613
Sales	(5,046)	(17,197)	(20,331)	(88,711)
Settlements	0	(1)	0	(1)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	5,389	4,493	(5,406)	12,089
Ending Balance	35,007	24,331	35,007	24,331
Change in unrealized gains/(losses) relating to instruments still held	405	(5,544)	1,456	(5,797)
CDOs and CLOs [Member]
Assets:
Beginning Balance	52,710	89,007	85,092	124,650
Total gains/(losses) (realized and unrealized)	(4,067)	(12,560)	(24,356)	(28,999)
Purchases	4,205	14,961	61,707	63,038
Sales	(5,203)	0	(69,397)	(47,570)
Settlements	0	(13,230)	(605)	(20,481)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	(3,575)	2,872	(8,371)	(9,588)
Ending Balance	44,070	81,050	44,070	81,050
Change in unrealized gains/(losses) relating to instruments still held	(4,606)	(12,561)	(13,196)	(22,654)
Municipal securities [Member]
Assets:
Beginning Balance	0		0
Total gains/(losses) (realized and unrealized)	(7,074)		(1,462)
Purchases	0		0
Sales	0		0
Settlements	0		0
Issuances	0		0
Net transfers into/ (out of) Level 3	34,331		28,719
Ending Balance	27,257		27,257
Change in unrealized gains/(losses) relating to instruments still held	(7,074)		(1,462)
Sovereign obligations [Member]
Assets:
Beginning Balance	120		120
Total gains/(losses) (realized and unrealized)	5		5
Purchases	0		0
Sales	(125)		(125)
Settlements	0		0
Issuances	0		0
Net transfers into/ (out of) Level 3	0		0
Ending Balance	0		0
Change in unrealized gains/(losses) relating to instruments still held	0		0
RMBS [Member]
Assets:
Beginning Balance	63,308	88,695	70,263	82,557
Total gains/(losses) (realized and unrealized)	(2,343)	(3,009)	(7,243)	(6,776)
Purchases	1,884	10,034	1,948	30,865
Sales	(10,874)	(8,424)	(13,203)	(25,222)
Settlements	(463)	(195)	(1,078)	(358)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	(4,631)	(679)	(3,806)	5,356
Ending Balance	46,881	86,422	46,881	86,422
Change in unrealized gains/(losses) relating to instruments still held	(183)	655	228	(2,507)
Commercial mortgage-backed securities [Member]
Assets:
Beginning Balance	24,983	17,862	14,326	26,655
Total gains/(losses) (realized and unrealized)	(1,531)	(510)	(4,606)	(2,053)
Purchases	0	0	1,256	3,366
Sales	0	(680)	(2,023)	(9,973)
Settlements	0	0	0	(6,981)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	1,141	(1,525)	15,640	4,133
Ending Balance	24,593	15,147	24,593	15,147
Change in unrealized gains/(losses) relating to instruments still held	(236)	(545)	(3,337)	(1,851)
Other asset-backed securities [Member]
Assets:
Beginning Balance	43,033	11,857	42,925	2,294
Total gains/(losses) (realized and unrealized)	(2,247)	870	(2,420)	666
Purchases	3,416	21,913	66,503	69,892
Sales	(2,727)	0	(60,525)	(40,000)
Settlements	(1,429)	(1,167)	(6,678)	(1,438)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	21,066	(877)	21,307	1,182
Ending Balance	61,112	32,596	61,112	32,596
Change in unrealized gains/(losses) relating to instruments still held	(2,202)	813	(9,993)	607
Loans and other receivables [Member]
Assets:
Beginning Balance	104,399	108,756	189,289	97,258
Total gains/(losses) (realized and unrealized)	(23,445)	(2,111)	(30,843)	(7,331)
Purchases	31,512	31,269	305,920	115,370
Sales	(10,140)	(603)	(206,587)	(40,978)
Settlements	(16,804)	(42,529)	(163,913)	(82,100)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	(7,065)	617	(15,409)	13,180
Ending Balance	78,457	95,399	78,457	95,399
Change in unrealized gains/(losses) relating to instruments still held	(16,044)	(6,182)	(27,714)	(8,850)
Investments at fair value [Member]
Assets:
Beginning Balance	57,765	131,343	53,120	53,224
Total gains/(losses) (realized and unrealized)	(966)	83,580	(19,055)	88,195
Purchases	0	0	26,227	0
Sales	(485)	(127,427)	(485)	(124,854)
Settlements	(278)	(277)	(834)	(3,818)
Issuances	0	0	0	0
Net transfers into/ (out of) Level 3	29,000	(21,010)	26,063	53,462
Ending Balance	85,036	66,209	85,036	66,209
Change in unrealized gains/(losses) relating to instruments still held	$ (1,113)	$ 19,675	$ (11,988)	$ 24,372

XML

Fair Value Disclosures - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements (Detail) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Aug. 31, 2016 USD ($) T $ / shares	Aug. 31, 2015 USD ($)	Nov. 30, 2015 USD ($) $ / shares	May 31, 2016 USD ($)	May 31, 2015 USD ($)	Nov. 30, 2014 USD ($)
Embedded conversion option [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments sold, not yet purchased, fair value | $		$ 114			$ 725	$ 693
Corporate equity securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	$ 22,195	38,502	$ 40,906	$ 48,816	20,547	20,964
Corporate debt securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	35,007	24,331	25,876	24,113	31,917	22,766
CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	44,070	81,050	85,092	52,710	89,007	124,650
Municipal securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	27,257		0	0
RMBS [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	46,881	86,422	70,263	63,308	88,695	82,557
Commercial mortgage-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	24,593	15,147	14,326	24,983	17,862	26,655
Other asset-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	61,112	32,596	42,925	43,033	11,857	2,294
Loans and other receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	78,457	95,399	189,289	104,399	108,756	97,258
Investments at fair value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	85,036	$ 66,209	53,120	$ 57,765	$ 131,343	$ 53,224
Financial Instruments Owned [Member] | Derivatives [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	9,560		19,785
Financial Instruments Owned [Member] | Corporate equity securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	22,195		20,285
Financial Instruments Owned [Member] | Corporate debt securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	35,007		20,257
Financial Instruments Owned [Member] | CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	32,832		49,923
Financial Instruments Owned [Member] | Municipal securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	27,257
Financial Instruments Owned [Member] | RMBS [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	46,881		70,263
Financial Instruments Owned [Member] | Commercial mortgage-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	24,593		14,326
Financial Instruments Owned [Member] | Other asset-backed securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	61,112		21,463
Financial Instruments Owned [Member] | Loans and other receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	52,216		161,470
Financial Instruments Owned [Member] | Investments at fair value [Member] | Private equity securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments owned, fair value | $	30,724		7,693
Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments sold, not yet purchased, fair value | $	$ 20,607		19,543
Financial Instruments Sold, Not Yet Purchased [Member] | Loans and other receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Instruments sold, not yet purchased, fair value | $			$ 10,469
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Commodity Forwards [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield			47.00%
Significant Unobservable Input(s), Transaction level | $			$ 9,500
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Commodity Forwards [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield			0.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Unfunded commitment [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant default rate/Credit spread			2.98%
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Unfunded commitment [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 100
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price	$ 100
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			91.7
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			92.4
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 92.1
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Credit default swaps [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant default rate/Credit spread	2.65%
Level 3 [Member] | Financial Instruments Owned [Member] | Derivatives [Member] | Interest rate swaps [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant default rate/Credit spread	8.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Underlying stock price (in dollars per share)	$ 3
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Underlying stock price (in dollars per share)	$ 75
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), EBITDA multiple			4.4
Significant Unobservable Input(s), Transaction level (in dollars per share)			$ 1
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), EBITDA multiple	5.1
Significant Unobservable Input(s), Underlying stock price (in dollars per share)			5
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), EBITDA multiple	16.3
Significant Unobservable Input(s), Underlying stock price (in dollars per share)			102
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), EBITDA multiple	12.1
Significant Unobservable Input(s), Underlying stock price (in dollars per share)	$ 15		19
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Underlying stock price (in dollars per share)	$ 218
Significant Unobservable Input(s), Discount factor	60.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate equity securities [Member] | Non-exchange traded securities [Member] | Present value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Average silver production | T	783
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate debt securities [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Transaction level (in dollars per share)			$ 59
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate debt securities [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	$ 30
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate debt securities [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	100
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate debt securities [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	$ 65
Level 3 [Member] | Financial Instruments Owned [Member] | Corporate debt securities [Member] | Convertible bond model [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	9.00%		86.00%
Significant Unobservable Input(s), Volatility	40.00%
Level 3 [Member] | Financial Instruments Owned [Member] | CDOs and CLOs [Member] | Discounted cash flows [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	0.00%		5.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	2.00%		2.00%
Significant Unobservable Input(s), Loss severity	25.00%		25.00%
Significant Unobservable Input(s), Yield	3.00%		6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | CDOs and CLOs [Member] | Discounted cash flows [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	20.00%		20.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	7.00%		8.00%
Significant Unobservable Input(s), Loss severity	75.00%		90.00%
Significant Unobservable Input(s), Yield	35.00%		13.00%
Level 3 [Member] | Financial Instruments Owned [Member] | CDOs and CLOs [Member] | Discounted cash flows [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	17.00%		13.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	3.00%		2.00%
Significant Unobservable Input(s), Loss severity	40.00%		52.00%
Significant Unobservable Input(s), Yield	15.00%		10.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Municipal securities [Member] | Scenario analysis [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	$ 4
Level 3 [Member] | Financial Instruments Owned [Member] | RMBS [Member] | Discounted cash flows [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	0.00%		0.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	2.00%		1.00%
Significant Unobservable Input(s), Loss severity	10.00%		25.00%
Significant Unobservable Input(s), Yield	3.00%		1.00%
Level 3 [Member] | Financial Instruments Owned [Member] | RMBS [Member] | Discounted cash flows [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	25.00%		50.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	50.00%		9.00%
Significant Unobservable Input(s), Loss severity	100.00%		70.00%
Significant Unobservable Input(s), Yield	9.00%		9.00%
Level 3 [Member] | Financial Instruments Owned [Member] | RMBS [Member] | Discounted cash flows [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	6.00%		13.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	4.00%		3.00%
Significant Unobservable Input(s), Loss severity	55.00%		39.00%
Significant Unobservable Input(s), Yield	5.00%		6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Commercial mortgage-backed securities [Member] | Discounted cash flows [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Yield	6.00%		7.00%
Significant Unobservable Input(s), Cumulative loss rate	1.00%		2.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Commercial mortgage-backed securities [Member] | Discounted cash flows [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Yield	12.00%		30.00%
Significant Unobservable Input(s), Cumulative loss rate	70.00%		63.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Commercial mortgage-backed securities [Member] | Discounted cash flows [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Yield	9.00%		16.00%
Significant Unobservable Input(s), Cumulative loss rate	25.00%		23.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	$ 33
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	70,000,000
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Price	$ 39,000,000
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Discounted cash flows [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	0.00%		6.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	0.00%		3.00%
Significant Unobservable Input(s), Loss severity	0.00%		55.00%
Significant Unobservable Input(s), Yield	3.00%		7.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Discounted cash flows [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	55.00%		8.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	9.00%		5.00%
Significant Unobservable Input(s), Loss severity	100.00%		75.00%
Significant Unobservable Input(s), Yield	15.00%		22.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Discounted cash flows [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	24.00%		7.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	6.00%		4.00%
Significant Unobservable Input(s), Loss severity	85.00%		62.00%
Significant Unobservable Input(s), Yield	12.00%		18.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Over-collateralization [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Over Collateralization Percentage	117.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Over-collateralization [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Over Collateralization Percentage	125.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Other asset-backed securities [Member] | Over-collateralization [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Over Collateralization Percentage	118.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), EBITDA multiple	3.6	10.0
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	2.00%
Significant Unobservable Input(s), Yield			2.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	3.00%
Significant Unobservable Input(s), Yield			17.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	3.00%
Significant Unobservable Input(s), Yield			12.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price	$ 98
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Comparable pricing [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 99
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Comparable pricing [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			100
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Comparable pricing [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 99.7
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Present value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Average silver production | T	783
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Scenario analysis [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Estimated recovery percentage	6.00%		6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Scenario analysis [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Estimated recovery percentage	82.00%		100.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Loans and other receivables [Member] | Scenario analysis [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Estimated recovery percentage	44.00%		83.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Investments at fair value [Member] | Private equity securities [Member] | Market approach [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Transaction level (in dollars per share)	$ 250		$ 64
Significant Unobservable Input(s), Enterprise value | $			$ 5,200
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Commercial Loan [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 100
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Equity options [Member] | Option model [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Volatility	45.00%		45.00%
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Equity options [Member] | Default rate [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Default probability	0.00%		0.00%
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Market approach [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	3.00%		3.00%
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Market approach [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield	56.00%		10.00%
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Market approach [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Discount rate/yield			10.00%
Significant Unobservable Input(s), Comparable bond or loan price	$ 0.54
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Discounted cash flows [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate			20.00%
Significant Unobservable Input(s), Constant default rate/Credit spread			2.00%
Significant Unobservable Input(s), Loss severity			25.00%
Significant Unobservable Input(s), Yield			11.00%
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price	98
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Comparable pricing [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 79
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Comparable pricing [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			100
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Unfunded commitment [Member] | Comparable pricing [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			82.6
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price	$ 100
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			91.7
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			92.4
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Total return swaps [Member] | Comparable pricing [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Comparable bond or loan price			$ 92.1
Level 3 [Member] | Financial Instruments Sold, Not Yet Purchased [Member] | Derivatives [Member] | Variable funding note swaps [Member] | Discounted cash flows [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input(s), Constant prepayment rate	20.00%
Significant Unobservable Input(s), Constant default rate/Credit spread	2.00%
Significant Unobservable Input(s), Loss severity	25.00%
Significant Unobservable Input(s), Yield	14.00%

XML

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 (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Financial instruments owned:
Loans and other receivables	$ (24,874)	$ (13,566)	$ (48,658)	$ (25,686)
Long-term Debt [Member]
Financial Instruments Sold and Long-term Debt
Loans, Loan commitments and Changes in instrument specific credit risk	(4,093)	0	(7,848)	0
Other changes in fair value	3,225	0	13,530	0
Loans [Member]
Financial Instruments Sold and Long-term Debt
Loans, Loan commitments and Changes in instrument specific credit risk	212	38	229	112
Loan commitments [Member]
Financial Instruments Sold and Long-term Debt
Loans, Loan commitments and Changes in instrument specific credit risk	$ 4,769	$ (51)	$ 2,196	$ (1,673)

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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 (Detail) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Financial instruments owned:
Loans and other receivables	$ 843,458	$ 408,369
Loans and other receivables on nonaccrual status	223,581	54,652
Loans and other receivables greater than 90 days past due	59,700	29,700
Long-term debt	$ 7,485	$ 0

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Derivative Financial Instruments - Fair Value and Related Number of Derivative Contracts Categorized by Type of Derivative Contract (Detail) $ in Thousands	Aug. 31, 2016 USD ($) Contract	Nov. 30, 2015 USD ($) Contract
Derivatives, Fair Value [Line Items]
Net amounts per Consolidated Statements of Financial Condition, Assets	$ 330,582	$ 251,080
Net amounts per Consolidated Statements of Financial Condition, Liabilities	372,123	208,548
Exchange-traded [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	802,218	956,285
Fair Value, Liabilities	960,644	1,005,063
Amounts offset in the Consolidated Statements of Financial Condition, Assets	(779,958)	(938,482)
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities	(779,958)	(938,482)
Cleared OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	4,284,337	2,214,351
Fair Value, Liabilities	4,226,710	2,203,677
Amounts offset in the Consolidated Statements of Financial Condition, Assets	(4,233,022)	(2,184,438)
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities	(4,212,004)	(2,184,438)
Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	1,131,901	1,245,890
Fair Value, Liabilities	1,154,798	1,257,806
Amounts offset in the Consolidated Statements of Financial Condition, Assets	(874,894)	(1,042,526)
Amounts offset in the Consolidated Statements of Financial Condition, Liabilities	(978,067)	(1,135,078)
Interest rate contracts [Member] | Exchange-traded [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 2,286	$ 998
Number of Contracts, Assets | Contract	26,232	52,605
Fair Value, Liabilities	$ 372	$ 364
Number of Contracts, Liabilities | Contract	33,205	70,672
Interest rate contracts [Member] | Cleared OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 4,282,590	$ 2,213,730
Number of Contracts, Assets | Contract	3,450	2,742
Fair Value, Liabilities	$ 4,218,171	$ 2,202,836
Number of Contracts, Liabilities | Contract	3,307	2,869
Interest rate contracts [Member] | Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 588,640	$ 695,365
Number of Contracts, Assets | Contract	2,046	1,401
Fair Value, Liabilities	$ 558,296	$ 646,758
Number of Contracts, Liabilities | Contract	1,234	1,363
Foreign exchange contracts [Member] | Exchange-traded [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 0	$ 0
Number of Contracts, Assets | Contract	358	441
Fair Value, Liabilities	$ 0	$ 0
Number of Contracts, Liabilities | Contract	470	112
Foreign exchange contracts [Member] | Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 428,868	$ 453,202
Number of Contracts, Assets | Contract	9,639	7,646
Fair Value, Liabilities	$ 447,085	$ 466,021
Number of Contracts, Liabilities | Contract	9,567	7,264
Equity contracts [Member] | Exchange-traded [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 799,932	$ 955,287
Number of Contracts, Assets | Contract	3,463,584	3,054,315
Fair Value, Liabilities	$ 960,272	$ 1,004,699
Number of Contracts, Liabilities | Contract	2,999,406	2,943,657
Equity contracts [Member] | Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 93,547	$ 61,004
Number of Contracts, Assets | Contract	1,086	1,039
Fair Value, Liabilities	$ 117,374	$ 81,085
Number of Contracts, Liabilities | Contract	1,265	1,070
Commodity contracts [Member] | Exchange-traded [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 0	$ 0
Number of Contracts, Assets | Contract	1,624	1,726
Fair Value, Liabilities	$ 0	$ 0
Number of Contracts, Liabilities | Contract	888	1,684
Commodity contracts [Member] | Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets		$ 19,342
Number of Contracts, Assets | Contract		29
Fair Value, Liabilities		$ 4,628
Number of Contracts, Liabilities | Contract		28
Credit contracts [Member] | Cleared OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 1,747	$ 621
Number of Contracts, Assets | Contract	10	39
Fair Value, Liabilities	$ 8,539	$ 841
Number of Contracts, Liabilities | Contract	18	44
Credit contracts [Member] | Bilateral OTC [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 20,846	$ 16,977
Number of Contracts, Assets | Contract	152	100
Fair Value, Liabilities	$ 32,043	$ 59,314
Number of Contracts, Liabilities | Contract	189	135

XML

Derivative Financial Instruments - Unrealized and Realized Gains (Losses) on Derivative Contracts (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	$ (185,896)	$ 91,718	$ (588,851)	$ 73,873
Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	(16,631)	25,308	(96,715)	580
Foreign exchange contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	7,886	6,893	14,000	30,417
Equity contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	(185,264)	68,649	(509,476)	28,008
Commodity contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	4,089	(4,757)	1,899	15,480
Credit contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	$ 4,024	$ (4,375)	$ 1,441	$ (612)

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Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Detail) $ in Thousands	Aug. 31, 2016 USD ($)
Derivative [Line Items]
OTC derivative assets having maturity period of 0 to 12 months	$ 182,196
OTC derivative assets having maturity period of 1 to 5 years	274,079
OTC derivative assets having maturity period of greater than 5 years	88,435
OTC derivative assets cross-maturity netting	(105,015)
Total OTC derivative assets, net of cross-maturity netting	439,695
Cross product counterparty netting	(754)
Total OTC derivative assets included in Financial instruments owned	438,941
OTC derivative liabilities having maturity period of 0 to 12 months	181,712
OTC derivative liabilities having maturity period of 1 to 5 years	192,922
OTC derivative liabilities having maturity period of greater than 5 years	126,213
OTC derivative liabilities cross-maturity netting	(105,015)
Total OTC derivative liabilities, net of cross-maturity netting	395,832
Cross product counterparty netting	(754)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased	395,078
Equity Swaps And Options [Member]
Derivative [Line Items]
OTC derivative assets having maturity period of 0 to 12 months	27,781
OTC derivative assets having maturity period of 1 to 5 years	5,370
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	33,151
OTC derivative liabilities having maturity period of 0 to 12 months	13,408
OTC derivative liabilities having maturity period of 1 to 5 years	23,617
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	37,025
Credit Default Swap [Member]
Derivative [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	7,948
OTC derivative assets having maturity period of greater than 5 years	230
OTC derivative assets cross-maturity netting	(177)
Total OTC derivative assets, net of cross-maturity netting	8,001
OTC derivative liabilities having maturity period of 0 to 12 months	28
OTC derivative liabilities having maturity period of 1 to 5 years	12,639
OTC derivative liabilities having maturity period of greater than 5 years	1,672
OTC derivative liabilities cross-maturity netting	(177)
Total OTC derivative liabilities, net of cross-maturity netting	14,162
Total Return Swap [Member]
Derivative [Line Items]
OTC derivative assets having maturity period of 0 to 12 months	27,796
OTC derivative assets having maturity period of 1 to 5 years	874
OTC derivative assets having maturity period of greater than 5 years	0
OTC derivative assets cross-maturity netting	(613)
Total OTC derivative assets, net of cross-maturity netting	28,057
OTC derivative liabilities having maturity period of 0 to 12 months	26,824
OTC derivative liabilities having maturity period of 1 to 5 years	16,967
OTC derivative liabilities having maturity period of greater than 5 years	0
OTC derivative liabilities cross-maturity netting	(613)
Total OTC derivative liabilities, net of cross-maturity netting	43,178
Foreign Currency Forwards Swaps And Options [Member]
Derivative [Line Items]
OTC derivative assets having maturity period of 0 to 12 months	84,564
OTC derivative assets having maturity period of 1 to 5 years	29,937
OTC derivative assets having maturity period of greater than 5 years	0
OTC derivative assets cross-maturity netting	(7,150)
Total OTC derivative assets, net of cross-maturity netting	107,351
OTC derivative liabilities having maturity period of 0 to 12 months	112,699
OTC derivative liabilities having maturity period of 1 to 5 years	20,024
OTC derivative liabilities having maturity period of greater than 5 years	0
OTC derivative liabilities cross-maturity netting	(7,150)
Total OTC derivative liabilities, net of cross-maturity netting	125,573
Fixed Income Forwards [Member]
Derivative [Line Items]
OTC derivative liabilities having maturity period of 0 to 12 months	5,044
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	5,044
Interest Rate Swaps, Options and Forwards [Member]
Derivative [Line Items]
OTC derivative assets having maturity period of 0 to 12 months	42,055
OTC derivative assets having maturity period of 1 to 5 years	229,950
OTC derivative assets having maturity period of greater than 5 years	88,205
OTC derivative assets cross-maturity netting	(97,075)
Total OTC derivative assets, net of cross-maturity netting	263,135
OTC derivative liabilities having maturity period of 0 to 12 months	23,709
OTC derivative liabilities having maturity period of 1 to 5 years	119,675
OTC derivative liabilities having maturity period of greater than 5 years	124,541
OTC derivative liabilities cross-maturity netting	(97,075)
Total OTC derivative liabilities, net of cross-maturity netting	$ 170,850

XML

Derivative Financial Instruments - Remaining Contract Maturity of Fair Value of OTC Derivative Assets and Liabilities (Footnote) (Detail) $ in Millions	Aug. 31, 2016 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Exchange traded derivative assets	$ 25.6
Cash collateral received	134.0
Exchange traded derivative liabilities, with fair value	193.2
Cash collateral pledged	$ 216.1

XML

Derivative Financial Instruments - Counterparty Credit Quality with Respect to Fair Value of OTC Derivatives Assets (Detail) $ in Thousands	Aug. 31, 2016 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
A- or higher	$ 214,650
BBB- to BBB	77,419
BB or lower	64,975
Unrated	81,897
Total OTC derivative assets included in Financial instruments owned	$ 438,941

XML

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of derivative instruments in a liability position	$ 85.9	$ 114.5
Collateral posted for derivative instruments in a liability position	65.4	97.2
Additional collateral required for derivative instruments in a liability position	$ 22.6	$ 19.7

XML

Collateralized Transactions - Collateral Pledged (Details) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	$ 2,930,376	$ 2,979,300
Repurchase Agreements	16,013,959	20,195,982
Total	18,944,335	23,175,282
Corporate equity securities [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	2,341,506	2,195,912
Repurchase Agreements	174,077	275,880
Total	2,515,583	2,471,792
Corporate debt securities [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	578,451	748,405
Repurchase Agreements	1,701,732	1,752,222
Total	2,280,183	2,500,627
Mortgage- and asset-backed securities [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	0	0
Repurchase Agreements	2,358,531	3,537,812
Total	2,358,531	3,537,812
U.S. government and federal agency securities [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	10,419	34,983
Repurchase Agreements	8,759,548	12,006,081
Total	8,769,967	12,041,064
Municipal securities [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	0	0
Repurchase Agreements	420,957	357,350
Total	420,957	357,350
Sovereign obligations [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	0	0
Repurchase Agreements	2,120,421	1,804,103
Total	2,120,421	1,804,103
Loans and other receivables [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	0	0
Repurchase Agreements	478,693	462,534
Total	$ 478,693	$ 462,534

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Collateralized Transactions - Contractual Maturity (Details) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	$ 2,930,376	$ 2,979,300
Repurchase Agreements	16,013,959	20,195,982
Total	18,944,335	23,175,282
Overnight and Continuous [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	1,629,631	1,522,475
Repurchase Agreements	7,832,265	7,850,791
Total	9,461,896	9,373,266
Up to 30 Days [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	85,895	0
Repurchase Agreements	3,952,072	5,218,059
Total	4,037,967	5,218,059
30-90 Days [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	794,824	973,201
Repurchase Agreements	2,763,570	5,291,729
Total	3,558,394	6,264,930
Greater than 90 Days [Member]
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items]
Securities Lending Arrangements	420,026	483,624
Repurchase Agreements	1,466,052	1,835,403
Total	$ 1,886,078	$ 2,319,027

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Collateralized Transactions - Additional Information (Detail) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Banking and Thrift [Abstract]
Fair value of securities received as collateral	$ 26,600,000	$ 26,200,000
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	$ 1,026,865	$ 751,084

XML

Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Detail) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Securities borrowing arrangements
Gross Amounts	$ 8,460,736	$ 6,975,136
Netting in Consolidated Statement of Financial Condition	0	0
Net Amounts in Consolidated Statement of Financial Condition	8,460,736	6,975,136
Additional Amounts Available for Setoff	(831,732)	(478,991)
Available Collateral	(1,063,399)	(667,099)
Net Amount	6,565,605	5,829,046
Reverse repurchase agreements
Gross Amounts	11,921,719	14,048,860
Netting in Consolidated Statement of Financial Condition	(7,883,525)	(10,191,554)
Net Amounts in Consolidated Statement of Financial Condition	4,038,194	3,857,306
Additional Amounts Available for Setoff	(133,611)	(83,452)
Available Collateral	(3,878,141)	(3,745,215)
Net Amount	26,442	28,639
Securities lending arrangements
Gross Amounts	2,930,376	2,979,300
Netting in Consolidated Statement of Financial Condition	0	0
Net Amounts in Consolidated Statement of Financial Condition	2,930,376	2,979,300
Additional Amounts Available for Setoff	(831,732)	(478,991)
Available Collateral	(2,038,342)	(2,464,395)
Net Amount	60,302	35,914
Repurchase agreements
Gross Amounts	16,013,959	20,195,982
Netting in Consolidated Statement of Financial Condition	(7,883,525)	(10,191,554)
Net Amounts in Consolidated Statement of Financial Condition	8,130,434	10,004,428
Additional Amounts Available for Setoff	(133,611)	(83,452)
Available Collateral	(6,707,666)	(8,103,468)
Net Amount	$ 1,289,157	$ 1,817,508

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Collateralized Transactions - Summary of Repurchase Agreements and Securities Borrowing and Lending Arrangements (Footnote) (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Banking and Thrift [Abstract]
Securities borrowing arrangements	$ 6,520.3	$ 5,796.1
Securities borrowing arrangements, collateral	6,315.7	5,613.3
Securities borrowing arrangements, repurchase agreements	1,278.2	1,807.2
Securities borrowing arrangements, pledged securities collateral	$ 1,326.2	$ 1,875.3

XML

Securitization Activities - Activity Related to Securitizations Accounted for as Sales (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Transfers and Servicing [Abstract]
Transferred assets	$ 1,390.7	$ 853.9	$ 4,523.5	$ 3,931.5
Proceeds on new securitizations	1,394.0	888.1	4,541.3	3,979.6
Cash flows received on retained interests	$ 6.3	$ 10.7	$ 24.9	$ 28.6

XML

Securitization Activities - Summary of Retained Interests in SPEs (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Total RMBS securitization assets	$ 16,661.6	$ 10,901.9
Total CMBS securitization assets	4,027.5	2,313.4
Total Collateralized loan obligations	3,747.5	4,538.4
Consumer and other loans	737.3	655.0
U.S. government agency residential mortgage-backed securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Retained Interests	32.6	203.6
U.S. government agency commercial mortgage-backed securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Retained Interests	22.7	87.2
Collateralized loan obligations [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Retained Interests	55.9	51.5
Consumer and other loans [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Retained Interests	$ 31.2	$ 31.0

XML

Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Securitization Vehicles [Member]
Variable Interest Entity [Line Items]
Assets	$ 704.8	$ 786.4
Liabilities	704.1	786.4
Securitization Vehicles [Member] | Cash [Member]
Variable Interest Entity [Line Items]
Assets	9.7	0.5
Securitization Vehicles [Member] | Financial Instruments Owned [Member]
Variable Interest Entity [Line Items]
Assets	90.6	68.3
Securitization Vehicles [Member] | Securities Purchased Under Agreement to Resell [Member]
Variable Interest Entity [Line Items]
Assets	604.0	717.3
Securitization Vehicles [Member] | Fees, Interest and Other Receivables [Member]
Variable Interest Entity [Line Items]
Assets	0.5	0.3
Securitization Vehicles [Member] | Other Secured Financings [Member]
Variable Interest Entity [Line Items]
Liabilities	692.8	785.0
Securitization Vehicles [Member] | Other Liabilities [Member]
Variable Interest Entity [Line Items]
Liabilities	11.3	1.4
Other [Member]
Variable Interest Entity [Line Items]
Assets	1.3	2.3
Liabilities	0.2	0.3
Other [Member] | Cash [Member]
Variable Interest Entity [Line Items]
Assets	0.7	1.5
Other [Member] | Financial Instruments Owned [Member]
Variable Interest Entity [Line Items]
Assets	0.6	0.6
Other [Member] | Securities Purchased Under Agreement to Resell [Member]
Variable Interest Entity [Line Items]
Assets	0.0	0.0
Other [Member] | Fees, Interest and Other Receivables [Member]
Variable Interest Entity [Line Items]
Assets	0.0	0.2
Other [Member] | Other Secured Financings [Member]
Variable Interest Entity [Line Items]
Liabilities	0.0	0.0
Other [Member] | Other Liabilities [Member]
Variable Interest Entity [Line Items]
Liabilities	$ 0.2	$ 0.3

XML

Variable Interest Entities - Assets and Liabilities of Consolidated VIEs Prior to Consolidation (Footnote) (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Securitization Vehicles [Member]
Variable Interest Entity [Line Items]
Secured financing included in inventory and eliminated	$ 86.5	$ 22.1

XML

Variable Interest Entities - Variable Interests in Non-Consolidated Variable Interest Entities (Detail) - Variable Interest Entity Not Primary Beneficiary [Member] - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Variable Interest Entity [Line Items]
Carrying Amount, Assets	$ 339.0	$ 352.5
Carrying Amount, Liabilities	7.6	0.2
Maximum exposure to loss in non-consolidated VIEs	1,057.0	1,422.5
VIE Assets	10,245.7	11,981.9
Collateralized loan obligations [Member]
Variable Interest Entity [Line Items]
Carrying Amount, Assets	73.3	73.6
Carrying Amount, Liabilities	7.6	0.2
Maximum exposure to loss in non-consolidated VIEs	326.7	458.1
VIE Assets	4,879.1	6,368.7
Consumer Loan Vehicles [Member]
Variable Interest Entity [Line Items]
Carrying Amount, Assets	170.0	188.3
Carrying Amount, Liabilities	0.0	0.0
Maximum exposure to loss in non-consolidated VIEs	607.2	845.8
VIE Assets	1,231.4	1,133.0
Related party private equity vehicles [Member]
Variable Interest Entity [Line Items]
Carrying Amount, Assets	38.3	39.3
Carrying Amount, Liabilities	0.0	0.0
Maximum exposure to loss in non-consolidated VIEs	64.2	65.8
VIE Assets	157.5	168.2
Other private investment vehicles [Member]
Variable Interest Entity [Line Items]
Carrying Amount, Assets	57.4	51.3
Carrying Amount, Liabilities	0.0	0.0
Maximum exposure to loss in non-consolidated VIEs	58.9	52.8
VIE Assets	$ 3,977.7	$ 4,312.0

XML

Variable Interest Entities - Non-consolidated VIEs - Additional Information (Detail) - USD ($)	Aug. 31, 2016	Nov. 30, 2015
Variable Interest Entity [Line Items]
Maximum exposure	$ 320,300,000
Agency mortgage-backed securities [Member]
Variable Interest Entity [Line Items]
Carrying amount	1,341,100,000	$ 3,359,100,000
Non agency mortgage-backed securities [Member]
Variable Interest Entity [Line Items]
Carrying amount	515,000,000	630,500,000
Related party private equity vehicles [Member] | JCP Entities [Member]
Variable Interest Entity [Line Items]
Equity investments	148,100,000
Funded equity commitments	125,100,000	124,600,000
Carrying amount of equity investment	38,300,000	39,300,000
Related party private equity vehicles [Member] | Jefferies Energy Partners I LP [Member]
Variable Interest Entity [Line Items]
Maximum exposure	3,000,000.0	3,000,000.0
Other private investment vehicles [Member]
Variable Interest Entity [Line Items]
Equity investments	75,800,000	50,800,000
Funded equity commitments	74,300,000	49,300,000
Carrying amount of equity investment	$ 57,400,000	$ 51,300,000

XML

Investments - Narrative (Details)	Aug. 31, 2016
Jefferies Capital Partners V L.P [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage	11.00%
SBI USA Fund L.P. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%

XML

Investments - Jefferies Finance - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015
Guarantee Obligations [Line Items]
Equity commitments to JFIN	$ 600,000		$ 600,000
Total committed equity capitalization of JIFN	1,200,000		1,200,000
Funded portion of equity commitment to subsidiary	497,400		497,400
Unfunded portion of equity commitment to subsidiary	102,600		$ 102,600
Extension period			1 year
Termination notice period			60 days
Funded portion of loan commitment	0		$ 0		$ 19,300
Loan commitment	250,000		250,000		250,000
Commissions for conducting brokerage services	152,044	$ 172,284	454,025	$ 512,714
Recognized underwriting fees				1,300
Investment banking revenue (loss)	294,930	389,820	778,906	1,066,077
Jefferies Finance, LLC [Member]
Guarantee Obligations [Line Items]
Net income (loss) in earnings	(22,800)	47,800	(55,000)	109,800
Net underwriting fees paid by JFIN related to originations of loans by JFIN	19,000	53,300	42,100	108,800
Fees paid to JFIN related to origination of loans by JFIN		1,500	1,600	3,100
Commissions for conducting brokerage services		1,300	1,300	3,100
Administrative services provided	7,200	$ 8,400	35,800	$ 43,300
Receivables under service agreement	0		0		$ 7,800
Corporate debt securities [Member]
Guarantee Obligations [Line Items]
Committed line of credit facility amount	$ 500,000		$ 500,000

XML

Investments - Summary of Selected Financial Information for Jefferies Finance (Detail) - Jefferies Finance, LLC [Member] - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Schedule of Equity Method Investments [Line Items]
Total assets	$ 7,344.9	$ 7,292.1
Total liabilities	6,406.2	6,297.3
Total equity	938.7	994.8
Our total equity balance	$ 469.3	$ 497.4

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Investments - Jefferies LoanCore - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015	May 31, 2016	Mar. 31, 2016	Feb. 29, 2016
Guarantee Obligations [Line Items]
Equity commitment	$ 600,000		$ 600,000
Jefferies LoanCore, LLC [Member]
Guarantee Obligations [Line Items]
Aggregate commitment						$ 400,000		$ 600,000
Funded portion of equity commitment to subsidiary			89,600		$ 207,400
Equity commitment	$ 194,000		$ 194,000		291,000
Percentage of the Variable Interest Entity's (VIE) voting interest	48.50%		48.50%
Net earnings from equity method investment	$ 13,400	$ 25,100	$ 36,100	$ 61,600
Administrative services provided	47	47	142	143
Receivables under service agreement	$ 16		$ 16		$ 16
Placement fees earned		$ 1,000		$ 1,600
Canada Pension Plan Investment Board [Member] | Jefferies LoanCore, LLC [Member]
Guarantee Obligations [Line Items]
Ownership percentage by third party							24.00%

XML

Investments - Summary of Selected Financial Information for Jefferies LoanCore (Detail) - Jefferies LoanCore, LLC [Member] - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Schedule of Equity Method Investments [Line Items]
Total assets	$ 1,610.4	$ 2,069.1
Total liabilities	1,264.6	1,469.8
Total equity	345.8	599.3
Our total equity balance	$ 167.7	$ 290.7

XML

Investments - JCP Funds - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015
Schedule of Equity Method Investments [Line Items]
Total committed equity capitalization	$ 1,200.0		$ 1,200.0
Unfunded portion of equity commitment to subsidiary	102.6		102.6
JCP Funds [Member]
Schedule of Equity Method Investments [Line Items]
Investment	28.8		28.8		$ 29.7
Gain (loss) from investment	5.8	$ (3.4)	(1.4)	$ (26.3)
Total committed equity capitalization	85.0		85.0		$ 85.0
Unfunded portion of equity commitment to subsidiary	$ 11.3		$ 11.3
Percent of financial information presented			100.00%
Ownership percentage	35.20%		35.20%

XML

Investments - Summary of Selected Financial Information for JCP Funds (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Net increase (decrease) in net assets resulting from operations	$ 17,137			$ (8,875)
JCP Funds [Member]
Schedule of Equity Method Investments [Line Items]
Total assets	81,855		$ 76,555
Total liabilities	68		99
Total partners' capital	$ 81,787		76,456
Net increase (decrease) in net assets resulting from operations		$ (11,806)	$ (7,886)		$ 1,478	$ (65,700)

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Goodwill and Other Intangible Assets - Goodwill (Detail) $ in Thousands	9 Months Ended
	Aug. 31, 2016 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 1,656,588
Translation adjustments	(11,295)
Goodwill, Ending Balance	1,645,293
Investment Banking, Equities, and Fixed Income [Member]
Goodwill [Roll Forward]
Goodwill, Ending Balance	1,642,300
Capital Markets [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	1,653,588
Goodwill, Ending Balance	1,642,293
Asset Management Income [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	3,000
Goodwill, Ending Balance	$ 3,000

XML

Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2016	Nov. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Total gross costs - intangible assets	$ 266,786	$ 266,786	$ 270,852
Accumulated amortization - finite lived intangible assets	(53,337)	(53,337)	(45,069)
Disposals - indefinite lived intangible assets	(1,379)	(1,379)
Impairment of intangible assets	1,300	1,284
Total net carrying amount - intangible assets	210,786	210,786	225,783
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross costs - finite lived intangible assets	126,081	126,081	127,667
Accumulated amortization - finite lived intangible assets	(40,453)	(40,453)	(34,754)
Net carrying amount - finite lived intangible assets	85,628	$ 85,628	$ 92,913
Weighted average remaining lives (years)		12 years 4 months	12 years 10 months 23 days
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross costs - finite lived intangible assets	128,845	$ 128,845	$ 131,288
Accumulated amortization - finite lived intangible assets	(12,884)	(12,884)	(10,315)
Net carrying amount - finite lived intangible assets	115,961	$ 115,961	$ 120,973
Weighted average remaining lives (years)		31 years 6 months	32 years 3 months 18 days
Exchange and Clearing Organization Membership Interests and Registrations [Member]
Finite-Lived Intangible Assets [Line Items]
Gross costs - indefinite lived intangible assets	11,860	$ 11,860	$ 11,897
Accumulated amortization - finite lived intangible assets			0
Disposals - indefinite lived intangible assets	(1,379)	(1,379)
Impairment of intangible assets		1,284
Net carrying amount - indefinite lived intangible assets	$ 9,197	$ 9,197	$ 11,897

XML

Goodwill and Other Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate amortization expense	$ 3,000	$ 3,100	$ 9,100	$ 9,200
Remainder of fiscal 2016	3,049		3,049
Year ended November 30, 2017	12,198		12,198
Year ended November 30, 2018	12,198		12,198
Year ended November 30, 2019	12,198		12,198
Year ended November 30, 2020	$ 12,198		$ 12,198

XML

Short-Term Borrowings (Detail)				3 Months Ended		9 Months Ended
	Feb. 19, 2016 USD ($)	Oct. 29, 2015 USD ($)	Apr. 23, 2015 USD ($)	Aug. 31, 2016 USD ($)	Aug. 31, 2015 USD ($)	Aug. 31, 2016 USD ($)	Aug. 31, 2015 USD ($)	Jul. 29, 2016 EUR (€)	May 03, 2016 EUR (€)	Apr. 08, 2016 EUR (€)	Nov. 30, 2015 USD ($)
Short-term Debt [Line Items]
Short-term borrowings				$ 432,235,000		$ 432,235,000					$ 310,659,000
Interest rate on short-term borrowings outstanding				1.47%		1.47%
Average daily short-term borrowings				$ 414,400,000	$ 18,500,000	$ 372,300,000	$ 44,900,000
Long-term debt				5,482,738,000		5,482,738,000					5,640,722,000
Floating rate puttable notes [Member]
Short-term Debt [Line Items]
Short-term borrowings				101,538,000		101,538,000					0
Bank loans [Member]
Short-term Debt [Line Items]
Short-term borrowings				262,711,000		262,711,000					262,000,000
Bank loans [Member] | Floating rate puttable notes [Member]
Short-term Debt [Line Items]
Debt principal amount | €								€ 50,000,000.0	€ 11,000,000	€ 30,000,000
Secured revolving loan facility [Member] | Revolving Loan Facility [Member]
Short-term Debt [Line Items]
Short-term borrowings				67,986,000		67,986,000					$ 48,659,000
Credit facility maximum borrowing capacity		$ 50,000,000
Secured revolving loan facility [Member] | Revolving Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt [Line Items]
Basis spread on variable rate		3.75%
Bank Overdrafts [Member]
Short-term Debt [Line Items]
Short-term borrowings				700,000		700,000
Line of Credit [Member] | Demand Loan Facility [Member]
Short-term Debt [Line Items]
Credit facility maximum borrowing capacity	$ 25,000,000.0
Line of Credit [Member] | Demand Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Short-term Debt [Line Items]
Basis spread on variable rate	1.50%
Line of Credit [Member] | Intraday Credit Facility [Member]
Short-term Debt [Line Items]
Credit facility maximum borrowing capacity			$ 300,000,000.0
Line of Credit [Member] | Intraday Credit Facility [Member] | Prime Rate [Member]
Short-term Debt [Line Items]
Basis spread on variable rate			0.50%
Euro Medium Term Note Program [Member]
Short-term Debt [Line Items]
Long-term debt				$ 2,000,000,000.0		$ 2,000,000,000.0

XML

Long-Term Debt - Summary of Long-Term Debt Carrying Values Including Unamortized Discounts and Premiums (Detail) - USD ($) $ in Thousands	Aug. 31, 2016	Nov. 30, 2015
Debt Instrument [Line Items]
Long-term debt	$ 5,482,738	$ 5,640,722
Structured Notes [Member]
Debt Instrument [Line Items]
Long-term debt	211,094	0
Unsecured Debt [Member] | 5.5% Senior Notes, due 2016 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	353,025
Debt instrument interest rate	5.50%
Effective interest rate	2.52%
Unsecured Debt [Member] | 5.125% Senior Notes, due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 820,974	830,298
Debt instrument interest rate	5.125%
Effective interest rate	3.46%
Unsecured Debt [Member] | 8.5% Senior Notes, due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 785,411	806,125
Debt instrument interest rate	8.50%
Effective interest rate	4.00%
Unsecured Debt [Member] | 2.375% Euro Medium Term Notes, due 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 555,962	526,436
Debt instrument interest rate	2.375%
Effective interest rate	2.42%
Unsecured Debt [Member] | 6.875% Senior Note, due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 827,601	838,765
Debt instrument interest rate	6.875%
Effective interest rate	4.40%
Unsecured Debt [Member] | 2.25% Euro Medium Term Notes, due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 4,035	3,779
Debt instrument interest rate	2.25%
Effective interest rate	4.08%
Unsecured Debt [Member] | 5.125% Senior Notes, due 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 619,000	620,890
Debt instrument interest rate	5.125%
Effective interest rate	4.55%
Unsecured Debt [Member] | 6.45% Senior Debentures, due 2027 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 378,292	379,711
Debt instrument interest rate	6.45%
Effective interest rate	5.46%
Unsecured Debt [Member] | 3.875% Convertible Senior Debentures due 2029 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 346,473	347,307
Debt instrument interest rate	3.875%
Effective interest rate	3.50%
Unsecured Debt [Member] | 6.25% Senior Debentures, due 2036 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 512,481	512,730
Debt instrument interest rate	6.25%
Effective interest rate	6.03%
Unsecured Debt [Member] | 6.50% Senior Notes, due 2043 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 421,415	$ 421,656
Debt instrument interest rate	6.50%
Effective interest rate	6.09%

XML

Long-Term Debt - Additional Information (Detail)		9 Months Ended
	Sep. 15, 2016 USD ($) $ / shares	Aug. 31, 2016 USD ($) Trading_day	Jan. 21, 2016 USD ($)	Nov. 30, 2015 USD ($)
Debt Instrument [Line Items]
Long-term borrowings matured or retired during period		$ 350,000,000
Long-term debt		5,482,738,000		$ 5,640,722,000
Leucadia [Member] | Subsequent event [Member]
Debt Instrument [Line Items]
Debenture principal amount	$ 1,000
Debt instrument convertible conversion ratio	22.7041
Conversion price of common stock (dollars per share) | $ / shares	$ 44.04
3.875% Convertible Senior Debentures due 2029 [Member]
Debt Instrument [Line Items]
Debt principal amount		$ 345,000,000.0
Senior long-term debt, interest rate		3.875%
3.875% Convertible Senior Debentures due 2029 [Member] | Leucadia [Member]
Debt Instrument [Line Items]
Senior long-term debt, interest rate		3.875%
Debt instrument convertible conversion ratio (greater than)		130.00%
Earliest period of conversion price | Trading_day		20
Latest period of conversion price		30 days
Less than trading price per debenture related to common stock		95.00%
Consecutive trading days		10 days
Contingent interest		0.375%
Threshold trading days		5 days
Interest period		6 months
Trading price of contingent interest		$ 1,200
Euro Medium Term Note Program [Member]
Debt Instrument [Line Items]
Long-term debt		2,000,000,000.0
Class A Notes, Due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt			$ 15,000,000
Class B Notes, Due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt			$ 7,500,000
Structured Notes [Member]
Debt Instrument [Line Items]
Long-term debt		211,094,000		$ 0
Structured Notes [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt fair value		204,400,000
Debt principal amount		$ 218,600,000

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Noncontrolling Interests (Detail) - USD ($)	Dec. 01, 2015	Aug. 31, 2016	Nov. 30, 2015
Noncontrolling Interest [Line Items]
Noncontrolling interests		$ 5,190,000	$ 27,468,000
Gain (loss) recognized upon deconsolidation	$ 0
Global Equity Event Opportunity Fund LLC [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interests		4,547,000	26,292,000
Other [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interests		$ 643,000	1,176,000
Leucadia [Member]
Noncontrolling Interest [Line Items]
Noncontrolling interests			$ 26,300,000

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Benefit Plans - Additional Information (Detail) - USD ($)	9 Months Ended
	Aug. 31, 2016	Nov. 30, 2015
U.S Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions made to pension plan	$ 3,000,000
Contributions expected to be made to pension plan	0
German Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Investment in insurance contract	16,000,000	$ 15,300,000
Contributions made to pension plan	0
Contributions expected to be made to pension plan	$ 0

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Benefit Plans - Components of Net Periodic Pension (Benefit) Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
U.S Pension Plan [Member]
Components of net periodic pension cost (income):
Service cost	$ 100	$ 63	$ 300	$ 189
Interest cost on projected benefit obligation	587	585	1,761	1,755
Expected return on plan assets	(730)	(848)	(2,190)	(2,544)
Net periodic pension income	(43)	(200)	(129)	(600)
German Pension Plan [Member]
Components of net periodic pension cost (income):
Interest cost on projected benefit obligation	133	132	398	395
Net amortization	83	82	246	245
Net periodic pension income	$ 216	$ 214	$ 644	$ 640

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Compensation Plans - Compensation Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Profit sharing plan	$ 1.0	$ 0.6	$ 5.3	$ 5.3
Total compensation cost	63.4	53.8	213.2	202.0
Restricted Cash Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted cash awards	56.0	39.4	190.1	142.9
Restricted Stock and RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock and RSUs	$ 6.4	$ 13.8	$ 17.8	$ 53.8

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Compensation Plans - Remaining Unamortized Amounts (Details) $ in Millions	9 Months Ended
	Aug. 31, 2016 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining Unamortized Amounts	$ 529.0
Nonvested Share-Based Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining Unamortized Amounts	$ 29.2
Weighted Average Vesting Period (in Years)	2 years
Restricted Cash Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining Unamortized Amounts	$ 499.8
Weighted Average Vesting Period (in Years)	3 years

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Compensation Plans - Additional Information (Detail)	9 Months Ended
	Aug. 31, 2016 USD ($) Hour
Compensation Related Costs [Abstract]
Vesting period	4 years
Number of years in which restricted stock awards amortized as compensation expense	4 years
Minimum work hours required for part-time employees to purchase ESPP | Hour	20
Annual employee contributions | $	$ 21,250
Employee service share based compensation plan stock price	95.00%

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Aug. 31, 2016	Nov. 30, 2015
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 106.1	$ 107.9
Unrecognized tax benefits that would impact effective tax rate in future	71.0	71.9
Accrued interest on unrecognized tax benefits	$ 38.3	$ 32.8

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Income Taxes - Earliest Tax Year Subject to Examination in the Major Tax Jurisdictions in which the Company Operates (Detail)	9 Months Ended
	Aug. 31, 2016
United States [Member]
Income Tax Examination [Line Items]
Tax Year	2007
California [Member]
Income Tax Examination [Line Items]
Tax Year	2007
New Jersey [Member]
Income Tax Examination [Line Items]
Tax Year	2010
New York State [Member]
Income Tax Examination [Line Items]
Tax Year	2001
New York City [Member]
Income Tax Examination [Line Items]
Tax Year	2003
United Kingdom [Member]
Income Tax Examination [Line Items]
Tax Year	2014
Hong Kong [Member]
Income Tax Examination [Line Items]
Tax Year	2009

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Commitments, Contingencies and Guarantees - Commitments and Contingencies (Detail) $ in Millions	Aug. 31, 2016 USD ($)
Other Commitments [Line Items]
2016	$ 1,071.6
2017	943.3
2018 and 2019	1,374.2
2020 and 2021	92.4
2022 and Later	246.0
Notional/ Maximum Payout	3,727.5
Equity commitments [Member]
Other Commitments [Line Items]
2016	1.5
2017	7.9
2018 and 2019	0.0
2020 and 2021	11.3
2022 and Later	213.7
Notional/ Maximum Payout	234.4
Loan commitments [Member]
Other Commitments [Line Items]
2016	0.0
2017	306.4
2018 and 2019	82.2
2020 and 2021	54.4
2022 and Later	0.0
Notional/ Maximum Payout	443.0
Mortgage-related and other purchase commitments [Member]
Other Commitments [Line Items]
2016	838.0
2017	263.2
2018 and 2019	1,265.2
2020 and 2021	21.6
2022 and Later	0.0
Notional/ Maximum Payout	2,388.0
Underwriting commitments [Member]
Other Commitments [Line Items]
2016	0.0
2017	223.2
2018 and 2019	0.0
2020 and 2021	0.0
2022 and Later	0.0
Notional/ Maximum Payout	223.2
Forward starting reverse repos and repos [Member]
Other Commitments [Line Items]
2016	166.3
2017	0.0
2018 and 2019	0.0
2020 and 2021	0.0
2022 and Later	0.0
Notional/ Maximum Payout	166.3
Other unfunded commitments [Member]
Other Commitments [Line Items]
2016	65.8
2017	142.6
2018 and 2019	26.8
2020 and 2021	5.1
2022 and Later	32.3
Notional/ Maximum Payout	$ 272.6

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Commitments, Contingencies and Guarantees - Additional Information (Detail) £ in Millions, $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2016 GBP (£)	Aug. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Contractual obligation | £	£ 8.1
Contractual obligation period for 18 years	18 years
Loan commitments outstanding to clients		$ 192.9
Fair value of mortgage-related commitments		185.2
Fair value of derivative contracts approximated deemed to meet the definition of a guarantee		320.3
Maximum amount payable under guarantee		21.3
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Letters of credit commitments		$ 36.5
Standby letters of credit expiration period		2 years
Jefferies Capital Partners LLC [Member]
Loss Contingencies [Line Items]
Outstanding equity commitments		$ 23.1
Other Investments [Member]
Loss Contingencies [Line Items]
Outstanding equity commitments		$ 4.3

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Commitments, Contingencies and Guarantees - Guarantees (Detail) $ in Millions	Aug. 31, 2016 USD ($)
Guarantee Obligations [Line Items]
Notional/ Maximum Payout	$ 3,727.5
Derivative contracts - non-credit related [Member]
Guarantee Obligations [Line Items]
2016	20,564.3
2017	5,702.8
2018 and 2019	377.9
2020 and 2021	0.0
2022 and Later	437.4
Notional/ Maximum Payout	27,082.4
Written derivative contracts - credit related [Member]
Guarantee Obligations [Line Items]
2016	0.0
2017	0.0
2018 and 2019	91.7
2020 and 2021	258.7
2022 and Later	0.0
Notional/ Maximum Payout	350.4
Derivatives [Member]
Guarantee Obligations [Line Items]
2016	20,564.3
2017	5,702.8
2018 and 2019	469.6
2020 and 2021	258.7
2022 and Later	437.4
Notional/ Maximum Payout	$ 27,432.8

XML

Commitments, Contingencies and Guarantees - External Credit Ratings of Underlying or Referenced Assets for Credit Related Derivatives Contracts (Detail) $ in Millions	Aug. 31, 2016 USD ($)
Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	$ 107.7
Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	242.7
Below Investment Grade [Member] | Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	0.0
Below Investment Grade [Member] | Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	144.2
AAA/Aaa [Member] | Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	24.0
AAA/Aaa [Member] | Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	0.0
AA/Aa [Member] | Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	0.0
AA/Aa [Member] | Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	0.0
A [Member] | Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	0.0
A [Member] | Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	59.9
BBB/Baa [Member] | Index credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	83.7
BBB/Baa [Member] | Single name credit default swaps [Member]
Credit Derivatives [Line Items]
External credit ratings	$ 38.6

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Net Capital Requirements - Net Capital, Adjusted and Excess Net Capital (Detail) $ in Thousands	Aug. 31, 2016 USD ($)
Jefferies [Member]
Net Capital Requirements [Line Items]
Net Capital	$ 1,424,378
Excess Net Capital	1,340,682
Jefferies Execution [Member]
Net Capital Requirements [Line Items]
Net Capital	7,330
Excess Net Capital	$ 7,080

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Segment Reporting - Additional Information (Detail)	9 Months Ended
	Aug. 31, 2016 segment
Segment Reporting [Abstract]
Number of operating segments	2

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Segment Reporting - Net Revenues, Expenses and Total Assets by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 654,450	$ 578,928	$ 1,672,845	$ 1,962,154
Expenses	573,728	571,835	1,739,402	1,857,465
Segment assets	38,127,677		38,127,677		$ 38,563,972
Capital Markets [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	641,900	565,100	1,601,600	1,916,700
Expenses	558,200	564,500	1,693,600	1,829,300
Segment assets	37,305,700		37,305,700		37,804,900
Asset management [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	12,600	13,800	71,200	45,500
Expenses	15,500	$ 7,300	45,800	$ 28,200
Segment assets	$ 821,900		$ 821,900		$ 759,000

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Segment Reporting - Net Revenues by Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Revenues:
Net revenues	$ 654,450	$ 578,928	$ 1,672,845	$ 1,962,154
Americas [Member]
Revenues:
Net revenues	500,190	454,996	1,257,192	1,508,639
Europe [Member]
Revenues:
Net revenues	126,476	103,959	349,700	392,163
Asia [Member]
Revenues:
Net revenues	$ 27,784	$ 19,973	$ 65,953	$ 61,352

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2016	Mar. 31, 2016	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Nov. 30, 2015
Related Party Transaction [Line Items]
Purchase commitments from Berkadia Commercial Mortgage, LLC					$ 685,000		$ 752,400
Loans outstanding to certain employees			$ 40,700		40,700		28,300
Noncontrolling interests			5,190		5,190		27,468
Leucadia Funding LLC [Member]
Related Party Transaction [Line Items]
Capital contribution	$ 30,000
Leucadia [Member]
Related Party Transaction [Line Items]
Noncontrolling interests							26,300
Capital contribution		$ 114,000
Leucadia [Member] | Other Assets [Member]
Related Party Transaction [Line Items]
Tax receivable			146,300		146,300		109,500
Harbinger Group Inc [Member]
Related Party Transaction [Line Items]
Unsettled purchases and sales of loans							261,600
Harbinger Group Inc [Member] | Investment Banking [Member]
Related Party Transaction [Line Items]
Revenue from related parties						$ 1,300
Leucadia [Member]
Related Party Transaction [Line Items]
Revenue from related parties			5,100	$ 11,000	19,600	$ 22,200
Due from related party			2,100		2,100		10,200
Due to related party			3,300		3,300		600
Private Equity Related Funds [Member] | Affiliated Entity [Member]
Related Party Transaction [Line Items]
Equity investments loans in related funds			$ 38,400		$ 38,400		$ 39,600

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Related Party Transactions - Summary of Interest Income, Other Revenues and Investment Income to Private Equity Related Funds (Detail) - Private Equity Related Funds [Member] - Affiliated Entity [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Related Party Transaction [Line Items]
Other revenues and investment income (loss)	$ 6,048	$ (3,495)	$ (1,664)	$ (27,707)
Service charges	$ 201	$ 630	$ 537	$ 1,089

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Related Party Transactions - Revenue by Service (Details) - Leucadia [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Related Party Transaction [Line Items]
Revenue from related parties	$ 5,100	$ 11,000	$ 19,600	$ 22,200
Investment banking and advisory [Member]
Related Party Transaction [Line Items]
Revenue from related parties	0	0	1,786	21,200
Asset management [Member]
Related Party Transaction [Line Items]
Revenue from related parties	10	102	155	405
Commissions and other fees [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 0	$ 1	$ 88	$ 38

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Exit Costs - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Jul. 31, 2015
Restructuring Cost and Reserve [Line Items]
Pre-tax loss	$ (80,722,000)	$ (7,093,000)	$ 66,557,000	$ (104,689,000)
Non-cash restructuring costs		10,200,000	341,000	21,000,000
Futures business [Member]
Restructuring Cost and Reserve [Line Items]
Pre-tax loss		64,100,000	$ 1,900,000	114,800,000
Line of Credit [Member]
Restructuring Cost and Reserve [Line Items]
Credit Facility terminated					$ 750,000,000.0
Credit Facility costs		$ 2,700,000		$ 3,800,000

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Exit Costs - Restructuring and Impairment Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Restructuring Cost and Reserve [Line Items]
Impairment costs	$ 0	$ 33,273	$ 1,854	$ 61,843
Compensation and Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	13,815	320	33,834
Technology and Communications [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	17,935	1,234	24,195
Professional Services [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	444	0	2,477
Other Expense [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	1,079	300	1,337
Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	11,373	279	26,932
Accelerated Amortization of Restricted Stock and Restricted Cash Awards [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	2,442	41	6,902
Accelerated Amortization of Capitalized Software [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	6,719	0	12,979
Contract Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	11,216	1,234	11,216
Other Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	$ 0	$ 1,523	$ 300	$ 3,814

XML

Exit Costs - Restructuring Reserve (Details) $ in Thousands	9 Months Ended
	Aug. 31, 2016 USD ($)
Restructuring Reserve [Roll Forward]
Expenses	$ 1,854
Severance Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at November 30, 2015	4,805
Expenses	279
Payments	(5,084)
Liability at August 31, 2016	0
Other Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at November 30, 2015	0
Expenses	300
Payments	(300)
Liability at August 31, 2016	0
Contract Termination Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at November 30, 2015	0
Expenses	1,234
Payments	(1,234)
Liability at August 31, 2016	0
Total Restructuring Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at November 30, 2015	4,805
Expenses	1,813
Payments	(6,618)
Liability at August 31, 2016	0
Accelerated Amortization of Restricted Stock and Restricted Cash Awards [Member]
Restructuring Reserve [Roll Forward]
Expenses	$ 41