Exit Costs

Jefferies Bache. On April 9, 2015, Jefferies entered into an agreement with Société Générale S.A. (the "Agreement") to transfer certain client exchange and over-the-counter transactions associated with Jefferies futures 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. The transfer was subject to customary closing conditions for a transaction of this nature. In addition, Jefferies initiated a plan to substantially exit the remaining aspects of its futures business. At September 30, 2015, Jefferies has transferred virtually all of its client accounts to Société Générale S.A. and other brokers. Jefferies substantially completed the exit of the Bache business during its third quarter of 2015.

In addition, Jefferies terminated its $750.0 million credit facility on July 31, 2015. During the three and nine months ended September 30, 2015, Jefferies recognized costs of $2.7 million and $3.8 million, respectively, related to the Credit Facility.

During the three and nine months ended September 30, 2015, Jefferies recorded restructuring and impairment costs as follows (in thousands):



	For the Three Months Ended September 30, 2015		For the Nine Months Ended September 30, 2015

Severance costs	$	11,373	$	26,932
Accelerated amortization of restricted stock and restricted cash awards	2,442		6,902
Accelerated amortization of capitalized software	6,719		12,979
Contract termination costs	11,216		11,216
Selling, general and other expenses	1,523		3,814
Total	$	33,273	$	61,843

Of the above costs, $10.2 million and $21.0 million for the three and nine months ended September 30, 2015, respectively, are of a non-cash nature.

Restructuring and exit costs are wholly attributed to Jefferies Capital Markets business. Severance costs and amortization of restricted stock and restricted cash awards are recorded as Compensation and benefits, amortization of capitalized software is recorded as Depreciation and amortization and contract termination costs are recorded as Selling, general and other expenses on the Consolidated Statements of Operations for the three and nine months ended September 30, 2015.

Jefferies expects to incur approximately an additional $12.0 million of restructuring and exit costs through the remainder of 2015 in connection with its exit activities comprised of severance and related benefits, including additional amortization for restricted stock and restricted cash awards, contract termination costs and additional amortization of capitalized software.

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



	Severance costs			Other costs			Contract termination costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Accelerated amortization of capitalized software		Impairments		Total
Balance at March 31, 2015	$	—		$	—		$	—		$	—
Expenses	26,932			2,735			11,216			40,883			$	6,902	$	12,979	$	1,079	$	61,843
Payments	(13,770		)	(2,507		)	(11,213		)	(27,490		)
Liability at September 30, 2015	$	13,162		$	228		$	3		$	13,393