Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operating segments consist of our consolidated businesses, which offer different products and services and are managed separately.  Our reportable segments, based on qualitative and quantitative requirements, are Jefferies, National Beef, and Corporate and other.  Jefferies is a global full-service, integrated securities and investment banking firm.  National Beef processes and markets fresh boxed beef, case-ready beef, beef by-products and wet blue leather for domestic and international markets. 

Corporate and other assets primarily consist of financial instruments owned, the deferred tax asset (exclusive of Jefferies deferred tax asset), cash and cash equivalents and Corporate and other revenues primarily consist of interest, other income and net realized securities gains and losses.  We do not allocate Corporate and other revenues or overhead expenses to the operating units.

All other consists of our other financial services businesses and investments and our other merchant banking businesses and investments.  Our other financial services businesses and investments include the Leucadia Asset Management platform, specialty finance companies, the commercial mortgage banking investment, the investment in HomeFed and the investment in FXCM.  Our other merchant banking businesses and investments primarily include manufacturing, oil and gas exploration and development, real estate, and our investments in HRG, fixed wireless broadband services, automobile dealerships, and our gold and silver mining project.

Certain information concerning our segments for the three and six months ended June 30, 2016 and 2015 is presented in the following table.  Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired.  As discussed above, Jefferies is reflected in our consolidated financial statements utilizing a one month lag.

	For the   Three Months Ended   June 30,						For the   Six Months Ended   June 30,
	2016			2015			2016			2015
	(In thousands)
Net Revenues:
Reportable Segments:
Jefferies	$	720,930		$	792,431		$	1,021,716		$	1,383,872
National Beef	1,798,634			1,994,865			3,433,085			3,850,884
Corporate and other	10,492			13,844			77,348			34,160
Total net revenues related to reportable segments	2,530,056			2,801,140			4,532,149			5,268,916
All other (1)	95,302			38,323			108,315			776,230
Intercompany eliminations (2)	—			—			—			(21,000		)
Total consolidated net revenues	$	2,625,358		$	2,839,463		$	4,640,464		$	6,024,146
Income (loss) before income taxes:
Reportable Segments:
Jefferies	$	107,480		$	91,345		$	(138,317	)	$	104,269
National Beef	62,855			(9,400		)	84,264			(42,985		)
Corporate and other	(7,191		)	4,282			40,545			(5,147		)
Income (loss) before income taxes related to reportable segments	163,144			86,227			(13,508		)	56,137
All other (1)	(8,963		)	(61,010		)	(119,560		)	580,922
Parent Company interest	(14,719		)	(24,754		)	(29,433		)	(49,489		)
Total consolidated income (loss) before income taxes	$	139,462		$	463		$	(162,501	)	$	587,570
Depreciation and amortization expenses:
Reportable Segments:
Jefferies	$	14,633		$	22,326		$	29,223		$	44,576
National Beef	22,785			22,081			45,411			43,868
Corporate and other	944			933			1,887			1,903
Total depreciation and amortization expenses related to reportable segments	38,362			45,340			76,521			90,347
All other	12,407			9,900			23,858			17,333
Total consolidated depreciation and amortization expenses	$	50,769		$	55,240		$	100,379		$	107,680

(1) All other revenue and income (loss) before income taxes include realized and unrealized gains (losses) relating to our investment in FXCM of $(47.9) million and $(112.1) million for the three months ended June 30, 2016 and 2015, respectively, and $(101.1) million and $574.5 million for the six months ended June 30, 2016 and 2015, respectively.

(2) Revenue intercompany elimination for the six months ended June 30, 2015 relates to investment banking and advisory fee paid to Jefferies in connection with our entering into the agreement with FXCM.

Interest expense classified as a component of Net revenues relates to Jefferies.  For the three months ended June 30, 2016 and 2015, interest expense classified as a component of Expenses was primarily comprised of National Beef ($3.8 million and $4.3 million, respectively) and parent company interest ($14.7 million and $24.8 million, respectively). For the six months ended June 30, 2016 and 2015, interest expense classified as a component of Expenses was primarily comprised of National Beef ($7.8 million and $8.7 million, respectively) and parent company interest ($29.4 million and $49.5 million, respectively).