10-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                For the fiscal year ended December 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:  1-5721

LEUCADIA NATIONAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

New York	13-2615557
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

520 Madison Avenue

New York, New York 10022

(212) 460-1900

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Shares, par value $1 per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None.

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes ¨  No  x

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 x 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 x   No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statement incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   x

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. (Check one):

Large accelerated filer x	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 x

Aggregate market value of the voting stock of the registrant held by non-affiliates of the registrant at June 30, 2016 (computed by reference to the last reported closing sale price of the Common Shares on the New York Stock Exchange on such date):  $5,757,059,412.

On February 16, 2017, the registrant had outstanding 359,807,465 Common Shares.

DOCUMENTS INCORPORATED BY REFERENCE:

Certain portions of the registrant’s Definitive Proxy Statement pursuant to Regulation 14A of the Securities Exchange Act of 1934 in connection with the 2016 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.

LOCATION OF EXHIBIT INDEX

The index of exhibits is contained in Part IV on page 67.

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PART I

Item 1. Business.

Overview

Leucadia National Corporation ("Leucadia" or the "Company") is a diversified holding company focused on long-term value creation to maximize shareholder value. Our financial services businesses include Jefferies (investment banking and capital markets), Leucadia Asset Management (asset management), Berkadia (commercial mortgage banking, investment sales and servicing), FXCM (provider of online foreign exchange trading services), HomeFed (a publicly traded real estate company) and Foursight Capital (vehicle finance).  We also own and have investments in a diverse array of other businesses, including National Beef (beef processing), HRG Group (insurance and consumer products), Vitesse Energy and Juneau Energy (oil and gas exploration and development), Garcadia (automobile dealerships), Linkem (fixed wireless broadband services in Italy), Idaho Timber (manufacturing), and Golden Queen (gold and silver mining project).  The structure of each of our investments was tailored to the unique opportunity each transaction presented.  Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings.

We continuously review acquisitions of businesses, securities and assets that have the potential for significant long-term value creation, invest in a broad array of businesses, and periodically evaluate the retention and disposition of one or more of our existing businesses and investments.  Changes in the mix of our businesses and investments should be expected.

At December 31, 2016, we and our investee companies had approximately 36,000 full-time employees, of which approximately 13,000 were full-time employees of Leucadia and our consolidated subsidiaries.

Our executive offices are located at 520 Madison Avenue, New York, NY 10022, as is the global headquarters of Jefferies, our largest subsidiary in terms of invested capital.  Our primary telephone number is (212) 460-1900 and our website address is www.leucadia.com.

The following discussion should be read in conjunction with the Risk Factors presented in Item 1A of Part I and the Cautionary Statement for Forward-Looking Information and Management's Discussion and Analysis of Financial Condition and Results of Operations set forth in Item 7 of Part II.

Recent Events

In January 2017, we sold 100% of Conwed Plastics (“Conwed”) to Schweitzer-Mauduit International, Inc., (NYSE:SWM) for $295 million in cash plus potential earn-out payments over five years of up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. At December 31, 2016, the net book value of our investment in Conwed was $100.6 million. The pre-tax gain of approximately $180 million recognized upon closing will be reflected in our results of operations for the three months ended March 31, 2017.

Also in January 2017, we participated in a preferred equity financing for Linkem. Existing shareholders, along with funds managed by BlackRock, invested €100 million in cash in exchange for shares of Linkem to fund future expansion plans, of which Leucadia's share was €30 million. The financing was based on a pre-money valuation of €700 million (post-money valuation of €800 million) and our fully-diluted ownership post-transaction is 53%.

In September 2016, we completed the previously announced restructuring of our investment in FXCM Group, LLC ("FXCM"), in which we converted our participation rights to a direct equity interest in the operating business, agreed to shared board oversight, modified the loan terms to allow more time to optimize remaining asset sales, and adopted a long-term incentive plan for senior management. In accordance with this agreement, as of December 31, 2016, we have a 49.9% membership interest in FXCM and up to 65% of all distributions; we have appointed three directors from Leucadia and three have been appointed by FXCM Holdings, LLC ("FXCM Holdings"); the outstanding balance of the term loan, due January 2018, is $154.5 million; and FXCM has adopted a long-term incentive bonus plan, which is designed to incentivize FXCM senior management to maximize cash flow generation and the growth of the business.

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Financial Services Businesses

The following provides more information about each of our financial services businesses and investments and our ownership percentages:

• Jefferies, 100% (investment banking & capital markets);

• Leucadia Asset Management, various (asset management);

• FXCM, 49.9% (online foreign exchange trading);

• HomeFed, 65% (45% voting) (real estate);

• Berkadia, 50% (commercial mortgage banking, investment sales and servicing); and

• Foursight Capital, 100% (vehicle finance).

Jefferies

Jefferies is a global full-service, integrated securities and investment banking firm. Jefferies largest subsidiary, Jefferies LLC, was founded in the U.S. in 1962 and its first international operating subsidiary, Jefferies International Limited, was established in the U.K. in 1986. On March 1, 2013, Jefferies Group, Inc. converted into a limited liability company (renamed Jefferies Group LLC) and became an indirect wholly owned subsidiary of Leucadia National Corporation. Following the merger, Jefferies Group LLC retains a credit rating separate from Leucadia and remains an SEC reporting company, filing annual, quarterly and periodic financial reports.  As of November 30, 2016, Jefferies had 3,329 employees in the Americas, Europe, the Middle East and Asia. The net book value (assets less liabilities and noncontrolling interests) of our investment in Jefferies was $5.4 billion at December 31, 2016.

Equities

Equities Research, Sales and Trading

Jefferies provides its clients full-service equities research, sales and trading capabilities across global securities markets. Jefferies earns commissions or spread revenue by executing, settling and clearing transactions for clients across these markets in equity and equity-related products, including common stock, American depository receipts, global depository receipts, exchange-traded funds, exchange-traded and over-the-counter (“OTC”) equity derivatives, convertible and other equity-linked products and closed-end funds. Jefferies equity research, sales and trading efforts are organized across three geographical regions: the Americas; Europe and the Middle East and Africa (“EMEA”); and Asia Pacific. Jefferies main product lines within the regions are cash equities, electronic trading, equity derivatives and convertibles. Jefferies clients are primarily institutional market participants such as mutual funds, hedge funds, investment advisors, pension and profit sharing plans, and insurance companies. Through its global research team and sales force, Jefferies maintains relationships with its clients, distributes investment research and strategy, trading ideas, market information and analyses across a range of industries and receives and executes client orders. Jefferies equity research covers over 2,000 companies around the world and a further nearly 700 companies are covered by nine leading local firms in Asia Pacific with whom Jefferies maintains alliances.

Equity Finance

Jefferies Equity Finance business provides financing, securities lending and other prime brokerage services. Jefferies offers prime brokerage services in the U.S. that provide hedge funds, money managers and registered investment advisors with execution, financing, clearing, reporting and administrative services. Jefferies finances its clients’ securities positions through margin loans that are collateralized by securities, cash or other acceptable liquid collateral. Jefferies earns an interest spread equal to the difference between the amount Jefferies pays for funds and the amount Jefferies receives from its clients. Jefferies also operates a matched book in equity and corporate bond securities, whereby Jefferies borrows and lends securities versus cash or liquid collateral and earns a net interest spread. Jefferies offers selected prime brokerage clients the option of custodying their assets at an unaffiliated U.S. broker-dealer that is a subsidiary of a bank holding company. Under this arrangement, Jefferies directly provides its clients with all customary prime brokerage services.

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Wealth Management

Jefferies provides tailored wealth management services designed to meet the needs of high net worth individuals, their families and their businesses, private equity and venture funds and small institutions. Jefferies advisors provide access to all of its institutional execution capabilities and delivers other financial services. Jefferies open architecture platform affords clients access to products and services from both its firm and from a variety of other major financial services institutions.

Fixed Income

Fixed Income Sales and Trading

Jefferies provides its clients with sales and trading of investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage- and asset-backed securities, leveraged loans, high yield and distressed securities, emerging markets debt, interest rate derivative products, as well as foreign exchange trade execution. Jefferies is designated as a Primary Dealer by the Federal Reserve Bank of New York and Jefferies International Limited is designated in similar capacities for several countries in Europe. Additionally, through the use of repurchase agreements, Jefferies acts as an intermediary between borrowers and lenders of short-term funds and obtains funding for various of its inventory positions. Jefferies trades and makes markets globally in cleared and uncleared swaps and forwards referencing, among other things, interest rates, investment grade and non-investment grade corporate credits, credit indexes and asset-backed security indexes.

Jefferies strategists and economists provide ongoing commentary and analysis of the global fixed income markets. In addition, Jefferies fixed income desk strategists provide ideas and analysis across a variety of fixed income products.

Futures

In April 2015, Jefferies entered into a definitive agreement to transfer certain of its futures activities to Société Générale S.A. That transaction closed in the second quarter of 2015 and Jefferies completed the exit of its Futures business during the second quarter of 2016.

Investment Banking

Jefferies provides its clients around the world with a full range of equity capital markets, debt capital markets and financial advisory services. Jefferies services are enhanced by its industry expertise, its global distribution capabilities and its senior level commitment to its clients.

Approximately 760 investment banking professionals operate in the Americas, Europe and Asia, and are organized into industry, product and geographic coverage groups. Jefferies industry coverage groups include Consumer & Retail; Energy; Financial Institutions; Healthcare; Industrials; Real Estate; Gaming & Lodging; Technology; Media and Telecommunications; Financial Sponsors; and Public Finance. Jefferies product coverage groups include equity capital markets; debt capital markets; and advisory, which includes both mergers and acquisitions and restructuring and recapitalization expertise. Jefferies geographic coverage groups include coverage teams based in major cities in the United States, Toronto, London, Frankfurt, Paris, Milan, Stockholm, Mumbai, Hong Kong, Singapore and Dubai.

Equity Capital Markets

Jefferies provides a broad range of equity financing capabilities to companies and financial sponsors. These capabilities include private equity placements, initial public offerings, follow-on offerings, block trades and equity-linked convertible securities transactions.

Debt Capital Markets

Jefferies provides a wide range of debt and acquisition financing capabilities for companies, financial sponsors and government entities. Jefferies focuses on structuring, underwriting and distributing public and private debt, including investment grade debt, high yield bonds, leveraged loans, municipal debt, mortgage- and other asset-backed securities, and liability management solutions.

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Advisory Services

Jefferies provides mergers and acquisition and restructuring and recapitalization services to companies, financial sponsors and government entities. In the mergers and acquisition area, Jefferies advises sellers and buyers on corporate sales and divestitures, acquisitions, mergers, tender offers, spinoffs, joint ventures, strategic alliances and takeover and proxy fight defense. In the restructuring and recapitalization area, Jefferies provides to companies, bondholders and lenders a full range of restructuring advisory capabilities as well as expertise in the structuring, valuation and placement of securities issued in recapitalizations.

Asset Management

Jefferies manages and provides services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. Jefferies is supporting and developing focused strategies managed by distinct management teams. Strategies currently offered to pension funds, insurance companies, sovereign wealth funds, and other institutional investors through these platforms include systematic quant and global equity event-driven. Jefferies partners with our asset management business in providing asset management services.

Competition

All aspects of Jefferies business are intensely competitive. Jefferies competes primarily with large global bank holding companies that engage in capital markets activities, but also with firms listed in the NYSE Arca Securities Broker/Dealer Index, other brokers and dealers, and investment banking firms. The large global bank holding companies have substantially greater capital and resources than Jefferies does. Jefferies believes that the principal factors affecting its competitive standing include the quality, experience and skills of its professionals, the depth of its relationships, the breadth of its service offerings, its ability to deliver consistently its integrated capabilities, and its culture, tenacity and commitment to serve its clients.

Regulation

Regulation in the United States. The financial services industry in which Jefferies operates is subject to extensive regulation. In the U.S., the Securities and Exchange Commission (“SEC”) is the federal agency responsible for the administration of federal securities laws, and the Commodity Futures Trading Commission (“CFTC”) is the federal agency responsible for the administration of laws relating to commodity interests (including futures and swaps). In addition, self-regulatory organizations, principally Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”), are actively involved in the regulation of financial services businesses. The SEC, CFTC and self-regulatory organizations conduct periodic examinations of broker-dealers, investment advisers, futures commission merchants (“FCMs”) and swap dealers. The applicable self-regulatory authority for Jefferies activities as a broker-dealer is FINRA, and the applicable self-regulatory authority for Jefferies FCM activities is the NFA. Financial services businesses are also subject to regulation by state securities commissions and attorneys general in those states in which they do business.

Broker-dealers are subject to SEC and FINRA regulations that cover all aspects of the securities business, including sales and trading methods, trade practices among broker-dealers, use and safekeeping of customers’ funds and securities, capital structure of securities firms, anti-money laundering efforts, recordkeeping and the conduct of directors, officers and employees. Registered advisors are subject to, among other requirements, SEC regulations concerning marketing, transactions with affiliates, disclosure to clients, and recordkeeping; and advisors that are also registered as commodity trading advisors or commodity pool operators are also subject to regulation by the CFTC and the NFA. FCMs, introducing brokers and swap dealers that engage in commodities, futures or swap transactions are subject to regulation by the CFTC and the NFA. Additional legislation, changes in rules promulgated by the SEC, CFTC and self-regulatory organizations, or changes in the interpretation or enforcement of existing laws and rules may directly affect the operations and profitability of broker-dealers, investment advisers, FCMs and swap dealers. The SEC, the CFTC and self-regulatory organizations, state securities commissions and state attorneys general may conduct administrative proceedings or initiate civil litigation that can result in censure, fine, suspension, expulsion of a firm, its officers or employees, or revocation of a firm’s licenses.

Regulatory Capital Requirements. Several Jefferies entities are subject to financial capital requirements that are set by regulation. Jefferies and Jefferies Execution Services, Inc. (“Jefferies Execution”), are registered broker-dealers and are subject to the SEC's Uniform Net Capital Rule (the "Net Capital Rule"). Jefferies and Jefferies Execution have elected to compute their minimum net capital requirement in accordance with the “Alternative Net Capital Requirement” as permitted by the Net Capital Rule, which provides that a broker-dealer shall not permit its net capital, as defined, to be less than the greater of 2% of its aggregate debit balances (primarily customer-related receivables) or $250,000 ($1.5 million for prime brokers). Compliance with the Net Capital Rule could limit operations of Jefferies broker-dealers, such as underwriting and trading activities, that could require the use of significant amounts of capital, and may also restrict its ability to make loans, advances, dividends and other payments.

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Jefferies is also registered as an FCM and is therefore subject to the minimum financial requirements for FCMs set by the CFTC. Jefferies as an FCM is required to maintain minimum net capital being the greater of $1.0 million or its risk-based capital requirements computed as 8% of the total risk margin requirement for positions carried by the FCM in customer accounts and non-customer accounts. Jefferies, as a dually registered broker-dealer and FCM, is required to maintain net capital in excess of the greater of the SEC or CFTC minimum financial requirements.

Jefferies subsidiaries that are registered swap dealers will become subject to capital requirements under the Dodd-Frank Act once the relevant rules become final. For additional information see Item 1A. Risk Factors.

Jefferies Group LLC is not subject to any regulatory capital rules.

See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and Note 26 to our consolidated financial statements for additional discussion of net capital calculations.

Regulation outside the United States. Jefferies is an active participant in the international capital markets and provides investment banking services internationally, primarily in Europe and Asia. As is true in the U.S., Jefferies subsidiaries are subject to extensive regulations proposed, promulgated and enforced by, among other regulatory bodies, the European Commission and European Supervisory Authorities (including the European Banking Authority and European Securities and Market Authority), U.K. Financial Conduct Authority, Hong Kong Securities and Futures Commission, the Japan Financial Services Agency and the Monetary Authority of Singapore. Every country in which Jefferies does business imposes upon it laws, rules and regulations similar to those in the U.S., including with respect to some form of capital adequacy rules, customer protection rules, data protection regulations, anti-money laundering and anti-bribery rules, compliance with other applicable trading and investment banking regulations and similar regulatory reform. For additional information see Item 1A. Risk Factors.

Leucadia Asset Management

During 2013, we formed Leucadia Asset Management ("LAM"), a registered investment adviser, through which we are developing focused alternative asset management businesses. As the adviser and/or general partner to various private investment funds or other types of investment vehicles, LAM provides advisory, portfolio management and operational services to accredited investors and/or qualified purchasers. Once an investment vehicle is formed, it is typical that we will be an initial or major investor.  LAM's revenues derive from management fees and/or performance fees based on investment returns generated for the investors, as well as the return on our invested capital. Our strategy is to grow third party assets under management, while earning management fees and a reasonable return on our capital until the capital is returned to us. Our LAM and other asset management strategies primarily include Folger Hill Asset Management LLC ("Folger Hill"), a multi-manager discretionary long/short equity hedge fund platform; Topwater Capital ("Topwater"), a first-loss product; 54 Madison Capital, LLC ("54 Madison"), which invests in real estate projects; CoreCommodity Management, an asset manager that focuses on commodities strategies; Tenacis Capital, a systematic macro investment platform; Lake Hill, an electronic trader in listed options and futures across asset classes; as well as several other smaller businesses.  In addition, several investment management businesses, including Jefferies Strategic Investments Division, operate under Jefferies and are included under our marketing of the LAM platform.

Folger Hill - In August 2014, we and Solomon Kumin established Folger Hill, which is registered as an investment adviser with the SEC. In March 2015, Folger Hill launched a multi-manager hedge fund which included a $400 million seed investment from us. The fund is a multi-manager discretionary long/short equity hedge fund platform that aims to deliver strong positive results with lower volatility and market correlation than typical equity long/short hedge funds. At December 31, 2016, assets under management totaled approximately $510 million. In January 2017, we invested $75 million in a separate account managed by Folger Hill Asia, which currently has assets under management of $175 million.

Topwater - In August 2013, we launched a "first-loss" product with Bryan Borgia and Travis Taylor. Starting in 2004, Topwater founders pioneered the first-loss model of investing, which offers a unique risk-reward trade-off for investors and a prudent way for hedge fund managers to run a managed account on attractive terms. Topwater is a multi-strategy, multi-manager investment partnership where each underlying investment manager contributes 10% of their own capital as a first-loss layer, shielding Topwater's investors from losses up to 10%. This unique structure provides a strong layer of principal protection. Regulatory assets under management totaled $658 million at December 31, 2016.

54 Madison - In August 2015, we and a team led by Henry Silverman launched 54 Madison, which manages a fund that provides equity capital for hotel, timeshare, resort, residential and specialty retail real estate development projects in core global markets. We made a capital commitment of $225.0 million to 54 Madison and through December 31, 2016 we have funded $114.9 million. Total fund commitments to 54 Madison from all investors total $500 million.

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Jefferies Strategic Investments Division - The Strategic Investments Division ("SID") of Jefferies Investment Advisors, launched in 2010, provides investment advisory and portfolio management services to institutional clients. SID is a quantitative asset management group utilizing a range of systematic strategies applied to various global markets to create investment products primarily in the absolute return space. Its flagship funds are Jefferies Structured Alpha Fund, Jefferies Managed Futures Fund and the Grouper Market Neutral program. SID manages approximately $1.6 billion assets under management and has a team of forty individuals dedicated to its efforts.

FXCM

FXCM is a leading provider of online foreign exchange trading, contract for difference trading, spread betting and related services. Its mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market.

In January 2015, we entered into a credit agreement with FXCM, and provided FXCM a two-year senior secured term loan with rights to a variable proportion of certain future distributions. On September 1, 2016 we, FXCM Inc. and FXCM Holdings entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 to allow FXCM more time to optimize remaining asset sales ($154.5 million was outstanding under this loan at December 31, 2016); gave Leucadia a 49.9% common membership interest in FXCM, and up to 65% of all distributions; created a six-member board for FXCM, comprised of three directors appointed by Leucadia and three directors appointed by FXCM Holdings; put in place a long-term incentive program for FXCM's senior management; entered into a management agreement pursuant to which FXCM Holdings will manage the assets and day-to-day operations of FXCM and its subsidiaries; and gave FXCM Holdings the same right Leucadia has to require a sale of FXCM beginning in January 2018.

During February 2017, FXCM Holdings and FXCM's U.S. subsidiary, Forex Capital Markets LLC ("FXCM U.S.") settled complaints filed by the NFA and the CFTC against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. The NFA settlement has no monetary fine and the CFTC settlement has a $7 million fine. As part of the settlements, FXCM U.S. will be withdrawing from business and has agreed to sell FXCM U.S.'s customer accounts to Gain Capital Holdings, Inc. FXCM U.S. generates approximately 20% of FXCM's revenue, but is not currently profitable. The proceeds from any sale of the U.S. accounts, net of closure and severance costs, as well as regulatory capital released after a sale, will be used to pay down the Leucadia term loan. As part of the settlement, Leucadia, FXCM Holdings and FXCM have amended the management and incentive compensation agreements, giving any three directors of the FXCM board the right to terminate management and any unvested incentive compensation at any time.

On February 21, 2017, Drew Niv resigned as the Chief Executive Officer of FXCM, although he will remain in an advisory position. Brendan Callan will become the interim Chief Executive Officer of FXCM and Leucadia's Jimmy Hallac will become Chairman of the Board of FXCM.

In addition, on February 21, 2017, Mr. Niv resigned from his positions as Chief Executive Officer and Chairman of the Board of FXCM Inc., but will remain as acting Chief Executive Officer of FXCM Inc. until his successor is identified. In addition, FXCM Inc. announced that it will be changing its name to Global Brokerage Inc. effective February 27, 2017.

We do not hold any interest in FXCM Inc., the publicly traded company and issuer of senior convertible notes. FXCM Inc. holds an economic interest of 68% in FXCM Holdings, LLC, which in turn holds 50.1% of FXCM Group, LLC. As more fully described above, we own the remaining 49.9% of FXCM Group, LLC, and our senior secured term loan is also with FXCM Group, LLC, which is a holding company for all of FXCM Group, LLC's affiliated operating subsidiaries. Net profits and proceeds generated by these subsidiaries, and from the sales of these subsidiaries, flow first to FXCM Group, LLC, where they are applied to the outstanding balance of our term loan and then, in accordance with the agreement described above, to us and FXCM Holdings, LLC. A portion of the profits and proceeds that flow to FXCM Holdings, LLC then flow to FXCM Inc., in accordance with its economic interest. We refer to FXCM Group, LLC as "FXCM."

Through the amendments on September 1, 2016, our derivative rights were exchanged for a 49.9% common membership interest in FXCM. We gained the ability to significantly influence FXCM through our common membership interest and our seats on the board of directors. As a result, we classify our equity investment in FXCM in our December 31, 2016 Consolidated Statement of Financial Condition as Loans to and investments in associated companies. The term loan is included in our December 31, 2016 Consolidated Statement of Financial Condition as Trading assets. The total amount of our term loan and common membership interest in FXCM at December 31, 2016 is $500.8 million, which is made up of $164.5 million for the term loan and $336.3 million for the common membership interest.

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HomeFed Corporation

HomeFed is a developer and owner of residential and mixed-use real estate properties in California, New York, Florida, Virginia, South Carolina and Maine.  After many years in the entitlement process, the majority of HomeFed's assets are now either operating real estate or entitled land ready for sale. HomeFed is a public company traded on the NASD OTC Bulletin Board (Symbol: HOFD).  We own 65% of HomeFed’s common stock; however, our voting rights are limited such that we are not able to vote more than 45% of HomeFed’s total voting securities voting on any matter.  Resulting from a 1998 distribution to all of our shareholders, about 4.8% of HomeFed is beneficially owned by our Chairman, who also serves as HomeFed’s Chairman.  Our President is a Director of HomeFed.

At December 31, 2016, our investment had a net book value of $269.4 million and we report HomeFed as an equity investment in our financial statements.  HomeFed’s strategic priorities vary by project, ranging from pursuing further planning, entitlement and approval, to beginning construction, commencing sales, oversight and management of operating assets, and taking other steps to maximize profits.  HomeFed also continues to look for new opportunities both within, and outside of, the areas where it currently has projects under development.

Berkadia

Berkadia Commercial Mortgage LLC, and its associated entities, is a joint venture formed in 2009 with Berkshire Hathaway. Berkadia is a commercial real estate company providing capital solutions, investment sales advisory and mortgage servicing for multifamily and commercial properties. We and Berkshire Hathaway each have a 50% equity interest in Berkadia.

Berkadia originates commercial real estate loans, primarily in respect of multi-family housing units, for Fannie Mae, Freddie Mac, Ginnie Mae and the FHA using their underwriting guidelines, and will typically sell the loan to such entities shortly after it is funded.  Provided Berkadia adheres to their guidelines, these government-related entities must purchase the loan at the face amount plus accrued interest with Berkadia retaining the mortgage servicing rights.  In addition, as a condition to Fannie Mae’s delegation of responsibility for underwriting, originating and servicing of loans, Berkadia assumes a shared loss position throughout the term of each loan sold to Fannie Mae, with a maximum loss percentage of approximately one-third of the original principal balance. During 2016, Berkadia originated $12.8 billion in Fannie Mae, Freddie Mac, Ginnie Mae and FHA loans.  Berkadia also originates and brokers commercial/multifamily mortgage loans which are not part of the government agency programs.  During 2016, Berkadia closed $6.4 billion of loans in this capacity for life companies, conduits and other third-parties.

In addition, Berkadia originates loans for its own balance sheet. These loans provide interim financing to borrowers who intend to refinance the loan with longer-term loans from an eligible government agency or other third party (“Bridge loans”).  Bridge loans are typically floating rate loans with 1 to 3 year maturities. During 2016, Berkadia originated $223.3 million of such loans. Berkadia held $452.0 million of Bridge loans on its balance sheet at December 31, 2016.

Berkadia also provides services related to the acquisition and disposition of multifamily real estate projects, including brokerage services, asset review, market research, financial analysis and due diligence support.  During 2016, Berkadia closed over $7.7 billion in sales transactions.

Berkadia is a servicer of U.S. commercial real estate loans, performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions (“CMBS”), banks, insurance companies and other financial institutions.  Berkadia is an approved servicer of loans for Fannie Mae, Freddie Mac, Ginnie Mae and the FHA.  As of December 31, 2016, Berkadia serviced approximately 20,000 loans with an unpaid principal balance of $224.2 billion.

As a servicer, Berkadia is frequently responsible for managing, on behalf of its investors and borrowers, the balances that are maintained in custodial accounts for the purposes of collecting and distributing principal and interest, and for managing and disbursing various reserve accounts related to the mortgaged properties among other things.  Berkadia derives certain economic benefits from administering these custodial accounts.  Such balances totaled in excess of $5.0 billion as of December 31, 2016.

Our only capital contribution to Berkadia, in the amount of $217.2 million, was made at the time Berkadia was formed in 2009.  Through December 31, 2016 we have received cumulative cash distributions of $494.6 million.  At December 31, 2016, the net book value of our investment in Berkadia was $184.4 million, and we report Berkadia as an equity investment in our financial statements.  Berkadia's strategic priorities include continued value creation by growing origination and sales advisory volumes, and expanding servicing engagements with third parties.

Berkadia is required under its servicing agreements to maintain certain minimum servicer ratings or qualifications from the rating agencies.  A downgrade below a certain level may give rise to the right of a customer or trustee of a securitized transaction to

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terminate Berkadia as servicer.  Berkadia currently maintains approvals or ratings from Moody’s Investors Service, Fitch Ratings, Standard & Poor’s, Morningstar Credit Ratings and Dominion Bond Rating Services.  These ratings currently exceed the minimum ratings required by the related servicing agreements.  Ratings issued by the rating agencies can be withdrawn or lowered at any time.  In addition, Fannie Mae and Freddie Mac retain broad discretion to terminate Berkadia as a seller/servicer without cause.

Foursight Capital

In 2012, we partnered with an experienced management team in the indirect auto finance market to start Foursight Capital, of which we own 100%. Foursight Capital purchases automobile installment contracts originated by franchised and independent dealerships in conjunction with the sale of new and used automobiles and services these loans throughout the life cycle. In 2016, Foursight originated $250.0 million in auto loans, up from $215.0 million in 2015. Additionally, Foursight Capital is managing the wind down of the Chrome Capital portfolio, which was refinanced in the fourth quarter of 2016 with a new debt facility. The net book value of our investment in Foursight Capital was $78.7 million at December 31, 2016.

Merchant Banking

The following provides more information about certain of our other subsidiaries and investments and our ownership percentages, including:

• National Beef, 79% (beef processing);

• HRG, 23% (insurance and consumer products);

• Vitesse Energy, 96% (oil and gas exploration and development);

• Juneau Energy, 98% (oil and gas exploration and development);

• Garcadia, about 75% (automobile dealerships);

• Linkem, 57% fully-diluted (42% voting) (fixed wireless broadband services);

• Golden Queen, 35% (a gold and silver mining project); and

• Idaho Timber, 100% (manufacturing).

National Beef

National Beef is one of the largest beef processing companies in the U.S., accounting for approximately 12.5% of the fed cattle slaughter market.  National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets.  Based in Kansas City, Missouri, National Beef had approximately 8,140 employees at December 31, 2016 and generated total revenues of $7.0 billion in 2016.  We purchased National Beef in 2011 and own 78.9%.

The largest share of National Beef’s revenue, about 91%, is generated from the sale of boxed beef products.  National Beef also generates revenues through value-added production with its consumer-ready products.  In addition, National Beef operates one of the largest wet blue tanning facilities in the world (wet blue tanning refers to the first step in processing raw and brine-cured hides into tanned leather), selling processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries.  Other streams of revenue include sales through its subsidiary,  Kansas City Steak Company, LLC, which sells portioned beef and other products directly to consumers through internet, direct mail and direct response television, and service revenues generated by National Carriers, Inc., a wholly owned transportation and logistics company that is one of the largest refrigerated and livestock carrier operations in the U.S. and transports products for National Beef and a variety of other customers. National Beef’s profitability typically fluctuates seasonally as well as cyclically, based on the availability of fed cattle.

The net book value of our investment in National Beef was $629.8 million at December 31, 2016.

Sales and Marketing

National Beef markets its products to national and regional retailers, including supermarket chains, independent grocers, club stores, wholesalers and distributors, food service providers, further processors and the U.S. military.  In addition, National Beef sells beef by-products to the medical, feed processing, fertilizer and pet food industries.  National Beef exports products to more than 20 countries; in 2016, export sales represented approximately 10.8% of revenues.  The demand for beef is generally strongest in the spring and summer months and generally decreases during the winter months.

National Beef emphasizes the sale of higher-margin, value-added products, which include branded boxed beef, consumer-ready beef and pork, portion control beef and wet blue hides.  National Beef believes its value-added products can command higher prices than commodity products because of National Beef’s ability to consistently meet product specifications, based on quality,

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trim, weight, size, breed or other factors, tailored to the needs of its customers.  In addition to the value-added brands that National Beef owns, National Beef licenses the use of Certified Angus Beef^®, a registered trademark of Certified Angus Beef LLC, and Certified Hereford Beef^®, a registered trademark of Certified Hereford Beef LLC.

Raw Materials and Procurement

The primary raw material for the beef processing plants is live cattle. Live cattle prices change daily based on supply and demand for beef and other proteins, cattle inventory levels, weather and other factors.

National Beef has entered into a cattle supply agreement with U.S. Premium Beef, LLC (“USPB”), the current owner of a 15.1% interest in National Beef, which sold a substantial portion of its ownership interest to us.  USPB has agreed to supply, and National Beef has agreed to purchase through USPB from the members of USPB, 735,385 head of cattle per year (subject to adjustment), based on pricing grids furnished by National Beef to USPB.  National Beef believes the pricing grids are based on terms that could be obtained from an unaffiliated party.  During 2016, National Beef purchased approximately 27.2% of the total cattle it processed from USPB members pursuant to the cattle supply agreement.  National Beef also purchased additional cattle from certain USPB members outside of the cattle supply agreement as well as from hundreds of other cattle suppliers. 

Processing Facilities

National Beef owns two beef processing facilities located in Liberal and Dodge City, Kansas, which can each process approximately 6,000 cattle per day.  National Beef’s three consumer-ready facilities are in Hummels Wharf, Pennsylvania, Moultrie, Georgia and Kansas City, Kansas.  National Beef’s wet blue tanning facility is in St. Joseph, Missouri.

Competition

Competitive conditions exist both in the purchase of live cattle, as well as in the sale of beef products.  Beef products compete with other protein sources, including pork and poultry, but National Beef’s principal competition comes from other beef processors.  National Beef believes the principal competitive factors in the beef processing industry are price, quality, food safety, customer service, product distribution, technological innovations (such as food safety interventions and packaging technologies) and brand loyalty.  Some of National Beef’s competitors have substantially larger beef operations, greater financial and other resources and wider brand recognition for their products.

Regulation and Environmental

National Beef’s operations are subject to extensive regulation by the U.S. Department of Agriculture ("USDA") including its Food Safety and Inspection Service (“FSIS”) and its Grain Inspection, Packers and Stockyards Administration (“GIPSA”), the Food and Drug Administration (“FDA”), the U.S. Environmental Protection Agency (“EPA”) and other federal, state, local and foreign authorities regarding the processing, packaging, storage, safety, distribution, advertising and labeling of its products.

National Beef is subject to the Packers and Stockyards Act of 1921 (“PSA”).  Among other things, this statute generally requires National Beef to make full payment for livestock purchases not later than the close of business the day after the purchase and transfer of possession or determination of the purchase price.  Under the PSA, National Beef must hold in trust for the benefit of unpaid cash livestock suppliers all receivables, inventory and proceeds derived from National Beef's sale of such cattle until the sellers have received full payment.  In addition, pursuant to PSA rules, at December 31, 2016, National Beef has obtained from an insurance company a surety bond in the amount of $50.4 million as a measure of protection for livestock sellers.

The Dodge City and Liberal facilities are subject to Title V permitting pursuant to the Federal Clean Air Act and the Kansas Air Quality Act.  The St. Joseph facility is subject to a secondary air permit which is in place.  The Dodge City, Liberal, Hummels Wharf and Moultrie facilities are subject to Clean Air Act Risk Management Plan requirements relating to the use of ammonia as a refrigerant.

All of National Beef’s plants are indirect dischargers of wastewater to publicly owned treatment works and are subject to requirements under the federal Clean Water Act, state and municipal laws, as well as agreements or permits with municipal or county authorities.  Upon renewal of these agreements and permits, National Beef is from time to time required to make capital expenditures to upgrade or expand wastewater treatment facilities to address new and more stringent discharge requirements imposed at the time of renewal.  Storm water discharges from National Beef’s plants are also regulated by state and local authorities.

All of National Beef’s facilities generate solid waste streams including small quantities of hazardous wastes.  National Beef is subject to laws that provide for strict, and in certain circumstances, joint and several liability for remediation of hazardous substances

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at contaminated sites; however, National Beef has not received any demands that it has any liability at sites under the Comprehensive Environmental Response, Compensation and Liability Act (“Superfund”) or state counterparts.  All plants are subject to community right to know reporting requirements under the Superfund Amendments and Reauthorization Act of 1986, which requires yearly filings as to the substances used on facility premises.

Employees

Of National Beef’s 8,140 employees, approximately 5,325 are represented by collective bargaining agreements.  Approximately 2,625 employees at the Liberal plant are represented by the United Food and Commercial Workers International Union under a collective bargaining agreement scheduled to expire in December 2017, approximately 2,475 employees at the Dodge City plant are represented by the United Food and Commercial Workers International Union under a collective bargaining agreement scheduled to expire in December 2021, and another approximately 225 employees at the St. Joseph plant are represented by the United Cereal Workers (R.W.D.S.U./U.F.C.W.) under a collective bargaining agreement scheduled to expire in June 2019.

HRG Group

HRG Group, Inc. ("HRG") is a publicly traded (NYSE: HRG) holding company that primarily owns approximately 58% of Spectrum Brands, a publicly traded (NYSE: SPB) global consumer products company; an approximately 80% ownership stake in Fidelity & Guaranty Life ("FGL"), a publicly traded (NYSE: FGL) life insurance and annuity products company; and Front Street, a long-term reinsurance company. On November 8, 2015, FGL and Anbang Insurance Group Co., Ltd. ("Anbang") entered into a definitive merger agreement pursuant to which Anbang will acquire FGL for $26.80 per share in cash. In February 2017, FGL and Anbang amended the merger agreement which extends the outside termination date to April 17, 2017. The amendment also gives FGL the right to solicit, respond to, evaluate and negotiate competing offers, but provides that FGL may not sign a competing definitive agreement prior to the termination date.

As of December 31, 2016, we own 46.6 million common shares of HRG, representing about 23% of its outstanding common shares, which we reflect in our financial results at fair value.  In addition, we have designated two directors on HRG’s board, one of whom is our Chairman, who also serves as HRG's Chairman.  At December 31, 2016, the book value of our holdings in HRG is $725.1 million and our cost was $475.6 million.

Oil and Gas

During May 2014, we formed Vitesse Energy, LLC ("Vitesse"), a non-operating owner of oil and gas properties in the core of the Bakken Shale oil field in North Dakota and Montana and the Denver-Julesburg Basin in Wyoming.  We own 96% of Vitesse, which acquires producing and undeveloped leasehold properties. Vitesse participates in the drilling and completion of lower risk new wells on our leaseholds thereby converting our leaseholds into cash flow producing assets.  Vitesse has acquired approximately 21,000 net acres of Bakken leasehold and has an interest in 1,329 producing wells (35 net wells) and 428 gross wells (15 net wells) that are currently drilling or permitted for drilling. In the third quarter of 2016, Vitesse acquired interests in 31 wellbores, which were drilled but not yet completed, in the Denver-Julesburg Basin. We expect all of those wells to be completed and producing positive cash flow in 2017. Our strategic priorities for Vitesse are to selectively add to our core acreage, participate in future development in our core areas, increase cash flow from new well development, and profitably sell selective assets when appropriate.

During February 2014, we made our first investment in Juneau Energy, LLC ("Juneau"). We own 98% of Juneau. Juneau currently has acreage and producing wells in Brazos County and acreage in Houston and Grimes counties in East Texas. During 2016, the management of Juneau was transferred to the Vitesse team. Juneau subsequently partnered with Lonestar Resources US Inc. (NASDAQ: LONE) ("Lonestar"), an accomplished Eagle Ford operator, and sold 50% of its interest in its two East Eagle Ford wells that Juneau drilled and completed in late 2015 to Lonestar for equity and interests in Lonestar oil and gas properties and invested $25 million in Lonestar in exchange for $25 million principal amount of secured second lien notes and warrants. In addition, Lonestar has agreed to pool and develop Juneau's and its own acreage in the East Eagle Ford. In December 2016, Lonestar repurchased $21 million principal amount of these secured second lien notes and in January 2017, Juneau sold the remaining $4 million to a third party. Our strategic priorities include the development of our pooled acreage in the East Eagle Ford, partnering with other proven operators in Juneau's other leaseholds outside of the East Eagle Ford and selectively selling assets.

At December 31, 2016, we have made cumulative cash investments of $590.0 million in Vitesse and Juneau and the net book value of our oil and gas investments is $469.0 million. 

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Garcadia

Garcadia is a joint venture between us and Garff Enterprises, Inc. ("Garff"), which is owned by members of a family that has operated car dealerships for over 85 years. Garcadia owns and operates 28 domestic and foreign automobile dealerships in California, Iowa, Texas, and Michigan.  We and Garff have equal board representation and equal votes on all matters affecting Garcadia, and all cash flows from Garcadia are allocated 65% to us and 35% to Garff, with the exception of one dealership from which we receive 83% of all cash flows and four other dealerships from which we receive 71% of all cash flows.  Garcadia’s strategy is to acquire automobile dealerships in primary or secondary market locations meeting its specified return criteria.  During 2016 we received cash distributions from Garcadia's dealerships of $52.6 million.

In addition, we own parcels of land that are leased to certain dealerships.  During 2016 we received rent payments related to these leases of $9.0 million.  At December 31, 2016, the net book value of our investment in Garcadia was $185.8 million and our net investment in the parcels of land leased to the dealerships was $20.9 million, net of $55.7 million in mortgage debt.

Linkem

Linkem S.p.A. is a fixed wireless broadband service provider in Italy.  Unlike the U.S. and most of Western Europe, Italy does not have a national cable television system; as a result, Italy’s broadband penetration rate is among the lowest in Europe. Linkem offers residential broadband services using LTE technologies deployed over the 3.5 GHz spectrum band. 

Our initial investment in Linkem was made in July 2011.  Since that time, we have funded most of Linkem’s growth and become its largest shareholder.  As of December 31, 2016, we own about 42% of Linkem’s common shares and 5% preferred stock convertible in 2020 (dividends can be paid in cash or in kind).  On an if-converted basis, we effectively owned 57% of the common shares of Linkem at December 31, 2016.

Linkem owns or has exclusive rights to spectrum holdings of 84MHz covering over 80% of the population of Italy and at least 42MHz covering all of Italy. At December 31, 2016, Linkem’s network includes base stations deployed on over 2,000 wireless towers that can reach 60% of Italian households.  Linkem has over 403,000 subscribers for its services.  Linkem has been aggressively deploying LTE since the fourth quarter of 2014 with 96% of its base stations now LTE-enabled. LTE, provides subscribers with faster download speeds and improved service compared to DSL, the most popular broadband alternative. Linkem plans to increase its network coverage across Italy over the coming years as it adds subscribers; expansion and customer acquisition costs are expected to result in operating losses over the next couple of years. 

Through December 31, 2016, we had invested $292.5 million in Linkem and the net book value of our investment was $154.0 million at December 31, 2016. In January 2017, we participated in a preferred equity financing for Linkem. Existing shareholders, along with funds managed by BlackRock, invested €100 million in cash in exchange for shares of Linkem to fund future expansion plans, of which Leucadia's share was €30 million. The financing was based on a pre-money valuation of €700 million (post-money valuation of €800 million) and our fully-diluted ownership post-transaction is 53%.

Golden Queen Mining Company

Golden Queen is a joint venture between Golden Queen Mining Co., Ltd. (“GQM”) and Gauss LLC.  We own 70% of Gauss, which in turn owns 50% of the joint venture, giving us an effective 35% interest in Golden Queen. Golden Queen developed and operates the Soledad Mountain Project, an open pit, heap leach gold and silver mining project located in Kern County, California.  The project uses conventional open pit mining methods, cyanide heap leach and Merrill-Crowe processes to recover gold and silver from crushed, agglomerated ore.  Gold and silver mining activities commenced in March 2016. GQM is a Canadian company that has been developing and exploring its mineral properties at Soledad Mountain since 1985.  GQM is publicly traded on both the Toronto Stock Exchange (“GQM”) and on the OTCQX International (“GQMNF”) markets.

We have invested $83.0 million in Golden Queen.  The net book value of our investment was $78.5 million at December 31, 2016.

Idaho Timber

Idaho Timber manufactures and distributes an extensive range of quality wood products to markets across North America.  Its activities include remanufacturing dimension lumber; remanufacturing, bundling and bar coding of home center boards for large retailers; and production of pine dimension lumber and 5/4” radius-edge, pine decking.  In addition to its headquarters in Meridian, Idaho, Idaho Timber has plants in Idaho, Arkansas, Florida, Louisiana, New Mexico, North Carolina and Texas.

The net book value of our investment was $76.6 million at December 31, 2016.

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Financial Information about Segments

Our operating segments consist of the consolidated businesses discussed above, which offer different products and services and are managed separately.  Our three reportable segments, based on both qualitative and quantitative requirements, are Jefferies, National Beef, and Corporate and other.  All other businesses and investments consist 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, Foursight Capital, and our investments in Berkadia, HomeFed and FXCM. Our other merchant banking businesses and investments primarily include Idaho Timber, Conwed, Vitesse, Juneau, real estate, and our investments in HRG, Linkem, Garcadia, and Golden Queen. Our financial information regarding our reportable segments is contained in Note 30, in our consolidated financial statements.

Information about Leucadia on the Internet

The following documents and reports are available on or through our website (www.leucadia.com) as soon as reasonably practicable after we electronically file such materials with, or furnish to, the SEC:

• Code of Business Practice;

• Reportable waivers, if any, from our Code of Business Practice by our executive officers;

• Board of Directors Corporate Governance Guidelines;

• Charter of the Audit Committee of the Board of Directors;

• Charter of the Nominating and Corporate Governance Committee of the Board of Directors;

• Charter of the Compensation Committee of the Board of Directors;

• Annual reports on Form 10-K;

• Quarterly reports on Form 10-Q;

• Current reports on Form 8-K;

• Beneficial ownership reports on Forms 3, 4 and 5; and

• Any amendments to the above-mentioned documents and reports.

Shareholders may also obtain a printed copy of any of these documents or reports free of charge by sending a request to Leucadia National Corporation, Investor Relations, 520 Madison Avenue, New York, NY 10022 or by calling (212) 460-1900.

Item 1A. Risk Factors.

Our business is subject to a number of risks.  You should carefully consider the following risk factors, together with all of the other information included or incorporated by reference in this report, before you decide whether to purchase our common shares.  The risks set out below are not the only risks we face.  In addition to the specific risks mentioned in this report, we may also be affected by other factors that affect businesses generally such as global or regional changes in economic, business or political conditions, acts of war, terrorism or natural disasters. If any of such risks occur, our business, financial condition and results of operations could be materially adversely affected.  In such case, the trading price of our common shares could decline, and you may lose all or part of your investment.

Future acquisitions and dispositions of our businesses and investments are possible, changing the components of our assets and liabilities, and if unsuccessful or unfavorable, could reduce the value of our common shares.  Any future acquisitions or dispositions may result in significant changes in the composition of our assets and liabilities, as well as our business mix and prospects.  Consequently, our financial condition, results of operations and the trading price of our common shares may be affected by factors different from those affecting our financial condition, results of operations and trading price at the present time.

We face numerous risks and uncertainties as we expand our business.  We expect the growth and development of our business to come primarily from internal expansion and through acquisitions, investments, and strategic partnering.  As we expand our business, there can be no assurance that financial controls, the level and knowledge of personnel, operational abilities, legal and compliance controls and other corporate support systems will be adequate to manage our business and growth.  The ineffectiveness of any of these controls or systems could adversely affect our business and prospects.  In addition, if we acquire new businesses and introduce new products, we face numerous risks and uncertainties integrating their controls and systems, including financial controls, accounting and data processing systems, management controls and other operations.  A failure to integrate these systems and controls, and even an inefficient integration of these systems and controls, could adversely affect our business and prospects.

Certain business initiatives, including expansions of existing businesses, may bring us into contact directly or indirectly, with individuals and entities that are not within our traditional client and counterparty base and may expose us to new asset classes and

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new markets.  These business activities expose us to new and enhanced risks, greater regulatory scrutiny of these activities, increased credit-related, sovereign and operational risks, and reputational concerns regarding the manner in which these assets are being operated or held.

Our business, financial condition and results of operations are dependent upon those of our individual businesses, and our aggregate investment in particular industries. We are a holding company with investments in businesses and assets in a number of industries.  Jefferies is our largest investment and we have significant additional investments in the financial services industry.  Our business, financial condition and results of operations are dependent upon our various businesses and investments.  Any material adverse change in one of our businesses or investments, or in a particular industry in which we operate or invest, may cause material adverse changes to our business, financial condition and results of operations.  The more capital we devote to a particular investment or industry may increase the risk that such investment could significantly impact our financial condition and results of operations, possibly in a material adverse way.

Conditions in the financial markets and the economy may adversely impact our businesses and investments.  These include economic conditions that may be specific to the industries in which our businesses and investments operate, as well as a general economic slowdown, prolonged recession or other market downturn or disruption. Adverse impacts may include the following:

• A market downturn could lead to a decline in client and customer activity levels, and therefore a decline in services provided, causing reduced revenues from fees, commissions, spreads and other forms of revenue.

• Adverse changes in the market could lead to decreases in the value of our holdings, both realized and unrealized.

• Adverse changes in the market could also lead to a reduction in revenues from asset management fees and investment income from managed funds. The build out of our asset management business could also be impacted as adverse conditions could lead to a decrease in new capital raised and may cause investors to withdraw their investments and commitments. Even in the absence of a market downturn, below-market investment performance by funds and portfolio managers could reduce asset management revenues and assets under management and result in reputational damage that might make it more difficult to attract new investors.

• Limitations on the availability of credit, such as occurred during 2008, can affect the ability of our businesses and investments to borrow on a secured or unsecured basis, which may adversely affect liquidity and results of operations. Global market and economic conditions have been particularly disrupted and volatile in the last several years and may be in the future. Cost and availability of funding could be affected by illiquid credit markets and wider credit spreads.

• Changes in tax law could impact our ability to utilize our deferred tax assets, decrease current and anticipated cash flows, or prompt revisions to compensation arrangements.

• Should one or more of the competitors of our businesses or investments fail, business prospects and revenue could be negatively impacted due to negative market sentiment causing customers to cease doing business with, and lenders to cease extending credit to, our businesses and investments, which could adversely affect our operations, funding and liquidity.

• Unfavorable economic conditions could have an adverse effect on the demand for new loans and the servicing of loans originated by third parties, which would have an adverse impact on the operations and profitability of some of our financial services businesses and investments.

The U.K. exit from the European Union could adversely affect our businesses and investments. 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 our businesses and investments, their customers and their counterparties operate, will be impacted and how this will affect us 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 Jefferies, FXCM, Linkem, as well as certain of HRG's subsidiaries, particularly those with operations or customers in Europe.

Unfounded allegations could result in share price volatility and price declines in debt securities and loss of revenue, clients, and employees.  Our reputation and business activity, and that of our businesses and investments, can be affected by statements and actions of third parties, even false or misleading statements by them.  While Jefferies has been subjected to such unfounded allegations in the past, and was able to dispel such rumors, its debt-securities prices suffered extreme volatility.  In addition, Jefferies operations in the past have been impacted as some clients either ceased doing business or temporarily reduced the level of business they do, thereby decreasing Jefferies revenue stream.  Although Jefferies was able to reverse the negative impact of past unfounded allegations and false rumors, there is no assurance that we, Jefferies, or any of our other businesses or investments, would be able to do so successfully in the future and the potential failure to do so could have a material adverse effect on our business, financial condition and liquidity.

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Jefferies and Leucadia Asset Management may incur losses if their risk management is not effective. Jefferies and Leucadia Asset Management seek to monitor and control their risk exposure. Their risk management processes and procedures are designed to limit their exposure to acceptable levels as they conducts their businesses. Jefferies applies a comprehensive framework of limits on a variety of key metrics to constrain the risk profile of its business activities. The size of the limit reflects Jefferies’ risk tolerance for a certain activity. The framework includes inventory position and exposure limits on a gross and net basis, scenario analysis and stress tests, value-at-risk, sensitivities, exposure concentrations, aged inventory, amount of Level 3 assets, counterparty exposure, leverage, cash capital, and performance analysis. While Jefferies and Leucadia Asset Management employ various risk monitoring and risk mitigation techniques, those techniques and the judgments that accompany their application, including risk tolerance determinations, cannot anticipate every economic and financial outcome or the specifics and timing of such outcomes. As a result, Jefferies and Leucadia Asset Management may incur losses notwithstanding their risk management processes and procedures.

Recent legislation and new and pending regulation may significantly affect Jefferies or our other businesses and investments.  In recent years, there has been significant legislation and increased regulation affecting the financial services industry.  In addition, there has also been recent discussions of proposed legislative and regulatory changes that would also affect the financial services industry. These legislative and regulatory initiatives affect not only Jefferies, Leucadia Asset Management, FXCM, and Berkadia, but also their competitors and certain of their clients and customers.  These changes could have an effect on our revenue and profitability, limit our ability to pursue certain business opportunities, impact the value of assets that we hold, require us to change certain business practices, impose additional costs on us and otherwise adversely affect our business.  Accordingly, we cannot provide assurance that legislation and regulation will not eventually have an adverse effect on our business, results of operations, cash flows and financial condition.

Extensive international regulation of Jefferies business limits its activities, and, if Jefferies violates these regulations, it may be subject to significant penalties.  The financial services industry is subject to extensive laws, rules and regulations in every country in which Jefferies operates.  Firms that engage in securities and derivatives trading, wealth and asset management and investment banking must comply with the laws, rules and regulations imposed by national and state governments and regulatory and self-regulatory bodies with jurisdiction over such activities.  Such laws, rules and regulations cover all aspects of the financial services business, including, but not limited to, sales and trading methods, trade practices, use and safekeeping of customers’ funds and securities, capital structure, anti-money laundering and anti-bribery and corruption efforts, recordkeeping and the conduct of directors, officers and employees.

Each of Jefferies regulators supervises its business activities to monitor compliance with such laws, rules and regulations in the relevant jurisdiction.  In addition, if there are instances in which Jefferies regulators question its compliance with laws, rules, and regulations, they may investigate the facts and circumstances to determine whether Jefferies has complied.  At any moment in time, Jefferies may be subject to one or more such investigation or similar reviews.  At this time, all such investigations and similar reviews are insignificant in scope and immaterial to Jefferies.  However, there can be no assurance that, in the future, the operations of Jefferies businesses will not violate such laws, rules, or regulations and such investigations and similar reviews will not result in adverse regulatory requirements, regulatory enforcement actions and/or fines.

A credit rating agency downgrade could significantly impact our businesses.  We and Jefferieshave credit ratings issued by various credit rating agencies.  Maintaining our credit ratings is important to our and Jefferies business and financial condition.  We advised certain credit rating agencies that we would target specific concentration, leverage and liquidity principles, expressed in the form of certain ratios and percentages.  Our failure to meet these ratios and percentages may trigger a ratings downgrade.  We and Jefferies intend to access capital markets and issue debt securities from time to time, and a ratings downgrade may decrease demand for such offered security.  A decrease in demand would not only make a successful financing more difficult, but also increase our respective capital costs.  Similarly, our and Jefferies access to other forms of credit may be limited and our respective borrowing costs may increase if our or Jefferies credit ratings are downgraded.  A downgrade could also negatively impact our and Jefferies outstanding debt prices and our stock price.  In addition, in connection with certain over-the-counter derivative contract arrangements and certain other trading arrangements, a ratings downgrade could cause us or Jefferies to provide additional collateral to counterparties, exchanges and clearing organizations which would negatively impact our and Jefferies liquidity and financial condition.  There can be no assurance that our or Jefferies credit ratings will not be downgraded.

In addition, if Berkadia does not maintain specified servicer ratings from the credit rating agencies, customers would have the right to terminate their mortgage servicing agreements.  If mortgage servicing agreements were terminated as a result of a servicer ratings downgrade, we could lose a significant portion of the value of our equity investment.

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Jefferies principal trading and investments expose us to risk of loss.  A considerable portion of Jefferies revenues is derived from trading in which Jefferies acts as principal.  Jefferies may incur trading losses relating to the purchase, sale or short sale of fixed income, high yield, international, convertible, and equity securities and futures and commodities for its own account.  In any period, Jefferies may experience losses on its inventory positions as a result of price fluctuations, lack of trading volume, and illiquidity.  From time to time, Jefferies may engage in a large block trade in a single security or maintain large position concentrations in a single security, securities of a single issuer, securities of issuers engaged in a specific industry, or securities from issuers located in a particular country or region.  In general, because Jefferies inventory is marked to market on a daily basis, any adverse price movement in these securities could result in a reduction of Jefferies revenues and profits.  In addition, Jefferies may engage in hedging transactions that if not successful, could result in losses.

Increased competition may adversely affect Jefferies revenues, profitability and staffing.  All aspects of Jefferies business are intensely competitive.  Jefferies competes directly with a number of bank holding companies and commercial banks, other brokers and dealers, investment banking firms and other financial institutions.  In addition to competition from firms currently in the securities business, there has been increasing competition from others offering financial services, including automated trading and other services based on technological innovations.  Jefferies believes that the principal factors affecting competition involve market focus, reputation, the abilities of professional personnel, the ability to execute the transaction, relative price of the service and products being offered, bundling of products and services and the quality of service.  Increased competition or an adverse change in Jefferies competitive position could lead to a reduction of business and therefore a reduction of revenues and profits.

Competition also extends to the hiring and retention of highly skilled employees.  A competitor may be successful in hiring away employees, which may result in Jefferies losing business formerly serviced by such employees.  Competition can also raise Jefferies costs of hiring and retaining the employees Jefferies needs to effectively operate its business.

Operational risks may disrupt Jefferies business, result in regulatory action against Jefferies or limit Jefferies growth.  Jefferies businesses are highly dependent on its ability to process, on a daily basis, a large number of transactions across numerous and diverse markets in many currencies, and the transactions Jefferies processes have become increasingly complex.  If any of Jefferies financial, accounting or other data processing systems do not operate properly or are disabled or if there are other shortcomings or failures in Jefferies internal processes, people or systems, Jefferies could suffer an impairment to our liquidity, financial loss, a disruption of our businesses, liability to clients, regulatory intervention or reputational damage.  These systems may fail to operate properly or become disabled as a result of events that are wholly or partially beyond Jefferies control, including a disruption of electrical or communications services or Jefferies inability to occupy one or more of our buildings.  The inability of Jefferies systems to accommodate an increasing volume of transactions could also constrain its ability to expand its businesses.

Certain of Jefferies financial and other data processing systems rely on access to and the functionality of operating systems maintained by third parties. If the accounting, trading or other data processing systems on which Jefferies is dependent are unable to meet increasingly demanding standards for processing and security or, if they fail or have other significant shortcomings, Jefferies could be adversely affected. Such consequences may include Jefferies inability to effect transactions and manage Jefferies exposure to risk.

In addition, despite the contingency plans Jefferies has in place, Jefferies ability to conduct business may be adversely impacted by a disruption in the infrastructure that supports its businesses and the communities in which they are located.  This may include a disruption involving electrical, communications, transportation or other services used by Jefferies or third parties with which Jefferies conducts business.

Jefferies operations rely on the secure processing, storage and transmission of confidential and other information in Jefferies computer systems and networks. Although Jefferies takes protective measures and devotes significant resources to maintaining and upgrading its systems and networks with measures such as intrusion and detection prevention systems, monitoring firewall to safeguard critical business applications and supervising third party providers that have access to its systems, Jefferies 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. Additionally, if a client’s computer system, network or other technology is compromised by unauthorized access, Jefferies may face losses or other adverse consequences by unknowingly entering into unauthorized transactions. If one or more of such events occur, this potentially could jeopardize Jefferies or its clients’ or counterparties’ confidential and other information processed and stored in, and transmitted through, our computer systems and networks. Furthermore, such events may cause interruptions or malfunctions in Jefferies, its clients’, its counterparties’ or third parties’ operations, including the transmission and execution of unauthorized transactions. Jefferies may be required to expend significant additional resources to modify its protective measures or to investigate and remediate vulnerabilities or other exposures, and Jefferies may be subject to litigation and financial losses that are either not insured against or not fully covered through any insurance maintained by Jefferies. The increased use of smartphones, tablets and other mobile devices as well as cloud computing may also heighten these and other operational risks. Similar to other firms, Jefferies and its third party providers continue to be

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the subject of attempted unauthorized access, computer viruses and malware, and cyber attacks designed to disrupt or degrade service or cause other damage and denial of service. Additional challenges are posed by external parties, including foreign state actors. There can be no assurance that such unauthorized access or cyber incidents will not occur in the future, and they could occur more frequently and on a larger scale.

Jefferies is also subject to laws and regulations relating to the privacy of the information of its clients, employees or others, and any failure to comply with these regulations could expose Jefferies to liability and/or reputational damage. In addition, Jefferies' businesses are increasingly subject to laws and regulations relating to surveillance, encryption and data on-shoring in the jurisdictions in which it operates. Compliance with these laws and regulations may require Jefferies to change its policies, procedures and technology for information security, which could, among other things, make Jefferies more vulnerable to cyber attacks and misappropriation, corruption or loss of information or technology.

Jefferies business is subject to significant credit risk.  In the normal course of Jefferies businesses, Jefferies is involved in the execution, settlement and financing of various customer and principal securities and derivative transactions.  These activities are transacted on a cash, margin or delivery-versus-payment basis and are subject to the risk of counterparty or customer nonperformance.  Although transactions are generally collateralized by the underlying security or other securities, Jefferies still faces the risks associated with changes in the market value of the collateral through settlement date or during the time when margin is extended and collateral has not been secured or the counterparty defaults before collateral or margin can be adjusted.  Jefferies may also incur credit risk in its derivative transactions to the extent such transactions result in uncollateralized credit exposure to counterparties.

Jefferies seeks to control the risk associated with these transactions by establishing and monitoring credit limits and by monitoring collateral and transaction levels daily.  Jefferies may require counterparties to deposit additional collateral or return collateral pledged.  In the case of aged securities failed to receive, Jefferies may, under industry regulations, purchase the underlying securities in the market and seek reimbursement for any losses from the counterparty.  However, there can be no assurances that Jefferies risk controls will be successful.

The prices and availability of key raw materials affects the profitability of our beef processing and manufacturing operations.  The supply and market price of cattle purchased by National Beef are dependent upon a variety of factors over which National Beef has no control, including fluctuations in the size of herds maintained by producers, the relative cost of feed and energy, weather and livestock diseases.  A decline in the supply of fed cattle available for National Beef’s Brawley facility was a key factor in the 2013 decision to close National Beef's Brawley plant.  The cost of raw materials used by our manufacturing businesses have fluctuated over time as a result of a variety of factors. Although our manufacturing businesses are not currently experiencing any shortage of raw materials, if such shortages occur, revenues and profitability could decline.

Outbreaks of disease affecting livestock can adversely affect the supply of cattle and the demand for National Beef’s products.  National Beef is subject to risks relating to animal health and disease control.  An outbreak of disease affecting livestock (such as foot-and-mouth disease or bovine spongiform encephalopathy (“BSE”), commonly referred to as mad cow disease) could result in restrictions on sales of products, restrictions on purchases of livestock from suppliers or widespread destruction of cattle.  The discovery of BSE in the past caused certain countries to restrict or prohibit the importation of beef products.  Outbreaks of diseases, or the perception by the public that an outbreak has occurred, or other concerns regarding diseases, can lead to inadequate supply, cancellation of orders by customers and create adverse publicity, any of which can have a significant negative impact on consumer demand and, as a result, on our consolidated financial position, cash flows and results of operations.

If National Beef’s products or products made by others using its products become contaminated or are alleged to be contaminated, National Beef may be subject to product liability claims that could adversely affect its business. National Beef may be subject to significant liability in excess of insurance policy limits if its products or products made by others using its products cause injury, illness or death.  In addition, National Beef could recall or be required to recall products that are, or are alleged to be, contaminated, spoiled or inappropriately labeled.  Organisms producing food borne illnesses (such as E. coli) could be present in National Beef’s products and result in illness or death if they are not eliminated through further processing or cooking.  Contamination of National Beef’s or its competitors’ products may create adverse publicity or cause consumers to lose confidence in the safety and quality of beef products.  Allegations of product contamination may also be harmful even if they are untrue or result from third-party tampering.  Any of these events may increase costs or decrease demand for beef products, any of which could have a significant adverse effect on our consolidated financial condition, cash flows and results of operations.

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National Beef generally does not enter into long-term contracts with customers; as a result the volumes and prices at which beef products are sold are subject to market forces.  National Beef’s customers generally place orders for products on an as-needed basis and, as a result, their order levels have varied from period to period in the past and may vary significantly in the future.  The loss of one or more significant customers, a significant decline in the volume of orders from customers or a significant decrease in beef product prices for a sustained period of time could negatively impact cash flows and results of operations.

National Beef’s exports expose it to political and economic risks in the U.S. and foreign countries, as well as to risks related to currency fluctuations.  Approximately 10.8% of National Beef’s annual sales are export sales, primarily to Japan, Mexico, South Korea, Hong Kong, China (for hides), Taiwan, Italy and Egypt, and on average these sales have a higher margin than domestic sales of similar products.  A reduction in international sales could adversely affect revenues and margins.  Risks associated with international activities include inflation or deflation and changes in foreign currency exchange rates, including changes in currency exchange rates of other countries that may export beef products in competition with National Beef; the closing of borders by foreign countries to product imports due to disease or other perceived health or food safety issues; exchange controls; changes in tariffs; changes in political or economic conditions; trade restrictions and changes in regulatory requirements.  The occurrence of any of these events could increase costs, lower demand for products or limit operations, which could have a significant adverse effect on cash flows, results of operations and future prospects. 

National Beef incurs substantial costs to comply with environmental regulations and could incur additional costs as a result of new regulations or compliance failures that result in civil or criminal penalties, liability for damages and negative publicity.  National Beef’s operations are subject to extensive and stringent environmental regulations administered by the EPA and state, local and other authorities with regards to water usage, wastewater and storm water discharge, air emissions and odor, and waste management and disposal.  Failure to comply with these laws and regulations could have serious consequences, including criminal, civil and administrative penalties and negative publicity.  In addition, National Beef incurs and will continue to incur significant capital and operating expenditures to comply with existing and new or more stringent regulations and requirements.  All of National Beef’s processing facilities procure wastewater treatment services from municipal or other regional governmental agencies that are in turn subject to environmental laws and permit limits regarding their water discharges.  As permit limits are becoming more stringent, upgrades and capital improvements to these municipal treatment facilities are likely.  In locations where National Beef is a significant volume discharger, it could be asked to contribute toward the costs of such upgrades or to pay significantly increased water or sewer charges to recoup such upgrade costs.  National Beef may also be required to undertake upgrades and make capital improvements to its own wastewater pretreatment facilities, the cost of which could be significant.  Compliance with environmental regulations has had and will continue to have a significant impact on National Beef’s cash flows and profitability.  In addition, under most environmental laws, most notably the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and analogous state laws, National Beef could be held liable for the cost to investigate or remediate any contamination at properties it owns or operates, or as to which it arranges for the disposal or treatment of hazardous substances, as such liability is imposed without regard to fault.

National Beef is subject to extensive governmental regulation and noncompliance with or changes in applicable requirements could adversely affect its business, financial condition, cash flows and results of operations.  National Beef’s operations are subject to extensive regulation and oversight by the USDA, including its FSIS and GIPSA agencies, the FDA, and other federal, state, local and foreign authorities regarding the procurement of cattle and the processing, packaging, storage, safety, distribution, advertising and labeling of its products.  Recently, food safety practices and procedures in the meat processing industry have been subject to more intense scrutiny and oversight by the USDA.  National Beef is also subject to a variety of immigration, labor and worker safety laws and regulations, including those relating to the hiring and retention of employees.  Failure to comply with existing or new laws and regulations could result in administrative penalties and injunctive relief, civil remedies, fines, interruption of operations, recalls of products or seizures of properties, potential criminal sanctions and personal injury or other damage claims.  These remedies, changes in the applicable laws and regulations or discovery of currently unknown conditions could increase costs, limit business operations and reduce profitability.

National Beef’s performance depends on favorable labor relations with its employees, in particular employees represented by collective bargaining agreements.  A substantial number of National Beef’s employees are covered by collective bargaining agreements. A labor-related work stoppage by unionized employees, or employees who become unionized in the future, could limit National Beef’s ability to process and ship products or could increase costs.  Any significant increase in labor costs, deterioration of employee relations, slowdowns or work stoppages at any of National Beef’s locations, whether due to union activities, employee turnover or otherwise, could have a material adverse effect on our financial condition, cash flows and results of operations. 

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Uncertainties inherent in HRG’s business and operations could impact the realizability of the full value of our investment.  As a holding company, HRG is subject to risks and uncertainties across the industries in which it invests.  It is also subject to risks associated with its holding company structure, which include potential difficulties or limitations in receiving distributions from its subsidiaries, and the risk that acquisitions, dispositions or integrations of subsidiaries may not be successful.  The overall profitability of HRG is directly contingent on the profitability of its subsidiaries, which are subject to a number of specific risks, not limited to: substantial indebtedness and restrictive covenants within Spectrum Brands; operation of FGL in a highly regulated industry subject to numerous restrictions and regulations, including the recent "fiduciary" rule released by the Department of Labor in April 2016, which could have a material impact on its business model; the potential that HRG's agreed upon sale of FGL to Anbang may not close; and the reliance by Salus Capital on limited resources during its wind-down. We hold about 23% of the common shares of HRG and we record our investment at fair value.  As we do not control HRG, its management may make decisions that are not in our best interest.  HRG could decide to issue additional common shares, which would dilute our current ownership.  Additionally, changes in the market price of HRG shares may lead to volatility in our results of operations.  For additional risk factors concerning HRG, see its SEC filings.

Uncertainties relating to the results of FXCM could impact the value of our investment in FXCM. FXCM’s revenue and operating results may vary significantly from period to period due to movements and trends in the world’s currency markets and to fluctuations in trading levels. In addition, attrition of customer accounts, which are primarily comprised of individual retail customers, and failure to attract new accounts could impact revenue and profitability. FXCM is also subject to regulatory risks, as well as risks such as those relating to government actions like the unexpected actions of the Swiss National Bank on January 15, 2015, which resulted in the historic movement in the Swiss Franc.

We do not have the power to direct the activities that most significantly impact FXCM’s performance therefore its management may make decisions that are not in our best interest. It is difficult to anticipate all of the ramifications of the recent regulatory settlement between the NFA, the CFTC, FXCM Holdings, FXCM U.S., and certain of its principals, including the impact to its relationships with customers, regulators outside of the U.S., and other entities with which the subsidiaries of FXCM transact, any of which could materially impact the value of our investment in FXCM. For additional risk factors concerning FXCM, see FXCM Inc.'s SEC filings.

The performance of our oil and gas exploration and development investments, Juneau and Vitesse, is impacted by uncertainties specific to the oil and gas industry which we cannot control.  This oil and gas industry, by its nature, involves a high degree of risk.  The value of these investments may be impacted by changes in the prices of oil, gas and natural gas liquids, which are affected by local, regional and global events or conditions that affect supply and demand and which have a history of significant price volatility.  These investments are also exposed to changes in regulations affecting the industry, which could increase our cost of compliance, increase taxes or reduce or delay business opportunities.  In addition, there are numerous uncertainties inherent in the estimation of future oil and gas production and future income streams associated with production.  As a result, actual results could materially differ from those we currently anticipate and our ability to profitably grow these investments could be adversely affected.

Declines in the U.S. housing market may reduce revenues of our manufacturing businesses.  Our manufacturing operations, particularly Idaho Timber, generate significant revenues when the U.S. housing market is strong.  If the U.S. housing market were to decline, Idaho Timber's revenues and profitability would be adversely impacted.

We may not be able to insure certain risks economically.  We cannot be certain that we will be able to insure all risks that we desire to insure economically or that all of our insurers or reinsurers will be financially viable if we make a claim.  If an uninsured loss or a loss in excess of insured limits should occur, or if we are required to pay a deductible for an insured loss, results of operations could be adversely affected.  Damages from storms could result in the closing of our facilities to make repairs, resulting in lost business and adversely affecting results of operations.

When Berkadia originates loans for Fannie Mae, it is often required to share in the losses on such loans, which could be in excess of reserved amounts.  Berkadia carries a reserve on its balance sheet for contingent losses on loans originated for Fannie Mae that have loss sharing requirements.  If actual losses exceed amounts reserved, Berkadia’s profitability and cash flows will be reduced.

The loss of or changes in Berkadia’s relationships with U.S. Government-Sponsored Enterprises and federal agencies would have an adverse effect on Berkadia’s business.  Berkadia’s failure to comply with U.S. Government-Sponsored Enterprise or agency requirements may result in its termination as an approved seller/servicer, mortgagee or issuer.  The loss of any such status could have a significant adverse impact on Berkadia’s results of operations, could result in a loss of similar approvals from other U.S. Government-Sponsored Enterprises or federal agencies and could have other adverse consequences to the business.  Fannie Mae and Freddie Mac retain broad discretion to terminate Berkadia as a seller/servicer without cause upon notice.

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Changes in existing government-sponsored and federal mortgage programs could negatively affect Berkadia’s business.  Berkadia’s ability to generate income through mortgage sales to institutional investors depends in part on programs sponsored by Fannie Mae, Freddie Mac and the FHA, which purchase such loans from Berkadia and/or facilitate the issuance of mortgage-backed securities in the secondary market.  Any discontinuation of, or significant reduction or change in, the operation of those programs would have an adverse effect on Berkadia’s loan origination and servicing business and results of operations.

Berkadia’s fee-for-service businesses may be terminated on short notice.  Some of Berkadia's fee-for-service customers are permitted to terminate Berkadia on short notice, usually 30 days.  If Berkadia loses fee-for-service customers, it would negatively impact Berkadia’s results of operations and cash flows.

Certain loan programs expose Berkadia to credit and interest rate risk that it is not subject to with its government agency lending programs.  Unlike its government agency lending programs, Berkadia makes certain short term, floating rate bridge loans ("Bridge Loans") which are held on Berkadia's balance sheet and not intended for sale and may from time to time originate loans for sale into commercial mortgage-backed securitizations ("CMBS Loans"). Berkadia cannot be assured it will be able to sell CMBS Loans and Bridge Loans at par value to a third-party without any exposure to credit or interest rate risk.  If for any reason Berkadia is unable to sell a CMBS Loan into the securitization market or if a borrower is unable to refinance a Bridge Loan, Berkadia will retain all risks associated with such loan for as long as it owns the loan.  Berkadia may be forced to foreclose on defaulted loans and suffer a loss, or to sell loans to a third party at a discount, either of which would reduce Berkadia’s profitability and cash flows. As of December 31, 2016, the aggregate amount of Bridge Loans on Berkadia's balance sheet was $452.0 million. Berkadia did not originate any CMBS Loans in 2016 and as of December 31, 2016 had no such loans held for sale.

If Berkadia suffered significant losses and was unable torepay its commercial paper borrowings, we would be exposed to loss pursuant to a reimbursement obligation to Berkshire Hathaway.  Berkadia obtains funds generated by commercial paper sales of an affiliate of Berkadia.  All of the proceeds from the commercial paper sales are used by Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements.  Repayment of the commercial paper is supported by a $2.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and a Berkshire Hathaway corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder.  If Berkadia suffers significant losses and is unable to repay its commercial paper borrowings, we would suffer losses to the extent of our reimbursement obligation to Berkshire Hathaway.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.

Garcadia’s business is dependent, in part, upon revenue from new and used car sales at its dealerships, and declines in revenues due to industry or other factors could result in reduced profitability, reduced cash flows and/or impairment charges.  Garcadia has recorded impairment charges in the past, principally for goodwill and other intangible assets, and if the automobile industry experiences a downturn in the future, additional impairment charges are likely, reducing our profitability.

From time to time we may invest in illiquid securities that are subject to standstill agreements or are otherwise restricted.  From time to time we may invest in securities that are subject to restrictions which prohibit us from selling the subject securities for a period of time. Such agreements may limit our ability to generate liquidity quickly through the disposition of the underlying investment while the agreement is effective.

We could experience significant increases in operating costs and reduced profitability due to competition for skilled management and staff employees in our operating businesses.  We compete with many other entities for skilled management and staff employees, including entities that operate in different market sectors than us.  Costs to recruit and retain adequate personnel could adversely affect results of operations.

Extreme weather, loss of electrical power or other forces beyond our control could negatively impact our business.  Natural disasters, fire, terrorism, pandemic or extreme weather, including droughts, floods, excessive cold or heat, hurricanes or other storms, could interfere with our operating businesses due to power outages, fuel shortages, water shortages, damage to facilities or disruption of transportation channels, among other things.  Any of these factors, as well as disruptions to information systems, could have an adverse effect on financial results.

We rely on the security of our information technology systems and those of our third party providers to protect our proprietary information and information of our customers. Some of our businesses involve the storage and transmission of customers’ personal information, consumer preferences and credit card information.  While we believe that we have implemented protective measures to effectively secure information and prevent security breaches, and we continue to assess and improve these measures, our information technology systems have been and may continue to be vulnerable to unauthorized access, computer hacking, computer viruses or other unauthorized attempts by third parties to access the proprietary information of our customers.  Information technology breaches and failures could disrupt our ability to function in the normal course of business resulting in lost revenue, the disclosure or modification of sensitive or confidential information and the incurrence of remediation and notification costs,

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resulting in legal and financial exposure.  Moreover, loss of confidential customer identification information could harm our reputation and subject us to liability under laws that protect confidential personal data, resulting in increased costs or loss of revenues.

Legal liability may harm our business. Many aspects of our businesses involve substantial risks of liability, and in the normal course of business, we have been named as a defendant or codefendant in lawsuits involving primarily claims for damages. The risks associated with potential legal liabilities often may be difficult to assess or quantify and their existence and magnitude often remain unknown for substantial periods of time. The expansion of our businesses, including expansions into new products or markets, impose greater risks of liability. In addition, unauthorized or illegal acts of our employees could result in substantial liability. Substantial legal liability could have a material adverse financial effect or cause us significant reputational harm, which in turn could seriously harm our businesses and our prospects. Although our current assessment is that, other than as disclosed in this report, there is no pending litigation that could have a significant adverse impact, if our assessment proves to be in error, then the outcome of litigation could have a significant impact on our financial statements.

We may be adversely affected by changes in U.S. and non-U.S. tax laws in the countries in which we operate. The U.S. Congress and the President of the U.S. have indicated a desire to reform the U.S. corporate income tax. As part of any tax reform, it is possible that the U.S. corporate income tax rate may be reduced. Additionally, there may be other potential changes including modifying the taxation of income earned outside the U.S., and/or limiting or eliminating various other deductions, credits or tax preferences. At this time, it is not possible to measure the potential impact on the value of our deferred tax assets (the value of which would be reduced approximately proportionately to any reduction in the U.S income tax rates), business, prospects or result of operations that might result upon enactment.

We may not be able to generate sufficient taxable income to fully realize our deferred tax asset, which would also have to be reduced if U.S. federal income tax rates are lowered.  At December 31, 2016, we have recognized net deferred tax assets of $1.5 billion.  If we are unable to generate sufficient taxable income, we will not be able to fully realize the recorded amount of the net deferred tax asset.  If we are unable to generate sufficient taxable income prior to the expiration of our federal income tax net operating loss carryforwards (“NOLs”), the NOLs would expire unused.  Our projections of future taxable income required to fully realize the recorded amount of the net deferred tax asset reflect numerous assumptions about our operating businesses and investments, and are subject to change as conditions change specific to our business units, investments or general economic conditions.  Changes that are adverse to us could result in the need to increase the deferred tax asset valuation allowance resulting in a charge to results of operations and a decrease to total stockholders’ equity.  In addition, if U.S. federal income tax rates are lowered, we would be required to reduce our net deferred tax asset with a corresponding non-cash reduction to earnings during the period.

If our tax filing positions were to be challenged by federal, state and local or foreign tax jurisdictions, we may not be wholly successful in defending our tax filing positions.  We record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions.  Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so estimating the amount.  If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which result could be significant to our Consolidated Statement of Financial Condition or results of operations.

We have indicated our intention to pay dividends at the annual rate of $0.25 per common share, on a quarterly basis.  The payment of dividends in the future is subject to the discretion of the Board of Directors and will depend upon general business conditions, legal and contractual restrictions on the payment of dividends and other factors that the Board of Directors may deem to be relevant.

Our common shares are subject to transfer restrictions.  We and certain of our subsidiaries have significant NOLs and other tax attributes, the amount and availability of which are subject to certain qualifications, limitations and uncertainties.  In order to reduce the possibility that certain changes in ownership could result in limitations on the use of the tax attributes, our certificate of incorporation contains provisions that generally restrict the ability of a person or entity from acquiring ownership (including through attribution under the tax law) of 5% or more of our common shares and the ability of persons or entities now owning 5% or more of our common shares from acquiring additional common shares.  The restriction will remain until the earliest of (a) December 31, 2024, (b) the repeal of Section 382 of the Internal Revenue Code (or any comparable successor provision) and (c) the beginning of a taxable year to which these tax benefits may no longer be carried forward.  The restriction may be waived by our Board of Directors on a case by case basis.  Shareholders are advised to carefully monitor their ownership of our common shares and consult their own legal advisors and/or us to determine whether their ownership of our common shares approaches the proscribed level.

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Item 1B. Unresolved Staff Comments.

Not applicable.

Item 2. Properties.

Our and Jefferies global executive offices and principal administrative offices are located at 520 Madison Avenue, New York, New York under an operating lease arrangement. 

Jefferies maintains additional offices in over 30 cities throughout the world including its European headquarters in London and its Asian headquarters in Hong Kong. In addition, Jefferies maintains backup data center facilities with redundant technologies for each of its three main data center hubs in Jersey City, London and Hong Kong.  Jefferies leases all of its office space, or contract via service arrangement, which management believes is adequate for its business.

National Beef’s processing facilities, which are the principal properties used in its business, are described in Item 1 of this report.  National Beef also leases corporate office space in Kansas City, Missouri for its headquarters facility.

Idaho Timber’s plants, which are the principal properties used in its business, are described in Item 1 of this report.

Our businesses lease numerous other manufacturing, warehousing, office and headquarters facilities.  The facilities vary in size and have leases expiring at various times, subject, in certain instances, to renewal options.  See Note 25 to our consolidated financial statements.

Item 3. Legal Proceedings.

The information required by this Item 3 is incorporated by reference from the “Contingencies” section in Note 25 in the Notes to consolidated financial statements in Item 8 of Part II of this report, which is incorporated herein by reference.

Item 4. Mine Safety Disclosures.

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common shares are traded on the NYSE under the symbol LUK.  The following table sets forth, for the calendar periods indicated, the high and low sales price per common share on the consolidated transaction reporting system, as reported by the Bloomberg Professional Service provided by Bloomberg L.P.

	Common Share
	High		Low
2015
First Quarter	$	24.80	$	21.28
Second Quarter	25.09		22.22
Third Quarter	25.39		19.64
Fourth Quarter	21.29		15.93
2016
First Quarter	$	17.39	$	14.27
Second Quarter	18.22		15.32
Third Quarter	19.49		16.53
Fourth Quarter	24.17		17.87
2017
First Quarter (through February 16, 2017)	$	25.37	$	22.69

As of February 16, 2017, there were approximately 1,674 record holders of the common shares.

We paid cash dividends of $.0625 per share each quarter during 2016, 2015 and 2014.  We have indicated our intention to pay dividends currently at the annual rate of $0.25 per common share on a quarterly basis.  The payment of dividends in the future is subject to the discretion of the Board of Directors and will depend upon general business conditions, legal and contractual restrictions on the payment of dividends and other factors that the Board of Directors may deem to be relevant.

Certain of our subsidiaries have significant NOLs and other tax attributes, the amount and availability of which are subject to certain qualifications, limitations and uncertainties.  In order to reduce the possibility that certain changes in ownership could result in limitations on the use of our tax attributes, our certificate of incorporation contains provisions which generally restrict the ability of a person or entity from acquiring ownership (including through attribution under the tax law) of five percent or more of the common shares and the ability of persons or entities now owning five percent or more of the common shares from acquiring additional common shares.  The restrictions will remain in effect until the earliest of (a) December 31, 2024, (b) the repeal of Section 382 of the Internal Revenue Code (or any comparable successor provision) or (c) the beginning of a taxable year to which these tax benefits may no longer be carried forward.

In November 2012, our Board of Directors authorized a share repurchase program pursuant to which we may, from time to time, purchase up to an aggregate of 25,000,000 of our common shares, inclusive of prior authorizations.  During 2016, we repurchased a total of 3,838,412 shares in the open market pursuant to this program. Separately, during the twelve months ended December 31, 2016, we repurchased an aggregate of 1,596,602 shares in connection with our share compensation plans which allow participants to use shares to satisfy certain tax liabilities arising from the vesting of restricted shares and the distribution of restricted share units. The total number of shares purchased does not include unvested shares forfeited back to us pursuant to the terms of our share compensation plans.

There were no unregistered sales of equity securities during the period covered by this report.

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The following table presents information on our purchases of our common shares during the three months ended December 31, 2016:

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
October 2016	315,644	$	18.78	—	16,833,607
November 2016	672,019	$	18.72	672,019	16,161,588
December 2016	147,147	$	23.04	—	16,161,588
Total	1,134,810			672,019

Stockholder Return Performance Graph

Set forth below is a graph comparing the cumulative total stockholder return on our common shares against the cumulative total return of the Standard & Poor’s 500 Stock Index and the Standard & Poor’s 500 Financials Index for the period commencing December 31, 2011 to December 31, 2016.  Index data was furnished by Standard & Poor’s Capital IQ.  The graph assumes that $100 was invested on December 31, 2011 in each of our common stock, the S&P 500 Index and the S&P 500 Financials Index and that all dividends were reinvested.

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Item 6. Selected Financial Data.

The following selected financial data have been summarized from our consolidated financial statements and are qualified in their entirety by reference to, and should be read in conjunction with, such consolidated financial statements and Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report.

	Year Ended December 31,
	2016		2015		2014			2013			2012
	(In thousands, except per share amounts)
SELECTED INCOME STATEMENT DATA: (a)
Net revenues (b)	$	10,062,617	$	10,886,458	$	11,486,485		$	10,425,746		$	9,404,584
Expenses	9,900,785		10,640,203		11,243,790			9,999,202			8,051,204
Income from continuing operations before income taxes	316,430		356,536		381,222			545,585			1,442,029
Income tax provision	122,109		109,947		165,971			136,481			539,464
Income from continuing operations	194,321		246,589		215,251			409,104			902,565
Income (loss) from discontinued operations, including gain (loss) on disposal, net of taxes	—		5,522		(16,226		)	(46,911		)	(37,924		)
Net income attributable to Leucadia National Corporation common shareholders	125,938		279,587		204,306			369,240			854,466
Per share:
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34	$	0.73	$	0.58		$	1.20		$	3.64
Income (loss) from discontinued operations, including gain (loss) on disposal	—		0.01		(0.04		)	(0.13		)	(0.15		)
Net income	$	0.34	$	0.74	$	0.54		$	1.07		$	3.49
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34	$	0.73	$	0.58		$	1.20		$	3.59
Income (loss) from discontinued operations, including gain (loss) on disposal	—		0.01		(0.04		)	(0.14		)	(0.15		)
Net income	$	0.34	$	0.74	$	0.54		$	1.06		$	3.44

	At December 31,
	2016		2015		2014		2013		2012
	(In thousands, except per share amounts)
SELECTED BALANCE SHEET DATA: (a)
Total assets	$	45,071,307	$	46,331,184	$	52,614,324	$	47,858,780	$	9,343,881
Long-term debt	7,380,443		7,400,582		8,519,584		8,172,864		1,353,458
Mezzanine equity	461,809		316,633		311,686		366,075		241,649
Shareholders’ equity	10,128,100		10,401,211		10,302,158		10,102,462		6,767,268
Book value per common share	$	28.18	$	28.68	$	28.03	$	27.71	$	27.67
Cash dividends per common share	$	0.25	$	0.25	$	0.25	$	0.25	$	0.25

(a) Subsidiaries are reflected above as consolidated entities from the date of acquisition.  Jefferies was acquired on March 1, 2013. 

(b) Includes net realized securities gains of $29.5 million, $63.0 million, $30.4 million, $244.0 million and $590.6 million for the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The purpose of this section is to discuss and analyze our consolidated financial condition, liquidity and capital resources and results of operations.  This analysis should be read in conjunction with the consolidated financial statements and related footnote disclosures contained in this report and the following “Cautionary Statement for Forward-Looking Information.”

Cautionary Statement for Forward-Looking Information

Statements included in this report may contain forward-looking statements.  Such statements may relate, but are not limited, to projections of revenues, income or loss, development expenditures, plans for growth and future operations, competition and regulation, as well as assumptions relating to the foregoing.  Such forward-looking statements are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified.  When used in this report, the words “will,” “could,” “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends” and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties.  Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements.

Factors that could cause actual results to differ materially from any results projected, forecasted, estimated or budgeted or may materially and adversely affect our actual results include, but are not limited to, those set forth in Item 1A. Risk Factors and elsewhere in this report and in our other public filings with the SEC.

Undue reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof.  Except as may be required by law, we undertake no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this report or to reflect the occurrence of unanticipated events.

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Results of Operations

We focus on long-term value creation and invest in a broad variety of businesses.  The mix of our business and investments change from time to time. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings.  Further, as our investments span a number of industries, each may be impacted by different factors.  For these reasons, our pre-tax income is not predictable or necessarily comparable from period to period.

A summary of results of continuing operations for the year ended December 31, 2016 is as follows (in thousands):

	Jefferies		National Beef		Other Financial Services Businesses and Investments			Other Merchant Banking Businesses and Investments		Corporate and Other		Parent Company Interest			Total
Net revenues	$	2,421,055	$	7,027,243	$	(46,028	)	$	571,757	$	88,590	$	—		$	10,062,617
Expenses:
Cost of sales	—		6,513,768		—			337,039		—		—			6,850,807
Compensation and benefits	1,568,824		39,271		53,569			30,923		37,998		—			1,730,585
Floor brokerage and clearing fees	167,205		—		—			—		—		—			167,205
Interest	—		12,946		33,771			3,105		—		58,881			108,703
Depreciation and amortization	60,206		94,482		13,697			39,589		3,619		—			211,593
Selling, general and other expenses (including provision for doubtful accounts)	581,312		37,754		50,782			129,808		32,236		—			831,892
Total expenses	2,377,547		6,698,221		151,819			540,464		73,853		58,881			9,900,785
Income (loss) from continuing operations before income taxes and income related to associated companies	43,508		329,022		(197,847		)	31,293		14,737		(58,881		)	161,832
Income related to associated companies	—		—		124,508			26,441		3,649		—			154,598
Income (loss) from continuing operations before income taxes	$	43,508	$	329,022	$	(73,339	)	$	57,734	$	18,386	$	(58,881	)	$	316,430

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A summary of results of continuing operations for the year ended December 31, 2015 is as follows (in thousands):

	Jefferies		National Beef			Other Financial Services Businesses and Investments		Other Merchant Banking Businesses and Investments			Corporate and Other			Parent Company Interest			Inter-company Eliminations			Total
Net revenues	$	2,476,133	$	7,402,419		$	524,053	$	426,731		$	78,122		$	—		$	(21,000	)	$	10,886,458
Expenses:
Cost of sales	—		7,347,874			—		329,359			—			—			—			7,677,233
Compensation and benefits	1,467,752		34,781			35,054		24,657			103,221			—			—			1,665,465
Floor brokerage and clearing fees	199,780		—			—		—			—			—			—			199,780
Interest	—		16,633			9,404		2,586			—			87,181			—			115,804
Depreciation and amortization	92,165		89,317			8,176		30,731			3,744			—			—			224,133
Selling, general and other expenses (including provision for doubtful accounts)	597,271		37,729			48,279		79,421			16,088			—			(21,000		)	757,788
Total expenses	2,356,968		7,526,334			100,913		466,754			123,053			87,181			(21,000		)	10,640,203
Income (loss) from continuing operations before income taxes and income related to associated companies	119,165		(123,915		)	423,140		(40,023		)	(44,931		)	(87,181		)	—			246,255
Income related to associated companies	—		—			81,688		27,957			636			—			—			110,281
Income (loss) from continuing operations before income taxes	$	119,165	$	(123,915	)	$	504,828	$	(12,066	)	$	(44,295	)	$	(87,181	)	$	—		$	356,536

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A summary of results of continuing operations for the year ended December 31, 2014 is as follows (in thousands):

	Jefferies		National Beef			Other Financial Services Businesses and Investments		Other Merchant Banking Businesses and Investments		Corporate and Other			Parent Company Interest			Total
Net revenues	$	2,986,325	$	7,832,424		$	68,241	$	538,775	$	60,720		$	—		$	11,486,485
Expenses:
Cost of sales	—		7,708,007			—		316,279		—			—			8,024,286
Compensation and benefits	1,697,533		38,660			12,530		21,917		71,034			—			1,841,674
Floor brokerage and clearing fees	215,329		—			—		—		—			—			215,329
Interest	—		15,136			4,350		1,554		—			99,895			120,935
Depreciation and amortization	78,566		85,305			4,266		12,229		5,627			—			185,993
Selling, general and other expenses (including provision for doubtful accounts)	636,501		25,619			12,377		53,460		127,616			—			855,573
Total expenses	2,627,929		7,872,727			33,523		405,439		204,277			99,895			11,243,790
Income (loss) from continuing operations before income taxes and income related to associated companies	358,396		(40,303		)	34,718		133,336		(143,557		)	(99,895		)	242,695
Income related to associated companies	—		—			104,337		33,361		829			—			138,527
Income (loss) from continuing operations before income taxes	$	358,396	$	(40,303	)	$	139,055	$	166,697	$	(142,728	)	$	(99,895	)	$	381,222

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Jefferies

Jefferies was acquired on March 1, 2013 and is reflected in our consolidated financial statements utilizing a one month lag; Jefferies fiscal year ends on November 30^th and its fiscal quarters end one month prior to our reporting periods.  A summary of results of operations for Jefferies included in the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016		2015			2014
Net revenues	$	2,421,055	$	2,476,133		$	2,986,325
Expenses:
Compensation and benefits	1,568,824		1,467,752			1,697,533
Floor brokerage and clearing fees	167,205		199,780			215,329
Depreciation and amortization	60,206		92,165			78,566
Provision for doubtful accounts	7,365		(396		)	55,355
Selling, general and other expenses	573,947		597,667			581,146
Total expenses	2,377,547		2,356,968			2,627,929
Income before income taxes	$	43,508	$	119,165		$	358,396

Jefferies comprises many business units, with many interactions and much integration among them.  Business activities include the sales, trading, origination and advisory effort for various equity, fixed income, commodities, foreign exchange and advisory services.  Jefferies business, by its nature, does not produce predictable or necessarily recurring revenues or earnings.  Jefferies results in any given period can be materially affected by conditions in global financial markets, economic conditions generally, and its own activities and positions.

On April 9, 2015, Jefferies entered into an agreement to transfer certain of the client activities of its Jefferies Bache business to Société Générale S.A. During the second quarter of 2016, Jefferies completed the exit of the Futures business. Net revenues globally from this business activity, which are included within Jefferies fixed income results, and expenses directly related to the Bache business, which are included within non-interest expenses, were $80.2 million and $214.8 million, respectively, in 2015 and $202.8 million and $296.3 million, respectively, in 2014. There were no meaningful revenues or expenses from the Bache business for 2016. Total expenses for 2015 include costs of $73.1 million, on a pre-tax basis, related to the exit of the Bache business. These costs consist primarily of severance, retention and benefit payments for employees, incremental amortization of outstanding restricted stock and cash awards, contract termination costs and incremental amortization expense of capitalized software expected to no longer be used subsequent to the wind-down of the business. For further information, refer to Note 31 in our consolidated financial statements.

As more fully described in our discussion of Critical Accounting Estimates, Goodwill, Jefferies recognized goodwill impairment losses of $54.0 million in its stand-alone financial statements for 2014 based on an evaluation performed on the basis of its reporting units.  In accordance with U.S. GAAP, we have not recognized these losses on a consolidated basis.

The discussion below is presented on a detailed product and expense basis.  Net revenues presented for equity and fixed income businesses include allocations of interest income and interest expense as Jefferies assesses the profitability of these businesses inclusive of the net interest revenue or expense associated with the respective sales and trading 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 following provides a summary of net revenues by source included in the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016		2015		2014
Equities	$	553,169	$	757,764	$	690,793
Fixed income	642,982		271,947		751,848
Total sales and trading	1,196,151		1,029,711		1,442,641
Investment banking:
Capital markets:
Equities	235,207		408,474		339,683
Debt	304,576		397,979		627,536
Advisory	654,190		632,354		559,418
Total investment banking	1,193,973		1,438,807		1,526,637
Other	30,931		7,615		17,047
Total net revenues	$	2,421,055	$	2,476,133	$	2,986,325

Net Revenues

Net revenues for 2016 were impacted by an extremely volatile bear market environment during the first three months of the year, with meaningful improvement over the rest of the year. Net revenues for the first quarter of 2016 declined $292.7 million or 49.5% in comparison to the first quarter of 2015. The decrease in total net revenues for 2016 primarily reflects lower net revenues in investment banking and equities, partially offset by increased revenues in fixed income. Net revenues for 2016 included investment income from managed funds of $4.7 million, compared with investment losses from managed funds of $23.8 million in 2015, primarily due to lower valuations in the energy and shipping sectors in 2015.

Net revenues for 2015 reflect the impact of challenging market conditions throughout the year on Jefferies fixed income business, partially offset by increased revenues in Jefferies equities business. Almost all of Jefferies fixed income credit businesses were impacted by lower levels of liquidity due to the expectations of interest rate increases by the Federal Reserve and deterioration in the global energy and distressed markets.

Net revenues for 2014 reflect record investment banking revenues, partially offset by lower revenue due to challenging trading environments in Jefferies fixed income business, particularly in the fourth quarter of 2014.  Jefferies core equities business performed relatively well during 2014. 

Equities Net Revenues

Equities net revenues include equity commissions, equity security principal trading and investments (including Jefferies investments in KCG Holdings, Inc. ("KCG") and other equity securities) and net interest revenue generated by its equities sales and trading, prime services and wealth management business relating to cash equities, electronic trading, equity derivatives, convertible securities, prime brokerage, securities finance and alternative investment strategies.  Equities net revenues include Jefferies share of the net earnings of its joint venture investments in Jefferies Finance, LLC and Jefferies LoanCore, LLC, which are accounted for under the equity method. Equities net revenues also include Jefferies investment in HRG, prior to its sale to Leucadia in March 2014, at fair market value.

Total equities net revenues were $553.2 million for 2016 compared with $757.8 million in 2015. Results for 2016 includes a net loss of $17.9 million from Jefferies investment in two equity positions, including KCG, as compared to gains of $49.2 million in 2015 from these two equity positions. In addition, equities net revenues for 2015 included significant gains on additional securities positions, which were not repeated during 2016. Equities commission revenues gained slightly with improved market share across various product and client segments. Commissions in Jefferies cash equities and equity derivatives businesses held firm, while global electronic trading commissions gained from increased volumes and client market share. In Jefferies global electronic trading business, Jefferies has market leading customized algorithms in over 40 countries. European equities commissions increased due to improved market share, while commissions in Jefferies Asia Pacific cash equities business declined because of a challenging

31

market environment. Jefferies global cash businesses were among the highest market share gainers compared with Jefferies peers and, in the U.S. and U.K., Jefferies platform remains in the top 10.

Equities trading revenues were solid across most of Jefferies equities sales and trading businesses in 2016. Trading revenues from client market making improved in Jefferies U.S. and European cash equities businesses. Equity derivatives trading revenues declined due to a difficult volatility trading climate and convertibles trading revenues declined driven by weakness in the energy sector during 2016. In addition, certain strategic investments gained from exposures to energy, volatility, financial and currency markets.

Equities net revenues during 2016 included a net loss of $9.3 million from Jefferies share of Jefferies Finance, primarily due to the mark down of certain loans held for sale during the first part of 2016, compared with net revenues of $41.4 million in 2015. Net revenues from Jefferies share of Jefferies LoanCore also decreased during 2016 as compared to 2015 due to a decrease in loan closings and syndications.

Total equities net revenues were $757.8 million for 2015, compared with $690.8 million in 2014. Results in 2015 include a net gain of $49.1 million from Jefferies investment in KCG compared with a loss of $14.7 million from Jefferies investment in KCG and a gain of $19.9 million from Jefferies investment in HRG in 2014.

Strong revenues in 2015, as a result of increased trading volumes, from Jefferies electronic trading platform contributed to higher commissions revenues. Total equities net revenues also include higher revenues from the Asia Pacific cash equities business and net mark-to-market gains from equity investments, as well as growth from Jefferies wealth management platform. This was partially offset by lower revenues from equity block trading results from Jefferies cash equities business and lower commissions in Jefferies European cash equities business.

Equities net revenues from the Jefferies LoanCore joint venture during 2015 include higher revenues from an increase in loan closings and securitizations by the joint venture over 2014. Equities net revenues from the Jefferies Finance joint venture during 2015 include lower revenues as a result of syndicate costs associated with the sell down of commitments, as well as reserves taken on certain loans held for investment as compared with 2014.

Fixed Income Net Revenues

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

Jefferies recorded higher revenues in 2016 as compared to 2015 due to improved trading conditions across most core businesses, partially offset by lower revenues in its international rates business due to lower trading volumes. 2015 included $80.2 million of net revenues globally from the Bache business activity. There were no meaningful revenues from the Bache business during 2016, as Jefferies completed the exit of the Bache business during the second quarter of 2016. Excluding revenues from the Bache business activity, revenues increased $451.2 million.

Revenues in Jefferies leveraged credit business were strong on increased trading volumes within high yield and distressed, as a result of an improved credit environment, as well as strategic growth in the business, compared with mark-to-market write-downs in 2015. Results in Jefferies emerging markets business throughout 2016 were higher as compared to 2015 due to an upgraded sales and trading team and increased levels of volatility and improved market conditions. Revenues in 2016 from Jefferies corporates businesses increased as compared to 2015 due to increased client activity and higher demand for new issuances and higher yielding investments. Jefferies mortgages businesses were positively impacted by increased demand for spread products compared with the negative impact of market volatility as credit spreads tightened for these asset classes and expectations of future rate increases in 2015. The municipal securities business performed well during 2016 as improved trading activity was driven by market technicals compared with net outflows in 2015. Volatility during 2016 due to fluctuating expectations as to future Federal Reserve interest rate increases contributed to increased revenues in Jefferies U.S. rates business as compared to the prior year.

Jefferies recorded lower revenues during the 2015 period as compared to 2014, primarily due to tighter trading conditions across most core businesses and losses in Jefferies high yield distressed sales and trading business and international mortgages business, partially offset by higher revenues in its U.S. and International rates businesses, as well as its U.S. investment grade corporate credit business. 2015 included $80.2 million of net revenues globally from the Bache business activity compared with $202.8 million in 2014. Excluding revenues from the Bache business activity, revenues decreased $357.3 million.

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The higher revenues in Jefferies U.S. and International rates businesses, as well as its U.S. investment grade corporate credit business, resulted from higher transaction volumes in 2015 as compared to 2014, as volatility caused attractive yields and interest in new issuances. However, that same volatility negatively impacted the municipal securities business as prices declined and the sector experienced overall net cash outflows. Most of Jefferies credit fixed income businesses were negatively impacted during 2015 by periods of extreme volatility and market conditions, as investors focused on liquidity, resulting in periods of low trading volume during the year. In addition, results in Jefferies distressed trading businesses in 2015 were negatively impacted by its position in the energy sector and led to mark-to-market write-downs in its inventory and results in its emerging markets business were lower due to slower growth in the emerging markets during 2015 as compared to 2014. Jefferies mortgages business was also negatively impacted in 2015 by market volatility as credit spreads tightened for these asset classes and expectations of future rate increases resulted in lower trading volumes and revenues.

Investment Banking Revenues

Jefferies provides a full range of capital markets and financial advisory services to its clients across most industry sectors in the Americas, Europe and Asia.  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.

Total investment banking revenues were $1,194.0 million for 2016, 17.0% lower than 2015. Lower investment banking results were attributable to lower new issue equity and leveraged finance capital markets revenues. This was primarily as a result of the capital markets slowdown, which began in the second half of 2015 and continued for much of 2016. From equity and debt capital raising activities, Jefferies generated $235.2 million and $304.6 million in revenues, respectively, for 2016, a decrease of 42.4% and 23.5%, respectively, from 2015.

Jefferies reduced capital markets activity for 2016 was partially offset by record advisory revenues. Specifically, Jefferies advisory revenues for 2016 increased 3.5% compared to 2015, primarily through an increase in the number of merger, acquisition and restructuring transactions, including closing a record number of merger and acquisition transactions in excess of $1 billion.

Jefferies investment banking results benefited both from a record fourth quarter of advisory fees in 2016, with Jefferies merger, acquisition and restructuring and recapitalization businesses showing continued momentum, and from improvement in capital markets activity, which began in the late summer of 2016, leading to an increase in new issue transaction volume.

During 2015, Jefferies generated $1,438.8 million in investment banking revenues, $87.8 million lower than 2014, reflecting lower debt capital market revenues, partially offset by record equities capital markets and advisory revenues. Overall, capital markets revenues for 2015 decreased 16.6% from 2014, primarily due to significantly lower transaction volume in the leveraged finance market. From equity and debt capital raising activities, Jefferies generated $408.5 million and $398.0 million in revenues, respectively, in 2015, an increase of 20.3% and a decrease of 36.6%, respectively, from 2014. Record advisory revenues of $632.4 million for 2015, an increase of 12.5%, were primarily due to higher transaction volume.

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 and a portion of cash 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-based and cash-based awards amounted to $287.3 million, $307.7 million and $283.3 million for 2016, 2015 and 2014, respectively.Compensation and benefits as a percentage of Net revenues was 64.8%, 59.3% and 56.8% for 2016, 2015 and 2014, respectively.

Compensation and benefits expense directly related to Jefferies Bache business was $87.7 million and $98.6 million for 2015 and 2014, respectively, and was not meaningful for 2016. Included within Compensation and benefits expense for the Bache business

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for 2015 are severance, retention and related benefits costs of $38.2 million, incurred as part of decisions surrounding the exit of this business.

Non-Compensation Expenses

Non-compensation expenses include floor brokerage and clearing fees, technology and communications expense, occupancy and equipment rental expense, business development, professional services, bad debt provision, impairment charges, depreciation and amortization expense and other costs.  All of these expenses, other than floor brokerage and clearing fees, bad debt provision and depreciation and amortization expense, are included within Selling, general and other expenses in the Consolidated Statements of Operations.

In 2016, non-compensation expenses decreased 9.1% compared to 2015. The decrease in 2016 was due to the exiting of the Bache business, which in 2015 generated $127.2 million of non-compensation expenses, including accelerated amortization expense of $19.7 million related to capitalized software, $11.2 million in contract termination costs and professional services costs of approximately $2.5 million in connection with Jefferies actions in exiting the Bache business. There were no meaningful non-compensation expenses related to the Bache business in 2016. This reduction in 2016 was partially offset by higher technology and communications expenses, excluding the Bache business, and higher professional services expenses, excluding the Bache business. Technology and communications expenses, excluding the Bache business, increased due to higher costs associated with the development of the various trading systems and projects associated with corporate support infrastructure. In both years, Jefferies continued to incur legal and consulting fees as part of implementing various regulatory requirements. During 2015, Jefferies also released $4.4 million in reserves related to the resolution of bankruptcy claims against Lehman Brothers Holdings, Inc.

In 2015, non-compensation expenses were 4.4% lower compared to 2014. The decline is primarily related to bad debt expenses recognized in 2014 and lower Bache expenses. During the fourth quarter of 2014, Jefferies recognized a bad debt provision, which primarily related to a receivable of $52.3 million from a client to which Jefferies provided futures clearing and execution services, which declared bankruptcy. Non-compensation expenses for 2014 also includes approximately $7.6 million in impairment losses related to customer relationship intangible assets within the Bache business and Jefferies International Asset Management business. Non-compensation expenses associated directly with the activities of the Bache business were $127.2 million and $197.7 million for 2015 and 2014, respectively.

National Beef

A summary of results of operations for National Beef for the three years in the period ended December 31, 2016 is as follows (in thousands):

	2016		2015			2014
Net revenues	$	7,027,243	$	7,402,419		$	7,832,424
Expenses:
Cost of sales	6,513,768		7,347,874			7,708,007
Compensation and benefits	39,271		34,781			38,660
Interest	12,946		16,633			15,136
Depreciation and amortization	94,482		89,317			85,305
Selling, general and other expenses	37,754		37,729			25,619
Total expenses	6,698,221		7,526,334			7,872,727
Income (loss) before income taxes	$	329,022	$	(123,915	)	$	(40,303	)

National Beef’s profitability is dependent, in large part, on the spread between its cost for live cattle, the primary raw material for its business, and the value received from selling boxed beef and other products coupled with its overall volume.  National Beef operates in a large and liquid commodity market and it does not have much influence over the price it pays for cattle or the selling price it receives for the products it produces.  National Beef’s profitability typically fluctuates seasonally with relatively higher margins in the spring and summer months and during times of ample cattle availability.

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Revenues in 2016 decreased about 5% in comparison to 2015, due to lower average selling prices for beef and beef by-products, partially offset by an increase in the number of cattle processed. Revenues in 2015 decreased about 5% in comparison to 2014, due to lower sales volume, as fewer cattle were processed, and lower average selling prices for beef and beef by-products. Additionally, during 2015, decreases to revenues of $52.9 million were recorded as a result of National Beef's use of derivatives in its hedging activity. For 2016, cost of sales declined 11% as compared to 2015, due to a decrease in the price of fed cattle, partially offset by an increase in volume. For 2015, cost of sales declined 5% as compared to 2014, due to fewer cattle processed, and a decrease in the price of cattle. 

For 2016, the combined effects of increased margin per head and an increase in volume led to record high profitability. For 2015, the combined effects of both lower volumes and tighter margins due to the relative price of cattle compared to the selling price of beef and beef by-products impacted margins leading to reduced profitability compared to 2014. Selling, general and other expenses in 2015 included a $4.7 million impairment charge in connection with National Beef’s decision to close its Brawley, California beef processing plant. Also in connection with closing the Brawley facility, National Beef recognized $6.9 million of costs including employee separation and retention, systems decommissioning and various other expenses in 2014.  Of these amounts, $4.6 million related to employee separation, which is included in Compensation and benefits, and the various other costs are included in Selling, general and other expenses. 

Corporate and Other Results

A summary of results of operations for corporate and other for the three years in the period ended December 31, 2016 is as follows (in thousands):

	2016		2015			2014
Net revenues	$	88,590	$	78,122		$	60,720
Expenses:
Corporate compensation and benefits	35,009		52,385			61,736
WilTel pension	2,989		50,836			9,298
Depreciation and amortization	3,619		3,744			5,627
Selling, general and other expenses	32,236		16,088			127,616
Total expenses	73,853		123,053			204,277
Income (loss) before income taxes and income related to associated companies	14,737		(44,931		)	(143,557		)
Income related to associated companies	3,649		636			829
Pre-tax income (loss) from continuing operations	$	18,386	$	(44,295	)	$	(142,728	)

Net revenues of corporate and other primarily include realized and unrealized securities gains and interest income for investments which are held at the holding company. Revenues for 2016 include a $65.6 million increase in a trading asset which is held at fair value. Revenues for 2015 include a net realized securities gain related to a recovery of $35.0 million of an investment in a non-public security that was sold and had been written off in prior years. Revenues for 2014 consist primarily of interest income and a number of smaller securities gains.

For the years ended December 31, 2016, 2015 and 2014, corporate compensation and benefits includes accrued incentive bonus expense of $7.6 million, $17.4 million and $13.9 million, respectively. Share-based compensation expense was $9.7 million, $14.6 million and $26.3 million in 2016, 2015 and 2014, respectively.

Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, the responsibility for WilTel’s defined benefit pension plan was retained by us.  WilTel pension expense in 2015 includes a non-cash pension settlement charge of $40.7 million related to a voluntary lump sum offer to participants of the legacy plan. See Note 20 to our consolidated financial statements for further information.

Selling, general and other expenses for the 2015 period reflects the recovery of $20.1 million in insurance payments in respect of previously expensed legal fees. Selling, general and other expenses for 2014 include a charge relating to the agreement to settle certain litigation related to the Jefferies acquisition for an aggregate payment of $70.0 million plus legal fees.

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Other Financial Services Businesses and Investments

A summary of results of operations for other financial services businesses and investments for the three years in the period ended December 31, 2016 is as follows (in thousands):

	2016			2015		2014
Net revenues	$	(46,028	)	$	524,053	$	68,241
Expenses:
Compensation and benefits	53,569			35,054		12,530
Interest	33,771			9,404		4,350
Depreciation and amortization	13,697			8,176		4,266
Selling, general and other expenses	50,782			48,279		12,377
Total expenses	151,819			100,913		33,523
Income (loss) before income taxes and income related to associated companies	(197,847		)	423,140		34,718
Income related to associated companies	124,508			81,688		104,337
Pre-tax income (loss) from continuing operations	$	(73,339	)	$	504,828	$	139,055

Our other financial services businesses and investments include the consolidated results of certain Leucadia Asset Management fund managers, the returns on our investments in these funds, the consolidated results of Foursight Capital and Chrome Capital (vehicle finance), our share of the income of Berkadia, the results of our investment in FXCM and our share of the income of HomeFed.

In January 2015, we entered into a credit agreement with FXCM, for a $300 million two-year senior secured term loan with rights to a variable proportion of certain distributions in connection with an FXCM sale of assets or certain other events, and our right to require a sale of FXCM beginning in January 2018.  FXCM is an online provider of foreign exchange trading and related services.  We accounted for our loan and rights at fair value.  During 2016 and 2015, we recognized $(54.6) million and $491.3 million, respectively, of gains (losses) from our term loan and related rights. This includes the component related to interest income, which is recorded within Principal transactions revenues.

As more fully discussed in Note 4 to our consolidated financial statements, on September 1, 2016, we, FXCM Inc. and FXCM Holdings entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 and gave Leucadia a 49.9% common membership interest in FXCM. We gained the ability to significantly influence FXCM through the amendments and as a result, we now account for our equity interest in FXCM under the equity method of accounting. During 2016, we recognized income related to associated companies of $1.9 million related to our common membership interest in FXCM. Given recent events, including changes in leadership within FXCM, and planned divestitures, it is difficult to anticipate whether future pre-tax income will be more or less volatile.

Excluding the FXCM revenues in 2016 and 2015 discussed above, the net revenues in other financial services businesses and investments reflect revenues of $8.6 million in 2016, $32.7 million in 2015 and $68.2 million in 2014. The year-over-year decrease in 2016 compared to 2015 primarily reflects losses on investments recorded at market value related to the Leucadia Asset Management businesses partially offset by growth in our vehicle finance businesses and at our 54 Madison real estate fund. The year-over-year decrease in 2015 compared to 2014 primarily reflects losses on investments recorded at market value related to the Leucadia Asset Management businesses partially offset by growth in our vehicle finance businesses.

All expense categories were impacted by the growth of our Leucadia Asset Management businesses and vehicle finance businesses in 2016 and 2015 as compared to the prior years. Selling, general and other expenses for 2015 also include $21.0 million of investment banking and advisory fees paid to Jefferies in connection with our entering into the agreement with FXCM, and which Jefferies recognized in net revenues.  These intercompany fees have been eliminated in our consolidated results.

For the years ended December 31, 2016, 2015 and 2014, income related to associated companies attributable to Berkadia was $94.2 million, $78.1 million and $101.2 million, respectively. Berkadia's results were impacted by reversals of mortgage service rights

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impairments of $35.9 million in 2016, and investment gains of $15.4 million in 2015 and $69.8 million in 2014, of which we then recorded our applicable share. As our share of profits from Berkadia are primarily taxed at the Leucadia level, the income discussed above is pre-tax. Income related to associated companies attributable to HomeFed was $23.9 million, $3.6 million and $3.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. The increase in 2016 primarily reflects a reversal of HomeFed's deferred tax valuation allowance in 2016 as HomeFed concluded that it was more likely than not that they would have future taxable income sufficient to realize their net deferred tax asset.

Other Merchant Banking Businesses and Investments

A summary of results for other merchant banking businesses and investments for the three years in the period ended December 31, 2016 is as follows (in thousands):

	2016		2015			2014
Net revenues	$	571,757	$	426,731		$	538,775
Expenses:
Cost of sales	337,039		329,359			316,279
Compensation and benefits	30,923		24,657			21,917
Interest	3,105		2,586			1,554
Depreciation and amortization	39,589		30,731			12,229
Selling, general and other expenses	129,808		79,421			53,460
Total expenses	540,464		466,754			405,439
Income (loss) before income taxes and income related to associated companies	31,293		(40,023		)	133,336
Income related to associated companies	26,441		27,957			33,361
Pre-tax income (loss) from continuing operations	$	57,734	$	(12,066	)	$	166,697

Our other merchant banking operations include the consolidated results of Vitesse and Juneau (oil and gas exploration and development) and Conwed and Idaho Timber (manufacturing companies).  It also includes our equity investments in Garcadia (automobile dealerships), Linkem (fixed wireless broadband services in Italy) and Golden Queen (a gold and silver mining project), as well as our ownership of HRG shares, which is accounted for at fair value, and impacts our results through its mark-to-market adjustment reflected within net revenues. Other merchant banking operations also includes our real estate operations, substantially all of which were sold to HomeFed during March 2014 in exchange for HomeFed common shares. 

Net revenues include principal transactions related to unrealized gains (losses) of $93.2 million, $(28.0) million and $99.3 million for the years ended December 31, 2016, 2015 and 2014, respectively, from the change in value of our investment in HRG.

We classify HRG as a trading asset for which the fair value option was elected and we reflect mark-to-market adjustments through Principal transactions revenues. In addition, net revenues for 2014 include a $22.7 million gain on the sale of an equity interest for cash proceeds of $33.0 million.

For the years ended December 31, 2016, 2015 and 2014, net revenues for manufacturing were $415.8 million, $392.1 million and $380.5 million, respectively.  Net revenues for the years ended December 31, 2016, 2015 and 2014 for our oil and gas exploration and development businesses were $53.5 million, $54.1 million and $19.9 million, respectively. As discussed further in Note 4 to our consolidated financial statements, Vitesse uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Net unrealized gains (losses) of $(11.8) million and $7.4 million were recorded related to these options in 2016 and 2015, respectively.

The increase in total expenses in 2016 and 2015 as compared to the prior year, primarily reflects higher costs for our oil and gas exploration and development businesses. For the years ended December 31, 2016, 2015 and 2014, Selling, general and other expenses for manufacturing were $9.2 million, $8.6 million and $8.5 million, respectively.  Selling, general and other expenses for our oil and gas exploration and development businesses were $109.1 million, $49.8 million and $15.7 million in 2016, 2015 and 2014, respectively. The increase is primarily due to impairment charges totaling $63.8 million and $20.3 million recorded in 2016 and 2015, respectively, for the write-down of Juneau oil field assets to fair value. The 2016 impairment charge primarily

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related to decisions made by Juneau in the third quarter to curtail development of its southern acreage in the East Eagle Ford and its Houston County acreage. A $55.0 million impairment charge was then recorded for the difference between the carrying value of that acreage and the estimated net realizable value. Selling, general and other expenses for our oil and gas exploration and development businesses for 2016 also includes the write-down of certain Juneau leases that will not benefit our business going forward, increased exploration costs and the loss on sale of an associated company.

Depreciation and amortization for the oil and gas exploration and development businesses were $30.4 million, $25.1 million and $3.9 million in 2016, 2015 and 2014, respectively. The significant increase in 2016 and 2015 is due to increased production and additional wells compared to 2014.

For the years ended December 31, 2016, 2015 and 2014, pre-tax profits for manufacturing were $39.8 million, $31.1 million and $31.7 million, respectively.  Pre-tax losses for the oil and gas exploration and development businesses were $90.8 million, $31.9 million and $0.8 million for 2016, 2015 and 2014, respectively.  Pre-tax losses for the Oregon LNG project were $2.1 million, $7.5 million and $6.8 million for 2016, 2015 and 2014, respectively.

Income related to associated companies primarily relates to our investments in Linkem and Garcadia.  For the years ended December 31, 2016, 2015 and 2014, losses related to Linkem were $22.9 million, $15.6 million and $14.6 million, respectively, and income related to Garcadia was $52.3 million, $53.2 million and $49.4 million, respectively.

Parent Company Interest

Parent company interest totaled $58.9 million for 2016, $87.2 million for 2015 and $99.9 million for 2014.  The decline in interest expense in 2016 as compared to 2015 and 2015 as compared to 2014 is primarily due to the repayment of our 8.125% Senior Notes in September 2015.  

Income Taxes

For the year ended December 31, 2016, our provision for income taxes was $122.1 million, representing an effective tax rate of about 39%.  Our 2016 provision was increased by a $24.9 million charge related to previously issued stock awards, which increased our effective rate by 8%. The majority of the awards expired unexercised during the first quarter of 2016. The tax deductions associated with the remainder of the awards was less than the compensation cost recognized for financial reporting purposes.

For the year ended December 31, 2015, our provision for income taxes was $109.9 million, representing an effective tax rate of about 31%.  Our 2015 provision was reduced by $10.7 million, lowering our effective rate by 3%, related to benefits recorded for certain state and local net operating loss carryforwards, which are more likely than not to be realized in the future.

For the year ended December 31, 2014, our provision for income taxes was $166.0 million, representing an effective tax rate of about 44%.  Our 2014 provision was higher by $24.5 million, increasing our effective rate by 6%, related to a charge recorded to settle the litigation concerning the Jefferies acquisition, which was nondeductible.  Our 2014 provision includes an offsetting benefit of $22.2 million, or 6%, for the reduction of the valuation allowance with respect to certain net operating loss carryovers, which we now believe are more likely than not to be utilized before they expire. 

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Discontinued Operations

Our loss from discontinued operations, net of tax and our gain (loss) on disposal from discontinued operations, net of tax include the impact of a number of changes in the mix of our businesses and investments.  During the three years ended December 31, 2016, discontinued operations included the Lake Charles clean energy project, which we decided in September 2014 to discontinue further development, and Premier Entertainment Biloxi LLC ("Premier"), through which we had conducted our gaming entertainment operations, which was sold in July 2014..

Our loss from discontinued operations, net of income tax totaled $17.9 million in 2014.  Our 2014 loss consisted primarily of $25.4 million in losses related to our Lake Charles clean energy project, offset by income of about $6.1 million from Premier.  Our income from discontinued operations in 2016 and 2015 was not significant.

Our gain on disposal from discontinued operations, net of tax totaled $5.1 million in 2015 and $1.7 million in 2014.  Gain on disposal of discontinued operations for 2015 primarily relates to additional consideration received related to the 2012 sale of our small Caribbean-based telecommunications provider and a reversal of a legal reserve.  

For further information, see Note 29 to our consolidated financial statements.

Selected Balance Sheet Data

In addition to preparing our Consolidated Statements of Financial Condition in accordance with U.S. GAAP, we also review the tangible capital associated with each of our businesses and investments, which is a non-GAAP presentation and may not be comparable to similar non-GAAP presentations used by other companies. We believe that this information is useful to investors as it allows them to view our businesses and investments through the eyes of management while facilitating a comparison across historical periods. We define tangible capital as Total Leucadia National Corporation shareholders' equity less Intangible assets, net and goodwill.

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The tables below reconcile tangible capital to our U.S. GAAP balance sheet (in thousands):

	December 31, 2016
	Jefferies			National Beef			Other Financial Services Businesses and Investments (1)			Other Merchant Banking Businesses and Investments		Corporate liquidity and other assets, net of Corporate liabilities		Inter-company Eliminations			Total
Assets
Cash and cash equivalents	$	3,529,457		$	37,702		$	41,165		$	45,151	$	154,083	$	—		$	3,807,558
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	857,337			—			—			—		—		—			857,337
Financial instruments owned	13,809,512			1,906			188,976			761,249		524,643		—			15,286,286
Investments in managed funds	186,508			—			301,171			—		27,639		—			515,318
Loans to and investments in associated companies	653,872			—			985,780			451,117		34,329		—			2,125,098
Securities borrowed	7,743,562			—			—			—		—		—			7,743,562
Securities purchased under agreements to resell	3,862,488			—			—			—		—		—			3,862,488
Receivables	3,163,171			179,313			938,254			47,761		96,679		—			4,425,178
Property, equipment and leasehold improvements, net	265,553			385,599			4,551			31,351		22,188		—			709,242
Intangible assets, net and goodwill	1,903,335			599,794			10,549			—		—		—			2,513,678
Deferred tax asset, net	337,580			—			—			—		1,124,235		—			1,461,815
Assets held for sale	—			—			—			128,083		—		—			128,083
Other assets	679,721			294,003			117,274			563,905		63,442		(82,681		)	1,635,664
Total Assets	36,992,096			1,498,317			2,587,720			2,028,617		2,047,238		(82,681		)	45,071,307
Liabilities
Long-term debt (2)	5,483,331			276,341			545,528			87,352		987,891		—			7,380,443
Other liabilities	26,090,308			270,184			351,505			64,315		231,775		(82,681		)	26,925,406
Total liabilities	31,573,639			546,525			897,033			151,667		1,219,666		(82,681		)	34,305,849
Redeemable noncontrolling interests	—			321,962			551			14,296		—		—			336,809
Mandatorily redeemable convertible preferred shares	—			—			—			—		125,000		—			125,000
Noncontrolling interests	651			—			141,847			33,051		—		—			175,549
Total Leucadia National Corporation shareholders' equity	$	5,417,806		$	629,830		$	1,548,289		$	1,829,603	$	702,572	$	—		$	10,128,100
Reconciliation to Tangible Capital
Total Leucadia National Corporation shareholders' equity	$	5,417,806		$	629,830		$	1,548,289		$	1,829,603	$	702,572	$	—		$	10,128,100
Less: Intangible assets, net and goodwill	(1,903,335		)	(599,794		)	(10,549		)	—		—		—			(2,513,678		)
Tangible Capital, a non-GAAP measure	$	3,514,471		$	30,036		$	1,537,740		$	1,829,603	$	702,572	$	—		$	7,614,422

(1) Other financial services businesses and investments excludes $89.1 million December 31, 2016 of liquid marketable securities that are available for sale immediately. These liquid marketable securities are included in Corporate liquidity and other assets, net of Corporate liabilities.

(2) Long-term debt within Other financial services businesses and investments of $545.5 million at December 31, 2016, includes $406.0 million for 54 Madison, $97.1 million for Foursight Capital and $42.4 million for Chrome Capital. Long-term debt within Other merchant banking businesses and investments of $87.4 million at December 31, 2016, includes $55.7 million for our real estate associated with the Garcadia investment and $31.7 million for Vitesse.

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	December 31, 2015
	Jefferies			National Beef			Other Financial Services Businesses and Investments (1)			Other Merchant Banking Businesses and Investments			Corporate liquidity and other assets, net of Corporate liabilities		Inter-company Eliminations			Total
Assets
Cash and cash equivalents	$	3,510,163		$	17,814		$	22,203		$	30,940		$	57,528	$	—		$	3,638,648
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	751,084			—			—			—			—		—			751,084
Financial instruments owned	16,559,116			891			647,936			639,253			653,249		—			18,500,445
Investments in managed funds	85,775			—			488,940			—			55,317		(26,312		)	603,720
Loans to and investments in associated companies	825,908			—			466,364			441,970			23,127		—			1,757,369
Securities borrowed	6,975,136			—			—			—			—		—			6,975,136
Securities purchased under agreements to resell	3,854,746			—			—			—			—		—			3,854,746
Receivables	3,023,899			208,107			463,545			51,558			83,858		—			3,830,967
Property, equipment and leasehold improvements, net	243,486			394,506			11,479			46,894			25,510		—			721,875
Intangible assets, net and goodwill	1,938,582			645,049			2,336			62,395			—		—			2,648,362
Deferred tax asset, net	320,198			—			—			—			1,255,170		—			1,575,368
Other assets	519,693			247,882			88,987			680,926			59,387		(123,411		)	1,473,464
Total Assets	38,607,786			1,514,249			2,191,790			1,953,936			2,213,146		(149,723		)	46,331,184
Liabilities
Long-term debt (2)	5,640,722			439,299			258,350			75,389			986,822		—			7,400,582
Other liabilities	27,408,213			194,918			216,537			116,702			335,120		(123,411		)	28,148,079
Total liabilities	33,048,935			634,217			474,887			192,091			1,321,942		(123,411		)	35,548,661
Redeemable noncontrolling interests	—			189,358			—			2,275			—		—			191,633
Mandatorily redeemable convertible preferred shares	—			—			—			—			125,000		—			125,000
Noncontrolling interests	27,468			—			14,998			48,525			—		(26,312		)	64,679
Total Leucadia National Corporation shareholders' equity	$	5,531,383		$	690,674		$	1,701,905		$	1,711,045		$	766,204	$	—		$	10,401,211
Reconciliation to Tangible Capital
Total Leucadia National Corporation shareholders' equity	$	5,531,383		$	690,674		$	1,701,905		$	1,711,045		$	766,204	$	—		$	10,401,211
Less: Intangible assets, net and goodwill	(1,938,582		)	(645,049		)	(2,336		)	(62,395		)	—		—			(2,648,362		)
Tangible Capital, a non-GAAP measure	$	3,592,801		$	45,625		$	1,699,569		$	1,648,650		$	766,204	$	—		$	7,752,849

(1) Other financial services businesses and investments excludes $366.3 million at December 31, 2015 of liquid marketable securities that are available for sale immediately. These liquid marketable securities are included in Corporate liquidity and other assets, net of Corporate liabilities.

(2) Long-term debt within Other financial services businesses and investments of $258.4 million at December 31, 2015, includes $116.2 million for 54 Madison, $109.5 million for Foursight Capital and $32.6 million for Chrome Capital. Long-term debt within Other merchant banking businesses and investments of $75.4 million at December 31, 2015, includes $57.8 million for our real estate associated with the Garcadia investment and $17.6 million for Vitesse.

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The table below presents our tangible capital by significant business and investment (in thousands):

	Tangible Capital as of
	December 31, 2016			December 31, 2015
Jefferies	$	3,514,471		$	3,592,801
National Beef	30,036			45,625
Other Financial Services Businesses and Investments:
Leucadia Asset Management (1)	483,687			560,251
FXCM	500,758			625,689
HomeFed	269,421			241,368
Berkadia	184,443			190,986
Foursight Capital and Chrome Capital	100,516			81,275
Other	(1,085		)	—
Total Other Financial Services Businesses and Investments	1,537,740			1,699,569
Other Merchant Banking Businesses and Investments:
HRG	725,096			631,896
Vitesse	309,837			278,833
Juneau	159,182			179,972
Garcadia	206,760			189,356
Linkem	154,000			150,149
Golden Queen	78,474			80,604
Idaho Timber	76,551			73,057
Conwed	100,649			42,915
Other	19,054			21,868
Total Other Merchant Banking Businesses and Investments	1,829,603			1,648,650
Corporate liquidity and other assets, net of all Corporate liabilities including long-term debt	702,572			766,204
Total Tangible Capital (2)	$	7,614,422		$	7,752,849

(1) Leucadia Asset Management does not include $89.1 million and $366.3 million at December 31, 2016 and 2015, respectively, of liquid marketable securities that are available for sale immediately. These liquid marketable securities are included in Corporate liquidity and other assets, net of all Corporate liabilities including long-term debt.

(2) Tangible Capital, a non-GAAP measure, is defined as Leucadia National Corporation shareholders' equity less Intangible assets, net and goodwill. See reconciliation of Tangible Capital to Leucadia National Corporation shareholders' equity in the tables above.

Liquidity and Capital Resources

Parent Company Liquidity

We are a holding company whose assets principally consist of the stock or membership interests of direct subsidiaries, cash and cash equivalents and other non-controlling investments in debt and equity securities.  We continuously evaluate the retention and disposition of our existing operations and investments and investigate possible acquisitions of new businesses in order to maximize shareholder value.  Accordingly, further acquisitions, divestitures, investments and changes in capital structure are possible.  Our principal sources of funds are available cash resources, liquid investments, public and private capital market transactions, repayment of subsidiary advances, funds distributed from subsidiaries as tax sharing payments, management and other fees, and dividends from subsidiaries, as well as dispositions of existing businesses and investments.

In addition to cash and cash equivalents, we have certain other investments that are easily convertible into cash within a relatively short period of time.  These are classified as trading assets, available for sale securities, and investments in managed funds.  Together these total $543.5 million at December 31, 2016, primarily comprised of cash and short-term bonds and notes of the U.S. Government and its agencies, and other publicly traded debt and equity securities.  Our available liquidity, and the investment

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income realized from cash, cash equivalents and marketable securities is used to meet our short-term recurring cash requirements, which are principally the payment of interest on our debt, dividends and corporate overhead expenses.

The parent company’s primary long-term cash requirement is to make principal payments on its long-term debt ($1.0 billion principal outstanding as of December 31, 2016), of which $750.0 million is due in 2023 and $250.0 million in 2043.  Historically, we have used our available liquidity to make acquisitions of new businesses and other investments, but, except as disclosed in this report, the timing of any future investments and the costs thereof cannot be predicted.

From time to time in the past, we have accessed public and private credit markets and raised capital in underwritten bond financings.  The funds raised have been used by us for general corporate purposes, including for our existing businesses and new investment opportunities.  Our senior debt obligations are rated Ba1 by Moody’s Investors Services and BBB- by Standard and Poor’s and Fitch Ratings.  Ratings issued by bond rating agencies are subject to change at any time.

During 2016, we received $114.0 million from the redemption of Leucadia Asset Management's investment in Topwater Capital; assets under management were replaced by Jefferies investment in Topwater Capital of $114.0 million. In 2016, we received $201.4 million in distributions from National Beef.

During the year ended December 31, 2016, we invested a net $63.0 million in 54 Madison, which was primarily used to fund real estate projects. In 2016, we purchased $33.3 million of additional Linkem convertible preferred equity and we also invested $98.8 million in add on investments in our oil and gas subsidiaries.

During 2015, we invested $279.0 million in FXCM, structured as a two-year term loan and rights to receive a variable proportion of certain distributions in connection with an FXCM sale of assets or certain other events. As more fully discussed in Note 4 to our consolidated financial statements, on September 1, 2016, we, FXCM Inc. and FXCM Holdings entered into an agreement that amended the terms of our loan and associated rights. We received $72.1 million of principal and interest from FXCM during the year ended December 31, 2016 and $144.7 million principal, interest and fees during the year ended December 31, 2015.

During the year ended December 31, 2016, we purchased a total of 5,435,014 of our common shares for $95.0 million, at an average price per share of $17.48. The Board of Directors has authorized the purchase of up to 25,000,000 common shares, which may be made from time to time in the open market, through block trades or otherwise. As of December 31, 2016, 16,161,588 common shares remain authorized for repurchase.

During the year ended December 31, 2016, we paid four quarterly dividends of $0.0625 per share which aggregated $91.3 million.  The payment of dividends in the future is subject to the discretion of the Board of Directors and will depend upon general business conditions, legal and contractual restrictions on the payment of dividends and other factors that the Board of Directors may deem to be relevant.

In February 2009, the Board of Directors authorized, from time to time, the purchase of our outstanding debt securities through cash purchases in open market transactions, privately negotiated transactions or otherwise.  Such repurchases, if any, depend upon prevailing market conditions, our liquidity requirements and other factors; such purchases may be commenced or suspended at any time without notice.

At December 31, 2016, we had outstanding 359,425,061 common shares and 14,650,000 share-based awards that do not require the holder to pay any exercise price (potentially an aggregate of 374,075,061 outstanding common shares if all awards become outstanding common shares). The 14,650,000 share-based awards include the target number of shares under the senior executive award plan, which is more fully discussed in Note 18.

We and certain of our subsidiaries have federal income tax net operating loss carryforwards (“NOLs”) of approximately $3.4 billion (net deferred tax asset of $1.1 billion) at December 31, 2016 and other tax attributes.  The amount and availability of the NOLs and other tax attributes are subject to certain qualifications, limitations and uncertainties.  In order to reduce the possibility that certain changes in ownership could impose limitations on the use of the NOLs, our certificate of incorporation contains provisions which generally restrict the ability of a person or entity from acquiring ownership (including through attribution under the tax law) of five percent or more of the common shares and the ability of persons or entities now owning five percent or more of the common shares from acquiring additional common shares.  The restrictions will remain in effect until the earliest of (a) December 31, 2024, (b) the repeal of Section 382 of the Internal Revenue Code (or any comparable successor provision) or (c) the beginning of a taxable year to which certain tax benefits may no longer be carried forward.  For more information about the NOLs and other tax attributes, see Note 21 to our consolidated financial statements.

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Concentration, Liquidity and Leverage Targets

In connection with presentations made to credit rating agencies with respect to the Jefferies acquisition, we advised the agencies that we would target specific concentration, leverage and liquidity principles, expressed in the form of certain ratios and percentages, although there is no legal requirement to do so.

Concentration Target: As a diversification measure, we limit cash investments such that our single largest investment does not exceed 20% of equity excluding Jefferies, and that our next largest investment does not exceed 10% of equity excluding Jefferies, in each case measured at the time the investment was made. National Beef is our largest investment and HRG is our next largest investment.

Liquidity Target: We hold a liquidity reserve calculated as a minimum of twenty-four months of corporate expenses (excluding non-cash components), parent company interest, and dividends.  Maturities of parent company debt within the upcoming year are also included in the target; however, our next maturity is during 2023 so there is no current inclusion.  

Leverage Target: We target a maximum parent debt to stressed equity ratio of .50, with stressed equity defined as equity (excluding Jefferies) assuming the loss of our two largest investments.

These thresholds and calculations of the actual ratios and percentages are detailed below at December 31, 2016 (dollars in thousands):

Total Leucadia National Corporation shareholders' equity	$	10,128,100
Less, investment in Jefferies	(5,417,806		)
Equity excluding Jefferies	4,710,294
Less, our two largest investments:
National Beef	(629,830		)
HRG, at cost	(475,600		)
Equity in a stressed scenario	3,604,864
Less, net deferred tax asset excluding Jefferies amount	(1,124,235		)
Equity in a stressed scenario less net deferred tax asset	$	2,480,629
Balance sheet amounts:
Available liquidity	$	543,525
Parent company debt (see Note 16 to our Consolidated financial statements)	$	987,891
Ratio of parent company debt to stressed equity:
Maximum	0.50			x
Actual, equity in a stressed scenario	0.27			x
Actual, equity in a stressed scenario excluding net deferred tax asset	0.40			x
Liquidity reserve:
Minimum	$	426,000
Actual	$	543,525

Consolidated Statements of Cash Flows

As discussed above, we have historically relied on our available liquidity to meet short-term and long-term needs, and to make acquisitions of new businesses and investments.  Except as otherwise disclosed herein, our operating businesses do not generally require significant funds to support their operating activities, and we do not depend on positive cash flow from our operating segments to meet our liquidity needs.  The mix of our operating businesses and investments can change frequently as a result of acquisitions or divestitures, the timing of which is impossible to predict but which often have a significant impact on our Consolidated Statements of Cash Flows in any one period.  Further, the timing and amounts of distributions from investments in associated companies may be outside our control.  As a result, reported cash flows from operating, investing and financing activities do not generally follow any particular pattern or trend, and reported results in the most recent period should not be expected to recur in any subsequent period.

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Net cash of $608.8 million was provided by operating activities in 2016 and net cash of $761.8 million in 2015 and $987.2 million in 2014 was used for operating activities. 

• Jefferies used funds of $132.1 million, $294.5 million and $276.6 million during 2016, 2015 and 2014.  Included in these amounts are distributions received from associated companies of $38.2 million during 2016, $76.7 million during 2015 and $54.0 million during 2014.

• National Beef generated funds of $484.8 million and $76.5 million during 2016 and 2015, respectively, and used funds of $55.0 million during 2014.

• Within our Other Financial Services Businesses and Investments, cash of $50.0 million, $325.0 million and $345.1 million was used during 2016, 2015 and 2014 to make additional investments in the Leucadia Asset Management platform. Additionally, during 2016, cash of $257.0 million was generated from our trading portfolio and $170.0 million from our investments in managed funds related to our Leucadia Asset Management platform. We received distributions from Berkadia, an associated company, of $99.9 million during 2016, $89.4 million during 2015 and $72.9 million during 2014. Cash used for operating activities also includes net cash used of $119.8 million in 2016, $140.2 million in 2015 and $110.1 million in 2014 relating to automobile installment contracts, which is reflected in the net change in other receivables.

• Within our Other Merchant Banking Businesses and Investments, manufacturing generated funds of $35.4 million in 2016, $31.2 million in 2015 and $27.1 million in 2014. In 2014, $317.5 million was used to acquire our investment in HRG. We received distributions from Garcadia, an associated company, of $51.4 million during 2016, $57.3 million during 2015 and $46.0 million during 2014. Net losses related to real estate, property and equipment, and other assets include impairment charges of $65.7 million in 2016 and $27.7 million in 2015, primarily related to Juneau.

• Our cash used for operating activities also reflects the use of $7.3 million during 2015 and $40.7 million during 2014 by our discontinued operations. Additionally, during 2015, we paid $80.4 million in connection with legal settlements. The change in operating cash flows also reflects lower interest payments in 2016 as compared to 2015 and 2014.

Net cash of $639.7 million was used for investing activities in 2016 and net cash of $781.2 million in 2015 and $449.1 million in 2014 was provided by investing activities. 

• Acquisitions of property, equipment and leasehold improvements, and other assets related to Jefferies include $103.3 million in 2016, $68.8 million in 2015 and $113.0 million in 2014. Jefferies made loans to and investments in associated companies of $538.2 million during 2016, $1,438.7 million during 2015 and $2,786.4 million during 2014. Jefferies received capital distributions and loan repayments from its associated companies of $689.2 million during 2016, $1,384.9 million during 2015 and $2,750.6 million during 2014.

• Acquisitions of property, equipment and leasehold improvements, and other assets related to National Beef include $62.0 million in 2016, $48.6 million in 2015 and $48.2 million in 2014.

• Within our Other Financial Services Businesses and Investments, acquisitions of property, equipment and leasehold improvements, and other assets were $48.6 million in 2016, $53.0 million in 2015 and $19.8 million in 2014. Advances on notes, loans and other receivables in 2015 include the investment in FXCM ($279.0 million). Collections on notes, loans and other receivables during 2016 include $24.6 million related to real estate projects in 54 Madison and $72.1 million related to FXCM. Collections on notes, loans and other receivables during 2015 primarily relate to FXCM. Loans to and investments in associated companies include $153.5 million to 54 Madison during 2016, of which $90.7 million of that was contributed from noncontrolling interests.

• Within our Other Merchant Banking Businesses and Investments, acquisitions of property, equipment and leasehold improvements, and other assets reflect primarily activity in our oil and gas businesses. They totaled $104.5 million in 2016, $113.4 million in 2015 and $408.8 million in 2014. Collections on notes, loans and other receivables during 2016 include $21.2 million related to our oil and gas businesses. Loans to and investments in associated companies during 2016 include $22.5 million for Garcadia and $33.3 million for Linkem. During 2015, these include $12.5 million, including $0.4 million contributed from the noncontrolling interest, to Golden Queen and $21.2 million to Linkem. During 2014 payments included those to Golden Queen of $105.0 million, including $34.1 million contributed from the noncontrolling interest, Garcadia of $48.3 million and Linkem of $18.4 million. We also received capital distributions and loan repayments from Garcadia of $10.2 million in 2016, $2.8 million in 2015 and $3.8 million in 2014.

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• Our net cash provided by (used for) investing activities also includes the impact of acquisitions of property, equipment and leasehold improvements, and other assets within our discontinued operations of $9.4 million during 2014. Proceeds from disposal of discontinued operations, net of expenses and cash of operations sold in 2015 relates to additional consideration received in connection with the 2012 sale of our small Caribbean-based telecommunications provider and, in 2014, in connection with the sale of Premier.

Net cash of $230.9 million in 2016 and $917.8 million in 2014 was provided by financing activities and $652.0 million in 2015 was used for financing activities. 

• Issuance of debt includes $299.8 million in 2016 and $681.2 million in 2014 related to Jefferies. Repayment of debt includes $373.2 million in 2016, $670.0 million in 2015 and $280.0 million in 2014 related to Jefferies. Net change in bank overdrafts of $46.5 million in 2016 related to Jefferies. Net proceeds from other secured financings include payments of $7.3 million during 2016 and proceeds of $157.1 million during 2015 and $371.1 million during 2014 related to Jefferies.

• Issuance of debt for National Beef includes $135.1 million in 2014 of borrowings under its bank credit facility. National Beef reflects repayments of debt of $163.7 million in 2016, $51.7 million in 2015 and $32.8 million in 2014.

• Within our Other Financial Services Businesses and Investments, borrowings include $705.4 million in 2016, $341.8 million in 2015 and $125.5 million in 2014. Their repayments of debt includes $422.5 million in 2016, $127.3 million in 2015 and $117.8 million in 2014. Net proceeds from other secured financings include proceeds of $124.0 million during 2016, $48.1 million during 2015 and $99.3 million during 2014 related to our Other Financial Services Businesses and Investments. Contributions from noncontrolling interests include $144.8 million during 2016 related to 54 Madison and $13.9 million in 2015 related to Leucadia Asset Management. 

• Borrowings by our Other Merchant Banking Businesses and Investments include $14.9 million in 2016, $21.5 million in 2015 and $60.8 million in 2014. Their repayments of debt includes $8.8 million in 2015. Contributions from noncontrolling interests include $34.1 million related to Golden Queen in 2014.

• At the holding company level, we include repayments of debt during 2015 of $458.6 million on the maturity of our 8.125% Senior Notes. Purchases of common shares for treasury relate to shares received from participants in our stock compensation plans and the buyback of our common shares in the open market of $66.3 million in 2016, $89.2 million in 2015 and $15.2 million in 2014.

As shown below, at December 31, 2016, our contractual obligations totaled $11,702.3 million.

			Expected Maturity Date (in millions)
Contractual Obligations	Total		2017		2018		2019 and 2020		2021 and 2022		After 2022
Indebtedness	$	7,170.7	$	420.7	$	1,172.2	$	1,627.4	$	799.0	$	3,151.4
Estimated interest expense on debt	3,161.9		391.8		345.9		537.0		387.9		1,499.3
Cattle commitments	103.8		103.8		—		—		—		—
Operating leases, net of  sublease income	928.2		86.0		83.5		131.8		111.3		515.6
Other	337.7		126.0		61.8		81.4		54.7		13.8
Total Contractual Obligations	$	11,702.3	$	1,128.3	$	1,663.4	$	2,377.6	$	1,352.9	$	5,180.1

Amounts related to our U.S. pension obligations ($77.9 million) are not included in the above table as the timing of payments is uncertain; however, we do expect to make $11.8 million of contributions to these plans in 2017.  For further information, see Note 20 in our consolidated financial statements.  In addition, the above amounts do not include liabilities for unrecognized tax benefits as the timing of payments, if any, is uncertain.  Such amounts aggregated $196.5 million at December 31, 2016; for more information, see Note 21 in our consolidated financial statements.

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Our U.S. pension obligations relate to frozen defined benefit pension plans, principally the defined benefit plan of WilTel Communications Group, LLC, our former telecommunications subsidiary.  When we sold WilTel in 2005, its defined benefit pension plan was not transferred in connection with the sale.  At December 31, 2016, we had recorded a liability of $69.2 million in our Consolidated Statement of Financial Condition for WilTel’s unfunded defined benefit pension plan obligation.  This amount represents the difference between the present value of amounts owed to former employees of WilTel (referred to as the projected benefit obligation) and the market value of plan assets set aside in segregated trust accounts.  Since the benefits in this plan have been frozen, future changes to the unfunded benefit obligation are expected to principally result from benefit payments, changes in the market value of plan assets, differences between actuarial assumptions and actual experience and interest rates.

Calculations of pension expense and projected benefit obligations are prepared by actuaries based on assumptions provided by management.  These assumptions are reviewed on an annual basis, including assumptions about discount rates, interest credit rates and expected long-term rates of return on plan assets.  The timing of expected future benefit payments was used in conjunction with the Citigroup Pension Discount Curve to develop a discount rate for the WilTel plan that is representative of the high quality corporate bond market.  Holding all other assumptions constant, a 0.25% change in the discount rate would affect pension expense in 2017 by $0.2 million and the benefit obligation by $5.9 million, of which $4.5 million relates to the WilTel plan.

The deferred losses in accumulated other comprehensive income (loss) have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations ($58.9 million at December 31, 2016).  These deferred amounts primarily result from differences between the actual and assumed return on plan assets and changes in actuarial assumptions, including changes in discount rates and changes in interest credit rates.  They are amortized to expense if they exceed 10% of the greater of the projected benefit obligation or the market value of plan assets as of the beginning of the year.  The estimated net loss that will be amortized from accumulated other comprehensive income (loss) into pension expense in 2017 is $2.2 million.

The assumed long-term rates of return on plan assets are based on the investment objectives of the plans, which are more fully discussed in Note 20 in our consolidated financial statements.

Jefferies Liquidity

General

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

The 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.  Jefferies has historically maintained a balance sheet consisting of a large portion of total assets in cash and liquid marketable securities, arising principally from traditional securities brokerage and trading activity.  The liquid nature of these assets provides flexibility in financing and managing Jefferies business.

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 Jefferies platform, enable the businesses to remain competitive, maintain the ability to manage capital proactively and hold businesses accountable for both balance sheet and capital usage.

The overall securities inventory is continually monitored by Jefferies, including the inventory turnover rate, which confirms the liquidity of overall assets. In connection with the government and agency fixed income business and Jefferies role as a primary dealer in these markets, a sizable portion of its securities inventory is comprised of U.S. government and agency securities and other G-7 government securities. For further detail on Jefferies outstanding sovereign exposure, refer to Quantitative and Qualitative Disclosures about Market Risk below.

At December 31, 2016, our Consolidated Statement of Financial Condition includes Jefferies Level 3 trading assets that are approximately 3% of total trading assets.

Securities financing assets and liabilities include both financing for 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. 

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The following table presents Jefferies 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 (in millions):

	Year Ended December 31, 2016		Year Ended December 31, 2015
Securities purchased under agreements to resell:
Period end	$	3,862	$	3,855
Month end average	5,265		5,719
Maximum month end	7,001		7,577
Securities sold under agreements to repurchase:
Period end	$	6,792	$	9,967
Month end average	11,410		14,011
Maximum month end	16,620		18,629

Fluctuations in the balance of Jefferies repurchase agreements from period to period and intraperiod are dependent on business activity in those periods.  Additionally, the fluctuations in the balances of Jefferies securities purchased under agreements to resell are influenced in any given period by its clients’ balances and 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 Jefferies considers the fluctuations intraperiod to be typical for the repurchase market.

Liquidity Management

The key objectives of Jefferies liquidity management framework are to support the successful execution of its business strategies while ensuring sufficient liquidity through the business cycle and during periods of financial distress.  The liquidity management policies are designed to mitigate the potential risk that adequate financing may not be accessible to service financial obligations without material franchise or business impact.

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

Contingency Funding Plan.  The Jefferies 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:

• repayment of all unsecured debt maturing within one year and no incremental unsecured debt issuance;

• maturity rolloff of outstanding letters of credit with no further issuance and replacement with cash collateral;

• higher margin requirements than currently exist on assets on securities financing activity, including repurchase agreements;

• liquidity outflows related to possible credit downgrade

• lower availability of secured funding;

• client cash withdrawals;

• the anticipated funding of outstanding investment and loan commitments; and

• certain accrued expenses and other liabilities and fixed costs.

Cash Capital Policy.  A cash capital model is maintained that measures long-term funding sources against requirements.  Sources of cash capital include equity and the noncurrent portion of long-term borrowings.  Uses of cash capital include the following:

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• illiquid assets such as equipment, goodwill, net intangible assets, exchange memberships, deferred tax assets and certain investments;

• 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

• drawdowns of unfunded commitments. 

To ensure that Jefferies does not need to liquidate inventory in the event of a funding crises, Jefferies seeks to maintain surplus cash capital, which is reflected in the leverage ratios Jefferies maintains.

Maximum Liquidity Outflow.  Jefferies businesses are diverse, and 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 Jefferies policy to ensure it has sufficient funds to cover estimates of what may be needed in a liquidity crisis, Jefferies holds more cash and unencumbered securities and has greater long-term debt balances than the businesses would otherwise require.  As part of this estimation process, Jefferies calculates a Maximum Liquidity Outflow that could be experienced in a liquidity crisis.  Maximum Liquidity Outflow is based on a scenario that includes both market-wide stress and firm-specific stress.

Based on the sources and uses of liquidity calculated under the Maximum Liquidity Outflow scenarios Jefferies determines, based on its calculated surplus or deficit, additional long-term funding that may be needed versus funding through the repurchase financing market and considers any adjustments that may be necessary to Jefferies inventory balances and cash holdings.  Jefferies has sufficient excess liquidity to meet all contingent cash outflows detailed in the Maximum Liquidity Outflow.

Sources of Liquidity

Within Jefferies, the following are financial instruments that are cash and cash equivalents or are deemed by Jefferies management to be generally readily convertible into cash, marginable or accessible for liquidity purposes within a relatively short period of time, as reflected in our Consolidated Statements of Financial Condition (in thousands):

	December 31, 2016		Average Balance  Fourth Quarter 2016 (1)		December 31, 2015
Cash and cash equivalents:
Cash in banks	$	905,391	$	866,598	$	973,796
Certificate of deposit	25,000		25,000		75,000
Money market investments	2,599,066		1,535,870		2,461,367
Total cash and cash equivalents	3,529,457		2,427,468		3,510,163
Other sources of liquidity:
Debt securities owned and securities purchased under agreements to  resell (2)	1,455,398		1,234,599		1,265,840
Other (3)(4)	318,646		604,424		163,890
Total other sources	1,774,044		1,839,023		1,429,730
Total cash and cash equivalents and other liquidity sources	$	5,303,501	$	4,266,491	$	4,939,893

(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 U.S.; and securities issued by a designated multilateral development bank and reverse repurchase agreements with underlying collateral comprised of these securities.

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

(4) Other sources of liquidity has been reduced by $141.2 million from what was previously disclosed, to reflect adjustments for certain securities that have subsequently been identified to have been encumbered.

In addition to the cash balances and liquidity pool presented above, the majority of trading assets and liabilities are actively traded and readily marketable.  Repurchase financing can be readily obtained for approximately 75.4% of Jefferies inventory at haircuts of 10% or less, which reflects the liquidity of the inventory.  In addition, as a matter of Jefferies 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 Jefferies trading assets primarily consisting of bank loans, consumer loans and investments are predominantly funded by Jefferies long-term capital.  Under Jefferies cash capital policy, capital allocation levels are modeled that are more stringent than the haircuts used in the market for secured funding; and surplus capital is maintained at these more stringent levels. Jefferies continually assesses the liquidity of its inventory based on the level at which Jefferies could obtain financing in the marketplace 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 Jefferies trading assets by asset class that are considered to be of a liquid nature and the amount of such assets that have not been pledged as collateral as reflected in the Consolidated Statements of Financial Condition (in thousands):

	December 31, 2016				December 31, 2015
	Liquid Financial  Instruments		Unencumbered Liquid Financial  Instruments (2)		Liquid Financial  Instruments		Unencumbered Liquid Financial  Instruments (2)
Corporate equity securities	$	1,815,819	$	280,733	$	1,881,419	$	268,664
Corporate debt securities	1,818,150		—		1,999,162		89,230
U.S. Government, agency and municipal securities	3,157,737		600,456		2,987,784		317,518
Other sovereign obligations	2,258,035		854,942		2,444,339		1,026,842
Agency mortgage-backed securities (1)	1,090,391		—		3,371,680		—
Loans and other receivables	274,842		—		—		—
	$	10,414,974	$	1,736,131	$	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.

In addition to being able to be readily financed at modest haircut levels, it is estimated 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

Secured Financing

Readily available secured funding is used to finance Jefferies financial instruments inventory.  The ability of Jefferies to support increases in total assets is largely a function of the ability to obtain short and intermediate term secured funding, primarily through securities financing transactions.  Repurchase or reverse repurchase agreements (collectively "repos"), respectively, are used to finance a portion of long inventory and cover a portion of short inventory through pledging and borrowing securities.  Approximately 75.7% of Jefferies cash and non-cash 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 Jefferies total repo

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activity that is eligible for central clearing reflects the high quality and liquid composition of its trading inventory.  For those asset classes not eligible for central clearinghouse financing, bi-lateral financings are sought on an extended term basis and the tenor of Jefferies repurchase and reverse repurchase agreements generally exceeds the expected holding period of the assets Jefferies is financing. Weighted average maturity of repurchase agreements for non-clearing corporation eligible funded inventory is approximately 3 months. 

Jefferies ability to finance inventory via central clearinghouses and bi-lateral arrangements is augmented by Jefferies ability to draw bank loans on an uncommitted basis under various banking arrangements.  As of December 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 $525.8 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 for Jefferies for 2016 and 2015 were $399.6 million and $65.3 million, respectively.

Jefferies short-term borrowings include the following facilities:

• Demand Loan Facility. On February 19, 2016, Jefferies entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of its 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. The Demand Loan Facility was terminated during the fourth quarter of 2016.

• Secured Revolving Loan Facility. On October 29, 2015, Jefferies entered into a secured revolving loan facility (“First 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 First 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 First Secured Revolving Loan Facility agreement. On December 14, 2015, Jefferies entered into a second secured revolving loan facility ("Second Revolving Loan Facility", and together with the First Secured Revolving Loan Facility, "Secured Revolving Loan Facilities") 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 Second Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus four and one-quarter percent or the maximum rate as defined in the Second Secured Revolving Loan Facility agreement.

• Intraday Credit Facility. The Bank of New York Mellon agrees to make revolving intraday credit advances (“Intraday Credit Facility”) for an aggregate committed amount of $250.0 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 December 31, 2016, Jefferies was in compliance

with all debt covenants under the Intraday Credit Facility.

In addition to the above financing arrangements, Jefferies issues notes backed by eligible collateral under a master repurchase agreement. The outstanding amount of the notes issued under the program was $718.0 million in aggregate, which is presented within Other secured financings in the Consolidated Statement of Financial Condition at December 31, 2016.  Of the $718.0 million aggregate notes, $60.0 million matured in December 2016, $170.0 million matures in May 2018 (redeemable at the option of the noteholders as of November 30, 2016), $218.3 million matures in February 2017, and $201.6 million matures in May 2017, all bearing interest at a spread over one month LIBOR. The remaining $68.1 million matured in January 2017, and bore interest at a spread over three month LIBOR. 

Long-Term Debt

Jefferies long-term debt reflected in the Consolidated Statement of Financial Condition at December 31, 2016 is $5.5 billion.  Jefferies long-term debt has a weighted average maturity of 7 years.  Jefferies next scheduled maturity is the $800.0 million principal amount of 5.125% Senior Notes that mature in April 2018.

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Jefferies long-term debt ratings are as follows:

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

Jefferies access to external financings to finance its day to day operations, as well as the cost of that financing, is dependent upon various factors, including its debt ratings.  Jefferies 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, capital structure, overall risk management, business diversification and market share and competitive position in the markets in which it operates.  Deteriorations in any of these factors could impact Jefferies credit ratings.  While certain aspects of a credit rating downgrade are quantifiable pursuant to contractual provisions, the impact on its 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 Jefferies.

In connection with certain over-the-counter derivative contract arrangements and certain other trading arrangements, Jefferies may be required to provide additional collateral to counterparties, exchanges and clearing organizations in the event of a credit rating downgrade.  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 Jefferies long-term credit rating below investment grade was $51.4 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 Jefferies Contingency Funding Plan and calculation of Maximum Liquidity Outflow, as described above.

Ratings issued by credit rating agencies are subject to change at any time.

Net Capital

Jefferies operates broker-dealers registered with the SEC and member firms of FINRA.  Jefferies LLC 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 under the alternative method as permitted by Rule 15c3-1 in calculating net capital. Jefferies, as a dually registered U.S. broker-dealer and FCM, 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.

Jefferies LLC and Jefferies Execution’s net capital and excess net capital were as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies LLC	$	1,467,729	$	1,398,748
Jefferies Execution	8,260		8,010

FINRA is the designated self-regulatory organization ("DSRO") for Jefferies U.S. broker-dealers and the NFA is the DSRO for Jefferies as an FCM.

Certain other U.S. and non-U.S. subsidiaries of Jefferies are subject to capital adequacy requirements as prescribed by the regulatory authorities in their respective jurisdictions, including Jefferies International Limited which is subject to the regulatory supervision and requirements of the Financial Conduct Authority in the U.K.  The 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.  Jefferies expects that these provisions will result in modifications to the regulatory

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capital requirements of some of its entities, and will result in some of its other entities becoming subject to regulatory capital requirements for the first time, including Jefferies Financial Services, Inc., which registered as a swap dealer 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 Jefferies ability to withdraw capital from its regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company.

Off-Balance Sheet Arrangements

As shown below, at December 31, 2016, our commitments and guarantees, substantially all of which related to Jefferies, totaled $29,130.0 million.

			Expected Maturity Date (in millions)
Commitments and Guarantees	Total		2017		2018		2019 and 2020		2021 and 2022		After 2022
Equity commitments	$	470.8	$	192.4	$	22.1	$	13.0	$	—	$	243.3
Loan commitments	447.8		315.3		16.9		71.6		44.0		—
Underwriting commitments	349.4		349.4		—		—		—		—
Forward starting reverse repos	4,668.7		4,668.7		—		—		—		—
Forward starting repos	2,539.2		2,539.2		—		—		—		—
Other unfunded commitments	88.8		—		37.0		4.8		33.8		13.2
Derivative contracts (1):
Non-credit related	20,080.8		18,838.6		820.4		—		—		421.8
Credit related	437.6		—		52.2		24.6		360.8		—
Standby letters of credit	46.9		45.8		—		—		—		1.1
Total Commitments and Guarantees	$	29,130.0	$	26,949.4	$	948.6	$	114.0	$	438.6	$	679.4

(1) Certain of Jefferies derivative contracts meet the definition of a guarantee and are therefore included in the above table. For additional information on commitments, see Note 25 in our consolidated financial statements.

We have agreed to reimburse Berkshire Hathaway for up to one-half of any losses incurred under a $2.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.  This commitment is not included in the table above as the timing of payments, if any, is uncertain.

In the normal course of business Jefferies and certain other subsidiaries 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 the Consolidated Statements of Financial Condition.  Rather, the fair value of derivative contracts are reported in the Consolidated Statements of Financial Condition as Trading assets – Derivative contracts or Trading Liabilities – Derivative contracts 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 Notes 2, 4 and 5 in our consolidated financial statements.

We are routinely involved with variable interest entities (“VIEs”) in the normal course of business. At December 31, 2016, we did not have any commitments to purchase assets from our VIEs.  For additional information regarding VIEs, see Notes 7 and 9 in our consolidated financial statements.

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Critical Accounting Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires us to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes.  Actual results could significantly differ from those estimates.  We believe that the following discussion addresses our most critical accounting policies, which are those that are important to the presentation of our financial condition and results of operations and require our most difficult, subjective and complex judgments.

Income Taxes – We record a valuation allowance to reduce our net deferred tax asset to the net amount that is more likely than not to be realized.  If in the future we determine that it is more likely than not that we will be able to realize our net deferred tax asset in excess of our net recorded amount, an adjustment to increase the net deferred tax asset would increase income in such period.  If in the future we were to determine that we would not be able to realize all or part of its recorded net deferred tax asset, an adjustment to decrease the net deferred tax asset would be charged to income in such period.  We are required to consider all available evidence, both positive and negative, and to weigh the evidence when determining whether a valuation allowance is required and the amount of such valuation allowance.  Generally, greater weight is required to be placed on objectively verifiable evidence when making this assessment, in particular on recent historical operating results.

Our estimate of future taxable income considers all available evidence, both positive and negative, about our operating businesses and investments, includes an aggregation of individual projections for each significant operating business and investment, estimated apportionment factors for state and local taxing jurisdictions and includes all future years that we estimate we will have available NOLs. As discussed further in Note 21, Federal NOLs begin to expire in 2022, with a substantial amount expiring between 2022 and 2025.  We believe that our estimate of future taxable income is reasonable but inherently uncertain, and if our current or future operations and investments generate taxable income different than the projected amounts, further adjustments to the valuation allowance are possible.  The current balance of the deferred tax valuation allowance principally reserves for NOLs of certain subsidiaries that are not available to offset income generated by other members of the consolidated tax return group.

We also record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions.  Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so estimating the amount.  If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which could be significant to our Consolidated Statement of Financial Condition or results of operations.

Fair Value of Financial Instruments – Trading assets and trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election.  Trading assets and trading liabilities include Jefferies trading activities and financial instruments of other consolidated entities that are accounted for through the fair value option election.  Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations.  Available for sale securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes.  When sold, realized gains and losses on available for sale securities are reflected in the caption Net realized securities gains.  Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).

In determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that observable inputs be used when available.  Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources.  Unobservable inputs reflect our assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.  We apply a hierarchy to categorize our fair value measurements broken down into three levels based on the transparency of inputs as follows:

Level 1:Quoted prices are available in active markets for identical assets or liabilities as of 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 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.

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Level 3:Instruments that have little to no pricing observability as of 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.

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.

Jefferies Independent Price Verification Group, independent of its trading function, plays an important role in determining that 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.

We also engage independent valuation firms to assist management in estimating the fair value of certain of our investments including the fair value of our loan to FXCM. Our estimate of fair value was determined using valuation models with inputs including management's assumptions concerning the amount and timing of expected cash flows, the loan's implied credit rating and effective yield. We also engaged an independent valuation firm to assist management in estimating the fair value of our equity interest in FXCM on September 1, 2016. Our estimate of fair value was determined using valuation models with inputs including management's assumptions concerning the implied total equity value, based primarily on the publicly traded FXCM Inc. stock price; volatility; risk-free rate; and term.

For further information on the fair value definition, Level 1, Level 2, Level 3 and related valuation techniques, see Notes 2 and 4 in our consolidated financial statements.

Impairment of Long-Lived Assets – We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable.  When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group).  The determination of whether an asset group is recoverable is based on management’s estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value.  If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value.

We recorded impairment charges of $71.1 million in 2016, $27.7 million in 2015 and $3.2 million in 2014.  $56.3 million of the 2016 charge related to write-downs of Juneau's unproved oil and gas properties and $7.5 million related to the write-down of Juneau assets held for sale to fair value. In the third quarter of 2016, Juneau curtailed development of its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage. $20.3 million of the 2015 charge related to Juneau's oil and gas properties which were impacted by the decline in oil prices.

Impairment of Equity Method Investments – We evaluate equity method investments for impairment when operating losses or other factors may indicate a decrease in value which is other than temporary.  We consider a variety of factors including economic conditions nationally and in their geographic areas of operation, adverse changes in the industry in which they operate, declines in business prospects, deterioration in earnings, increasing costs of operations and other relevant factors specific to the investee.  Whenever we believe conditions or events indicate that one of these investments might be significantly impaired, we obtain from such investee updated cash flow projections and impairment analyses of the investee assets.  We use this information and, together with discussions with the investee’s management, evaluate if the book value of its investment exceeds its fair value, and if so and the situation is deemed other than temporary, record an impairment charge.

Goodwill – We allocate the acquisition cost of consolidated businesses to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values.  Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant.  Any excess acquisition cost over the fair values

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of the net assets acquired is recorded as goodwill, which is not amortized to expense. Substantially all of our goodwill was recognized in connection with the Jefferies acquisition.

At least annually, and more frequently if warranted, we assess whether goodwill has been impaired at the reporting unit level.  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 necessary. If we conclude otherwise, we are required to perform the two-step quantitative impairment test. 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.

The fair values are based on 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 fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of mergers and acquisitions of similar businesses and/or projected cash flows.  In addition, as the fair values determined under a market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. 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.

An independent valuation specialist was engaged to assist with the valuation process relating to Jefferies for our annual goodwill impairment test as of August 1, 2016.  The results of this test indicated the fair value of Jefferies was in excess of the carrying value. However, the valuation methodology is sensitive to comparable company multiples and 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. The fair value of our reporting units, including Jefferies, is also impacted by our overall market capitalization. If the future were to differ adversely from these assumptions or there was a sustained decline in our market capitalization, the estimated fair value of Jefferies may decline and result in an impairment. 

During the fourth quarter of 2014, Jefferies decided to pursue strategic alternatives for its Futures business and decided to liquidate its International Asset Management business.  In connection with these two events, Jefferies recognized goodwill impairment losses of $54.0 million.  As U.S. GAAP requires that our assessment be performed at our reporting unit level, and the estimated fair value of Jefferies exceeded its carrying value, we did not recognize any impairment losses related to Jefferies.  The $54.0 million impairment loss recorded by Jefferies is a difference between its stand-alone financial statements and the Jefferies results included in our consolidated financial statements.

Intangible Assets – Intangible assets deemed to have finite lives are generally 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.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded.

An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary.  Impairment exists when the carrying amount exceeds its fair value.  Fair value is determined using valuation techniques consistent with what a market participant would use. All of our indefinite-lived intangible assets were recognized in connection with the Jefferies acquisition, which consists of exchange and clearing organization membership interests and registrations. Our annual impairment testing date is as of August 1, 2016.

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

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Contingencies– 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 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, can be highly subjective and is subject to significant change with the passage of time as more information becomes available.  Estimating the ultimate impact of litigation matters is inherently uncertain, in particular because the ultimate outcome will rest on events and decisions of others that may not be within our power to control.  We do not believe that any of our current litigation will have a significant adverse effect on our consolidated financial position, results of operations or liquidity; however, if amounts paid at the resolution of litigation are in excess of recorded reserve amounts, the excess could be significant in relation to results of operations for that period.  For further information, see Note 25 in our consolidated financial statements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

The following includes “forward-looking statements” that involve risk and uncertainties.  Actual results could differ materially from those projected in the forward-looking statements.  The discussion of risk is presented separately for Jefferies and the balance of our company.  Exclusive of Jefferies, our market risk arises principally from interest rate risk related to our financial instruments owned and equity price risk.

As more fully discussed in Note 4 to our consolidated financial statements, we own approximately 46.6 million common shares of HRG, representing approximately 23% of HRG’s outstanding common shares, which are accounted for under the fair value option and included within Trading Assets at fair value of $725.1 million at December 31, 2016. Assuming a decline of 10% in market prices, the value of our investment in HRG could decrease by approximately $72.5 million.

The potential for changes in the value of financial instruments is referred to as market risk.  Jefferies 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.  Jefferies seeks to manage its 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

Within Jefferies, Value-at-Risk (VaR) is used as a measurement of market risk 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 over a specified time horizon at a given confidence level.  Jefferies calculates a one-day VaR using a one year look-back period measured at a 95% confidence level.

As with all measures of VaR, the 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 Jefferies believes the assumptions and inputs in its risk model are reasonable, Jefferies 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 Jefferies uses in its daily risk management activities. During the first quarter of 2016, Jefferies experienced sizable losses given the exceptionally volatile and turbulent market, which were more dramatic than the estimates included in its VaR which are based on historical observations. When comparing the VaR

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

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 Jefferies overall trading positions using the past 365 days of historical data.  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 effect 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.  Since we consolidate Jefferies on a one month lag, all amounts reported are for Jefferies annual fiscal periods.

				Daily VaR (1) Value-at-Risk In Trading Portfolios										Daily VaR (1) Value-at-Risk In Trading Portfolios
(In millions) Risk Categories	VaR at November 30, 2016			Daily VaR for the Year Ended  November 30, 2016							VaR at November 30, 2015			Daily VaR for the Year Ended  November 30, 2015
				Average			High		Low					Average			High		Low
Interest Rates	$	5.82		$	4.96		$	6.99	$	3.43	$	5.01		$	5.84		$	8.06	$	4.19
Equity Prices	6.71			5.42			9.55		2.60		6.69			9.79			13.61		5.39
Currency Rates	0.19			0.41			3.01		0.07		0.30			0.46			3.32		0.12
Commodity Prices	0.51			0.84			2.44		0.31		0.82			0.57			1.62		0.04
Diversification Effect (2)	(4.79		)	(3.72		)	N/A		N/A		(5.09		)	(4.27		)	N/A		N/A
Firmwide	$	8.44		$	7.91		$	11.40	$	4.30	$	7.73		$	12.39		$	17.75	$	6.35

(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 Jefferies VaR and VaR values for the four risk categories might have occurred on different days during the period.

Average daily VaR decreased to $7.91 million for the year ended November 30, 2016 from $12.39 million for the year ended November 30, 2015, a 36.2% decrease. The decrease was primarily driven by lower block trading activity and firmwide defensive positioning resulting in lower equity risk and fixed income exposures, partially offset by a lower diversification benefit. In addition, VaR increased from $7.73 million at November 30, 2015 to $8.44 million at November 30, 2016. Excluding the investment in KCG, average VaR decreased to $5.77 million for the year ended November 30, 2016 from $9.97 million in the year ended November 30, 2015.

The primary method used to test the efficacy of the VaR model is to compare actual daily net revenue for those positions included in the 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 year ended November 30, 2016, results of the evaluation at the aggregate level demonstrated 3 days when the net trading loss exceeded the 95% one day VaR.

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Certain individual positions within financial instruments are not included in the VaR model because VaR is not the most appropriate measure of risk.  Accordingly, Jefferies 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 or the sensitivity to a 10% stress of the fair value of the positions that are not included in the VaR model at November 30, 2016 (in thousands):

	10% Sensitivity
Private investments	$	20,980
Corporate debt securities in default	5,040
Trade claims	491

Excluding trading losses associated with the daily marking to market of the investment in KCG, there were 21 days with trading losses out of a total of 253 trading days in the year ended November 30, 2016. Including these losses, there were 38 days with trading losses.

Scenario Analysis and Stress Tests

While VaR measures potential losses due to adverse changes in historical market prices and rates, Jefferies uses stress testing to analyze the potential impact of specific events or moderate or extreme market moves on its 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 Jefferies 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, Jefferies also performs ad hoc stress tests and adds new scenarios as market conditions dictate.  Because Jefferies stress scenarios are meant to reflect market moves that occur over a period of time, its estimates of potential loss assume some level of position reduction for liquid positions.  Unlike Jefferies 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 Jefferies 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. Jefferies is 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 Jefferies financial soundness and profitability that Jefferies properly and effectively identify, assess, monitor and manage the various credit and counterparty risks inherent in its 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 a Jefferies enterprise level in order to limit exposure to loss related to credit risk.

Jefferies employs a Credit Risk Framework, which is responsible for identifying credit risks throughout its operating businesses, establishing counterparty limits and managing and monitoring those credit limits.   Jefferies 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 its Risk Management Committee;

• 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;

59

• 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.

Jefferies 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 Jefferies 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 outstanding.  In addition, credit exposures on forward settling traded loans are included within Jefferies loans and lending exposures for consistency with the Statement of Financial Condition 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 over-the-counter ("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 Jefferies derivative credit exposures.

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

Current counterparty credit exposures are summarized in the table below and provided by credit quality, region and industry. 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 Jefferies country risk exposure tables below. The amounts in the tables below are for amounts included in our Consolidated Statements of Financial Condition at December 31, 2016 and 2015 (in millions).

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
	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
			(1)												(1)								(1)
AAA Range	$	—	$	—	$	—	$	11.8	$	—	$	—	$	—	$	11.8	$	2,601.8	$	2,461.4	$	2,601.8	$	2,473.2
AA Range	44.0		—		87.3		152.3		2.1		4.4		133.4		156.7		37.0		175.0		170.4		331.7
A Range	4.2		1.0		539.2		556.4		214.7		96.0		758.1		653.4		814.1		846.3		1,572.2		1,499.7
BBB Range	4.9		86.6		117.3		107.9		9.4		31.7		131.6		226.2		51.2		25.8		182.8		252.0
BB or Lower	100.1		181.6		6.2		14.8		23.8		30.1		130.1		226.5		25.1		—		155.2		226.5
Unrated	93.5		56.3		—		—		—		0.1		93.5		56.4		0.3		1.7		93.8		58.1
Total	$	246.7	$	325.5	$	750.0	$	843.2	$	250.0	$	162.3	$	1,246.7	$	1,331.0	$	3,529.5	$	3,510.2	$	4,776.2	$	4,841.2

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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
	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
			(1)												(1)								(1)
Asia/Latin America/ Other	$	4.9	$	10.1	$	16.3	$	15.3	$	32.7	$	40.6	$	53.9	$	66.0	$	165.8	$	159.6	$	219.7	$	225.6
Europe	—		0.4		234.4		212.2		20.9		43.4		255.3		256.0		248.0		341.8		503.3		597.8
North America	241.8		315.0		499.3		615.7		196.4		78.3		937.5		1,009.0		3,115.7		3,008.8		4,053.2		4,017.8
Total	$	246.7	$	325.5	$	750.0	$	843.2	$	250.0	$	162.3	$	1,246.7	$	1,331.0	$	3,529.5	$	3,510.2	$	4,776.2	$	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
	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
			(1)												(1)								(1)
Asset Managers	$	—	$	—	$	39.7	$	69.8	$	10.9	$	—	$	50.6	$	69.8	$	2,599.5	$	2,461.3	$	2,650.1	$	2,531.1
Banks, Broker-dealers	0.2		0.9		435.9		464.9		170.4		95.2		606.5		561.0		930.0		1,048.9		1,536.5		1,609.9
Commodities	—		—		—		—		3.3		16.7		3.3		16.7		—		—		3.3		16.7
Corporates/Loans	204.4		193.9		—		—		18.4		11.3		222.8		205.2		—		—		222.8		205.2
Other	42.1		130.7		274.4		308.5		47.0		39.1		363.5		478.3		—		—		363.5		478.3
Total	$	246.7	$	325.5	$	750.0	$	843.2	$	250.0	$	162.3	$	1,246.7	$	1,331.0	$	3,529.5	$	3,510.2	$	4,776.2	$	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, see Note 5 in the consolidated financial statements.

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Jefferies 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.  Jefferies defines country risk as the country of jurisdiction or domicile of the obligor.  The following tables reflect Jefferies top exposures to the sovereign governments, corporations and financial institutions in those non-U.S. countries in which there is net long issuer and counterparty exposure, as reflected in our Consolidated Statements of Financial Condition at December 31, 2016 and 2015 (in millions):

	December 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	$	318.9	$	(166.4	)	$	815.3		$	—	$	86.9	$	0.3	$	111.9	$	1,055.0	$	1,166.9
Italy	1,069.8		(844.2		)	69.8			—		—		0.2		—		295.6		295.6
France	356.2		(538.4		)	419.5			—		24.8		3.4		—		265.5		265.5
United Kingdom	290.1		(136.4		)	(12.7		)	—		61.0		13.4		37.7		215.4		253.1
Spain	210.4		(151.7		)	—			—		—		0.3		50.2		59.0		109.2
Hong Kong	34.0		(30.2		)	1.3			—		0.5		—		79.1		5.6		84.7
Switzerland	80.7		(33.6		)	12.1			—		11.4		2.2		4.1		72.8		76.9
Ireland	124.4		(61.2		)	4.4			—		0.6		—		—		68.2		68.2
Singapore	36.2		(9.6		)	3.9			—		—		—		16.1		30.5		46.6
Qatar	15.2		(0.7		)	—			—		—		27.1		—		41.6		41.6
Total	$	2,535.9	$	(1,972.4	)	$	1,313.6		$	—	$	185.2	$	46.9	$	299.1	$	2,109.2	$	2,408.3

	December 31, 2015
	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
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, Jefferies' issuer and counterparty risk exposure to Puerto Rico was $31.0 million, as reflected in our Consolidated Statement of Financial Condition at December 31, 2016, which is in connection with its 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 December 31, 2016, Jefferies had no material exposure to countries where either sovereign or non-sovereign sectors potentially pose potential default risk as the result of liquidity concerns.

Other than our trading portfolio, our financial instrument portfolio is primarily classified as available for sale, and consequently, is recorded at fair value with unrealized gains and losses reflected in equity.  Included in our available for sale portfolio are fixed income securities, which comprised approximately 74% of the total available for sale portfolio at December 31, 2016.  These fixed

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income securities are primarily rated “investment grade” or are U.S. governmental agency issued or U.S. Government-Sponsored Enterprises.  The estimated weighted average remaining life of these fixed income securities was approximately 0.9 years at December 31, 2016.  Our fixed income securities, like all fixed income instruments, are subject to interest rate risk and will fall in value if market interest rates increase.  At December 31, 2015, fixed income securities comprised approximately 64% of the total portfolio and had an estimated weighted average remaining life of approximately 2.1 years.

Also included in the available for sale portfolio are equity securities, which are recorded at an aggregate fair value of $79.4 million (aggregate cost of $53.0 million) and which comprised approximately 26% of our total available for sale portfolio at December 31, 2016.  We evaluate our portfolio for impairment on a quarterly basis.

The following table provides information about our financial instruments used for purposes other than trading that are primarily sensitive to changes in interest rates.

For additional information see Note 8 to our consolidated financial statements.

	Expected Maturity Date
	2017			2018			2019			2020			2021			Thereafter			Total		Fair Value
	(Dollars in thousands)
Rate Sensitive Assets:
Available for Sale Fixed   Income Securities:
U.S. Government	$	174,933		$	—		$	—		$	—		$	—		$	—		$	174,933	$	174,933
Weighted-Average       Interest Rate	0.21		%
Residential mortgage-backed:       Rated Investment Grade	$	3,122		$	1,714		$	3,240		$	933		$	708		$	1,901		$	11,618	$	11,618
Weighted-Average         Interest Rate	2.70		%	2.74		%	3.55		%	2.58		%	2.56		%	2.75		%
Rated Less Than Investment        Grade/Not Rated	$	2,833		$	1,415		$	2,130		$	221		$	170		$	746		$	7,515	$	7,515
Weighted-Average         Interest Rate	2.12		%	2.88		%	3.81		%	3.99		%	3.94		%	3.97		%
Commercial mortgage-backed:
Rated Investment Grade	$	—		$	3,464		$	995		$	3,878		$	—		$	—		$	8,337	$	8,337
Weighted-Average        Interest Rate				2.80		%	3.80		%	4.10		%
Other asset-backed:
Rated Investment Grade	$	6,403		$	12,639		$	—		$	—		$	—		$	—		$	19,042	$	19,042
Weighted-Average        Interest Rate	2.80		%	3.08		%
All other corporates:
Rated Less Than Investment        Grade/Not Rated	$	—		$	—		$	179		$	—		$	—		$	—		$	179	$	179
Weighted-Average         Interest Rate							6.75		%

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We are also subject to interest rate risk on our long-term fixed interest rate debt.  Generally, the fair market value of debt securities with a fixed interest rate will increase as interest rates fall, and the fair market value will decrease as interest rates rise.  The following table represents principal cash flows by expected maturity dates for our consolidated long-term debt obligations.  For the variable rate borrowings, the weighted average interest rates are based on implied forward rates in the yield curve at the reporting date.  Our market risk with respect to foreign currency exposure on our long-term debt is also shown below.  For additional information, see Note 16 to our consolidated financial statements.

	Expected Maturity Date
	2017			2018			2019			2020			2021			Thereafter			Total		Fair Value
	(Dollars in thousands)
Rate Sensitive Liabilities:
Fixed Interest Rate Borrowings	$	345,000		$	863,910		$	945,253		$	104,500		$	750,000		$	3,071,358		$	6,080,021	$	6,366,749
Weighted-Average Interest Rate	3.88		%	5.19		%	7.62		%	5.49		%	6.88		%	5.77		%
Variable Interest Rate Borrowings	$	100,454		$	316,558		$	2,511		$	34,555		$	2,655		$	45,648		$	502,381	$	502,090
Weighted-Average Interest Rate	3.54		%	4.08		%	3.98		%	3.26		%	3.97		%	4.01		%
Borrowings with Foreign Currency Exposure	$	—		$	6,360		$	10,600		$	529,975		$	—		$	41,339		$	588,274	$	601,475
Weighted-Average Interest Rate				0.74		%	2.15		%	2.38		%				3.82		%

Item 8. Financial Statements and Supplementary Data.

Financial Statements and supplementary data required by this Item 8 are set forth at the pages indicated in Item 15(a) below.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of disclosure controls and procedures

The Company’s management evaluated, with the participation of the Company’s principal executive and principal financial officers, the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of December 31, 2016.  Based on their evaluation, the Company’s principal executive and principal financial officers concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2016.

Changes in internal control over financial reporting

There has been no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Company’s fiscal quarter ended December 31, 2016, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Management’s Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934.  Internal control over financial reporting is a process designed 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 and includes those policies and procedures that:

• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the Company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2016.  In making this assessment, the Company’s management used the criteria set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013.

Based on our assessment and those criteria, management concluded that, as of December 31, 2016, the Company’s internal control over financial reporting was effective.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2016 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein in Item 8.

Item 9B. Other Information.

On February 23, 2017, our Board of Directors approved an amendment to our By-Laws to adopt shareholder proxy access. Under our Amended and Restated By-Laws, shareholders (or a group of up to 20 shareholders) holding 3% of our outstanding shares for three years may submit Board nominees for inclusion in our annual proxy statement. Subject to our By-Laws, shareholders may include two nominees (or up to 20% of the size of our Board, if greater).

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PART III

Item 10. Directors, Executive Officers of the Registrant and Corporate Governance.

Information with respect to this item will be contained in the Proxy Statement for the 2017 Annual Meeting of Shareholders, which is incorporated herein by reference.

We have a Code of Business Practices, which is applicable to all directors, officers and employees, and is available on our website. We intend to post amendments to or waivers from our Code of Business Practices on our website as required by applicable law.

Item 11. Executive Compensation.

Information with respect to this item will be contained in the Proxy Statement for the 2017 Annual Meeting of Shareholders, which is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.

Information with respect to this item will be contained in the Proxy Statement for the 2017 Annual Meeting of Shareholders, which is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Information with respect to this item will be contained in the Proxy Statement for the 2017 Annual Meeting of Shareholders, which is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services.

Information with respect to this item will be contained in the Proxy Statement for the 2017 Annual Meeting of Shareholders, which is incorporated herein by reference.

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PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a)(1) Financial Statements.

Report of Independent Registered Public Accounting Firm	F-1
Financial Statements:
Consolidated Statements of Financial Condition at December 31, 2016 and 2015	F-2
Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014	F-3
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2016, 2015 and 2014	F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014	F-6
Consolidated Statements of  Changes in Equity for the years ended December 31, 2016, 2015 and 2014	F-8
Notes to Consolidated Financial Statements	F-9

(2) Financial Statement Schedules.

Schedule I - Condensed Financial Information of Leucadia National Corporation (Parent Company Only) at December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014.

(3) See Exhibit Index below for a complete list of Exhibits to this report.

(b) Exhibits.

We will furnish any exhibit upon request made to our Corporate Secretary, 520 Madison Avenue, New York, NY 10022.  We charge $.50 per page to cover expenses of copying and mailing.

All documents referenced below were filed pursuant to the Securities Exchange Act of 1934 by the Company, file number 1-5721, unless otherwise indicated.

Item 16. Form 10-K Summary.

None.

Exhibit Index

3.1	Restated Certificate of Incorporation (filed as Exhibit 5.1 to the Company’s Current Report on Form 8-K dated July 14, 1993).*
3.2	Certificate of Amendment of the Certificate of Incorporation dated as of May 14, 2002 (filed as Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003 (the “2003 10-K”)).*
3.3	Certificate of Amendment of the Certificate of Incorporation dated as of December 23, 2002 (filed as Exhibit 3.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002).*
3.4	Certificate of Amendment of the Certificate of Incorporation dated as of May 13, 2004 (filed as Exhibit 3.5 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004).*
3.5	Certificate of Amendment of the Certificate of Incorporation dated as of May 17, 2005 (filed as Exhibit 3.6 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 (the “2005 10-K”)).*
3.6	Certificate of Amendment of the Certificate of Incorporation dated as of May 23, 2007 (filed as Exhibit 4.7 to the Company’s Registration Statement on Form S-8 (No. 333-143770)).*
3.7	Certificate of Amendment to the Certificate of Incorporation dated as of February 26, 2013 (filed as Exhibit 3.7 to the Company’s Current Report on Form 8-K on March 1, 2013 (the “March 1, 2013 Form 8-K”)).*
3.8	Certificate of Amendment to the Certificate of Incorporation dated as of February 28, 2013 (filed as Exhibit 3.8 to the March 1, 2013 Form 8-K).*

67

3.9	Amended and Restated By-laws of Leucadia National Corporation (effective February 23, 2017).
4.1	The Company undertakes to furnish the Securities and Exchange Commission, upon written request, a copy of all instruments with respect to long-term debt not filed herewith.
10.31	1999 Stock Option Plan as Amended and Restated (filed as Exhibit 99.1 to the Company’s Registration Statement on Form S-8 (No. 333-169377)).* +
10.32	Form of Grant Letter for the 1999 Stock Option Plan (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on February 24, 2012 (the “February 24, 2012 8-K”)).* +
10.33	Leucadia National Corporation 2003 Incentive Compensation Plan (filed as Appendix II to the Company’s Proxy Statement dated June 27, 2013 (the “2013 Proxy Statement”)).* +
10.34	Form of Restricted Stock Units Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated July 31, 2013).* +
10.35	Form of Restricted Stock Agreement (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K dated July 31, 2013).* +
10.36	Leucadia National Corporation 1999 Directors’ Stock Compensation Plan (filed as Appendix II to the 2013 Proxy Statement).* +
10.37	Amended and Restated Shareholders Agreement dated as of June 30, 2003 among the Company, Ian M. Cumming and Joseph S. Steinberg (filed as Exhibit 10.5 to the 2003 10-K).* +
10.38	Amendment No. 1, dated as of May 16, 2006, to the Amended and Restated Shareholders Agreement dated as of June 30, 2003, by and among Ian M. Cumming, Joseph S. Steinberg and the Company (filed as Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006).* +
10.39	Services Agreement, dated as of January 1, 2004, between the Company and Joseph S. Steinberg (filed as Exhibit 10.38 to the 2005 10-K).* +
10.40	Compensation Information Concerning Non-Employee Directors (incorporated by reference to page 16 of the Company’s Proxy Statement dated April 14, 2016).* +
10.41	First Amended and Restated Limited Liability Company Agreement of National Beef Packing Company, dated as of December 30, 2011 (filed as Exhibit 10.1 to the December 30, 2011 8-K).*
10.42	Cattle Purchase and Sale Agreement by and between National Beef Packing Company, LLC and U.S. Premium Beef, LLC, dated as of December 30, 2011 (filed as Exhibit 10.6 to the December 30, 2011 8-K).*
10.43	Summary of executive bonus compensation (filed in the Company’s Current Report on Form 8-K dated January 24, 2017).* +
10.44	Summary of executive compensation for Richard B. Handler and Brian P. Friedman (filed in the Company’s Current Report on Form 8-K dated December 22, 2016).* +
10.45	Summary of executive compensation for Richard B. Handler, Brian P. Friedman and Michael J. Sharp (filed in the Company’s Current Report on Form 8-K dated February 28, 2014, as updated for Richard B. Handler and Brian P. Friedman by the Company's Current Report on Form 8-K dated February 19, 2016).* +
10.46	Agreement of Terms dated as of December 31, 2011 between Leucadia National Corporation and Berkshire Hathaway Inc. (filed as Exhibit 10.1 to the February 24, 2012 8-K).*
10.47	Acknowledgement to Registration Rights Agreement, dated as of March 18, 2014, by and among Harbinger Group Inc., Harbinger Capital Partners Master Fund, Ltd., Global Opportunities Breakaway Ltd., Harbinger Capital Partners Special Situations Fund, L.P. and Leucadia National Corporation (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K/A dated March 18, 2014).*
10.48	Letter Agreement, dated as of March 18, 2014, by and between Harbinger Group Inc. and Leucadia National Corporation (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K/A dated March 18, 2014).*
10.49	Exchange Agreement by and among Harbinger Capital Group Partners Master Fund I, Ltd., Global Opportunities Breakaway Ltd., Harbinger Capital Partners Special Situations Fund, L.P., and Leucadia National Corporation (filed as Exhibit 99.5 to Schedule 13D filed March 28, 2014).*
10.50	Joinder Agreement to Registration Rights Agreement by and among Harbinger Capital Group Partners Master Fund I, Ltd., Global Opportunities Breakaway Ltd., Harbinger Capital Partners Special Situations Fund, L.P., and Leucadia National Corporation (filed as Exhibit 99.8 to Schedule 13D filed on March 28, 2014).*

68

10.51	Stockholders Agreement, dated as of March 28, 2014, by and between HomeFed Corporation and Leucadia National Corporation (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 3, 2014).*
21	Subsidiaries of the registrant.
23.1	Consent of PricewaterhouseCoopers LLP, with respect to the incorporation by reference into the Company’s Registration Statements on Form S-8 (No. 333-169377), Form S-8 (No. 333-51494), Form S-8 (No. 333-143770), Form S-8 (No. 333-185318) and Form S-3 (No. 333-214759).
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101	Financial statements from the Annual Report on Form 10-K of Leucadia National Corporation for the year ended December 31, 2016, formatted in Extensible Business Reporting Language (XBRL):  (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Changes in Equity, (vi) the Notes to Consolidated Financial Statements and (vii) the Financial Statement Schedule.

____________________________

+	Management/Employment Contract or Compensatory Plan or Arrangement.
*	Incorporated by reference.
**	Furnished herewith pursuant to item 601(b) (32) of Regulation S-K.

69

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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. 

		LEUCADIA NATIONAL CORPORATION
Date:  February 27, 2017	By:		/s/        John M. Dalton
			Name: John M. Dalton
			Title:   Vice President and Controller

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated, on the date set forth below.

Date		Signature	Title
February 27, 2017	By:	/s/ Joseph S. Steinberg	Chairman of the Board
		Joseph S. Steinberg
February 27, 2017	By:	/s/ Richard B. Handler	Chief Executive Officer and Director
		Richard B. Handler	(Principal Executive Officer)
February 27, 2017	By:	/s/ Brian P. Friedman	President and Director
		Brian P. Friedman
February 27, 2017	By:	/s/ Teresa S. Gendron	Vice President and Chief Financial Officer
		Teresa S. Gendron	(Principal Financial Officer)
February 27, 2017	By:	/s/ John M. Dalton	Vice President and Controller
		John M. Dalton	(Principal Accounting Officer)
February 27, 2017	By:	/s/ Linda L. Adamany	Director
		Linda L. Adamany
February 27, 2017	By:	/s/ Robert D. Beyer	Director
		Robert D. Beyer
February 27, 2017	By:	/s/ Francisco L. Borges	Director
		Francisco L. Borges
February 27, 2017	By:	/s/ W. Patrick Campbell	Director
		W. Patrick Campbell
February 27, 2017	By:	/s/ Robert E. Joyal	Director
		Robert E. Joyal
February 27, 2017	By:	/s/ Jeffrey C. Keil	Director
		Jeffrey C. Keil
February 27, 2017	By:	/s/ Michael T. O’Kane	Director
		Michael T. O’Kane
February 27, 2017	By:	/s/ Stuart H. Reese	Director
		Stuart H. Reese

70

Report of Independent Registered Public Accounting Firm

Tothe Board of Directors and

Shareholders of Leucadia National Corporation:

In our opinion, the accompanying consolidated statement of financial condition and the related consolidated statements of operations, of comprehensive income, of changes in equity, and of cash flows present fairly, in all material respects, the financial position of Leucadia National Corporationand its subsidiaries (the “Company”) atDecember 31, 2016and December 31, 2015, and the results of their operations and their cash flows for each of the three years in the period endedDecember 31, 2016in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework 2013issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in “Management's Report on Internal Control over Financial Reporting". Our responsibility is to express opinions on these financial statements, on the financial statement schedules and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

New York, New York

February 27, 2017

F-1

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

December 31, 2016 and 2015

(Dollars in thousands, except par value)

	2016		2015
ASSETS
Cash and cash equivalents	$	3,807,558	$	3,638,648
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	857,337		751,084
Financial instruments owned, including securities pledged of $9,706,881 and $12,207,123:
Trading assets, at fair value	14,985,237		18,293,090
Available for sale securities	301,049		207,355
Total financial instruments owned	15,286,286		18,500,445
Investments in managed funds	515,318		603,720
Loans to and investments in associated companies	2,125,098		1,757,369
Securities borrowed	7,743,562		6,975,136
Securities purchased under agreements to resell	3,862,488		3,854,746
Receivables	4,425,178		3,830,967
Property, equipment and leasehold improvements, net	709,242		721,875
Intangible assets, net and goodwill	2,513,678		2,648,362
Deferred tax asset, net	1,461,815		1,575,368
Assets held for sale	128,083		—
Other assets	1,635,664		1,473,464
Total assets	$	45,071,307	$	46,331,184
LIABILITIES
Short-term borrowings	$	525,842	$	310,659
Trading liabilities, at fair value	8,388,619		6,840,430
Securities loaned	2,819,132		3,014,300
Securities sold under agreements to repurchase	6,791,676		9,966,868
Other secured financings	1,026,429		908,741
Payables, expense accruals and other liabilities	7,373,708		7,107,081
Long-term debt	7,380,443		7,400,582
Total liabilities	34,305,849		35,548,661
Commitments and contingencies
MEZZANINE EQUITY
Redeemable noncontrolling interests	336,809		191,633
Mandatorily redeemable convertible preferred shares	125,000		125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425		362,617
Additional paid-in capital	4,812,587		4,986,819
Accumulated other comprehensive income	310,697		438,793
Retained earnings	4,645,391		4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100		10,401,211
Noncontrolling interests	175,549		64,679
Total equity	10,303,649		10,465,890
Total	$	45,071,307	$	46,331,184

The accompanying notes are an integral part of these consolidated financial statements.

F-2

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

For the years ended December 31, 2016, 2015 and 2014

(In thousands, except per share amounts)

	2016			2015			2014
Revenues:
Beef processing services	$	7,021,902		$	7,396,869		$	7,824,246
Commissions	611,574			659,002			668,801
Principal transactions	603,822			642,824			662,213
Investment banking	1,193,973			1,417,807			1,526,637
Interest income	926,255			955,240			1,052,151
Net realized securities gains	29,542			62,957			30,394
Other	488,186			549,228			570,465
Total revenues	10,875,254			11,683,927			12,334,907
Interest expense	812,637			797,469			848,422
Net revenues	10,062,617			10,886,458			11,486,485
Expenses:
Cost of sales	6,850,807			7,677,233			8,024,286
Compensation and benefits	1,730,585			1,665,465			1,841,674
Floor brokerage and clearing fees	167,205			199,780			215,329
Interest	108,703			115,804			120,935
Depreciation and amortization	211,593			224,133			185,993
Provision for doubtful accounts	24,580			7,353			59,695
Selling, general and other expenses	807,312			750,435			795,878
	9,900,785			10,640,203			11,243,790
Income from continuing operations before income taxes and income related to associated companies	161,832			246,255			242,695
Income related to associated companies	154,598			110,281			138,527
Income from continuing operations before income taxes	316,430			356,536			381,222
Income tax provision	122,109			109,947			165,971
Income from continuing operations	194,321			246,589			215,251
Income (loss) from discontinued operations, net of income tax provision (benefit) of $0, $231 and $(9,634)	—			429			(17,893		)
Gain on disposal of discontinued operations, net of income tax provision of $0, $2,743 and $899	—			5,093			1,667
Net income	194,321			252,111			199,025
Net loss attributable to the noncontrolling interests	1,426			4,996			727
Net (income) loss attributable to the redeemable noncontrolling interests	(65,746		)	26,543			8,616
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306

(continued)

The accompanying notes are an integral part of these consolidated financial statements.

F-3

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations, continued

For the years ended December 31, 2016, 2015 and 2014

(In thousands, except per share amounts)

	2016		2015		2014
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34	$	0.73	$	0.58
Income (loss) from discontinued operations	—		—		(0.05		)
Gain on disposal of discontinued operations	—		0.01		0.01
Net income	$	0.34	$	0.74	$	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34	$	0.73	$	0.58
Income (loss) from discontinued operations	—		—		(0.05		)
Gain on disposal of discontinued operations	—		0.01		0.01
Net income	$	0.34	$	0.74	$	0.54
Amounts attributable to Leucadia National Corporation common shareholders:
Income from continuing operations, net of taxes	$	125,938	$	274,065	$	220,584
Income (loss) from discontinued operations, net of taxes	—		429		(17,945		)
Gain on disposal of discontinued operations, net of taxes	—		5,093		1,667
Net income	$	125,938	$	279,587	$	204,306

The accompanying notes are an integral part of these consolidated financial statements.

F-4

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net income	$	194,321		$	252,111		$	199,025
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)	3,900			(9,057		)	(8,866		)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631	(4		)	(10,930		)	(2,939		)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)	3,896			(19,987		)	(11,805		)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)	(121,581		)	(36,477		)	(43,307		)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149	—			—			(267		)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)	(121,581		)	(36,477		)	(43,574		)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)	—			—			169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95	—			—			169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)	(5,451		)	17,073			(38,959		)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)	1,534			31,102			3,201
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)	(3,917		)	48,175			(35,758		)
Other comprehensive loss, net of income taxes	(128,096		)	(8,289		)	(90,968		)
Comprehensive income	66,225			243,822			108,057
Comprehensive loss attributable to the noncontrolling interests	1,426			4,996			727
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	(65,746		)	26,543			8,616
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders	$	(2,158	)	$	271,298		$	113,338

The accompanying notes are an integral part of these consolidated financial statements.

F-5

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from operating activities:
Net income	$	194,321		$	252,111		$	199,025
Adjustments to reconcile net income to net cash provided by (used for) operations:
Deferred income tax provision	118,631			134,016			126,885
Depreciation and amortization of property, equipment and leasehold improvements	144,116			164,067			124,977
Other amortization	22,673			8,006			14,767
Share-based compensation	33,597			74,087			109,838
Provision for doubtful accounts	34,252			20,168			69,907
Net securities gains	(29,542		)	(62,957		)	(30,394		)
Income related to associated companies	(171,782		)	(185,998		)	(228,769		)
Distributions from associated companies	191,455			223,658			176,491
Net (gains) losses related to property and equipment, and other assets	83,053			29,776			(27,784		)
Gain on disposal of discontinued operations	—			(7,836		)	(12,566		)
Change in estimated litigation reserve	—			(96,500		)	101,710
Net change in:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(107,771		)	2,691,028			166,108
Trading assets	2,687,399			1,380,230			(3,223,327		)
Investments in managed funds	75,144			(295,342		)	(80,247		)
Securities borrowed	(805,779		)	(127,060		)	(1,497,438		)
Securities purchased under agreements to resell	(112,777		)	56,377			(200,568		)
Receivables from brokers, dealers and clearing organizations	(488,623		)	551,021			11,872
Receivables from customers of securities operations	340,690			58,233			(349,767		)
Other receivables	(162,748		)	(145,634		)	(161,415		)
Other assets	(283,234		)	83,414			(107,028		)
Trading liabilities	1,727,698			(2,011,277		)	1,832,930
Securities loaned	(122,946		)	420,929			95,607
Securities sold under agreements to repurchase	(3,144,433		)	(688,355		)	(84,303		)
Payables to brokers, dealers and clearing organizations	569,246			486,841			968,615
Payables to customers of securities operations	(483,188		)	(3,455,080		)	1,089,423
Trade payables, expense accruals and other liabilities	361,295			(225,711		)	(3,546		)
Other	(61,900		)	(93,967		)	(68,163		)
Net cash provided by (used for) operating activities	608,847			(761,755		)	(987,160		)
Net cash flows from investing activities:
Acquisitions of property, equipment and leasehold improvements, and other assets	(318,678		)	(295,894		)	(600,837		)
Proceeds from disposals of property and equipment, and other assets	62,463			22,820			52,011
Proceeds from disposal of discontinued operations, net of expenses and cash of operations sold	—			5,842			223,217
Acquisitions, net of cash acquired	(9,673		)	—			(61,493		)
Cash paid and cash of real estate operations sold to HomeFed Corporation	—			—			(19,730		)
Advances on notes, loans and other receivables	(342,281		)	(420,219		)	(8,500		)
Collections on notes, loans and other receivables	121,825			153,004			22,002
Loans to and investments in associated companies	(763,528		)	(1,492,060		)	(2,959,689		)
Capital distributions and loan repayment from associated companies	703,108			1,389,262			2,756,320
Deconsolidation of asset management entities	(326		)	(16,512		)	(207,965		)
Purchases of investments (other than short-term)	(739,298		)	(873,831		)	(1,821,635		)
Proceeds from maturities of investments	162,393			379,629			1,191,349
Proceeds from sales of investments	483,360			1,931,656			1,878,427
Other	978			(2,532		)	5,606
Net cash provided by (used for) investing activities	(639,657		)	781,165			449,083

(continued)

The accompanying notes are an integral part of these consolidated financial statements.

F-6

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows, continued

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from financing activities:
Issuance of debt, net of issuance costs	$	1,020,050		$	363,595		$	1,002,636
Net change in short-term borrowings	204,882			298,659			—
Repayment of debt	(962,515		)	(1,316,494		)	(434,278		)
Net change in other secured financings	116,702			205,231			470,415
Net change in bank overdrafts	(46,536		)	—			—
Issuance of common shares	1,062			1,223			2,190
Net contributions from (distributions to) redeemable noncontrolling interests	(52,889		)	5,165			(2,765		)
Distributions to noncontrolling interests	(18,544		)	(7,277		)	(7,797		)
Contributions from noncontrolling interests	154,522			15,469			54,259
Purchase of common shares for treasury	(95,020		)	(125,754		)	(75,728		)
Dividends paid	(91,296		)	(92,550		)	(93,071		)
Other	488			750			1,921
Net cash provided by (used for) financing activities	230,906			(651,983		)	917,782
Effect of foreign exchange rate changes on cash	(25,980		)	(5,554		)	(10,525		)
Cash classified as assets held for sale	(5,206		)	—			—
Net increase (decrease) in cash and cash equivalents	168,910			(638,127		)	369,180
Cash and cash equivalents at January 1,	3,638,648			4,276,775			3,907,595
Cash and cash equivalents at December 31,	$	3,807,558		$	3,638,648		$	4,276,775
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	957,140		$	980,266		$	1,038,201
Income tax payments, net	$	(13,738	)	$	510		$	9,880
Non-cash investing activities:
Transfer of investment in FXCM from trading assets to Loans to and investments in associated companies	$	334,500		$	—		$	—
Non-cash financing activities:
Issuance of common shares for debt conversion	$	—		$	—		$	97,546

The accompanying notes are an integral part of these consolidated financial statements.

F-7

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2016, 2015 and 2014

(In thousands, except par value and per share amounts)

	Leucadia National Corporation Common Shareholders
	Common Shares $1 Par Value			Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Subtotal			Non-controlling Interests			Total
Balance, January 1, 2014	$	364,541		$	4,881,031		$	538,050		$	4,318,840		$	10,102,462		$	70,591		$	10,173,053
Net income										204,306			204,306			(727		)	203,579
Other comprehensive loss, net of taxes							(90,968		)				(90,968		)				(90,968		)
Contributions from noncontrolling interests													—			72,221			72,221
Distributions to noncontrolling interests													—			(8,977		)	(8,977		)
Deconsolidation of asset management entities													—			(77,475		)	(77,475		)
Change in interest in consolidated subsidiary				(3,654		)							(3,654		)	3,654			—
Share-based compensation expense				109,838									109,838						109,838
Change in fair value of redeemable noncontrolling interests				45,401									45,401						45,401
Issuance of common shares for debt conversion	4,606			92,940									97,546						97,546
Purchase of common shares for treasury	(2,990		)	(72,738		)							(75,728		)				(75,728		)
Dividends ($.25 per common share)										(95,077		)	(95,077		)				(95,077		)
Other	1,342			6,690									8,032			8,577			16,609
Balance, December 31, 2014	367,499			5,059,508			447,082			4,428,069			10,302,158			67,864			10,370,022
Net income										279,587			279,587			(4,996		)	274,591
Other comprehensive loss, net of taxes							(8,289		)				(8,289		)				(8,289		)
Contributions from noncontrolling interests													—			16,189			16,189
Distributions to noncontrolling interests													—			(7,277		)	(7,277		)
Deconsolidation of asset management entities													—			(8,193		)	(8,193		)
Change in interest in consolidated subsidiary				(1,092		)							(1,092		)	1,092			—
Share-based compensation expense				74,087									74,087						74,087
Change in fair value of redeemable noncontrolling interests				(26,325		)							(26,325		)				(26,325		)
Purchase of common shares for treasury	(5,953		)	(119,801		)							(125,754		)				(125,754		)
Dividends ($.25 per common share)										(94,674		)	(94,674		)				(94,674		)
Other	1,071			442									1,513						1,513
Balance, December 31, 2015	362,617			4,986,819			438,793			4,612,982			10,401,211			64,679			10,465,890
Net income										125,938			125,938			(1,426		)	124,512
Other comprehensive loss, net of taxes							(128,096		)				(128,096		)				(128,096		)
Contributions from noncontrolling interests													—			154,522			154,522
Distributions to noncontrolling interests													—			(18,544		)	(18,544		)
Deconsolidation of asset management entities													—			(9,709		)	(9,709		)
Change in interest in consolidated subsidiary				(261		)							(261		)	261			—
Reclassification to redeemable noncontrolling interest													—			(14,234		)	(14,234		)
Share-based compensation expense				33,597									33,597						33,597
Change in fair value of redeemable noncontrolling interests				(115,963		)							(115,963		)				(115,963		)
Purchase of common shares for treasury	(5,434		)	(89,586		)							(95,020		)				(95,020		)
Dividends ($.25 per common share)										(93,529		)	(93,529		)				(93,529		)
Other	2,242			(2,019		)							223						223
Balance, December 31, 2016	$	359,425		$	4,812,587		$	310,697		$	4,645,391		$	10,128,100		$	175,549		$	10,303,649

The accompanying notes are an integral part of these consolidated financial statements.

F-8

LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 1.  Nature of Operations

Leucadia National Corporation (“Leucadia” or the “Company”) is a diversified holding company focused on long-term value creation to maximize shareholder value.  We continuously review acquisitions of businesses, securities and assets that have the potential for significant long-term value creation, invest in a broad array of businesses, and evaluate the retention and disposition of our existing operations and holdings.  Changes in the mix of our businesses and investments should be expected.

Our financial services businesses and investments include Jefferies (investment banking and capital markets), Leucadia Asset Management (asset management), Berkadia (commercial mortgage banking, investment sales and servicing), FXCM (provider of online foreign exchange trading services), HomeFed (a publicly traded real estate company) and Foursight Capital (vehicle finance).  We also own and have investments in a diverse array of other businesses, including National Beef (beef processing), HRG Group ("HRG") (insurance and consumer products), Vitesse Energy and Juneau Energy (oil and gas exploration and development), Garcadia (automobile dealerships), Linkem (fixed wireless broadband services in Italy), Conwed Plastics ("Conwed") and Idaho Timber (manufacturing companies), and Golden Queen (gold and silver mining project). The structure of each of our investments was tailored to the unique opportunity each transaction presented. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings.

Jefferies is a global full-service, integrated securities and investment banking firm.  In March 2013, Jefferies became an indirect wholly-owned subsidiary of Leucadia, yet retains a separate credit rating and continues to be a separate SEC reporting company.  Through Jefferies, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), our joint venture with Babson Capital Management LLC (now Barings, LLC) and Massachusetts Mutual Life Insurance Company.  Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt of middle market and growth companies in the form of term and revolving loans.  Through Jefferies, we also own a 48.5% voting interest in Jefferies LoanCore, a joint venture with the Government of Singapore Investment Corporation, the Canadian Pension Plan Investment Board and LoanCore, LLC.  Jefferies LoanCore originates, purchases and securitizes commercial real estate loans throughout the U.S.

Jefferies has a November 30^th year-end, which it retains for standalone reporting purposes.  We reflect Jefferies in our consolidated financial statements utilizing a one month lag.  We have reviewed Jefferies business and internal operating results for the month of December 2016 for the purpose of evaluating whether additional financial statement disclosures or adjustments are required to this Annual Report on Form 10-K, and we have concluded that no additional adjustments are warranted.

Leucadia Asset Management supports and develops focused alternative asset management businesses led by distinct management teams. These primarily include Folger Hill Asset Management LLC ("Folger Hill"), a multi-manager discretionary long/short equity hedge fund platform; Topwater Capital, a first-loss product; 54 Madison Capital, LLC ("54 Madison"), which invests in real estate projects; CoreCommodity Management LLC, an asset manager that focuses on commodities strategies; Tenacis Capital, a systematic macro investment platform; Lake Hill, an electronic trader in listed options and futures across asset classes; as well as several other smaller businesses. In addition, several investment management businesses, including Jefferies Strategic Investments Division, operate under Jefferies and are included under our marketing of the LAM platform.

Prior to September 1, 2016, our investment in FXCM Group, LLC ("FXCM") and associated companies consisted of a senior secured term loan due January 2017, with rights to a variable proportion of certain future distributions. On September 1, 2016, we, FXCM Inc. and FXCM Holdings, LLC ("FXCM Holdings") entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 to allow FXCM more time to optimize remaining asset sales ($154.5 million was outstanding under this loan at December 31, 2016); gave Leucadia a 49.9% common membership interest in FXCM and up to 65% of all distributions; created a six-member board for FXCM, comprised of three directors appointed by Leucadia and three directors appointed by FXCM Holdings; put in place a long-term incentive program for FXCM's senior management; entered into a management agreement pursuant to which FXCM Holdings will manage the assets and day-to-day operations of FXCM and its subsidiaries; and gave FXCM Holdings the same right Leucadia has to require a sale of FXCM beginning in January 2018. See Notes 4 and 10 to our consolidated financial statements for additional information.

Berkadia, our 50-50 equity method joint venture with Berkshire Hathaway Inc., is a U.S. commercial real estate company providing capital solutions, investment sales advisory and mortgage servicing for multifamily and commercial properties.

F-9

We own an approximate 65% equity method interest of HomeFed, which owns and develops residential and mixed use real estate properties.  HomeFed is a public company traded on the NASD OTC Bulletin Board. During 2014, we sold substantially all of our standalone real estate operations to HomeFed; see Notes 10 and 28 for more information.

We own 100% of Foursight Capital, an auto loan originator and servicer, and 85% of Chrome Capital, which owns and manages a portfolio of leases on used Harley-Davidson motorcycles and is in the process of winding down.

We own 78.9% of National Beef Packing Company.  National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets.  National Beef operates two beef processing facilities, three consumer-ready facilities and a wet blue tanning facility, all located in the U.S. National Beef operates one of the largest wet blue tanning facilities in the world that sells processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries.  National Beef owns Kansas City Steak Company, LLC, which sells portioned beef and other products directly to customers through the internet, direct mail and direct response television.  National Beef also owns a refrigerated and livestock transportation and logistics company that provides transportation services for National Beef and third parties.

We own approximately 23% of HRG, a publicly traded company (NYSE: HRG), and we reflect this investment at fair value based on quoted market prices. HRG primarily owns approximately 58% of Spectrum Brands, a publicly traded (NYSE: SPB) global consumer products company; an approximately 80% ownership stake in Fidelity & Guaranty Life ("FGL"), a publicly traded (NYSE: FGL) life insurance and annuity products company; and Front Street, a long-term reinsurance company. On November 8, 2015, FGL and Anbang Insurance Group Co., Ltd. ("Anbang") entered into a definitive merger agreement pursuant to which Anbang will acquire FGL for $26.80 per share in cash. In February 2017, FGL and Anbang amended the merger agreement which extends the outside termination date to April 17, 2017. The amendment also gives FGL the right to solicit, respond to, evaluate and negotiate competing offers, but provides that FGL may not sign a competing definitive agreement prior to the termination date.

Vitesse Energy, LLC ("Vitesse") is our 96% owned consolidated subsidiary that acquires and develops non-operated working and royalty oil and gas interests in the Bakken Shale oil field in North Dakota and Montana as well as the Denver-Julesburg Basin in Wyoming.

Juneau Energy, LLC ("Juneau") is our 98% owned consolidated subsidiary that engages in the exploration, development and production of oil and gas from onshore, unconventional resource areas.  Juneau currently has non-operated working interests and acreage in the Texas Gulf Coast region.

Garcadia is an equity method joint venture that owns and operates 28 automobile dealerships in California, Texas, Iowa and Michigan. We own approximately 75%.

We own approximately 42% of the common shares of Linkem, as well as convertible preferred shares which, if converted, would increase our ownership to approximately 57% of Linkem's common equity at December 31, 2016.  Linkem provides residential broadband services using LTE technologies deployed over the 3.5 GHz spectrum band.  Linkem operates in Italy, which has few cable television systems and poor broadband alternatives. Linkem is accounted for under the equity method.

Conwed is our consolidated subsidiary that manufactures and markets lightweight plastic netting used for building and construction, erosion and sediment control, packaging, agricultural purposes, carpet padding, filtration, consumer products and other purposes.  In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE:SWM) for $295 million in cash plus potential earn-out payments over five years of up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. The pre-tax gain of approximately $180 million recognized upon closing will be reflected in our results of operations for the three months ended March 31, 2017. See also Note 29 for more information.

Idaho Timber is our consolidated subsidiary engaged in the manufacture and distribution of various wood products, including the following principal activities:  remanufacturing dimension lumber; remanufacturing, bundling and bar coding of home center boards for large retailers; and production of pine dimension lumber and 5/4” radius-edge, pine decking. 

Golden Queen Mining Company, LLC ("Golden Queen") owns the Soledad Mountain project, an open pit, heap leach gold and silver mining project in Kern County, California, which commenced gold and silver production in March 2016.  We and the Clay family have formed and made contributions to a limited liability company, controlled by us, through which we invested in Golden Queen for the development and operation of the project. Our effective ownership of Golden Queen is approximately 35% and is accounted for under the equity method.

F-10

Certain amounts have been reclassified to be consistent with the 2016 presentation.

Note 2.  Significant Accounting Policies

The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities.  On an on-going basis, we evaluate all of these estimates and assumptions.  The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, asset impairment, the ability to realize deferred tax assets, the recognition and measurement of uncertain tax positions and contingencies.  Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates.

Consolidation

Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock.  In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary.  The primary beneficiary is the party who has the power to direct the activities of a variable interest entity 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.  We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests.  All intercompany transactions and balances are eliminated in consolidation.

In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under GAAP.  We have also formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies.  Our subsidiaries may 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.

Revenue Recognition Policies

Beef Processing and Other Operations

Revenues are recognized when the following conditions are met: (1) collectibility is reasonably assured; (2) title to the product has passed or the service has been rendered and earned; (3) persuasive evidence of an arrangement exists; and (4) there is a fixed or determinable price.  National Beef’s revenues are recognized based on the terms of the sale, which for beef processing operations is typically upon delivery to customers.  Manufacturing revenues are recognized when title passes.

Investment Banking Activities

Commissions and Other Fees. All customer securities transactions are reported in 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 Operations.  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. Trading assets and trading liabilities are carried at fair value with gains and losses reflected in Principal transactions in the Consolidated Statements of Operations on a trade date basis.  Fees received on loans carried at fair value are also recorded within Principal transactions.

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 Selling, general and administrative expenses in the Consolidated Statements of Operations.

F-11

Interest Revenue and Expense.  Interest expense that is deducted from Revenues to arrive at Net revenues is related to Jefferies operations.  Contractual interest on Trading assets and Trading liabilities is recognized on an accrual basis as a component of Interest income and Interest expense.  Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions in the Consolidated Statements of Operations rather than as a component of interest income or expense.  Interest on short- and long-term borrowings is recorded on an accrual basis as Interest expense. Discounts/premiums arising on long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations.  Interest revenue related to Securities borrowed and Securities purchased under agreements to resell activities and interest expense related to Securities loaned and Securities sold under agreements to repurchase activities are recognized on an accrual basis.

Cash Equivalents

Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less.

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

In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients.  Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities.

Financial Instruments and Fair Value

Trading assets and Trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election.  Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations in Principal transactions.  Available for sales securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes.  When sold, realized gains and losses on available for sale securities are reflected in the caption Net realized securities gains.  The cost of securities sold is based on average cost.  Fair value 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 as of 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 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 as of 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 as of the measurement date.  For financial instruments that do not have readily determinable fair values using quoted market prices,

F-12

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

The Jefferies Independent Price Verification ("IPV") Group, which is part of the Jefferies finance department, in partnership with Jefferies Risk Management, is responsible for establishing Jefferies valuation policies and procedures.  The IPV Group and Risk Management, which are independent of business functions, play an important role and serve as a control function in determining that Jefferies 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 Jefferies Global Controller and is subject to the oversight of the IPV Committee, which includes senior members of Jefferies finance department and other personnel.  Jefferies 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.  Jefferies business units are responsible for determining the fair value of Jefferies 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 the financial instruments inventory.  In the testing process, the IPV Group obtains prices and valuation inputs from sources independent of Jefferies, consistently adheres to established procedures set forth in the 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 the 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 management 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 Jefferies 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.

F-13

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.  Jefferies processes challenges 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.  Jefferies process includes understanding and evaluating the external data providers’ valuation methodologies.  For corporate, U.S. government and agency, municipal debt securities, and loans, to the extent independent pricing services or broker quotes are utilized in Jefferies 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"), the 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, Jefferies considers pricing data from multiple service providers as available as well as compares pricing data to prices observed for recent transactions, if any, in order to corroborate 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 the Consolidated Statements of Operations.

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.

Loans to and Investments in Associated Companies

Loans to and investments in associated companies include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such investments.  Loans to and investments in associated companies are accounted for using the equity method.  See Note 10 for additional information regarding certain of these investments.

Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as Income (loss) related to associated companies, or as part of Other revenues if such investees are considered to be an extension of our business.  Income (loss) for investees for which the fair value option was elected is reported as Principal transactions revenues.

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Receivables and Provision for Doubtful Accounts

At December 31, 2016 and 2015, Receivables include receivables from brokers, dealers and clearing organizations of $2,062.9 million and $1,616.3 million, respectively, and receivables from customers of securities operations of $843.1 million and $1,191.3 million, respectively.

During the fourth quarter of 2014, Jefferies recognized a bad debt provision, which primarily relates to a receivable of $52.3 million from a client to which Jefferies provided futures clearing and execution services, which declared bankruptcy.

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, Jefferies borrows 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.  Jefferies has an active securities borrowed and lending matched book business in which it borrows securities from one party and lends them to another party.  When Jefferies borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities borrowed.  Jefferies earns interest revenues on this cash collateral.  Similarly, when Jefferies lends securities to another party, that party provides cash to Jefferies as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities loaned.  Jefferies pays 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.  Jefferies monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns 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.  Jefferies earns and incurs interest over the term of the repo, which is reflected in Interest revenue and Interest expense in the 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 GAAP.  The fair value of the underlying securities is monitored 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.

Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation and amortization.  Depreciation and amortization are provided principally on the straight-line method over the estimated useful lives of the assets or, if less, the term of the underlying lease.

Impairment of Long-Lived Assets

We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable.  When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group).  The determination of whether an asset group is recoverable is based on management’s estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value.  If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value.

National Beef closed its Brawley beef processing facility in the second quarter of 2014.  National Beef incurred costs relating to the closing of the facility during 2014 of $6.9 million.  These costs include employee separation and retention, systems decommissioning and various other expenses.  Of these amounts, $4.6 million related to employee separation, which is included in Compensation and benefits, and the various other costs are included in Selling, general and other expenses in the Consolidated Statement of Operations.

In 2015, we recorded impairment charges in Selling, general and other expenses of $27.7 million, primarily related to a $20.3 million impairment at our Juneau oil and gas company and an impairment charge related to the Brawley plant of $4.7 million. For the oil and gas impairment test, we compare expected undiscounted future net cash flows to the unamortized capitalized cost of

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the asset. If the future undiscounted net cash flows are lower than the unamortized capital cost, we reduce the capitalized cost to fair market value. We used a third party reserve report in which the cash flows were calculated using West Texas Intermediate (oil) and Henry Hub (gas) NYMEX futures prices as of December 31, 2015. For one of our oil fields, the undiscounted net cash flows were lower than the unamortized capital cost and as a result, we wrote off the total capital cost. There were no significant impairment charges in 2014.

In 2016, Juneau recorded impairment charges in Selling, general and other expenses of $56.3 million related to write-downs of unproved oil and gas properties. Juneau assesses its unproved oil and gas properties for impairment based on remaining lease terms, drilling results or future plans to develop acreage and they record impairment expense for any decline in value. In the third quarter of 2016, Juneau curtailed development of its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage.

Substantially all of our operating businesses sell products or services that are impacted by general economic conditions in the U.S. and to a lesser extent internationally.  In recent years general economic conditions reduced the demand for products or services sold by our operating subsidiaries and/or resulted in reduced pricing for products or services.  A worsening of current economic conditions could cause a decline in estimated future cash flows expected to be generated by our operations and investments.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in intangible assets, property and equipment and other long-lived assets (for example, Jefferies, National Beef, manufacturing, oil and gas exploration and development and certain associated company investments), impairment charges would have to be recorded.

Intangible Assets, Net and Goodwill

Intangible Assets.  Intangible assets deemed to have finite lives are generally 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.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded.

An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary.  Impairment exists when the carrying amount exceeds its fair value.  Fair value will be determined using valuation techniques consistent with what a market participant would use.  All of our indefinite-lived intangible assets were recognized in connection with the Jefferies acquisition, and our annual impairment testing date for Jefferies is as of August 1.

Goodwill.  At acquisition, we allocate the cost of a business acquisition to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values.  Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant.  Any excess of the cost of a business acquisition over the fair values of the net assets and liabilities acquired is recorded as goodwill, which is not amortized to expense.  Substantially all of our goodwill was recognized in connection with the Jefferies acquisition.

At least annually, and more frequently if warranted, we will assess whether goodwill has been impaired.  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 values will be 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 fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of merger and acquisitions of similar businesses and/or projected cash flows.  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.  Our annual goodwill impairment testing date related to Jefferies is as of August 1 and National Beef as of December 31.

See Note 12 for further information with respect to our impairment charges related to intangible assets during 2015 and 2016.

F-16

Inventories and Cost of Sales

National Beef’s inventories consist primarily of beef products, beef by-products and supplies, and are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method for beef products and average cost for supplies.

Manufacturing inventories are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method.  Manufacturing cost of sales principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs.

Payables, expense accruals and other liabilities

At December 31, 2016 and 2015, Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $3,290.4 million and $2,757.2 million, respectively, and payables to customers of securities operations of $2,297.3 million and $2,780.5 million, respectively.

Income Taxes

We record a valuation allowance to reduce our net deferred tax asset to the net amount that is more likely than not to be realized.  If in the future we determine that it is more likely than not that we will be able to realize our net deferred tax asset in excess of our net recorded amount, an adjustment to increase the net deferred tax asset would increase income in such period.  If in the future we were to determine that we would not be able to realize all or part of our recorded net deferred tax asset, an adjustment to decrease the net deferred tax asset would be charged to income in such period.  We are required to consider all available evidence, both positive and negative, and to weigh the evidence when determining whether a valuation allowance is required and the amount of such valuation allowance.  Generally, greater weight is required to be placed on objectively verifiable evidence when making this assessment, in particular on recent historical operating results.

Our estimate of future taxable income considers all available evidence, both positive and negative, about our operating businesses and investments, includes an aggregation of individual projections for each significant operating business and investment, estimated apportionment factors for state and local taxing jurisdictions and included all future years that we estimate we will have available net operating loss carryforwards (“NOLs”) (until 2035).  We believe that our estimate of future taxable income is reasonable but inherently uncertain, and if our current or future operations and investments generate taxable income different than the projected amounts, further adjustments to the valuation allowance are possible.  The current balance of the deferred tax valuation allowance principally reserves for NOLs of certain subsidiaries that are not available to offset income generated by other members of the consolidated tax return group.

We also record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions.  Interest and penalties, if any, are recorded as components of income tax expense.  Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so estimating the amount.  If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which could be significant to our Consolidated Statement of Financial Condition or results of operations.

Share-based Compensation

Share-based awards are measured based on the fair value of the award as determined in accordance with GAAP and recognized over the required service or vesting period.  Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options and warrants are estimated at the date of grant using the Black-Scholes option pricing model.  Expected forfeitures are included in determining share-based compensation expense.

Foreign Currency Translation

Assets and liabilities of foreign subsidiaries are translated to U.S. dollars using the currency exchange rates at the end of the relevant period.  Revenues and expenses are translated at average exchange rates during the period.  The effects of exchange rate changes on the translation of the balance sheets, net of hedging gains or losses and taxes, if any, are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss) and classified as Accumulated other comprehensive income in the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity.  Gains or losses

F-17

resulting from Jefferies foreign currency transactions are included in Principal transactions in the Consolidated Statements of Operations; gains or losses from foreign currency transactions unrelated to Jefferies were not significant.

Earnings per Common Share

Basic earnings per share ("EPS") is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued.  Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities.  Losses are not allocated to participating securities.  Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required.  Diluted EPS is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares and interest on convertible notes by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share.  Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security.  As such, we calculate basic and diluted earnings per share under the two-class method. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable. See Note 18 for more information regarding the senior executive compensation plan.

Securitization Activities

Jefferies engages 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 Jefferies has 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.  Jefferies may retain interests in the securitized financial assets as one or more tranches of the securitization.  These retained interests are included within Trading assets 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 in the Consolidated Statements of Operations.

When a transfer of assets does not meet the criteria of a sale, the transfer is accounted for as a secured borrowing and Jefferies continues to recognize the assets of a secured borrowing, and recognize the associated financing in Other secured financings in the Consolidated Statements of Financial Condition.

Beginning in 2014, another of our subsidiaries utilized a special purpose entity to securitize automobile loans receivable.  This special purpose entity is a variable interest entity and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statement of Financial Condition.  These secured borrowings do not have recourse to our subsidiary’s general credit.

Contingencies

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 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, can be highly subjective and is subject to significant change with the passage of time as more information becomes available.  Estimating the ultimate impact of litigation matters is inherently uncertain, in particular because the ultimate outcome will rest on events and decisions of others that may not be within our power to control.  We do not believe that any of our current litigation will have a significant adverse effect on our consolidated financial position, results of operations or liquidity; however, if amounts paid at the resolution of litigation are in excess of recorded

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reserve amounts, the excess could be significant in relation to results of operations for that period.  For further information, see Note 25.

Note 3.  Accounting Developments

Revenue Recognition.  In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures.  The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  This guidance is effective for interim and annual periods beginning after December 15, 2017.  We intend to adopt the new guidance with a cumulative-effect adjustment to opening retained earnings and our evaluation of the impact this new guidance will have on our consolidated financial statements is ongoing.

Consolidation.  In January 2016, we adopted the FASB's new guidance that amended the consolidation guidance including changes to both the variable and voting interest models used to evaluate whether an entity should be consolidated.  This guidance also eliminates the deferral of certain consolidation standards for entities considered to be investment companies.  The adoption of this guidance did not have a significant impact on our consolidated financial statements.

Debt Issuance Costs.  In January 2016, we adopted the FASB's new guidance that requires debt issuance costs related to a recognized debt liability be presented 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 have adopted this guidance in the first quarter of 2016. The adoption of this guidance resulted in the following adjustments to the Consolidated Statement of Financial Condition on December 31, 2015: a decrease of $8.6 million to Other assets, a decrease of $7.0 million to Long-term debt and a decrease of $1.6 million to Other secured financings. The adoption of this guidance also resulted in the following adjustments to the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014: a decrease of $4.4 million and $3.8 million, respectively, to Selling, general and other expenses and an increase of $4.4 million and $3.8 million, respectively, to Interest expense.

Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017. 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 2016. The guidance on financial liabilities under the fair value option did not have a significant impact on our consolidated financial statements.

Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of lease assets and lease liabilities on the statement of financial condition. The guidance is effective for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Share-Based Payments to Employees. In March 2016, the FASB issued new guidance to simplify and improve accounting for share-based payments. 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 for annual and interim periods beginning after December 15, 2016. We do not believe the adoption of this accounting guidance will have a material effect on our consolidated financial statements.

Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective for annual and interim periods beginning after December 15, 2019. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. 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 for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual and interim periods beginning after December 15, 2017. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

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Note 4.  Fair Value Disclosures

The following is a summary of our financial instruments, trading liabilities and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV (within trading assets) of $24.3 million and $36.7 million, respectively, by level within the fair value hierarchy at December 31, 2016 and 2015 (in thousands):

	December 31, 2016
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,522,977	$	92,839	$	21,739	$	—		$	2,637,555
Corporate debt securities	—		2,675,020		25,005		—			2,700,025
CDOs and CLOs	—		54,306		54,354		—			108,660
U.S. government and federal agency securities	2,389,397		56,726		—		—			2,446,123
Municipal securities	—		708,469		27,257		—			735,726
Sovereign obligations	1,432,556		990,492		—		—			2,423,048
Residential mortgage-backed securities	—		960,494		38,772		—			999,266
Commercial mortgage-backed securities	—		296,405		20,580		—			316,985
Other asset-backed securities	—		63,587		40,911		—			104,498
Loans and other receivables	—		1,557,233		81,872		—			1,639,105
Derivatives	3,825		4,616,822		6,429		(4,255,998		)	371,078
Investments at fair value	—		—		314,359		—			314,359
Investment in FXCM	—		—		164,500		—			164,500
Total trading assets, excluding investments at fair value based on NAV	$	6,348,755	$	12,072,393	$	795,778	$	(4,255,998	)	$	14,960,928
Available for sale securities:
Corporate equity securities	$	79,425	$	—	$	—	$	—		$	79,425
Corporate debt securities	—		179		—		—			179
U.S. government securities	174,933		—		—		—			174,933
Residential mortgage-backed securities	—		19,133		—		—			19,133
Commercial mortgage-backed securities	—		8,337		—		—			8,337
Other asset-backed securities	—		19,042		—		—			19,042
Total available for sale securities	$	254,358	$	46,691	$	—	$	—		$	301,049
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,593,548	$	16,806	$	313	$	—		$	1,610,667
Corporate debt securities	—		1,718,424		523		—			1,718,947
U.S. government and federal agency securities	976,497		—		—		—			976,497
Sovereign obligations	1,375,590		1,253,754		—		—			2,629,344
Loans	—		801,977		378		—			802,355
Derivatives	2,566		4,867,586		9,870		(4,229,213		)	650,809
Total trading liabilities	$	3,948,201	$	8,658,547	$	11,084	$	(4,229,213	)	$	8,388,619
Other secured financings	$	—	$	41,350	$	418	$	—		$	41,768
Long-term debt - structured notes	$	—	$	248,856	$	—	$	—		$	248,856

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	December 31, 2015
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,803,243	$	133,732	$	40,906	$	—		$	2,977,881
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	2,253		4,406,207		19,785		(4,165,446		)	262,799
Investments at fair value	—		26,224		199,794		—			226,018
Investment in FXCM	—		—		625,689		—			625,689
Total trading assets, excluding investments at fair value based on NAV	$	6,611,880	$	14,495,857	$	1,314,065	$	(4,165,446	)	$	18,256,356
Available for sale securities:
Corporate equity securities	$	73,579	$	—	$	—	$	—		$	73,579
Corporate debt securities	—		4,744		—		—			4,744
U.S. government securities	63,945		—		—		—			63,945
Residential mortgage-backed securities	—		23,240		—		—			23,240
Commercial mortgage-backed securities	—		2,374		—		—			2,374
Other asset-backed securities	—		39,473		—		—			39,473
Total available for sale securities	$	137,524	$	69,831	$	—	$	—		$	207,355
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,428,048	$	36,518	$	38	$	—		$	1,464,604
Corporate debt securities	—		1,556,941		—		—			1,556,941
U.S. government and federal agency securities (3)	1,488,121		—		—		—			1,488,121
Sovereign obligations (3)	837,614		505,382		—		—			1,342,996
Residential mortgage-backed securities (3)	—		117		—		—			117
Loans	—		758,939		10,469		—			769,408
Derivatives	364		4,456,334		19,543		(4,257,998		)	218,243
Total trading liabilities	$	3,754,147	$	7,314,231	$	30,050	$	(4,257,998	)	$	6,840,430
Other secured financings (4)	$	—	$	67,801	$	544	$	—		$	68,345

(1) There were no material transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015.

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

(3) There was an immaterial revision in the row labeling in our Annual Report on Form 10-K for the year ended December 31, 2015. We have revised the labels to "U.S. government and federal agency securities" (originally reported as "Collateralized debt obligations"), "Sovereign obligations" (originally reported as "U.S. government and federal agency securities") and "Residential mortgage-backed securities" (originally reported as "Sovereign obligations").

(4) 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 December 31, 2015.

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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/Earnings before interest, taxes, depreciation and amortization ("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 measured primarily using pricing data from external pricing services, prices observed for recently executed market transactions and broker quotations are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and 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 loss 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.

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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:  Agency residential mortgage-backed securities 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 Residential Mortgage-Backed Securities:  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:  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 Commercial Mortgage-Backed Securities:  Non-agency commercial mortgage-backed securities 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.

• 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.

• National Beef Derivatives: National Beef uses futures contracts in order to reduce its exposure associated with entering into firm commitments to purchase live cattle at prices determined prior to the delivery of the cattle as well as firm commitments to sell certain beef products at sales prices determined prior to shipment. The futures contracts and their related firm purchase commitments are accounted for at fair value, which are classified as Level 1 or Level 2 within the fair value hierarchy. Certain firm commitments for live cattle purchases and all firm commitments for sales are treated as normal purchases and sales and

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therefore not marked to market. Fair values classified as Level 1 are calculated based on the quoted market prices of identical assets or liabilities compared to National Beef's cost of those same assets or liabilities. Fair values classified as Level 2 are calculated based on the difference between the contracted price for live cattle and the relevant quoted market price for live cattle futures.

• Oil Futures Derivatives: Vitesse uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse accounts for the derivative instruments at fair value, which are classified as Level 2 within the fair value hierarchy. Fair values classified as Level 2 are determined under the income valuation technique using an option-pricing model that is based on directly or indirectly observable inputs.

Investments at Fair Value

Investments at fair value included in Trading assets on the Consolidated Statements of Financial Condition 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 analysis 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 Jefferies defined benefit plan in Germany.  Fair value for the insurance contracts are determined using a third party and is categorized within Level 3 of the fair value hierarchy. 

Investment in FXCM

In January 2015, we entered into a credit agreement with FXCM, and provided FXCM a $300 million senior secured term loan due January 2017, with rights to a variable proportion of certain future distributions in connection with an FXCM sale of assets or certain other events, and to require a sale of FXCM beginning in January 2018.  FXCM is an online provider of foreign exchange trading services.  The loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, not to exceed 20.5% per annum.  The variable proportion of distributions was as follows: 100% until amounts due under the loan are repaid; 50% of the next $350 million; then 90% of the next $500 million (this was an amount initially set at a range between $500 million to $680 million and based on payments made by FXCM to us through April 16, 2015, this amount became $500 million); and 60% of all amounts thereafter.  During the year ended December 31, 2016, we received $72.1 million of principal, interest and fees from FXCM and $154.5 million remained outstanding under the credit agreement as of December 31, 2016.  Through the first quarter of 2016 interest accrued at 16.0% per annum; in the second quarter of 2016 interest accrued at 17.5% per annum; in the third quarter of 2016 interest accrued at 19.0% per annum; and in the fourth quarter of 2016 interest accrued at 20.5% per annum.

At December 31, 2015, we viewed the FXCM loan and associated rights as one integrated transaction; since the rights, as derivatives, were accounted for at fair value, we had elected the fair value option for the loan.  At December 31, 2015, the total amount of our investment in FXCM was reported within Trading assets, at fair value in our Consolidated Statements of Financial Condition, and unrealized and realized changes in value, including the component related to interest income on the loan, were included within Principal transactions in the Consolidated Statements of Operations.  We recorded in Principal transactions an aggregate $(54.6) million and $491.3 millionduring the years ended December 31, 2016 and 2015, respectively, of unrealized and realized gains (losses), interest income and fees relating to our investment in FXCM.

On September 1, 2016, we, FXCM Inc. and FXCM Holdings entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 to allow FXCM more time to optimize remaining asset sales; gave Leucadia a 49.9% common membership interest in FXCM, and up to 65% of all distributions; created a six-member board for FXCM, comprised of three directors appointed by Leucadia and three directors appointed by FXCM Holdings; put in place a long-term incentive program for FXCM's senior management; entered into a management agreement pursuant to which FXCM Holdings will manage the assets and day-to-day operations of FXCM and its subsidiaries; and gave FXCM Holdings the same right Leucadia has to require a sale of FXCM beginning in January 2018. Distributions to Leucadia under the amended agreements are now: 100% until amounts due under the loan are repaid; 45% of the next $350 million; then 79.2% of the next $500 million; and 51.6% of all amounts thereafter.

During February 2017, FXCM Holdings and FXCM's U.S. subsidiary, Forex Capital Markets LLC ("FXCM U.S.") settled complaints filed by the National Futures Association ("NFA") and the Commodity Futures Trading Commission ("CFTC") against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. The NFA settlement has no monetary fine and the CFTC settlement has a $7 million fine. As part of the settlements, FXCM U.S. will be withdrawing from business and has agreed to sell FXCM U.S.'s customer accounts to Gain Capital Holdings, Inc. FXCM U.S. generates approximately 20% of FXCM's revenue, but is not currently profitable. The proceeds from any sale of the U.S. accounts, net of closure and severance costs, as well as regulatory capital released after a sale, will be used to pay down the Leucadia term loan. As part of

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the settlement, Leucadia, FXCM Holdings and FXCM have amended the management and incentive compensation agreements, giving any three directors of the FXCM board the right to terminate management and any unvested incentive compensation at any time.

On February 21, 2017, Drew Niv resigned as the Chief Executive Officer of FXCM, although he will remain in an advisory position. Brendan Callan will become the interim Chief Executive Officer of FXCM and Leucadia's Jimmy Hallac will become Chairman of the Board of FXCM.

In addition, on February 21, 2017, Mr. Niv resigned from his positions as Chief Executive Officer and Chairman of the Board of FXCM Inc., but will remain as acting Chief Executive Officer of FXCM Inc. until his successor is identified. In addition, FXCM Inc. announced that it will be changing its name to Global Brokerage Inc. effective February 27, 2017.

We do not hold any interest in FXCM Inc., the publicly traded company and issuer of senior convertible notes. FXCM Inc. holds an economic interest of 68.0% in FXCM Holdings, LLC, which in turn holds 50.1% of FXCM Group, LLC. As more fully described above, we own the remaining 49.9% of FXCM Group, LLC, and our senior secured term loan is also with FXCM Group, LLC, which is a holding company for all of FXCM Group, LLC's affiliated operating subsidiaries. Net profits and proceeds generated by these subsidiaries, and from the sales of these subsidiaries, flow first to FXCM Group, LLC, where they are applied to the outstanding balance of our term loan and then, in accordance with the agreement described above, to us and FXCM Holdings, LLC. A portion of the profits and proceeds that flow to FXCM Holdings, LLC then flow to FXCM Inc., in accordance with its economic interest. We refer to FXCM Group, LLC as "FXCM."

Through the amendments on September 1, 2016, our derivative rights were exchanged for a 49.9% common membership interest in FXCM and up to 65% of all distributions. We gained the ability to significantly influence FXCM through our common membership interest and our seats on the board of directors. As a result, we classify our equity investment in FXCM in our December 31, 2016 Consolidated Statement of Financial Condition as Loans to and investments in associated companies. We account for our equity interest on a one month lag. As the amendments only extended the maturity of the term loan, we continue to use the fair value option and classify our term loan within Trading assets, at fair value.

FXCM is considered a variable interest entity ("VIE") and our term loan and equity ownership are variable interests.  We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM’s performance.  Therefore, we do not consolidate FXCM and we account for our equity interest as an investment in an associated company.

Our maximum exposure to loss as a result of our involvement with FXCM is limited to the carrying value of the term loan ($164.5 million) and the investment in associated company ($336.3 million), which totaled $500.8 million at December 31, 2016.

We engaged an independent valuation firm to assist management in estimating the fair value of our loan to FXCM.  Our estimate of fair value was determined using valuation models with inputs including management’s assumptions concerning the amount and timing of expected cash flows and the loan’s implied credit rating and effective yield.  Because of these inputs and the degree of judgment involved, we have categorized our term loan in Level 3.  We also engaged an independent valuation firm to assist management in estimating the fair value of our equity interest in FXCM on September 1, 2016. Our estimate of fair value was determined using valuation models with inputs including management's assumptions concerning the implied total equity value, based primarily on the publicly traded FXCM Inc. stock price; volatility; risk-free rate; and term.

Investments at Fair Value Based on NAV 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 other funds, which are measured at the NAV of the funds provided by the fund managers and are excluded from 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 and are measured based on NAV (in thousands).

	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
December 31, 2016
Equity Long/Short Hedge Funds (2)	$	363,256	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	772		—		—
Fund of Funds (4)	230		—		—
Equity Funds (5)	42,179		20,295		—
Multi-strategy Fund (6)	133,190		—		Monthly/Quarterly
Total	$	539,627	$	20,295
December 31, 2015(7)
Equity Long/Short Hedge Funds (2)	$	430,207	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	1,703		—		—
Fund of Funds (4)	287		94		—
Equity Funds (5)	42,111		20,791		—
Multi-strategy Fund (6)	165,821		—		Monthly/Quarterly
Convertible Bond Funds (8)	326		—		At Will
Total	$	640,455	$	20,885

(1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements.

(2) This category includes investments in hedge funds that invest, long and short, in primarily equity securities in domestic and international markets in both the public and private sectors.  At December 31, 2016 and 2015, investments with a fair value of $363.3 million and $54.7 million, respectively, are redeemable with 15 to 90 days prior written notice.

(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 December 31, 2015, the underlying assets of 8% of these funds were 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 December 31, 2016 and 2015, approximately 100% 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 December 31, 2016 and 2015, 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 seven years. 

(6) This category includes investments in hedge funds that invest, long and short, primarily in multi-strategy securities in domestic and international markets in both the public and private sectors. At December 31, 2016 and 2015, investments representing approximately 12% and 32%, respectively, of the fair value of investments in this category are redeemable with 30 to 90 days prior written notice.

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

(8) Investment in the Jefferies Umbrella Fund, an open-ended investment company managed by Jefferies that invested primarily in convertible bonds.  The underlying assets were fully liquidated during the year ended December 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 Jefferies credit spreads is also included based on observed secondary bond market spreads and asset-swap spreads.

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

Year Ended December 31, 2016
	Balance, December 31, 2015			Total gains (losses) (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2016		Changes in unrealized gains (losses) relating to instruments still held at December 31, 2016 (1)
Assets:
Trading assets:
Corporate equity securities	$	40,906		$	(8,463	)	$	3,365	$	(49	)	$	(671	)	$	—	$	(13,349	)	$	21,739	$	291
Corporate debt securities	25,876			(16,230		)	27,242		(29,347		)	(7,223		)	—		24,687			25,005		(18,799		)
CDOs and CLOs	85,092			(14,918		)	52,316		(69,394		)	(2,750		)	—		4,008			54,354		(7,628		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
Residential mortgage-backed securities	70,263			(9,612		)	623		(12,249		)	(931		)	—		(9,322		)	38,772		(1,095		)
Commercial mortgage-backed securities	14,326			(7,550		)	3,132		(2,024		)	(2,229		)	—		14,925			20,580		(7,243		)
Other asset-backed securities	42,925			(14,381		)	133,986		(102,952		)	(8,769		)	—		(9,898		)	40,911		(18,056		)
Loans and other receivables	189,289			(42,566		)	75,264		(69,262		)	(46,851		)	—		(24,002		)	81,872		(52,003		)
Investments at fair value	199,794			54,538			29,728		(542		)	(1,107		)	—		31,948			314,359		54,608
Investment in FXCM (2)	625,689			(54,634		)	—		—			(406,555		)	—		—			164,500		(1,014		)
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—	$	313		$	(38	)	$	—	$	—		$	313	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (3)	(242		)	(1,760		)	—		11,101			31			2,067		(7,756		)	3,441		(6,458		)
Loans	10,469			—			—		378			—			—		(10,469		)	378		—
Other secured financings	544			(126		)	—		—			—			—		—			418		(126		)

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Includes $334.5 million related to the settlement of our participation rights for equity ownership in FXCM on September 1, 2016. We classify the equity ownership as a Loan to and investment in associated company at December 31, 2016.

(3) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2016

During the year ended December 31, 2016, transfers of assets of $179.6 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• CDOs and CLOs of $19.4 million, residential mortgage-backed securities of $17.5 million, commercial mortgage-backed securities of $17.4 million and other asset-backed securities of $16.9 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $13.8 million due to a lower number of contributors for certain vendor quotes supporting classification within Level 2;

• Corporate debt securities of $28.1 million, investments at fair value of $31.9 million and municipal securities of $28.7 million due to a lack of observable market transactions.

During the year ended December 31, 2016, transfers of assets of $133.2 million from Level 3 to Level 2 are attributed to:

• Residential mortgage-backed securities of $26.8 million, other asset-backed securities of $26.8 million and CDOs and CLOs of $15.4 million, for which market trades were observed in the year for either identical or similar securities;

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• Loans and other receivables of $37.8 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.

During the year ended December 31, 2016, there were transfers of loan liabilities of $10.5 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net losses on Level 3 assets were $115.3 million and net gains on Level 3 liabilities were $1.9 million for the year ended December 31, 2016.  Net losses on Level 3 assets were primarily due to decreased valuations of our investment in FXCM, loans and other receivables, corporate debt securities, CDOs and CLOs, other asset-backed securities, residential and commercial mortgage-backed securities and corporate equity securities partially offset by increased valuations of certain investments at fair value.  Net gains on Level 3 liabilities were primarily due to increased valuations of certain net derivatives.

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

Year Ended December 31, 2015
	Balance, December 31, 2014			Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31 ,2015			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2015 (1)
Assets:
Trading assets:
Corporate equity securities	$	20,964		$	11,154		$	21,385		$	(6,391	)	$	—		$	—	$	(6,206	)	$	40,906		$	11,424
Corporate debt securities	22,766			(11,013		)	21,534			(14,636		)	—			—		7,225			$	25,876		(9,443		)
CDOs and CLOS	124,650			(66,332		)	104,998			(107,381		)	(5,754		)	—		34,911			$	85,092		(48,514		)
Municipal securities	—			10			—			—			(21,551		)	—		21,541			—			—
Sovereign obligations	—			47			1,032			(1,031		)	—			—		72			120			39
Residential mortgage backed securities	82,557			(12,951		)	18,961			(31,762		)	(597		)	—		14,055			$	70,263		(4,498		)
Commercial mortgage-backed securities	26,655			(3,813		)	3,480			(10,146		)	(6,861		)	—		5,011			$	14,326		(3,205		)
Other asset-backed securities	2,294			(990		)	42,922			(1,299		)	(2		)	—		—			$	42,925		(254		)
Loans and other receivables	97,258			(14,755		)	792,345			(576,536		)	(124,365		)	—		15,342			$	189,289		(16,802		)
Investments at fair value	77,047			62,804			5,510			(425		)	(4,093		)	—		58,951			$	199,794		(1,964		)
Investment in FXCM	—			491,341			279,000			—			(144,652		)	—		—			625,689			491,341
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	223			(110		)	(6,804		)	6,691			—			—		—			$	—		—
Net derivatives (2)	(4,638		)	(7,310		)	(6,705		)	13,522			37			2,437		2,415			$	(242	)	4,754
Loans	14,450			(163		)	(2,059		)	229			—			—		(1,988		)	$	10,469		104
Other secured financings	30,825			—			—			—			(15,704		)	36,995		(51,572		)	$	544		—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2015

During the year ended December 31, 2015, transfers of assets of $236.7 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• CDOs and CLOs of $69.8 million, non-agency residential mortgage-backed securities of $30.4 million and commercial mortgage-backed securities of $11.3 million for which no recent trade activity was observed for purposes of determining observable inputs;

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• Municipal securities of $21.5 million and loans and other receivables of $20.1 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $7.4 million and investments at fair value of $74.7 million due to a lack of observable market transactions.

During the year ended December 31, 2015, transfers of assets of $85.8 million from Level 3 to Level 2 are attributed to:

• Non-agency residential mortgage-backed securities of $16.3 million and commercial mortgage-backed securities of $6.3 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $34.9 million and loans and other receivables of $4.7 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $15.8 million due to an increase in observable market transactions;

• Corporate equity securities of $7.7 million due to an increase in observable market transactions.

During the year ended December 31, 2015, there were transfers of other secured financings of $51.6 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $455.5 million and net gains on Level 3 liabilities were $7.6 million for the year ended December 31, 2015.  Net gains on Level 3 assets were primarily due to increased valuations of our investment in FXCM and increase in valuation of certain investments at fair value and corporate equity securities partially offset by decreased valuations of CDOs and CLOs, certain loans and other receivables and residential and commercial mortgage-backed securities.  Net gains on Level 3 liabilities were primarily due to increased valuations of certain net derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended December 31, 2014 (in thousands).

Year Ended December 31, 2014
	Balance, December 31, 2013		Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2014			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2014 (1)
Assets:
Trading assets:
Corporate equity securities	$	9,884	$	957		$	18,138		$	(12,826	)	$	—		$	—	$	4,811		$	20,964		$	2,324
Corporate debt securities	25,666		6,629			38,316			(40,328		)	—			—		(7,517		)	22,766			8,982
CDOs and CLOs	37,216		(6,386		)	204,337			(181,757		)	(1,297		)	—		72,537			124,650			(1,141		)
U.S. government and federal agency securities	—		13			2,505			(2,518		)	—			—		—			—			—
Residential mortgage-backed securities	105,492		(9,870		)	42,632			(61,689		)	(1,847		)	—		7,839			82,557			(4,679		)
Commercial mortgage-backed securities	17,568		(4,237		)	49,159			(51,360		)	(782		)	—		16,307			26,655			(2,384		)
Other asset-backed securities	12,611		1,784			4,987			(18,002		)	—			—		914			2,294			1,484
Loans and other receivables	145,890		(31,311		)	130,169			(92,140		)	(60,390		)	—		5,040			97,258			(26,864		)
Investments at fair value	66,931		17,642			32,493			(23,324		)	(1,243		)	—		(15,452		)	77,047			1,985
Liabilities:
Trading liabilities:
Corporate equity securities	$	38	$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	—		(149		)	(565		)	960			—			—		(23		)	223			(8		)
Net derivatives (2)	6,905		15,055			(24,682		)	1,094			322			—		(3,332		)	(4,638		)	(15,615		)
Loans	22,462		—			(18,332		)	11,338			—			—		(1,018		)	14,450			—
Other secured financings	8,711		—			—			—			(17,525		)	39,639		—			30,825			—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

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Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2014

During the year ended December 31, 2014, transfers of assets of $139.0 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• Non-agency residential mortgage-backed securities of $30.3 million and commercial mortgage-backed securities of $16.6 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $8.5 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate equity securities of $9.7 million due to lack of observable market transactions;

• CDOs and CLOs of $73.0 million which have little to no transparency in trade activity.

During the year ended December 31, 2014, transfers of assets of $54.6 million from Level 3 to Level 2 are attributed to:

• Non-agency residential mortgage-backed securities of $22.4 million for which market trades were observed in the period for either identical or similar securities;

• Loans and other receivables of $3.5 million and investments at fair value of $15.5 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $4.9 million and corporate debt securities of $7.5 million due to an increase in observable market transactions.

During the year ended December 31, 2014, there were transfers of loan liabilities of $1.0 million from Level 3 to Level 2 and transfers of net derivative liabilities of $3.3 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation and an increase in observable inputs used in the valuing of derivative contracts, respectively.

Net losses on Level 3 assets were $24.8 million and net losses on Level 3 liabilities were $14.9 million for the year ended December 31, 2014.  Net losses on Level 3 assets were primarily due to a decrease in valuation of certain loans and other receivables and residential and commercial mortgage-backed securities, partially offset by increased valuations of certain investments at fair value, certain corporate debt securities and other asset-backed securities.  Net losses on Level 3 liabilities were primarily due to increased valuations of certain 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.

F-31

December 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Corporate equity securities	$	19,799
Non-exchange traded securities			Market approach	Underlying stock price	$3 to $75	$15.0
			Comparable pricing	Underlying stock price	$218	—
				Comparable asset price	$11	—
			Present value	Average silver production (tons per day)	666	—
Corporate debt securities	$	25,005	Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Transaction level	$30	—
CDOs and CLOs	$	33,016	Discounted cash flows	Constant prepayment rate	10% to 20%	19	%
				Constant default rate	2% to 4%	2	%
				Loss severity	25% to 70%	40	%
				Yield	7% to 17%	12	%
			Scenario analysis	Estimated recovery percentage	28% to 38%	31	%
Residential mortgage-backed securities	$	38,772	Discounted cash flows	Constant prepayment rate	0% to 11%	5	%
				Constant default rate	1% to 7%	3	%
				Loss severity	35% to 100%	62	%
				Yield	2% to 10%	6	%
Commercial mortgage-backed securities	$	20,580	Discounted cash flows	Yield	6% to 11%	8	%
				Cumulative loss rate	5% to 95%	39	%
Other asset-backed securities	$	40,911	Discounted cash flows	Constant prepayment rate	4% to 20%	14	%
				Constant default rate	0% to 31%	13	%
				Loss severity	0% to 100%	90	%
				Yield	4% to 17%	15	%
			Market approach	Price	$72	—
Loans and other receivables	$	54,347	Market approach	Discount rate/yield	2% to 4%	3	%
				EBITDA (a) multiple	3.3	—
				Transaction level	$0.42	—
			Present value	Average silver production (tons per day)	666	—
			Scenario analysis	Estimated recovery percentage	6% to 50%	37	%
Derivatives	$	6,429
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Investments at fair value
Private equity securities	$	67,383	Market approach	Transaction Level	$250	—
				Price	$25,815,720	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	164,500	Discounted cash flows	Term based on the pay off	0 months to .5 years	0.4 years
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	9,870
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Unfunded commitments			Market approach	Discount rate/yield	4%	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	16%	—

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December 31, 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 (a) multiple	4.4	—
				Transaction level	$1	—
				Underlying stock price	$5 to $102	$19.0
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% to 20%	13	%
				Constant default rate	2% to 8%	2	%
				Loss severity	25% to 90%	52	%
				Yield	6% to 13%	10	%
Residential mortgage-backed securities	$	70,263	Discounted cash flows	Constant prepayment rate	0% to 50%	13	%
				Constant default rate	1% to 9%	3	%
				Loss severity	25% to 70%	39	%
				Yield	1% to 9%	6	%
Commercial mortgage-backed securities	$	14,326	Discounted cash flows	Yield	7% to 30%	16	%
				Cumulative loss rate	2% to 63%	23	%
Other asset-backed securities	$	21,463	Discounted cash flows	Constant prepayment rate	6% to 8%	7	%
				Constant default rate	3% to 5%	4	%
				Loss severity	55% to 75%	62	%
				Yield	7% to 22%	18	%
			Over-collateralization	Over-collateralization percentage	117% to 125%	118	%
Loans and other receivables	$	161,470	Comparable pricing	Comparable asset price	$99 to $100	$99.7
			Market approach	Yield	2% to 17%	12	%
				EBITDA (a) multiple	10.0	—
			Scenario analysis	Estimated recovery percentage	6% to 100%	83	%
Derivatives	$	19,785
Commodity forwards			Market approach	Discount rate/yield	47%	—
				Transaction level	$9,500,000	—
Unfunded commitment			Comparable pricing	Comparable asset price	$100	—
			Market approach	Credit spread	298 bps	—
Total return swap			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Investments at fair value
Private equity securities	$	29,940	Market approach	Transaction Level	$64	—
				Price	$5,200,000	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	203,700	Discounted cash flows	Term based on the pay off	0 months to 1.0 year	0.4 years
Rights	422,000		Option pricing model	Volatility	110%	—
	$	625,700
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	19,543
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable asset price	$79 to $100	$82.6
			Market approach	Discount rate/yield	3% to 10%	10	%
			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	11%	—
Total return swaps			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Loans	$	10,469	Comparable pricing	Comparable asset price	$100	—

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

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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 December 31, 2016 and 2015, asset exclusions consisted of $325.0 million and $280.6 million, respectively, primarily comprised of investments at fair value, private equity securities, CDOs and CLOs, municipal securities, non-exchange traded securities and loans and other receivables. At December 31, 2016 and 2015, liability exclusions consisted of $1.6 million and $0.6 million, respectively, of other secured financings, loans 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, non-exchange traded securities, equity swaps, total return swaps and loans using comparable pricing valuation techniques. A significant increase (decrease) in the comparable asset and underlying stock price in isolation would result in a significantly higher (lower) 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, 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 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, corporate debt security, loan and other receivable or certain derivatives 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 private equity securities or other asset-backed securities would result in a significantly higher (lower) fair value measurement.

• Loans and other receivables and CDOs and CLOs 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.

• CDOs and CLOs, residential and commercial mortgage-backed securities 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, loss severity or cumulative loss rate 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 security 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 higher (lower) 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 a significantly higher (lower) fair value measurement.

• Investment in FXCM using a discounted cash flow valuation technique and an option pricing model.  A significant increase (decrease) in term based on the time to pay off the loan would result in a higher (lower) fair value measurement.  A significant increase (decrease) in volatility or time to liquidity event would result in a significantly lower (higher) fair value measurement.

Fair Value Option Election

We have elected the fair value option for all loans and loan commitments made by Jefferies capital markets businesses.  These loans and loan commitments include loans entered into by Jefferies investment banking division in connection with client bridge financing and loan syndications, loans purchased by Jefferies 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 Jefferies leveraged credit and mortgage-backed businesses are managed on a fair value basis.  Loans are included in Trading assets and loan commitments are included in Trading

F-34

liabilities.  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 associated companies and are accounted for on an amortized cost basis.  Jefferies has also elected the fair value option for certain of its structured notes which are managed by Jefferies capital markets business and are included in Long-term debt on the Consolidated Statements of Financial Condition. Jefferies has elected the fair value option for certain financial instruments held by its subsidiaries as the investments are risk managed on a fair value basis.  The fair value option has also been elected for certain secured financings that arise in connection with Jefferies securitization activities and other structured financings.  Other secured financings, receivables from brokers, dealers and clearing organizations, receivables from customers of securities operations, payables to brokers, dealers and clearing organizations and payables to customers of securities operations, 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 Jefferies 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 for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Financial Instruments Owned:
Loans and other receivables	$	(68,812	)	$	(17,389	)	$	(24,785	)
Financial Instruments Sold:
Loans	$	9		$	(162	)	$	(585	)
Loan commitments	$	5,509		$	7,502		$	(15,459	)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(10,745	)	$	—		$	—
Other changes in fair value (2)	$	30,995		$	—		$	—

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

(2) Other changes in fair value are included within Principal transactions revenues in the Consolidated Statements of Operations.

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):

	December 31, 2016		December 31, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	1,325,938	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	$	205,746	$	54,652
Long-term Debt	$	20,202	$	—

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

(2) Amounts include all loans and other receivables greater than 90 or more days past due of $64.6 million and $29.7 million at December 31, 2016 and 2015, respectively.

The aggregate fair value of Jefferies loans and other receivables on nonaccrual status and/or greater than 90 days or more past due, was $29.8 million and $307.5 million at December 31, 2016 and 2015, respectively, which includes loans and other receivables greater than 90 days past due of $18.9 million and $11.3 million at December 31, 2016 and 2015, respectively.

Jefferies has elected the fair value option for its investment in KCG Holdings, Inc. ("KCG").  The change in the fair value of this investment was $19.6 million, $49.1 million and $(14.7) million for 2016, 2015 and 2014, respectively. Additionally, in connection with a KCG shares and warrants exchange transaction, Jefferies earned advisory fees of $2.9 million during the year ended December 31, 2016. Jefferies has also separately entered into securities lending transactions with KCG in the normal course of its capital

F-35

markets activities. The balances of Securities borrowed and Securities loaned were $9.2 million and $9.2 million, respectively, at December 31, 2016, and $6.3 million and $16.5 million, respectively, at December 31, 2015.

As of December 31, 2016 and 2015, we owned approximately 46.6 million common shares of HRG, representing approximately 23% of HRG’s outstanding common shares, which are accounted for under the fair value option. The shares are included in our Consolidated Statements of Financial Condition at fair value of $725.1 million and $631.9 million at December 31, 2016 and 2015, respectively.  The shares were acquired at an aggregate cost of $475.6 million.  The change in the fair value of our investment in HRG aggregated $93.2 million, $(28.0) million and $119.2 millionduring the years ended December 31, 2016, 2015 and 2014, respectively. We currently have two directors on HRG’s board. 

We believe accounting for these investments at fair value better reflects the economics of these investments, and quoted market prices for these investments provides an objectively determined fair value at each balance sheet date.  Our investment in HomeFed is the only other investment accounted for under the equity method of accounting that is also a publicly traded company for which we did not elect the fair value option.  HomeFed’s common stock is not listed on any stock exchange, and price information for the common stock is not regularly quoted on any automated quotation system.  It is traded in the over-the-counter market with high and low bid prices published by the NASD OTC Bulletin Board Service; however, trading volume is minimal.  For these reasons we did not elect the fair value option for HomeFed.

Financial Instruments Not Measured at Fair Value

Certain of our financial instruments are not carried at fair value but are recorded at amounts that approximate fair value due to their liquid or short-term nature and generally negligible credit risk. These financial assets include Cash and cash equivalents and Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations and would generally be presented in Level 1 of the fair value hierarchy. 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 at December 31, 2016. See Note 27 for additional information related to financial instruments not measured at fair value.

Note 5.  Derivative Financial Instruments

Off-Balance Sheet Risk

Jefferies has 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

Derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Trading assets and Trading liabilities, 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 primarily recognized in Principal transactions in the Consolidated Statements of Operations 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, Jefferies and our Leucadia Asset Management businesses may enter into derivative transactions to satisfy the needs of its clients and to manage its own exposure to market and credit risks resulting from trading activities.  See Notes 4 and 25 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.  Jefferies manages the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of its firm wide risk management policies.  In connection with Jefferies derivative activities, Jefferies may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements and similar agreements with counterparties.  These agreements provide Jefferies with the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default.  See Note 11 for additional information with respect to financial statement offsetting.

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The following tables present the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at December 31, 2016 and 2015.  The fair value of assets/liabilities related to derivative contracts represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged (in thousands, except contract amounts):

	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
December 31, 2016
Interest rate contracts	$	3,282,245		29,032	$	3,159,457		34,845
Foreign exchange contracts	529,669			7,826	516,869			8,319
Equity contracts	786,987			2,843,329	1,169,201			2,414,715
Commodity contracts	1,906			2,766	6,430			7,289
Credit contracts: centrally cleared swaps	7,044			98	2,562			19,900
Credit contracts: other credit derivatives	19,225			213	25,503			184
Total	4,627,076				4,880,022
Counterparty/cash-collateral netting	(4,255,998		)		(4,229,213		)
Total per Consolidated Statement of Financial Condition	$	371,078			$	650,809
December 31, 2015
Interest rate contracts	$	2,910,093		56,748	$	2,849,958		74,904
Foreign exchange contracts (1)	453,527			8,089	466,021			7,376
Equity contracts	1,017,611			3,057,754	1,094,597			2,947,416
Commodity contracts (1)	27,590			2,896	5,510			2,001
Credit contracts: centrally cleared swaps	2,447			299	841			44
Credit contracts: other credit derivatives	16,977			100	59,314			135
Total	4,428,245				4,476,241
Counterparty/cash-collateral netting	(4,165,446		)		(4,257,998		)
Total per Consolidated Statement of Financial Condition	$	262,799			$	218,243

(1) 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 foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of contracts remained unchanged.

The following table presents unrealized and realized gains (losses) on derivative contracts as reflected in the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Interest rate contracts	$	(36,559	)	$	(36,792	)	$	(149,587	)
Foreign exchange contracts	20,401			36,233			39,872
Equity contracts	(635,305		)	(137,219		)	(327,978		)
Commodity contracts	(3,339		)	(13,625		)	58,746
Credit contracts	5,013			(16,223		)	(23,934		)
Total	$	(649,789	)	$	(167,626	)	$	(402,881	)

The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising Jefferies business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. Jefferies substantially mitigates its exposure to market risk on its cash instruments through derivative contracts, which generally provide offsetting revenues, and Jefferies manages the risk associated with these contracts in the context of its overall risk management framework.

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OTC Derivatives.  The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at December 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	$	27,436	$	5,727	$	—	$	—		$	33,163
Credit default swaps	—		4,542		3,463		(1,588		)	6,417
Total return swaps	20,749		389		—		(200		)	20,938
Foreign currency forwards, swaps and options	95,112		35,988		—		(10,547		)	120,553
Interest rate swaps, options and forwards	120,053		189,153		134,507		(71,604		)	372,109
Total	$	263,350	$	235,799	$	137,970	$	(83,939	)	553,180
Cross product counterparty netting										(623		)
Total OTC derivative assets included in Trading assets										$	552,557

(1) At December 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.4 million, which are not included in this table.

(2) OTC derivative assets in the table above are gross of collateral received.  OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral received was $217.4 million.

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

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

	OTC Derivative Liabilities (1) (2) (3)
	0-12 Months		1-5 Years		Greater Than 5 Years		Cross-Maturity Netting (4)			Total
Commodity swaps, options and forwards	$	3,214	$	1,218	$	—	$	—		$	4,432
Equity swaps and options	10,993		20,354		—		—			31,347
Credit default swaps	16		1,594		7,147		(1,588		)	7,169
Total return swaps	12,088		2,407		—		(200		)	14,295
Foreign currency forwards, swaps and options	92,375		26,011		—		(10,547		)	107,839
Fixed income forwards	3,401		—		—		—			3,401
Interest rate swaps, options and forwards	108,085		121,975		92,029		(71,604		)	250,485
Total	$	230,172	$	173,559	$	99,176	$	(83,939	)	418,968
Cross product counterparty netting										(623		)
Total OTC derivative liabilities included in Trading liabilities										$	418,345

(1) At December 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $414.2 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 in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral pledged was $190.6 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.

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

Counterparty credit quality (1):
A- or higher	$	380,574
BBB- to BBB+	39,595
BB+ or lower	51,834
Unrated	80,554
Total	$	552,557

(1) Jefferies utilizes internal credit ratings determined by the Jefferies 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 Jefferies derivative instruments contain provisions that require their debt to maintain an investment grade credit rating from each of the major credit rating agencies.  If Jefferies 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 Jefferies 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 December 31, 2016 and 2015 is $70.6 million and $114.5 million, respectively, for which Jefferies has posted collateral of $44.4 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 December 31, 2016 and 2015, Jefferies would have been required to post an additional $26.1 million and $19.7 million, respectively, of collateral to its counterparties.

Other Derivatives

National Beef uses futures contracts in order to reduce its exposure associated with entering into firm commitments to purchase live cattle at prices determined prior to the delivery of the cattle as well as firm commitments to sell certain beef products at sales prices determined prior to shipment. National Beef accounts for the futures contracts at fair value. Firm commitments for sales are treated as normal sales and therefore not marked to market. Certain firm commitments to purchase cattle, are marked to market when a price has been agreed upon, otherwise they are treated as normal purchases and, therefore, not marked to market. The gains and losses associated with the change in fair value of the futures contracts and the offsetting gains and losses associated with changes in the market value of certain of the firm purchase commitments are recorded to income and expense in the period of change.

Vitesse uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse accounts for the derivative instruments at fair value. The gains and losses associated with the change in fair value of the derivatives are recorded in income.

Note 6.  Collateralized Transactions

Jefferies enters into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance trading asset inventory positions, meet customer needs or re-lend as part of its dealer operations.  Jefferies monitors the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and requests additional collateral or returns excess collateral, as appropriate.  Jefferies pledges financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements.  Jefferies 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 and remaining contractual maturity (in thousands):

Collateral Pledged	Securities Lending Arrangements		Repurchase Agreements		Total
December 31, 2016
Corporate equity securities	$	2,046,243	$	66,291	$	2,112,534
Corporate debt securities	731,276		1,907,888		2,639,164
Mortgage- and asset-backed securities	—		2,171,480		2,171,480
U.S. government and federal agency securities	41,613		9,232,624		9,274,237
Municipal securities	—		553,010		553,010
Sovereign securities	—		2,625,079		2,625,079
Loans and other receivables	—		455,960		455,960
Total	$	2,819,132	$	17,012,332	$	19,831,464
December 31, 2015
Corporate equity securities	$	2,200,273	$	271,519	$	2,471,792
Corporate debt securities	779,044		1,721,583		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,003,521		12,038,504
Municipal securities	—		357,350		357,350
Sovereign securities	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	3,014,300	$	20,158,422	$	23,172,722

	Contractual Maturity
	Overnight and Continuous		Up to 30 Days		30 to 90 Days		Greater than 90 Days		Total
December 31, 2016
Securities lending arrangements	$	2,131,891	$	39,673	$	104,516	$	543,052	$	2,819,132
Repurchase agreements	9,147,176		2,008,119		3,809,533		2,047,504		17,012,332
Total	$	11,279,067	$	2,047,792	$	3,914,049	$	2,590,556	$	19,831,464
December 31, 2015
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	518,624	$	3,014,300
Repurchase agreements	7,848,231		5,218,059		5,291,729		1,800,403		20,158,422
Total	$	9,370,706	$	5,218,059	$	6,264,930	$	2,319,027	$	23,172,722

Jefferies receives securities as collateral under resale agreements, securities borrowing transactions and customer margin loans.  Jefferies also receives securities as collateral in connection with securities-for-securities transactions in which it is the lender of securities.  In many instances, Jefferies is permitted by contract to rehypothecate the securities received as collateral.  These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions.  At December 31, 2016 and 2015, the approximate fair value of securities received as collateral by Jefferies that may be sold or repledged was $25.5 billion and $26.2 billion, respectively.  A substantial portion of these securities have been sold or repledged.

Note 7.  Securitization Activities

Jefferies engages in securitization activities related to corporate loans, commercial mortgage loans, consumer loans and mortgage-backed and other asset-backed securities.  In securitization transactions, Jefferies transfers assets to special purpose entities ("SPEs") and acts as the placement or structuring agent for the beneficial interests sold to investors by the SPE.  A significant portion of the securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies.  These

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SPEs generally meet the criteria of VIEs; however, the SPEs are generally not consolidated as Jefferies is not considered the primary beneficiary for these SPEs. 

Jefferies accounts for securitization transactions as sales provided it has relinquished control over the transferred assets.  Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transaction revenues in the Consolidated Statements of Operations prior to the identification and isolation for securitization.  Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues.  Jefferies generally receives cash proceeds in connection with the transfer of assets to an SPE.  Jefferies 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 Trading assets and are generally initially categorized as Level 2 within the fair value hierarchy.  Jefferies applies fair value accounting to the securities. 

The following table presents activity related to Jefferies securitizations that were accounted for as sales in which it had continuing involvement during the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016		2015		2014
Transferred assets	$	5,786.0	$	5,770.5	$	6,112.6
Proceeds on new securitizations	5,809.0		5,811.3		6,221.1
Cash flows received on retained interests	28.2		31.2		46.3

Jefferies has no explicit or implicit arrangements to provide additional financial support to these SPEs, has no liabilities related to these SPEs and has no outstanding derivative contracts executed in connection with these securitizations at December 31, 2016 and 2015.

The following table summarizes Jefferies retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions):

	December 31, 2016				December 31, 2015
Securitization Type	Total Assets		Retained Interests		Total Assets		Retained Interests
U.S. government agency residential mortgage-backed securities	$	7,584.9	$	31.0	$	10,901.9	$	203.6
U.S. government agency commercial mortgage-backed securities	1,806.3		29.6		2,313.4		87.2
CLOs	4,102.2		37.0		4,538.4		51.5
Consumer and other loans	395.7		25.3		655.0		31.0

Total assets represent the unpaid principal amount of assets in the SPEs in which Jefferies has continuing involvement and are presented solely to provide information regarding the size of the transaction and the size of the underlying assets supporting its 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.  Jefferies risk of loss is limited to this fair value amount which is included within total Trading assets in our Consolidated Statements of Financial Condition.

Although not obligated, in connection with secondary market-making activities Jefferies may make a market in the securities issued by these SPEs.  In these market-making transactions, Jefferies buys these securities from and sells these securities to investors.  Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs.  To the extent Jefferies purchased securities through these market-making activities and Jefferies is 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 VIE section presented in Note 9.

Foursight Capital also utilized SPEs to securitize automobile loans receivable.  These SPEs are VIEs and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statements of Financial Condition.  These secured borrowings do not have recourse to our subsidiary’s general credit. See Note 9 for further information on securitization activities and VIEs.

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Note 8.  Available for Sale Securities

The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale at December 31, 2016 and 2015 are as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
2016
Bonds and notes:
U.S. government securities	$	174,938	$	8	$	13	$	174,933
Residential mortgage-backed securities	19,129		108		104		19,133
Commercial mortgage-backed securities	8,275		64		2		8,337
Other asset-backed securities	18,918		124		—		19,042
All other corporates	180		—		1		179
Total fixed maturities	221,440		304		120		221,624
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		15,115		—		50,186
Industrial, miscellaneous and all other	17,946		11,293		—		29,239
Total equity securities	53,017		26,408		—		79,425
	$	274,457	$	26,712	$	120	$	301,049
2015
Bonds and notes:
U.S. government securities	$	63,968	$	2	$	25	$	63,945
Residential mortgage-backed securities	23,033		308		101		23,240
Commercial mortgage-backed securities	2,392		—		18		2,374
Other asset-backed securities	39,633		—		160		39,473
All other corporates	4,794		7		57		4,744
Total fixed maturities	133,820		317		361		133,776
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		10,201		—		45,272
Industrial, miscellaneous and all other	17,946		10,361		—		28,307
Total equity securities	53,017		20,562		—		73,579
	$	186,837	$	20,879	$	361	$	207,355

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The amortized cost and estimated fair value of investments classified as available for sale at December 31, 2016, by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Due within one year	$	174,938	$	174,933
Due after one year through five years	180		179
	175,118		175,112
Mortgage-backed and asset-backed securities	46,322		46,512
	$	221,440	$	221,624

At December 31, 2016, the unrealized losses on investments which have been in a continuous unrealized loss position for less than 12 monthsand 12 months or longer were not significant.

Note 9.  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 the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and 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, equity interests in associated companies, commitments, guarantees and certain fees.  Our involvement with VIEs arises primarily from the following activities, but also includes other activities discussed below:

• 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,

• Real estate investments,

• 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 fund 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 most 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.

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Consolidated VIEs

The following tables present information about the assets and liabilities of our consolidated VIEs, which are presented within our Consolidated Statements of Financial Condition in the respective asset and liability categories, as of December 31, 2016 and 2015 (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation.

	December 31, 2016				December 31, 2015
	Securitization Vehicles		Real Estate Investment Vehicle		Securitization Vehicles
Cash	$	18.4	$	2.2	$	1.1
Financial instruments owned	86.6		—		68.3
Securities purchased under agreement to resell (1)	733.5		—		717.3
Receivables	277.7		296.9		149.8
Loans to and investments in associated companies	—		108.7		—
Other	14.5		10.8		8.8
Total assets	$	1,130.7	$	418.6	$	945.3
Other secured financings (2)	$	1,083.8	$	—	$	930.8
Long-term debt	24.1		243.9		—
Other	22.3		11.7		14.5
Total liabilities	$	1,130.2	$	255.6	$	945.3
Noncontrolling interests	$	—	$	98.7	$	—

(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 $57.6 million and $22.1 million of the secured financing represents an amount held by Jefferies in inventory and eliminated in consolidation at December 31, 2016 and 2015, respectively.

Securitization vehicles.  Jefferies is the primary beneficiary of securitization vehicles associated with their financing of consumer and small business loans. In the creation of the securitization vehicles, Jefferies was involved in the decisions made during the establishment and design of the entities and holds 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 Jefferies general credit and the assets of the VIEs are not available to satisfy any other debt.

Jefferies is also the primary beneficiary of mortgage-backed financing vehicles to which Jefferies sells agency and non-agency residential and commercial mortgage loans and mortgage-backed securities pursuant to the terms of a master repurchase agreement.  Jefferies manages the assets within these vehicles.  Jefferies variable interests in these vehicles consist of its 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 Jefferies general credit and each such VIE’s assets are not available to satisfy any other debt.

At December 31, 2016 and 2015, Foursight Capital is the primary beneficiary of SPEs it utilized to securitize automobile loans receivable.  Foursight Capital acts as the servicer for which it receives a fee, and owns the equity interest in the SPEs.  The notes issued by the SPEs are secured solely by the assets of the SPEs and do not have recourse to Foursight Capital's general credit and the assets of the VIEs are not available to satisfy any other debt. During the year ended December 31, 2016, a pool of automobile loan receivables aggregating $228.3 million was securitized by Foursight Capital in connection with a secured borrowing offering. The majority of the proceeds from issuance of the secured borrowing were used to pay down Foursight Capital’s two credit facilities.

Real Estate Investment Vehicle. 54 Madison, which we consolidate through our control of the 54 Madison investment committee, has real estate investments in which it is the primary beneficiary. 54 Madison was involved in the decisions made during the establishment and design of the investment entities. 54 Madison variable interests consist of its investment in and management of the assets within these entities. The assets of these VIEs consist primarily of financing note receivables and investments in

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associated companies, which are available for the benefit of the VIEs' debt holders. The debt holders of these VIEs have recourse to 54 Madison's general credit and the assets of the VIEs are not available to satisfy any other debt.

Nonconsolidated VIEs

The following tables present information about our variable interests in nonconsolidated VIEs as of December 31, 2016 and 2015 (in millions):

	Financial Statement Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
December 31, 2016
CLOs	$	264.7	$	4.8	$	930.0	$	4,472.9
Consumer loan vehicles	90.3		—		219.6		985.5
Related party private equity vehicles	37.6		—		63.6		155.6
Real estate investment vehicle	90.3		—		101.8		85.6
Other private investment vehicles	84.0		—		95.8		4,529.7
Total	$	566.9	$	4.8	$	1,410.8	$	10,229.3
December 31, 2015
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	88.0		—		91.4		4,846.1
Total	$	389.2	$	0.2	$	1,461.1	$	12,516.0

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 the 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 its 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.  Jefferies underwrites securities issued in CLO transactions on behalf of sponsors and provides advisory services to the sponsors.  Jefferies may also sell corporate loans to the CLOs.  Jefferies variable interests in connection with CLOs where it has been involved in providing underwriting and/or advisory services consist of the following:

• Forward sale agreements whereby Jefferies commits 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, and

• A guarantee to a CLO managed by Jefferies Finance, whereby Jefferies guarantees certain of the obligations of Jefferies Finance to the CLO.

In addition, Jefferies owned variable interests in a CLO previously managed by Jefferies.  During 2016, the CLO was liquidated and Jefferies variable interests, which consisted of debt securities and a right to a portion of the CLOs’ management and incentive fees, were repaid.  Jefferies exposure to loss from the CLO was limited to its investments in the debt securities held.  The assets of the CLO consisted primarily of senior secured loans, unsecured loans and high yield bonds.

Consumer Loan Vehicles. Jefferies provides 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 comprised of unsecured consumer and small business loans.  In addition, Jefferies may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles.  Jefferies does not control the activities of these entities.

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Related Party Private Equity Vehicles. Jefferies has committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, Jefferies has committed to invest equity in the general partners of the JCP Funds (the "JCP General Partners") and the JCP Manager. Jefferies variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the "JCP Entities") consist of equity interests that, in total, provide Jefferies 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. Jefferies total equity commitment in the JCP Entities is $148.1 million, of which $125.1 million and $124.6 million was funded as of December 31, 2016 and 2015, respectively. The carrying value of Jefferies equity investments in the JCP Entities was $37.6 million and $39.3 million at December 31, 2016 and 2015, respectively. Jefferies exposure to loss is limited to the total of its carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments.

Jefferies has 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 as of December 31, 2016 and 2015.  Energy Partners I, LP, has assets consisting primarily of debt and equity investments.

Real Estate Investment Vehicle. In the first quarter of 2016, 54 Madison committed to invest $98.0 million in a real estate investment vehicle, of which $86.5 million was funded as of December 31, 2016. 54 Madison's maximum exposure to loss is limited to its equity commitment. 54 Madison is not the primary beneficiary of the investment vehicle as it does not have the power to control the most important activities of the VIE. The assets of the VIE consist primarily of an investment in a real estate project.

Other Private Investment Vehicles.  We had commitments to invest $111.4 million and $76.4 million as of December 31, 2016 and 2015, respectively, in various other private investment vehicles, of which $99.6 million and $73.0 million was funded as of December 31, 2016 and 2015, respectively. The carrying amount of our equity investment was $84.0 million and $88.0 million at December 31, 2016 and 2015, respectively.  Our exposure to loss is limited to the total loss 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 Vehicles.  In connection with Jefferies secondary trading and market-making activities, Jefferies buys and sells agency and non-agency mortgage-backed 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 Trading assets in our Consolidated Statements of Financial Condition.  Jefferies has no other involvement with the related SPEs and therefore does not consolidate these entities.

Jefferies also engages 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") and GNMA ("Ginnie Mae")) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts.  The securitizations are backed by residential and commercial mortgage, home equity and auto loans.  Jefferies does not consolidate agency-sponsored securitizations as it does not have the power to direct the activities of the SPEs that most significantly impact their economic performance.  Further, Jefferies is not the servicer of non-agency- sponsored securitizations and therefore does not have power to direct the most significant activities of the SPEs and accordingly, does not consolidate these entities.  Jefferies may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs.

Jefferies transfers 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 non-agency-sponsored VIEs.  The consolidation analysis is largely dependent on Jefferies role and interest in the resecuritization trusts.  Most resecuritizations in which Jefferies is involved are in connection with investors seeking securities with specific risk and return characteristics.  As such, Jefferies has concluded that the decision-making power is shared between Jefferies 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, Jefferies does not consolidate the resecuritization VIEs.

At December 31, 2016 and 2015, Jefferies held $1,002.2 million and $3,359.1 million of agency mortgage-backed securities, respectively, and $439.4 million and $630.5 million of non-agency mortgage- and other asset-backed securities, respectively, as a result of its secondary trading and market-making activities, underwriting, placement and structuring activities and resecuritization activities.  Jefferies maximum exposure to loss on these securities is limited to the carrying value of its 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 Jefferies variable interests in nonconsolidated VIEs.

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We also have a variable interest in a nonconsolidated VIE consisting of our equity interest in an associated company, Golden Queen.  See Note 10 for further discussion. In addition, we have a variable interest in a nonconsolidated VIE consisting of our senior secured term loan receivable and equity interest in FXCM.  See Notes 4 and 10 for further discussion.

Note 10.  Loans to and Investments in Associated Companies

A summary of loans to and investments in associated companies for the years ended December 31, 2016, 2015 and 2014 accounted for under the equity method of accounting is as follows (in thousands):

	Loans to and investments in associated companies as of December 31, 2015		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2016
Jefferies Finance	$	528,575	$	—		$	(1,761	)	$	(36,350	)	$	—		$	490,464
Jefferies LoanCore	288,741		—			21,221			(155,231		)	—			154,731
Berkadia	190,986		94,201			—			(100,766		)	22			184,443
FXCM (1)	—		1,919			—			—			334,339			336,258
Garcadia Companies	172,660		52,266			—			(39,111		)	—			185,815
Linkem	150,149		(22,867		)	—			33,303			(6,585		)	154,000
HomeFed	275,378		23,893			—			2,960			—			302,231
Golden Queen (2)	114,323		(3,021		)	—			—			—			111,302
54 Madison (3)	—		4,255			—			153,503			3,642			161,400
Other	36,557		3,952			(2,276		)	9,622			(3,401		)	44,454
Total	$	1,757,369	$	154,598		$	17,184		$	(132,070	)	$	328,017		$	2,125,098

	Loans to and investments in associated companies as of December 31, 2014		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2015
Jefferies Finance	$	508,891	$	—		$	40,884		$	(21,200	)	$	—		$	528,575
Jefferies LoanCore	258,947		—			36,554			(6,760		)	—			288,741
Berkadia	208,511		78,092			—			(89,560		)	(6,057		)	190,986
Garcadia Companies	167,939		53,182			—			(48,461		)	—			172,660
Linkem	159,054		(15,577		)	—			21,138			(14,466		)	150,149
HomeFed	271,782		3,596			—			—			—			275,378
Golden Queen (2)	103,598		(1,775		)	—			12,500			—			114,323
Other	33,846		(7,237		)	(1,721		)	11,483			186			36,557
Total	$	1,712,568	$	110,281		$	75,717		$	(120,860	)	$	(20,337	)	$	1,757,369

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	Loans to and investments in associated companies as of December 31, 2013		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2014
Jefferies Finance	$	470,537	$	—		$	72,701		$	(34,347	)	$	—		$	508,891
Jefferies LoanCore	224,037		—			18,793			16,117			—			258,947
Berkadia	182,573		101,187			—			(72,721		)	(2,528		)	208,511
Garcadia Companies	120,017		49,416			—			(1,494		)	—			167,939
Linkem	173,577		(14,633		)	—			18,390			(18,280		)	159,054
HomeFed	52,923		3,150			—			—			215,709			271,782
Golden Queen (2)	—		(1,402		)	—			105,000			—			103,598
Other	34,677		809			(1,252		)	(4,067		)	3,679			33,846
Total	$	1,258,341	$	138,527		$	90,242		$	26,878		$	198,580		$	1,712,568

(1) As discussed more fully in Note 4, on September 1, 2016, we amended the terms of our loan and associated rights with FXCM. Through the amendments, we converted our participation rights for a 49.9% common membership ownership in FXCM. Our term loan remains classified within Trading assets, at fair value.

(2) At December 31, 2016, 2015 and 2014, the balance reflects $32.8 million, $33.7 million and $33.7 million, respectively, related to a noncontrolling interest.

(3) At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests.

Jefferies Finance

In October 2004, Jefferies entered into an agreement with Massachusetts Mutual Life Insurance Company ("MassMutual") and Babson Capital Management LLC (now Barings, 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.

Jefferies and MassMutual each made equity commitments to Jefferies Finance of $600.0 million.  At December 31, 2016, approximately $493.9 million of Jefferies commitment was funded.  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.

In addition, Jefferies and MassMutual have entered into a Secured Revolving Credit Facility, 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 Facility is for a committed amount of $500.0 million at December 31, 2016 and 2015.  Advances are shared equally between Jefferies 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 December 31, 2016 and 2015, $0.0 and $19.3 million, respectively, of Jefferies $250.0 million commitment were funded.

Jefferies engages in debt capital markets transactions with Jefferies Finance related to the originations of loans by Jefferies Finance.  In connection with such transactions, Jefferies earned fees of $112.6 million, $122.7 million and $199.5 million during 2016, 2015 and 2014, respectively, which are recognized in Investment banking revenues in the Consolidated Statements of Operations.  In addition, Jefferies paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $0.5 million, $5.9 million and $10.6 million during 2016, 2015 and 2014, respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations.

During the years ended December 31, 2016, 2015 and 2014, Jefferies acted as placement agent in connection with several CLOs managed by Jefferies Finance, for which Jefferies recognized fees of $2.6 million, $6.2 million and $4.6 million, respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations.  At December 31, 2016 and 2015, Jefferies held securities issued by the CLOs managed by Jefferies Finance, which are included within Trading assets, and provided a guarantee, whereby Jefferies is required to make payments to a CLO in the event Jefferies Finance is unable to meet

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its obligation to the CLO.  Additionally, Jefferies has entered into participation agreements and derivative contracts with Jefferies Finance based on certain securities issued by the CLO. 

Jefferies acted as underwriter in connection with senior notes issued by Jefferies Finance, for which Jefferies recognized underwriting fees of $1.3 million and $7.7 million during the years ended December 31, 2015 and 2014, respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations.

Under a service agreement, Jefferies charged Jefferies Finance $46.1 million, $51.7 million and $41.6 million for services provided during 2016, 2015 and 2014, respectively.   At December 31, 2016, Jefferies had a payable to Jefferies Finance, included within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition of $5.8 million. At December 31, 2015, Jefferies had a receivable from Jefferies Finance, included within Other assets in the Consolidated Statements of Financial Condition of $7.8 million.

Jefferies LoanCore

In February 2011, Jefferies 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's aggregate equity commitments were reduced from $600.0 million to $400.0 million.  At December 31, 2016 and 2015, Jefferies had funded $70.1 million and $207.4 million, respectively, of each of its $194.0 million and $291.0 million equity commitments, respectively, and has a 48.5% voting interest in Jefferies LoanCore.

Jefferies LoanCore has entered into master repurchase agreements with Jefferies. During 2016, 2015 and 2014, Jefferies recognized interest income of $8.4 million, $10.7 million and $1.2 million, respectively, related to these agreements. In connection with such master repurchase agreements, at December 31, 2016 and 2015, Jefferies had securities purchased with agreements to resell from Jefferies LoanCore of $68.1 million and $175.1 million, respectively.

Berkadia

Berkadia Commercial Mortgage LLC is a commercial mortgage banking and servicing joint venture formed in 2009 with Berkshire Hathaway Inc.  We and Berkshire Hathaway each contributed $217.2 million of equity capital to the joint venture and each have a 50% equity interest in Berkadia.  Through December 31, 2016, cumulative cash distributions received from this investment aggregated $494.6 million.  Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies, and originates and brokers commercial/multifamily mortgage loans which are not part of government agency programs.  Berkadia is an investment sales advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions.

Berkadia uses all of the proceeds from the commercial paper sales of an affiliate of Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements.  Repayment of the commercial paper is supported by a $2.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.

FXCM

As discussed more fully in Note 4, at December 31, 2016, Leucadia has a 49.9% common membership interest in FXCM and a senior secured term loan with FXCM due January 2018. On September 1, 2016, we gained the ability to significantly influence FXCM through our common membership interest and our seats on the board of directors. As a result, we now classify our equity investment in FXCM in our Consolidated Statements of Financial Condition as Loans to and investments in associated companies. Our term loan remains classified within Trading assets, at fair value. We account for our equity interest in FXCM on a one month lag. We are amortizing our basis difference between the estimated fair value and the underlying book value of FXCM customer relationships, technology, trade name, leases and long-term debt over their respective useful lives.

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FXCM is considered a VIE and our term loan and equity interest are variable interests.  We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance.  Therefore, we do not consolidate FXCM.

Garcadia

Garcadia is a joint venture between us and Garff Enterprises, Inc. ("Garff") that owns and operates 28 automobile dealerships comprised of domestic and foreign automobile makers.  The Garcadia joint venture agreement specifies that we and Garff shall have equal board representation and equal votes on all matters affecting Garcadia, and that all cash flows from Garcadia will be allocated 65% to us and 35% to Garff, with the exception of one dealership from which we receive 83% of all cash flows and four other dealerships from which we receive 71% of all cash flows.  Garcadia’s strategy is to acquire automobile dealerships in primary or secondary market locations meeting its specified return criteria. 

Linkem

We own approximately 42% of the common shares of Linkem, a fixed wireless broadband services provider in Italy, at a cost of $142.9 million.  In addition, we own 5% convertible preferred stock, which is automatically convertible to common shares in 2020. If all of our convertible preferred equity was converted, it would increase our ownership to approximately 57% of Linkem’s common equity at December 31, 2016.  The excess of our investment in Linkem’s common shares over our share of underlying book value is being amortized to expense over 12 years.

HomeFed

At December 31, 2016, we own 10,054,226 shares of HomeFed’s common stock, representing approximately 65% of HomeFed’s outstanding common shares; however, we have agreed to limit our voting rights such that we will not be able to vote more than 45% of HomeFed’s total voting securities voting on any matter, assuming all HomeFed shares not owned by us are voted.  HomeFed develops and owns residential and mixed-use real estate properties.  HomeFed is a public company traded on the NASD OTC Bulletin Board (Symbol: HOFD).  As a result of a 1998 distribution to all of our shareholders, approximately 4.8% of HomeFed is beneficially owned by our Chairman at December 31, 2016.  Our Chairman also serves as HomeFed’s Chairman, and our President is a Director of HomeFed.

During 2014, we sold to HomeFed substantially all of our real estate properties and operations, our interest in Brooklyn Renaissance Plaza (“BRP”) and cash of approximately $14.0 million, in exchange for 7,500,000 newly issued unregistered HomeFed common shares. Under GAAP, we are not permitted to immediately recognize any gain on real estate sale transactions in which the seller does not receive cash; accordingly the gain on sale of approximately $36.1 million was deferred and is being recognized into income over time. 

Since we do not control HomeFed, our investment in HomeFed is accounted for as an investment in an associated company. 

Golden Queen Mining Company

During 2014 and 2015, we invested $83.0 million, net cash in a limited liability company (Gauss LLC) to partner with the Clay family and Golden Queen Mining Co. Ltd., to jointly fund, develop and operate the Soledad Mountain gold and silver mine project.  Previously 100% owned by Golden Queen Mining Co. Ltd., the project is a fully-permitted, open pit, heap leach gold and silver project located in Kern County, California, which commenced gold and silver production in March 2016.  In exchange for a noncontrolling ownership interest in Gauss LLC, the Clay family contributed $34.5 million, net in cash.  Gauss LLC invested both our and the Clay family’s net contributions totaling $117.5 million to the joint venture, Golden Queen, in exchange for a 50% ownership interest.  Golden Queen Mining Co., Ltd. contributed the Soledad Mountain project to the joint venture in exchange for the other 50% interest.

As a result of our consolidating Gauss LLC, our Loans to and investments in associated companies reflects Gauss LLC’s net investment of $117.5 million in the joint venture, which includes both the amount we contributed and the amount contributed by the Clay family.  The joint venture, Golden Queen, is considered a VIE as the voting rights of the investors are not proportional to their obligations to absorb the expected losses and their rights to receive the expected residual returns, given the provision of services to the joint venture by Golden Queen Mining Co. Ltd.  Golden Queen Mining Co. Ltd. has entered into an agreement with the joint venture for the provision of executive officers, financial, managerial, administrative and other services, and office space and equipment.  We have determined that we are not the primary beneficiary of the joint venture and are therefore not consolidating its results.

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Our maximum exposure to loss as a result of our involvement with the joint venture is limited to our investment. The excess of Gauss LLC's investment in Golden Queen's underlying book value is being amortized to expense over the estimated life of mine gold and silver sales.

54 Madison

We own approximately 48.1% of 54 Madison, which we consolidate through our control of the 54 Madison investment committee. 54 Madison seeks long-term capital appreciation through investment in real estate development and similar projects. 54 Madison invests both in projects which they consolidate and projects where they have significant influence and utilize the equity method of accounting. During the year ended December 31, 2016, 54 Madison invested $153.5 million in projects accounted for under the equity method and $90.7 million of that was contributed from noncontrolling interests.

Other

The following table provides summarized data for associated companies as of December 31, 2016 and 2015 and for the three years ended December 31, 2016 (in thousands):

	2016		2015
Assets	$	16,964,850	$	18,489,684
Liabilities	13,097,022		14,990,876
Noncontrolling interest	132,789		39,038
	2016		2015		2014
Revenues	$	4,275,016	$	3,946,252	$	3,201,823
Income from continuing operations before extraordinary items	$	422,167	$	398,369	$	431,654
Net income	$	430,291	$	398,369	$	431,654
The Company’s income related to associated companies	$	171,782	$	185,998	$	228,769

Except for our investment in Berkadia and Jefferies Finance, we have not provided any guarantees, nor are we contingently liable for any of the liabilities reflected in the above table.  All such liabilities are non-recourse to us.  Our exposure to adverse events at the investee companies is limited to the book value of our investment. See Note 25 for further discussion of these guarantees.

Included in consolidated retained earnings at December 31, 2016 is approximately $126.2 million of undistributed earnings of the associated companies accounted for under the equity method of accounting.

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Note 11.  Financial Statement Offsetting

In connection with Jefferies derivative activities and securities financing activities, Jefferies may enter into master netting agreements and collateral arrangements with counterparties.  Generally, transactions are executed under standard industry agreements, including, but not limited to: derivative transactions – ISDA master netting agreements; securities lending transactions – master securities lending agreements; and repurchase transactions – master repurchase agreements.  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 to a counterparty against all or a portion of an amount due from the counterparty or a third party.  In addition, Jefferies may 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 Jefferies derivative ISDA master netting agreements, Jefferies typically will 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 Jefferies has not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of Jefferies risk management processes as part of reducing counterparty credit risk and managing liquidity risk.

Jefferies is also a party to clearing agreements with various central clearing parties.  Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount.  In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions.

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The following table provides information regarding derivative contracts, 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 GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position.

(In thousands)	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 at December 31, 2016
Derivative contracts	$	4,627,076	$	(4,255,998	)	$	371,078	$	—		$	—		$	371,078
Securities borrowing arrangements	$	7,743,562	$	—		$	7,743,562	$	(710,611	)	$	(647,290	)	$	6,385,661
Reverse repurchase agreements	$	14,083,144	$	(10,220,656	)	$	3,862,488	$	(176,275	)	$	(3,591,654	)	$	94,559
Liabilities at December 31, 2016
Derivative contracts	$	4,880,022	$	(4,229,213	)	$	650,809	$	—		$	—		$	650,809
Securities lending arrangements	$	2,819,132	$	—		$	2,819,132	$	(710,611	)	$	(2,064,299	)	$	44,222
Repurchase agreements	$	17,012,332	$	(10,220,656	)	$	6,791,676	$	(176,275	)	$	(5,780,909	)	$	834,492
Assets at December 31, 2015
Derivative contracts	$	4,428,245	$	(4,165,446	)	$	262,799	$	—		$	—		$	262,799
Securities borrowing arrangements	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	$	14,046,300	$	(10,191,554	)	$	3,854,746	$	(83,452	)	$	(3,745,215	)	$	26,079
Liabilities at December 31, 2015
Derivative contracts	$	4,476,241	$	(4,257,998	)	$	218,243	$	—		$	—		$	218,243
Securities lending arrangements	$	3,014,300	$	—		$	3,014,300	$	(478,991	)	$	(2,499,395	)	$	35,914
Repurchase agreements	$	20,158,422	$	(10,191,554	)	$	9,966,868	$	(83,452	)	$	(8,068,468	)	$	1,814,948

(1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement.  These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other provisions of GAAP are not met.  Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received.

(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) At December 31, 2016, amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million, and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million, which are subject to master netting agreements but we have not yet determined the agreements to be legally enforceable. At December 31, 2015, 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 yet determined the agreements to be legally enforceable. 

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Note 12.  Intangible Assets, Net and Goodwill

A summary of intangible assets, net and goodwill at December 31, 2016 and 2015 is as follows (in thousands):

	2016		2015
Indefinite lived intangibles:
Exchange and clearing organization membership interests and registrations	$	9,041	$	11,897
Amortizable intangibles:
Customer and other relationships, net of accumulated amortization of $198,674 and $191,761	378,136		456,222
Trademarks and tradename, net of accumulated amortization of $78,778 and $64,052	309,382		330,172
Supply contracts, net of accumulated amortization of $47,867 and $40,684	95,733		109,311
Other, net of accumulated amortization of $2,914 and $5,216	5,672		4,419
Total intangible assets, net	797,964		912,021
Goodwill:
National Beef	14,991		14,991
Jefferies	1,696,864		1,712,799
Other operations	3,859		8,551
Total goodwill	1,715,714		1,736,341
Total intangible assets, net and goodwill	$	2,513,678	$	2,648,362

Amortization expense on intangible assets was $63.4 million, $63.9 million and $66.2 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows:  2017 - $58.5 million; 2018 - $58.5 million; 2019 - $58.5 million; 2020 - $58.5 million; and 2021 - $58.1 million.

Goodwill Impairment Testing

The quantitative goodwill impairment test is performed at our reporting unit level 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. 

The estimated fair values are based on 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 fair value include price-to-book multiples of comparable exchange traded companies, multiples of mergers and acquisitions of similar businesses, projected cash flows and market capitalization. In addition, as the fair values determined under a market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. An independent valuation specialist was engaged to assist with the valuation process for Jefferies as of August 1, 2016. The results of our annual impairment test related to Jefferies, National Beef and other operations indicated goodwill was not impaired.

Intangible Assets Impairment Testing

Jefferies also performed its annual impairment testing of its intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2016.  Jefferies 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 Jefferies indefinite-life intangible assets. In applying the quantitative assessment, Jefferies recognized an impairment loss of $1.3 million and $1.3 million on certain exchange membership interests and registrations during the during the years ended December 31, 2016 and 2015, respectively. With regard to its qualitative assessment of the remaining indefinite-life intangible

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assets, based on its assessment of market conditions, the utilization of the assets and replacement costs associated with the assets, Jefferies has concluded that it is not more likely than not that the intangible assets are impaired.

Note 13.  Inventory

A summary of inventory at December 31, 2016 and 2015 which is classified as Other assets is as follows (in thousands):

	2016		2015
Finished goods	$	243,488	$	211,426
Work in process	35,714		34,091
Raw materials, supplies and other	30,733		42,556
	$	309,935	$	288,073

Note 14.  Property, Equipment and Leasehold Improvements, Net

A summary of property, equipment and leasehold improvements, net at December 31, 2016 and 2015 is as follows (in thousands):

	Depreciable Lives (in years)	2016			2015
Land, buildings and leasehold improvements	5-25	$	379,927		$	371,383
Beef processing machinery and equipment	2-15	330,453			315,238
Other machinery and equipment	3-15	30,716			113,412
Corporate aircraft	10	104,862			104,862
Furniture, fixtures and office equipment	3-10	323,276			311,845
Construction in progress	N/A	54,693			38,903
Other	3-10	3,441			4,909
		1,227,368			1,260,552
Accumulated depreciation and amortization		(518,126		)	(538,677		)
		$	709,242		$	721,875

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Note 15.  Short-Term Borrowings

Short-term borrowings December 31, 2016 and 2015 represent Jefferies 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):

	2016		2015
Bank loans (1)	$	372,301	$	262,000
Secured revolving loan facilities	57,086		48,659
Floating rate puttable notes	96,455		—
Total short-term borrowings	$	525,842	$	310,659

At December 31, 2016 and 2015, the weighted average interest rate on short-term borrowings outstanding is 1.77% and .85% per annum, respectively.

During 2016, under Jefferies $2.0 billion Euro Medium Term Note Program, Jefferies issued floating rate puttable notes with principal amounts of €91.0 million. These notes are currently redeemable, so Jefferies classifies them as short-term borrowings.

On February 19, 2016, Jefferies entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of its 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. The Demand Loan Facility was terminated with an effective date of November 30, 2016.

In October 2015, Jefferies entered into a secured revolving loan facility (“First 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 First Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus 3.75% or the maximum rate as defined in the Secured Revolving Loan Facility agreement. On December 14, 2015, Jefferies entered into a second secured revolving loan facility (“Second Secured Revolving Loan Facility”) whereby the lender agrees to make available a revolving loan facility in a maximum principal amount of $50.0 million to purchase eligible receivables that meet certain requirements as defined in the Second Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus 4.25% or the maximum rate as defined in the Second 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 $250.0 million. 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 December 31, 2016, Jefferies was in compliance with debt covenants under the Intraday Credit Facility.

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Note 16.  Long-Term Debt

The principal amount (net of unamortized discounts and premiums), stated interest rate and maturity date of outstanding debt at December 31, 2016 and 2015 are as follows (dollars in thousands):

	2016		2015
Parent Company Debt:
Senior Notes:
5.50% Senior Notes due October 18, 2023, $750,000 principal	$	741,264	$	740,239
6.625% Senior Notes due October 23, 2043, $250,000 principal	246,627		246,583
Total long-term debt – Parent Company	987,891		986,822
Subsidiary Debt (non-recourse to Parent Company):
Jefferies:
5.5% Senior Notes, due March 15, 2016, $350,000 principal	—		353,025
5.125% Senior Notes, due April 13, 2018, $800,000 principal	817,813		830,298
8.5% Senior Notes, due July 15, 2019, $700,000 principal	778,367		806,125
2.375% Euro Senior Notes, due May 20, 2020, $529,975 and $528,625 principal	528,250		526,436
6.875% Senior Notes, due April 15, 2021, $750,000 principal	823,797		838,765
2.25% Euro Medium Term Notes, due July 13, 2022, $4,240 and $4,229 principal	3,848		3,779
5.125% Senior Notes, due January 20, 2023, $600,000 principal	618,355		620,890
6.45% Senior Debentures, due June 8, 2027, $350,000 principal	377,806		379,711
3.875% Convertible Senior Debentures, due November 1, 2029, $345,000 principal	346,163		347,307
6.25% Senior Debentures, due January 15, 2036, $500,000 principal	512,396		512,730
6.50% Senior Notes, due January 20, 2043, $400,000 principal	421,333		421,656
Structured Notes (1) (2)	255,203		—
National Beef Term Loan	273,811		310,000
National Beef Revolving Credit Facility	—		120,080
54 Madison Term Loans	406,028		116,211
Foursight Capital Credit Facilities	97,138		109,501
Other	132,244		117,246
Total long-term debt – subsidiaries	6,392,552		6,413,760
Long-term debt	$	7,380,443	$	7,400,582

(1) Includes $248.9 million at fair value at December 31, 2016.

(2) Of the $255.2 million of structured notes at December 31, 2016, $6.3 million matures in 2018, $10.7 million matures in 2019, and the remaining $238.2 million matures in 2024 or thereafter.

At December 31, 2016, $2.0 billion of consolidated assets (primarily receivables, property and equipment and other assets) are pledged for indebtedness aggregating $916.0 million, principally for National Beef, Foursight Capital and 54 Madison subsidiary debt.

The aggregate annual mandatory redemptions of all long-term debt during the five year period ending December 31, 2021 are as follows:  2017 - $420.7 million; 2018 - $1,172.2 million; 2019 - $958.4 million; 2020 - $669.0 million; and 2021 - $792.0 million.

Parent Company Debt:

From time to time we have purchased our outstanding debt securities depending upon prevailing market conditions, our liquidity requirements and other factors; such purchases may be commenced or suspended at any time without notice. 

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Our senior note indentures contain covenants that restrict our ability to incur more Indebtedness or issue Preferred Stock of Subsidiaries unless, at the time of such incurrence or issuance, the Company meets a specified ratio of Consolidated Debt to Consolidated Tangible Net Worth, limit the ability of the Company and Material Subsidiaries to incur, in certain circumstances, Liens, limit the ability of Material Subsidiaries to incur Funded Debt in certain circumstances, and contain other terms and restrictions all as defined in the senior note indentures.  We have the ability to incur substantial additional indebtedness or make distributions to our shareholders and still remain in compliance with these restrictions.  If we are unable to meet the specified ratio, we would not be able to issue additional Indebtedness or Preferred Stock, but our inability to meet the applicable ratio would not result in a default under our senior note indentures.  The senior note indentures do not restrict the payment of dividends.

Subsidiary Debt:

Jefferies 3.875% Convertible Senior Debentures due 2029 are convertible into our common shares; each $1,000 are convertible into 22.7634 common shares (equivalent to a conversion price of approximately $43.93 per share).  The debentures are convertible at the holders’ option any time beginning on August 1, 2029 and convertible at any time if: 1) our 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 our 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 our 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 5 trading days ending on and including the third trading day immediately preceding a six-month interest period equals or exceeds $1,200 per $1,000 debenture.

During the year ended December 31, 2016, Jefferies issued structured notes with a total principal amount of approximately $275.4 million. Structured notes of $248.9 million at December 31, 2016 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 Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transaction revenues.

In addition, on January 21, 2016, Jefferies 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 Jefferies. In June 2016, the Class A Notes and the Class B Notes were repurchased and retired.

In January 2017, Jefferies issued 4.85% senior notes with a principal amount of $750.0 million, due 2027.

At December 31, 2016, National Beef’s credit facility consisted of a term loan with an outstanding balance of $273.8 million and a revolving credit facility with a commitment of $285.0 million, both of which mature in October 2018.  The revolving credit facility commitment was voluntarily reduced by National Beef in the third quarter of 2016 from $375.0 million to $285.0 million. The term loan and the revolving credit facility bear interest at the Base Rate or the LIBOR Rate (as defined in the credit facility), plus a margin ranging from .75% to 2.75% depending upon certain financial ratios and the rate selected.  At December 31, 2016, the interest rate on the outstanding term loan was 2.6%.  The credit facility contains a minimum tangible net worth covenant; at December 31, 2016, National Beef met this covenant.  The credit facility is secured by a first priority lien on substantially all of the assets of National Beef and its subsidiaries.

Borrowings under the revolving credit facility are available for National Beef’s working capital requirements, capital expenditures and other general corporate purposes.  Unused capacity under the facility can also be used to issue letters of credit; letters of credit aggregating $12.5 million were outstanding at December 31, 2016.  Amounts available under the revolver are subject to a borrowing base calculation primarily comprised of receivable and inventory balances.  At December 31, 2016, after deducting outstanding amounts and issued letters of credit, $234.5 million of the unused revolver was available to National Beef.

At December 31, 2016, 54 Madison had $63.9 million of 6.0% term loan debt maturing in January 2018, $162.5 million of 5.5% term loan debt that maturing in February 2019, $0.5 million of 3.5% term loan debt maturing in March 2019, $79.0 million of 4.15% term loan debt that maturing in April 2019, $104.0 million of 5.5% term loan debt maturing in January 2020 and $0.5 million of 3.5% term loan debt maturing in January 2020. As discussed further in Note 28, the majority of the debt holders are also investors in 54 Madison.

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At December 31, 2016, Foursight Capital’s credit facilities consisted of two warehouse credit commitments aggregating $200.0 million, which mature in March 2017 and December 2018. The 2017 credit facility bears interest based on the three-month LIBOR plus a credit spread fixed through its maturity and the 2018 credit facility bears interest based on the one-month LIBOR plus a credit spread fixed through its maturity. As a condition of the 2017 credit facility, Foursight Capital is obligated to maintain interest rate caps with a notional amount no less than the outstanding loan on any day, which was $43.1 million at December 31, 2016. The credit facilities are secured by first priority liens on auto loan receivables owed to Foursight Capital of approximately $115.2 million at December 31, 2016.

Note 17.  Mezzanine Equity

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests primarily relate to National Beef and are held by its minority owners, principally USPB, NBPCo Holdings and the chief executive officer of National Beef.  The holders of these interests share in the profits and losses of National Beef on a pro rata basis with us.  However, the minority owners have the right to require us to purchase their interests under certain specified circumstances at fair value (put rights), and we also have the right to purchase their interests under certain specified circumstances at fair value (call rights).  Each of the holders of the put rights has the right to make an election that requires us to purchase up to one-third of their interests on December 30, 2016 , one-third on December 30, 2018, and the remainder on December 30, 2021. In addition, USPB may elect to exercise their put rights following the termination of the cattle supply agreement, and the chief executive officer following the termination of his employment. Holders of the put rights had from December 30, 2016 through January 29, 2017 to make an election that would require us to purchase up to one-third of their interests. The holders of the put rights did not make such election.

Our call rights with respect to USPB may be exercised following the termination of the cattle supply agreement or after USPB’s ownership interest is less than 20% of their interest held at the time we acquired National Beef.  Our call rights with respect to other members may be exercised after the ten year anniversary of our acquisition of National Beef if such member’s ownership interest is less than 50% of the interest held at the time we acquired National Beef.  Additionally, we may acquire the chief executive officer’s interest following the termination of his employment.

Redeemable noncontrolling interests in National Beef are reflected in the Consolidated Statements of Financial Condition at fair value.  The following table reconciles National Beef’s redeemable noncontrolling interests activity during the years ended December 31, 2016 and 2015 (in thousands):

	2016			2015
As of January 1,	$	189,358		$	184,333
Income (loss) allocated to redeemable noncontrolling interests	68,811			(26,465		)
Contributions from redeemable noncontrolling interests	—			5,263
Distributions to redeemable noncontrolling interests	(53,701		)	—
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital	117,494			26,227
Balance, December 31,	$	321,962		$	189,358

At acquisition, we prepared a projection of future cash flows of National Beef, which was used along with other information to allocate the purchase price to National Beef’s individual assets and liabilities.  At December 31, 2016, we calculated the fair value of the redeemable noncontrolling interests by updating our estimate of future cash flows.   The projected future cash flows consider estimated revenue growth, cost of sales changes, capital expenditures and other unobservable inputs.  However, the most significant unobservable inputs affecting the estimate of fair value are the discount rate (10.90%) and the terminal growth rate (2.00%) used to calculate the capitalization rate of the terminal value.

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The table below is a sensitivity analysis which shows the fair value of the redeemable noncontrolling interests using the assumed discount and the terminal growth rates and fair values under different rate assumptions as of December 31, 2016 (dollars in millions):

		Discount Rates
Terminal Growth Rates		10.65%		10.90%		11.15%
1.75	%	$	326.5	$	317.8	$	309.6
2.00	%	$	331.0	$	322.0	$	313.4
2.25	%	$	335.7	$	326.3	$	317.5

The projection of future cash flows is updated with input from National Beef personnel.  The estimate is reviewed by personnel at our corporate office as part of the normal process for the preparation of our quarterly and annual financial statements.

At December 31, 2016, redeemable noncontrolling interests also includes other redeemable noncontrolling interests of $14.8 million, primarily related to our oil and gas exploration and development businesses. At December 31, 2015, redeemable noncontrolling interests also included the noncontrolling interest in a business acquired by Conwed of $2.3 million.

Mandatorily Redeemable Convertible Preferred Shares

In connection with the Jefferies acquisition we issued a new series of 3.25% Cumulative Convertible Preferred Shares (“Preferred Shares”) ($125.0 million at mandatory redemption value) in exchange for Jefferies outstanding 3.25% Series A-1 Cumulative Convertible Preferred Stock.  The Preferred Shares have a 3.25% annual, cumulative cash dividend and are currently convertible into 4,162,200 common shares, an effective conversion price of $30.03 per share.  The Preferred Shares are callable beginning in 2023 at a price of $1,000 per share plus accrued interest and are mandatorily redeemable in 2038.

Note 18.  Compensation Plans

Incentive Plan

Upon completion of our combination with Jefferies, we assumed the 2003 Incentive Compensation Plan, as Amended and Restated July 25, 2013 (the "Incentive Plan"). The Incentive Plan allows awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, restricted stock units ("RSUs"), dividend equivalents or other share-based awards.

RSUs give a participant the right to receive fully vested 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.

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 it is determined that it is probable that the performance condition will be achieved. Awards granted to senior executives related to the 2015 and 2014 fiscal years did not meet performance targets, and as a result, compensation expense has been adjusted to reflect the reduced number of shares that have vested.

The Deferred Compensation Plan (the “DCP”) has been implemented under the Incentive Plan.  The DCP permits eligible executive officers and other employees to defer cash compensation, some or all of which may be deemed invested in stock units.  A portion of the deferrals may also be directed to notional investments in a money market fund or certain of the employee investment opportunities.  Stock units generally have been acquired at a discounted price, which encourages employee participation in the DCP and enhances long-term retention of equity interests by participants and aligns executive interests with those of shareholders. 

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Amounts recognized as compensation cost under the DCP have not been significant.  The shares to be delivered in connection with DCP stock units and options are drawn from the Incentive Plan.

The Incentive Plan’s “evergreen” share reservation was terminated on March 21, 2014; the number of equity awards available under the Incentive Plan was set at 20,000,000.  At December 31, 2016, 14,838,855 common shares remained available for new grants under the Incentive Plan.  Shares issued pursuant to the DCP reduce the shares available under the Incentive Plan.  

The following table details the activity in restricted stock during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

			Weighted- Average Grant Date Fair Value
Balance at January 1, 2014	5,242		$	26.94
Grants	864		$	27.03
Forfeited	(202	)	$	26.90
Fulfillment of service requirement	(2,521	)	$	26.89
Balance at December 31, 2014	3,383		$	27.00
Grants	602		$	18.63
Forfeited	(94	)	$	28.12
Fulfillment of service requirement	(1,887	)	$	26.87
Balance at December 31, 2015	2,004		$	24.56
Grants	356		$	18.23
Forfeited	(24	)	$	26.90
Fulfillment of service requirement	(974	)	$	25.65
Balance at December 31, 2016	1,362		$	22.09

The following table details the activity in RSUs during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

	Future Service Required		No Future Service Required		Future Service Required		No Future Service Required
Balance at January 1, 2014	4,793		8,316		$	26.90	$	26.86
Grants	—		97		$	—	$	20.89
Distributions of underlying shares	—		(366	)	$	—	$	26.85
Forfeited	(135	)	—		$	26.90	$	—
Fulfillment of service requirement	(420	)	420		$	26.90	$	26.90
Balance at December 31, 2014	4,238		8,467		$	26.90	$	26.79
Grants	—		121		$	—	$	18.95
Distributions of underlying shares	—		(229	)	$	—	$	22.34
Forfeited	(626	)	—		$	26.90	$	—
Fulfillment of service requirement	(224	)	224		$	26.90	$	26.90
Balance at December 31, 2015	3,388		8,583		$	26.90	$	26.68
Grants	—		128		$	—	$	14.21
Distributions of underlying shares	—		(1,683	)	$	—	$	26.59
Forfeited	—		—		$	—	$	—
Fulfillment of service requirement	(3,320	)	3,320		$	26.90	$	26.90
Balance at December 31, 2016	68		10,348		$	26.90	$	26.61

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At December 31, 2016 and 2015, respectively, grants include approximately 108,000 and 106,000 dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $13.53 and $18.13, respectively.

Senior Executive Compensation Plan

On February 19, 2016, the Compensation Committee of our Board of Directors approved an executive compensation plan for our CEO and our President (together, our "Senior Executives") in respect of 2016 that will be based on performance metrics achieved over a three-year period from 2016 through 2018. The Compensation Committee eliminated cash incentive bonuses for 2016 and 100% of each of our CEO and President's compensation beyond their base salaries will be composed entirely of performance based RSUs that will vest at the end of 2018 if certain performance criteria are met. Any vested RSUs will be subject to a post-vesting, three-year holding period such that no vested RSUs can be sold or transferred until the first quarter of 2022.

Performance-vesting of the award will be based equally on the compound annual growth rates of Leucadia's Total Shareholder Return ("TSR"), which will be measured from the December 31, 2015 stock price of $17.39, and Leucadia's Return on Tangible Deployable Equity ("ROTDE"), the annual, two- and three-year results of which will be used to determine vesting. TSR is based on annualized rate of return reflecting price appreciation plus reinvestment of dividends and distributions to shareholders. ROTDE is net income adjusted for amortization of intangible assets divided by tangible book value at the beginning of year adjusted for intangible assets and deferred tax assets.

If Leucadia's TSR and ROTDE annual compound growth rates are less than 4%, our Senior Executives will not receive any incentive compensation. If Leucadia's TSR and ROTDE grow between 4% and 8% on a compounded basis over the three-year measurement period, each of our Senior Executives will be eligible to receive between 846,882 and 1,693,766 RSUs. If TSR and ROTDE growth rates are greater than 8%, our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates. When determining whether RSUs will vest, the calculation will be weighted equally between TSR and ROTDE. If TSR growth was below minimum thresholds, but ROTDE growth was above minimum thresholds, our Senior Executives would still be eligible to receive some number of vested RSUs based on ROTDE growth. The TSR award contains a market condition and compensation expense is recognized over the service period and will not be reversed if the market condition is not met. The ROTDE award contains a performance condition and compensation expense is recognized over the service period if it is determined that it is probable that the performance condition will be achieved.

The following table details the activity in RSUs related to the senior executive compensation plan during the year ended December 31, 2016 (in thousands, except per share amounts):

	Target Number of Shares	Weighted- Average Grant Date Fair Value
Balance at December 31, 2015	—	$	—
Grants	3,434	$	9.68
Forfeited	—	$	—
Balance at December 31, 2016	3,434	$	9.68

At December 31, 2016, grants include approximately 47,000 dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $13.63.

In January 2017, the Compensation Committee of the Leucadia Board of Directors granted an executive-compensation plan for our Senior Executives for compensation year 2017 (the "2017 Plan") that is identical to the plan described above and is based upon performance metrics achieved over the three-year period from 2017 through 2019. For the 2017 Plan, if Leucadia's TSR and ROTDE annual compound growth rates are less than 4%, our Senior Executives will not receive any incentive compensation. If Leucadia's TSR and ROTDE grow between 4% and 8% on a compounded basis over the three-year measurement period, each of our Senior Executives will be eligible to receive between 537,634 and 1,075,268 RSUs. If TSR and ROTDE growth rates are greater than 8%, our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates.

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Directors’ Plan

Upon completion of our combination with Jefferies, we also assumed the 1999 Directors' Stock Compensation Plan, as Amended and Restated July 25, 2013 (the "Directors' Plan"). Under the Directors’ Plan, we issue each nonemployee director of Leucadia $120,000 of restricted stock or RSUs each year.  These grants are made on the date directors are elected or reelected at our annual shareholders’ meeting.  These shares vest over three years from the date of grant and are expensed over the requisite service period.  At December 31, 2016, 307,322 common shares were issuable upon settlement of outstanding restricted stock units and 340,759 shares are available for future grants.

Other Compensation Plans

Other Stock-Based Plans. Historically, Jefferies also sponsored an Employee Stock Purchase Plan and an Employee Stock Ownership Plan, both of which were assumed by us in connection with the Jefferies acquisition.  Amounts related to these plans have not been significant.

Prior to the acquisition of Jefferies, we had two share-based compensation plans: a fixed stock option plan and a senior executive warrant plan.

• 1999 Stock Option Plan. This plan provided for the issuance of stock options and stock appreciation rights to non-employee directors and certain employees at not less than the fair market value of the underlying stock at the date of grant.  Options granted to employees under this plan were intended to qualify as incentive stock options to the extent permitted under the Internal Revenue Code and became exercisable in five equal annual installments starting one year from date of grant.  Options granted to non-employee directors became exercisable in four equal annual installments starting one year from date of grant.  No stock appreciation rights have been granted.  In March 2014, we ceased issuing options and rights under our option plan. No shares remain available for future grants under this plan.

• Senior Executive Warrant Plan.  The warrants to purchase 2,000,000 common shares that were granted in 2011 to each of our then Chairman and then President expired unexercised during the first quarter of 2016.  We had recorded share-based compensation expense related to this grant of warrants of $1.0 million and $5.3 million for the years ended December 31, 2015 and 2014, respectively. No shares remain available for future grants under this warrant plan.

At December 31, 2016 and 2015, 641,478 and 4,661,272, respectively, of our common shares were reserved for stock options and warrants.

A summary of activity with respect to our stock options during the years ended December 31, 2016, 2015 and 2014 is as follows:

	Common Shares Subject to Option		Weighted- Average Exercise Prices		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at December 31, 2013	2,417,248		$	25.64
Granted	—		$	—
Exercised	(35,536	)	$	22.87		$	58,000
Cancelled	(741,678	)	$	27.39
Balance at December 31, 2014	1,640,034		$	24.91
Granted	—		$	—
Exercised	(2,030	)	$	21.66		$	6,000
Cancelled	(976,732	)	$	24.88
Balance at December 31, 2015	661,272		$	24.97
Granted	—		$	—
Exercised	—		$	—		$	—
Cancelled	(19,794	)	$	30.49
Balance at December 31, 2016	641,478		$	24.80	1.1 years	$	144,000
Exercisable at December 31, 2016	503,430		$	25.31	0.8 years	$	93,000

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Restricted Cash Awards. Jefferies provides 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. These awards are amortized to compensation expense over the relevant service period.  At December 31, 2016, the remaining unamortized amount of these awards was $468.3 million and is included within Other assets in the Consolidated Statements of Financial Condition.

Stock-Based Compensation Expense

Compensation and benefits expense included $33.6 million, $74.1 million and $109.8 millionfor the years ended December 31, 2016, 2015 and 2014, respectively, for share-based compensation expense relating to grants made under our share-based compensation plans.  Total compensation cost includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks.  The total tax benefit recognized in results of operations related to share-based compensation expenses was $12.4 million, $27.3 million and $39.9 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  As of December 31, 2016, total unrecognized compensation cost related to nonvested share-based compensation plans was $49.2 million; this cost is expected to be recognized over a weighted-average period of 1.8 years.

The net tax benefit (detriment) related to share-based compensation plans recognized in additional paid-in capital was $(4.2) million, $(5.9) million and $1.3 millionduring the years ended December 31, 2016, 2015 and 2014, respectively.  Cash flows resulting from tax deductions in excess of the grant date fair value of share-based awards are included in cash flows from financing activities; accordingly, we reflected the excess tax benefit related to share-based compensation in cash flows from financing activities. Such amounts for the years ended December 31, 2016, 2015 and 2014 were not significant.

At December 31, 2016, there were 1,362,000 shares of restricted stock outstanding with future service required, 3,502,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 10,348,000 RSUs outstanding with no future service required and 800,000 shares issuable under other plans.  Excluding shares issuable pursuant to outstanding stock options, the maximum potential increase to common shares outstanding resulting from these outstanding awards is 14,650,000.

Note 19.  Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income is reflected in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity but not in the Consolidated Statements of Operations.  A summary of accumulated other comprehensive income, net of taxes at December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Net unrealized gains on available for sale securities	$	561,497		$	557,601		$	577,588
Net unrealized foreign exchange losses	(184,829		)	(63,248		)	(26,771		)
Net change in instrument specific credit risk	(6,494		)	—			—
Net minimum pension liability	(59,477		)	(55,560		)	(103,735		)
	$	310,697		$	438,793		$	447,082

For the years ended December 31, 2016 and 2015, significant amounts reclassified out of accumulated other comprehensive income to net income (loss) are as follows (in thousands):

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income						Affected Line Item in the Consolidated Statement of Operations
	2016			2015
Net unrealized gains (losses) on available for sale securities, net of income tax provision of $2 and $6,068	$	4		$	10,930		Net realized securities gains
Amortization of defined benefit pension plan actuarial gains (losses), net of income tax (benefit) of $(700) and $(17,159)	(1,534		)	(31,102		)	Compensation and benefits, which includes pension expense. See Note 20 for information on this component.
Total reclassifications for the period, net of tax	$	(1,530	)	$	(20,172	)

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Note 20.  Pension Plans and Postretirement Benefits

U.S. Pension Plans

Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, the responsibility for WilTel’s defined benefit pension plan was retained by us.  All benefits under this plan were frozen as of the date of sale.  Prior to the acquisition of Jefferies, Jefferies sponsored a defined benefit pension plan covering certain employees; benefits under that plan were frozen as of December 31, 2005.

Late in 2015, we launched a limited time voluntary lump sum offer to approximately 4,000 of the deferred vested participants of the WilTel plan. Approximately 2,400 participants accepted the lump sum offer and benefit payments totaling $110.7 million were paid out of plan assets. We also recorded a $40.7 million settlement charge in 2015 related to the participant acceptances.

A summary of activity with respect to both plans is as follows (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	207,025		$	352,126
Interest cost	8,464			12,958
Actuarial (gains) losses	(544		)	(35,799		)
Benefits paid	(9,540		)	(122,260		)
Projected benefit obligation, end of year	$	205,405		$	207,025
Change in plan assets:
Fair value of plan assets, beginning of year	$	117,719		$	240,010
Actual return on plan assets	2,947			(250		)
Employer contributions	19,100			1,000
Benefits paid	(9,540		)	(122,260		)
Administrative expenses	(2,712		)	(781		)
Fair value of plan assets, end of year	$	127,514		$	117,719
Funded status at end of year	$	(77,891	)	$	(89,306	)

As of December 31, 2016 and 2015, $58.9 million and $54.0 million, respectively, of the net amount recognized in the consolidated balance sheet was reflected as a charge to accumulated other comprehensive income (loss) (substantially all of which were cumulative losses) and $77.9 million and $89.3 million, respectively, was reflected as accrued pension cost.

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The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands):

	2016			2015			2014
Components of net periodic pension cost:
Interest cost	$	8,464		$	12,958		$	14,239
Expected return on plan assets	(7,589		)	(10,581		)	(10,115		)
Settlement charge	—			40,973			—
Actuarial losses	1,908			6,963			4,634
Net periodic pension cost	$	2,783		$	50,313		$	8,758
Amounts recognized in other comprehensive income (loss):
Net (gain) loss arising during the period	$	6,811		$	(24,186	)	$	52,027
Settlement charge	—			(40,973		)	—
Amortization of net loss	(1,908		)	(6,963		)	(4,634		)
Total recognized in other comprehensive income (loss)	$	4,903		$	(72,122	)	$	47,393
Net amount recognized in net periodic benefit cost and other
comprehensive income (loss)	$	7,686		$	(21,809	)	$	56,151

The amounts in accumulated other comprehensive income (loss) at the end of each year have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations.  The estimated net loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2017 is $2.2 million.

$11.8 million of employer contributions are expected to be paid in 2017.

We use a December 31 measurement date for the WilTel plan and a November 30 date for the Jefferies plan.  The assumptions used are as follows:

	2016		2015
WilTel Plan
Discount rate used to determine benefit obligation	3.85	%	4.00	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.00	%	3.76	%
Expected long-term return on plan assets	7.00	%	4.00	%
Jefferies Plan
Discount rate used to determine benefit obligation	3.90	%	4.10	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.10	%	4.30	%
Expected long-term return on plan assets	6.25	%	6.75	%

The following pension benefit payments are expected to be paid (in thousands):

2017	$	10,214
2018	9,841
2019	9,879
2020	9,828
2021	9,625
2022 – 2026	66,359

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U.S. Plan Assets

The information below on the plan assets for the WilTel plan and the Jefferies plan is presented separately for the plans as the investments are managed independently.  Cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy.  The estimated fair values for securities measured using Level 1 inputs are determined using publicly quoted market prices in active markets for identical assets.  Certain fixed income securities are measured using Level 2 inputs.  Although these securities trade in brokered markets, the market for certain securities is sometimes inactive.  Valuation inputs include benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, reference data, and industry and economic events.  Neither plan had any assets classified within Level 3 of the fair value hierarchy.

WilTel Plan Assets.  At December 31, 2016 and 2015, the WilTel plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2
2016
Cash and cash equivalents	$	919	$	919	$	—
Growth Portfolio	51,852		—		51,852
Liability-Driven Investing Portfolio	24,751		—		24,751
Total	$	77,522	$	919	$	76,603
2015
Cash and cash equivalents	$	3,026	$	3,026	$	—
Fixed income securities:
U.S. government and agencies	5,988		5,988		—
Public utilities	8,978		—		8,978
All other corporates	52,696		—		52,696
Total	$	70,688	$	9,014	$	61,674

The current investment objectives are designed to close the funding gap while mitigating funded status volatility through a combination of liability hedging and investment returns. As plan funded status improves, the asset allocation will move along a predetermined, de-risking glide path that reallocates capital from growth assets to liability-hedging assets in order to reduce funded status volatility and lock in funded status gains. Plan assets are split into two separate portfolios, each with different asset mixes and objections

• The Growth Portfolio consists of global equities and high yield investments.

• The Liability-Driven Investing ("LDI") Portfolio consists of long duration credit bonds and a suite of long duration, Treasury-based instruments designed to provide capital-efficient interest rate exposure as well as target specific maturities. The objective of the LDI Portfolio is to seek to achieve performance similar to the WilTel plan's liability by seeking to match the interest rate sensitivity and credit sensitivity. The LDI Portfolio is managed to mitigate volatility in funded status deriving from changes in the discounted value of benefit obligations from market movements in the interest rate and credit components of the underlying discount curve.

To develop the assumption for the expected long-term rate of return on plan assets, we considered the following underlying assumptions: 2.25% current expected inflation, 1.0% to 1.5% real rate of return for long duration risk free investments and an additional 1.0% to 1.5% return premium for corporate credit risk. For U.S. and international equity we assume an equity risk premium over cash equal to 4.0%. We then weighted these assumptions based on invested assets and assumed that investment expenses were offset by expected returns in excess of benchmarks, which resulted in the selection of the 7.0% expected long-term rate of return assumption for 2016.

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Jefferies Plan Assets.  At December 31, 2016 and 2015, the Jefferies plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total (1)		Level 1		Level 2
2016
Cash and cash equivalents	$	1,135	$	1,135	$	—
Listed equity securities (2)	32,342		32,342		—
Fixed income securities:
Corporate debt securities	4,906		—		4,906
Foreign corporate debt securities	1,835		—		1,835
U.S. government securities	5,370		5,370		—
Agency mortgage-backed securities	3,330		—		3,330
Commercial mortgage-backed securities	591		—		591
Asset-backed securities	483		—		483
Total	$	49,992	$	38,847	$	11,145
2015
Cash and cash equivalents	$	487	$	487	$	—
Listed equity securities (2)	29,156		29,156		—
Fixed income securities:
Corporate debt securities	6,598		—		6,598
Foreign corporate debt securities	2,140		—		2,140
U.S. government securities	3,975		3,975		—
Agency mortgage-backed securities	3,504		—		3,504
Commercial mortgage-backed securities	425		—		425
Asset-backed securities	746		—		746
Total	$	47,031	$	33,618	$	13,413

(1) There are no plan assets classified within Level 3 of the fair value hierarchy.

(2) Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies.

Assets in the plan are invested under guidelines adopted by the plan’s administrative committee.  Because the plan exists to provide a vehicle for funding future benefit obligations, the investment objectives of the portfolio take into account the nature and timing of future plan liabilities.  The policy recognizes that the portfolio’s long-term investment performance and its ability to meet the plan’s overall objectives are dependent on the strategic asset allocation which includes adequate diversification among assets classes.

The target allocation of plan assets for 2017 is approximately 50% equities and 50% fixed income securities.  The target asset allocation was determined based on the risk tolerance characteristics of the plan and, at times, may be adjusted to achieve the plan’s investment objective and to minimize any concentration of investment risk.  The plan’s administrative committee evaluates the asset allocation strategy and adjusts the allocation if warranted based upon market conditions and the impact of the investment strategy on future contribution requirements.  The expected long-term rate of return assumption is based on an analysis of historical experience of the portfolio and the summation of prospective returns for each asset class in proportion to the fund’s current asset allocation.

The equity portfolio may invest up to 5% of the market value of the portfolio in any one company and may invest up to 10% of the market value of the portfolio in any one sector or up to two times the percentage weighting of any one sector as defined by the S&P 500 or the Russell 1000 Value indices, whichever is higher.  Permissible investments specified under the equity portfolio of the plan include equity securities of U.S. and non-U.S. incorporated entities and private placement securities issued pursuant to Rule 144A.  At least 75% of the market value of the fixed income portfolio must be invested in investment grade securities rated BBB-/Baa3, including cash and cash equivalents.  Permissible investments specified under the fixed income portfolio of the plan

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include: public or private debt obligations issued or guaranteed by U.S. or foreign issuers; preferred, hybrid, mortgage- or asset-backed securities; senior loans; and derivatives and foreign currency exchange contracts.

German Pension Plan

In connection with the acquisition of Jefferies Bache from Prudential in 2011, Jefferies acquired a defined benefits pension plan located in Germany for the benefit of eligible employees of Jefferies Bache in that territory.  The German pension plan has no plan assets and is therefore unfunded; however, Jefferies has 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 - Trading assets in the Consolidated Statements of Financial Condition and has a fair value of $15.2 million and $15.3 million at December 31, 2016 and 2015, respectively.  Jefferies expects to pay the pension obligations from the cash flows available to it under the insurance contracts.  All costs relating to the plan (including insurance premiums and other costs as computed by the insurers) are paid by Jefferies.  In connection with the acquisition, Prudential agreed that any insurance premiums and funding obligations related to pre-acquisition date service will be reimbursed to Jefferies by Prudential.

The provisions and assumptions used in the German pension plan are based on local conditions in Germany.  Jefferies did not contribute to the plan during the year ended December 31, 2016.

The following tables summarize the changes in the projected benefit obligation and the components of net periodic pension cost for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	23,545		$	28,434
Interest cost	529			523
Actuarial (gains) losses	1,157			(40		)
Benefits paid	(1,104		)	(1,069		)
Currency adjustment	39			(4,303		)
Projected benefit obligation, end of year	$	24,166		$	23,545

	2016		2015		2014
Components of net periodic pension cost:
Service cost	$	—	$	—	$	40
Interest cost	529		523		801
Net amortization	326		325		244
Net periodic pension cost	$	855	$	848	$	1,085

The amounts in Accumulated other comprehensive income at December 31, 2016 and 2015 are charges of $5.7 million and $4.9 million, respectively.  The following are assumptions used to determine the actuarial present value of the projected benefit obligation and net periodic pension benefit cost for the years ended December 31, 2016 and 2015:

	2016		2015
Projected benefit obligation
Discount rate	1.70	%	2.20	%
Rate of compensation increase (1)	N/A		N/A
Net periodic pension benefit cost
Discount rate	2.20	%	2.10	%
Rate of compensation increase (1)	N/A		N/A

(1) There were no active participants in the plan at December 31, 2016 and 2015.

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The following pension benefit payments are expected to be paid (in thousands):

2017	$	1,142
2018	1,147
2019	1,122
2020	1,169
2021	1,177
2022 – 2026	5,814

Other

We have defined contribution pension plans covering certain employees.  Contributions and costs are a percent of each covered employee’s salary.  Amounts charged to expense related to such plans were $9.6 million, $9.6 million and $9.3 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

We provide certain health care and other benefits to certain retired employees under plans which are currently unfunded.  We pay the cost of postretirement benefits as they are incurred.  Accumulated postretirement benefit obligations and amounts recognized in the consolidated statements of operations and in accumulated other comprehensive income (loss) were not significant.

Note 21.  Income Taxes

The provision for income taxes for continuing operations for each of the three years in the period ended December 31, 2016 was as follows (in thousands):

	2016			2015			2014
Current taxes:
U.S. Federal	$	(574	)	$	709		$	746
U.S. State and local	8,672			(25,308		)	17,232
Foreign	(4,620		)	3,504			12,375
Total current	3,478			(21,095		)	30,353
Deferred taxes:
U.S. Federal	108,241			134,590			97,190
U.S. State and local	8,335			4,552			30,707
Foreign	2,055			(8,100		)	7,721
Total deferred	118,631			131,042			135,618
Total income tax provision	$	122,109		$	109,947		$	165,971

For the year ended December 31, 2016, our provision for income taxes included a $24.9 million charge related to previously issued stock awards. The majority of the awards expired during the first quarter of 2016. The tax deductions associated with the remainder of the awards was less than the compensation cost recognized for financial reporting purposes. For the year ended December 31, 2015, we recorded a benefit related to certain state and local net operating loss carryforwards which we believe are more likely than not to be realized in the future, a significant portion of which resulted from enacted state and local tax law changes. For the year ended December 31, 2014, we decreased our valuation allowance with respect to certain NOLs which we believed were more likely than not to be utilized before they expire. 

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The following table presents the U.S. and non-U.S. components of income from continuing operations before income taxes for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
U.S.	$	337,374		$	336,856	$	374,547
Non-U.S. (1)	(20,944		)	19,680		6,675
Income from continuing operations before income taxes	$	316,430		$	356,536	$	381,222

(1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.

For each of the three years in the period ended December 31, 2016, income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to income from continuing operations before income taxes as a result of the following (dollars in thousands):

	2016					2015					2014
	Amount			Percent		Amount			Percent		Amount			Percent
Computed expected federal income tax	$	110,751		35.0	%	$	124,788		35.0	%	$	133,428		35.0	%
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of federal income tax benefit	1,045			0.3		(6,928		)	(1.9	)	31,160			8.2
International operations (including foreign rate differential)	(3,405		)	(1.1	)	(10,130		)	(2.8	)	(14,305		)	(3.8	)
Increase (decrease) in valuation allowance	2,825			0.9		(13,227		)	(3.7	)	(22,203		)	(5.8	)
Permanent differences	7,523			2.4		8,064			2.3		6,181			1.6
Tax exempt income	(4,640		)	(1.5	)	(6,789		)	(1.9	)	(6,812		)	(1.8	)
Income allocated to noncontrolling interest, not subject to tax	(22,512		)	(7.1	)	11,039			3.1		3,270			0.9
Excess stock detriment	24,907			7.9		—			—		—			—
Nondeductible settlements	—			—		—			—		24,500			6.4
Foreign taxes	268			0.1		(2,989		)	(1.0	)	2,542			0.7
Other	5,347			1.7		6,119			1.7		8,210			2.1
Actual income tax provision	$	122,109		38.6	%	$	109,947		30.8	%	$	165,971		43.5	%

The following table presents a reconciliation of gross unrecognized tax benefits for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015			2014
Balance at beginning of period	$	150,867		$	148,590		$	145,520
Increases based on tax positions related to the current period	5,045			3,475			5,630
Increases based on tax positions related to prior periods	3,697			22,030			4,340
Decreases based on tax positions related to prior periods	(9,414		)	(15,349		)	(3,940		)
Decreases related to settlements with taxing authorities	(1,347		)	(7,879		)	(2,960		)
Balance at end of period	$	148,848		$	150,867		$	148,590

Net interest expense related to unrecognized tax benefits was $8.6 million, $4.2 million and $9.2 millionfor the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, we had interest accrued of approximately

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$47.7 million and $39.1 million, respectively, included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. No material penalties were accrued for the years ended December 31, 2016 and 2015.

The statute of limitations with respect to our federal income tax returns has expired for all years through 2012. Our 2013 federal tax return is currently under examination by the Internal Revenue Service. Our New York State and New York City income tax returns are currently being audited for the 2012 to 2014 period and 2011 to 2012 period, respectively.  Prior to becoming a wholly-owned subsidiary, Jefferies filed a consolidated U.S. federal income tax return with its qualifying subsidiaries and was subject to income tax in various states, municipalities and foreign jurisdictions.  Jefferies is currently under examination by the Internal Revenue Service and other major tax jurisdictions.  The statute of limitations with respect to Jefferies federal income tax returns has expired for all years through 2006.

We do not expect that resolution of these examinations will have a significant effect on our consolidated financial position, but could have a significant impact on the consolidated results of operations for the period in which resolution occurs.  Over the next twelve months, we believe it is reasonably possible that various tax examinations will be concluded and statutes of limitation will expire which would have the effect of reducing the balance of unrecognized tax benefits by $3.7 million.  If recognized, the total amount of unrecognized tax benefits reflected in the table above would lower our effective income tax rate.

The principal components of deferred taxes at December 31, 2016 and 2015 are as follows (in thousands):

	2016			2015
Deferred tax asset:
Net operating loss carryover	$	1,262,584		$	1,375,759
Compensation and benefits	309,100			284,761
Long-term debt	54,102			89,160
Other assets	165,777			162,393
Securities valuation reserves	12,345			32,141
Intangible assets, net and goodwill	311			6,855
Other liabilities	39,188			40,393
	1,843,407			1,991,462
Valuation allowance	(106,042		)	(97,177		)
	1,737,365			1,894,285
Deferred tax liability:
Unrealized gains on investments	(998		)	(5,335		)
Amortization of intangible assets	(107,437		)	(103,561		)
Property and equipment	(14,228		)	(4,151		)
Investment in FXCM	(117,594		)	(147,700		)
Other	(35,293		)	(58,170		)
	(275,550		)	(318,917		)
Net deferred tax asset	$	1,461,815		$	1,575,368

As of December 31, 2016, we have consolidated U.S. federal NOLs of $1.6 billion that may be used to offset the taxable income of any member of our consolidated tax group.  In addition, we have $1.8 billion of U.S. federal NOLs that are only available to offset the taxable income of certain subsidiaries.  Federal NOLs begin to expire in 2022, with a substantial amount expiring between 2022 and 2025.  Approximately $258.6 million of our NOLs can be used to fully offset federal minimum taxable income, and no federal regular or minimum income tax would be payable on such income.  We have various state NOLs that expire at different times, which are reflected in the above table to the extent our estimate of future taxable income will be apportioned to those states.  We have gross foreign net operating loss carryforwards of approximately $56.3 million.  There is a valuation allowance with respect to $6.7 million of these foreign net operating loss carryforwards.  Uncertainties that may affect the utilization of our tax attributes include future operating results, tax law changes, rulings by taxing authorities regarding whether certain transactions are taxable or deductible and expiration of carryforward periods.

Under certain circumstances, the ability to use the NOLs and future deductions could be substantially reduced if certain changes in ownership were to occur.  In order to reduce this possibility, our certificate of incorporation includes a charter restriction that prohibits transfers of our common stock under certain circumstances.

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At December 31, 2016 and 2015, we had approximately $157.0 million and $205.0 million, respectively, of earnings attributable to foreign subsidiaries that are indefinitely reinvested abroad and for which no U.S. federal income tax provision has been recorded.  Accordingly, deferred tax liabilities of approximately $55.0 million and $59.0 million have not been recorded with respect to these earnings at December 31, 2016 and 2015, respectively.

Note 22.  Net Realized Securities Gains (Losses)

The following summarizes net realized securities gains (losses) for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
Net realized gains (losses) on securities	$	(286	)	$	14,112	$	30,686
Other (1)	29,828			48,845		(292		)
	$	29,542		$	62,957	$	30,394

(1)     In 2015, primarily relates to a recovery of $35.0 million of an investment in a non-public security written down in prior years.

Proceeds from sales of investments classified as available for sale were $0.5 billion, $1.9 billion and $1.9 billion during 2016, 2015 and 2014, respectively.  Gross gains of $0.1 million, $16.9 million and $12.6 million were realized on these sales during 2016, 2015 and 2014, respectively; gross losses were $0.4 million during 2016, $2.8 million during 2015 and not significant during 2014.

Note 23.  Other Results of Operations Information

Other income for each of the three years in the period ended December 31, 2016 consists of the following (in thousands):

	2016			2015			2014
Manufacturing revenues	$	412,826		$	391,920		$	379,274
Income (loss) from managed funds	(69,038		)	(37,237		)	12,251
Asset management fees	29,492			34,777			27,990
Dividend income	3,856			5,482			7,379
Income from associated companies classified as other revenues	17,184			75,717			90,242
Revenues of oil and gas exploration and development businesses	49,890			45,939			19,373
Gain on sale of equity interest	—			—			22,714
Other	43,976			32,630			11,242
	$	488,186		$	549,228		$	570,465

Taxes, other than income or payroll, amounted to $35.4 million, $21.9 million and $17.0 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

Advertising costs amounted to $20.0 million, $18.1 million and $14.5 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

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Note 24.  Common Shares and Earnings (Loss) Per Common Share

Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted-average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Numerator for earnings (loss) per share:
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306
Allocation of earnings to participating securities (1)	(574		)	(4,711		)	(4,761		)
Net income attributable to Leucadia National Corporation common shareholders for basic earnings (loss) per share	125,364			274,876			199,545
Adjustment to allocation of earnings to participating securities related to diluted shares (1)	(19		)	(34		)	(75		)
Mandatorily redeemable convertible preferred share dividends	—			—			—
Interest on 3.75% Convertible Notes	—			—			739
Net income attributable to Leucadia National Corporation common shareholders for diluted earnings (loss) per share	$	125,345		$	274,842		$	200,209
Denominator for earnings (loss) per share:
Denominator for basic earnings (loss) per share – weighted-average shares	371,211			372,430			371,889
Stock options	—			1			29
Warrants	—			—			—
Senior executive compensation plan awards	307			—			—
Mandatorily redeemable convertible preferred shares	—			—			—
3.875% Convertible Senior Debentures	—			—			—
3.75% Convertible Notes	—			—			1,415
Denominator for diluted earnings (loss) per share	371,518			372,431			373,333

(1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities.  Net losses are not allocated to participating securities.  Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted-average shares of 1,986,800, 6,500,000 and 9,040,900for the years ended December 31, 2016, 2015 and 2014, respectively.  Dividends declared on participating securities during the years ended December 31, 2016, 2015 and 2014 were $0.4 million, $1.5 million and $2.2 million, respectively.  Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Options to purchase 656,894, 1,000,137 and 1,572,777 weighted-average shares of common stock were outstanding during the years ended December 31, 2016, 2015 and 2014, respectively, but were not included in the computation of diluted per share amounts as the effect was antidilutive.

For the years ended December 31, 2016, 2015 and 2014 ,weighted-average common shares of 923,077, 4,000,000 and 4,000,000, respectively, related to outstanding warrants to purchase common shares at $33.33 per share, were not included in the computation of diluted per share amounts as the effect was antidilutive.

For the years ended December 31, 2016, 2015 and 2014, shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price.  For the years ended December 31, 2016, 2015 and 2014, 4,162,200 shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive.

The Board of Directors from time to time has authorized the repurchase of our common shares.  At December 31, 2016, we are authorized to repurchase 16,161,588 common shares.

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Note 25.  Commitments, Contingencies and Guarantees

Commitments

We and our subsidiaries rent office space and office equipment under noncancellable operating leases with terms varying principally from one to twenty-three years.  Rental expense (net of sublease rental income) was $80.4 million, $84.0 million and $79.6 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at December 31, 2016 are as follows (in thousands):

2017	$	91,057
2018	87,405
2019	76,194
2020	62,186
2021	57,704
Thereafter	572,845
	947,391
Less:  sublease income	(19,204		)
	$	928,187

Effective December 30, 2004, National Beef finalized an agreement with the City of Dodge City, Kansas, whereby in consideration of certain improvements made to the city water and wastewater systems, National Beef committed to make a series of service charge payments totaling $19.3 million over a 20 year period, of which $5.8 million remains as of December 31, 2016.  Payments under the commitment will be approximately $0.8 million in each of the years 2017 through 2018, with the remaining balance of $4.1 million to be paid in subsequent years.

National Beef makes verbal commitments to cattle producers to purchase cattle approximately one week in advance of delivery of those cattle to its plants.  The actual value paid for these cattle is determined after the cattle are delivered, weighed and inspected at National Beef’s facilities.  The total value of verbal commitments to purchase cattle as of December 31, 2016 was $103.8 million.

The following table summarizes commitments associated with certain business activities (in millions):

	Expected Maturity Date
	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Maximum Payout
Equity commitments (1)	$	192.4	$	22.1	$	13.0	$	—	$	243.3	$	470.8
Loan commitments (1)	315.3		16.9		71.6		44.0		—		447.8
Underwriting commitments	349.4		—		—		—		—		349.4
Forward starting reverse repos (2)	4,668.7		—		—		—		—		4,668.7
Forward starting repos (2)	2,539.2		—		—		—		—		2,539.2
Other unfunded commitments (1)	—		37.0		4.8		33.8		13.2		88.8
	$	8,065.0	$	76.0	$	89.4	$	77.8	$	256.5	$	8,564.7

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

(2) At December 31, 2016, $4,592.9 million within forward starting reverse repos and $2,464.6 million within repos settled within three business days.

Equity Commitments.  Equity commitments include commitments to invest in Jefferies 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 are managed by a team led by Brian P. Friedman, our President and a Director.  As of December 31, 2016, Jefferies outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $23.1 million.

See Note 10 for additional information regarding Jefferies commitments related to Jefferies Finance and Jefferies LoanCore.

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Our equity commitments also include our commitment to invest in 54 Madison, a fund which targets real estate projects. We plan to invest a cumulative total of $225.0 million to this fund, of which we have already contributed $114.9 million. Capital commitments are contingent upon approval of the related investment by the investment committee, which we control. Through December 31, 2016, approved unfunded commitments totaled $37.4 million.

In January 2017, we participated in a preferred equity financing for Linkem. Existing shareholders, along with funds managed by BlackRock, invested €100 million in cash in exchange for shares of Linkem to fund future expansion plans, of which Leucadia's share was €30 million.

In December 2016, we committed to invest $125.0 million in a separate account managed by Folger Hill Asia; we invested $75.0 million of this commitment in January 2017.

Additionally, as of December 31, 2016, we have other equity commitments to invest up to $23.4 million in various other investments.

Loan Commitments. From time to time Jefferies makes 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.  As of December 31, 2016, Jefferies has $182.1 million of outstanding loan commitments to clients.

Loan commitments outstanding as of December 31, 2016, also include Jefferies portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings by Jefferies Finance.  At December 31, 2016, $0.0 of Jefferies $250.0 million commitment was funded.

In August 2014, we and Solomon Kumin established Folger Hill; we committed to provide Folger Hill with a three-year, $20 million revolving credit facility to fund its start-up and initial operating expenses.  As of December 31, 2016, $9.4 million has been provided to Folger Hill under the revolving credit facility.

Underwriting Commitments. In connection with investment banking activities, Jefferies may from time to time provide underwriting commitments to our clients in connection with capital raising transactions.

Forward Starting Reverse Repos and Repos.  Jefferies enters 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.

Contingencies

Sykes v. Mel Harris & Associates, LLC. - We and certain of our subsidiaries and officers were named as defendants in a consumer class action captioned Sykes v. Mel Harris & Associates, LLC, et al., 9 Civ. 8486 (DC), in the United States District Court for the Southern District of New York.  The named defendants also included the Mel Harris law firm, certain individuals and members associated with the law firm, and a process server, Samserv, Inc. and certain of its employees.  The complaint alleges that default judgments obtained by the law firm against approximately 124,000 individuals in New York courts with respect to consumer debt purchased by our subsidiaries violated the Fair Debt Collection Practices Act, the Racketeer Influenced and Corrupt Organizations Act, the New York General Business Law and the New York Judiciary Law (alleged only as to the law firm) and sought injunctive relief, declaratory relief and damages on behalf of the named plaintiffs and others similarly situated. 

On March 18, 2015, we and plaintiffs executed a settlement agreement that provided additional detail regarding the terms of a settlement set out in a December 14, 2014 binding term sheet as a result of which we have previously accrued approximately $50 million.  On November 12, 2015, plaintiffs executed a settlement agreement with the other defendants in the case, and we and plaintiffs executed a first amendment to our settlement agreement to modify the agreement to reflect that settlement of all claims as to all parties had been reached. On June 23, 2016, the settlement agreement became final and the case was closed.

Haverhill Retirement System v. Asali, et al. - On May 2, 2014, plaintiff Haverhill Retirement System (“Haverhill”)  filed an amended putative class action and derivative lawsuit (the “Complaint”) entitled Haverhill Retirement System v. Asali, et al. in the Court of Chancery of the State of Delaware (the “Court of Chancery”) against Harbinger Capital Partners LLC, Harbinger Capital Partners Master Fund I, Ltd., Global Opportunities Breakaway Ltd., Harbinger Capital Partners Special Situations Fund, L.P. (collectively,

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the “Harbinger Funds”), the members of the board of directors of Harbinger Group, Inc. (“Harbinger”), nominal defendant Harbinger, as well as Leucadia. The Complaint alleges, among other things, that the directors of Harbinger breached their fiduciary duties in connection with Leucadia’s March 2014 purchase of preferred securities of subsidiaries of the Harbinger Funds that were exchangeable into Harbinger common stock owned by the Harbinger Funds, certain flaws in the process employed by the special committee of directors appointed by the Harbinger board in connection therewith, and that Leucadia aided and abetted the Harbinger board’s breaches of fiduciary, as well as a claim of unjust enrichment against Leucadia.  On April 1, 2014, the Chancery Court denied Haverhill’s motion for expedited proceedings associated with the complaint originally filed by Haverhill on March 26, 2014.  Haverhill filed an amended complaint on May 2, 2014.  On July 2, 2014, the defendants moved to dismiss the amended complaint.  On August 12, 2014, Plaintiffs filed another amended complaint. The amended complaint dropped Plaintiff’s unjust enrichment claim against Leucadia. With respect to remedies sought, the amended complaint no longer sought an injunction against installing Leucadia designees as Board members and no longer sought rescission of Leucadia’s right to select the director class to which one of its designees would be appointed. A term sheet reflecting a settlement among the parties, that did not provide for any payment by the Company, was signed on October 15, 2014.  On December 19, 2014, final settlement papers were submitted to the Court. On June 8, 2015, a settlement hearing took place, at which the Court rejected the settlement. The parties then negotiated a stipulation under which the case would be dismissed, which the Court approved on January 7, 2016. On February 17, 2016 the Court was notified that disclosure of the proposed dismissal had been provided to Harbinger's stockholders in accordance with that stipulation, and the case was closed.

We and our subsidiaries are parties to legal and regulatory proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to our consolidated financial position.  We and our subsidiaries 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 do not believe that any of these actions will have a significant adverse effect on our consolidated financial position or liquidity, but any amounts paid could be significant to results of operations for the period.

Guarantees

Derivative Contracts.  Jefferies dealer activities cause it to make markets and trade in a variety of derivative instruments. Certain derivative contracts that Jefferies has entered into meet the accounting definition of a guarantee under 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 Jefferies 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 GAAP as of December 31, 2016 (in millions):

	Expected Maturity Date
Guarantee Type	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Notional/ Maximum Payout
Derivative contracts – non-credit related	$	18,838.6	$	820.4	$	—	$	—	$	421.8	$	20,080.8
Written derivative contracts – credit related	—		52.2		24.6		360.8		—		437.6
Total derivative contracts	$	18,838.6	$	872.6	$	24.6	$	360.8	$	421.8	$	20,518.4

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The following table summarizes the external credit ratings of the underlying or referenced assets for our credit related derivatives contracts as of December 31, 2016 (in millions):

	External Credit Rating
	AAA/ Aaa		AA/ Aa		A		BBB/Baa		Below Investment Grade		Unrated		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	54.0	$	—	$	—	$	—	$	—	$	—	$	54.0
Single name credit default swaps	—		—		79.5		42.9		261.2		—		383.6

The derivative contracts deemed to meet the definition of a guarantee under 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).  Jefferies substantially mitigates its exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments and Jefferies manages the risk associated with these contracts in the context of its overall risk management framework.  Jefferies believes notional amounts overstate its expected payout and that fair value of these contracts is a more relevant measure of its obligations.  The fair value of derivative contracts meeting the definition of a guarantee is approximately $313.1 million as of December 31, 2016.

Berkadia.  We have agreed to reimburse Berkshire Hathaway for up to one-half of any losses incurred under a $2.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.

Loan Guarantee. Jefferies has provided a guarantee to Jefferies Finance that matures in January 2021, whereby Jefferies is required to make certain payments to a SPE sponsored by Jefferies Finance in the event that Jefferies Finance is unable to meet its obligations to the SPE. The maximum amount payable under the guarantee is $18.1 million at December 31, 2016. Jefferies has also provided a guarantee of a portion of Energy Partners I, LP’s obligations under a credit agreement. At December 31, 2016, the maximum exposure to loss of the guarantee is $3.0 million.

Other Guarantees.  Jefferies is a member of various exchanges and clearing houses.  In the normal course of business Jefferies provides guarantees to securities clearinghouses and exchanges.  These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members.  Additionally, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet these shortfalls.  To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral.  Jefferies obligations under such guarantees could exceed the collateral amounts posted.  Jefferies maximum potential liability under these arrangements cannot be quantified; however, the potential for Jefferies to be required to make payments under such guarantees is deemed remote.  Accordingly, no liability has been recognized for these arrangements.

Indemnification.  In connection with the 2013 sale of Empire Insurance Company, we agreed to indemnify the buyer for certain of Empire’s lease obligations that were assumed by another subsidiary of ours as part of the sale of Empire.  Our subsidiary was subsequently sold in 2014 to HomeFed as part of the real estate transaction with HomeFed.  Although HomeFed has agreed to indemnify us for these lease obligations, our indemnification obligation under the Empire transaction remains.  The primary lease expires in 2018 and the aggregate amount of lease obligation as of December 31, 2016 was approximately $20.8 million. Substantially all of the space under the primary lease has been sublet to various third-party tenants for the full length of the lease term in amounts in excess of the obligations under the primary lease.

Standby Letters of Credit.  At December 31, 2016, Jefferies provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $33.3 million.  Standby letters of credit commit Jefferies 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 subsidiaries of ours have outstanding letters of credit aggregating $13.6 million at December 31, 2016. Primarily all letters of credit expire within one year.

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Note 26.  Net Capital Requirements

Jefferies operates broker-dealers registered with the SEC and member firms of the Financial Industry Regulatory Authority ("FINRA").  Jefferies LLC 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 under the alternative method as permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC is also registered as a futures commission merchant ("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.

Jefferies LLC and Jefferies Execution’s net capital and excess net capital are as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies LLC	$	1,467,729	$	1,398,748
Jefferies Execution	8,260		8,010

FINRA is the designated self-regulatory organization (“DSRO”) for Jefferies U.S. broker-dealers and the NFA is the DSRO for Jefferies as an FCM.

Certain other U.S. and non-U.S. subsidiaries of Jefferies 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 United Kingdom.

The regulatory capital requirements referred to above may restrict our ability to withdraw capital from Jefferies regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company.

Note 27.  Other Fair Value Information

The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands):

	December 31, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Other Assets:
Notes and loans receivable (1)	$	962,938	$	958,377	$	488,690	$	490,208
Financial Liabilities:
Short-term borrowings (2)	525,842		525,842		310,659		310,659
Long-term debt (2)	7,131,587		7,221,459		7,400,582		7,299,405

(1) Notes and loans receivable:  The fair values are primarily measured using Level 2 and 3 inputs principally based on discounted future cash flows using market interest rates for similar instruments.

(2) Short-term borrowings and long-term debt:  The fair values of short-term borrowings are estimated to be the carrying amount.  The fair values of non-variable rate debt are estimated using quoted prices and estimated rates that would be available for debt with similar terms.  The fair value of variable rate debt is estimated to be the carrying amount.

Note 28.  Related Party Transactions

Jefferies Capital Partners Related Funds. Jefferies has equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, our President and a Director ("Private Equity Related Funds").  Reflected in our Consolidated Statements of Financial Condition at December 31, 2016 and 2015 are Jefferies equity investments in Private Equity Related Funds of $37.7 million and $39.6 million, respectively.  Net gains (losses) aggregating $(2.3) million, $(26.2) million and

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$(14.9) million were recorded related to the Private Equity Related Funds for the years ended December 31, 2016, 2015 and 2014, respectively.  For further information regarding our commitments and funded amounts to Private Equity Related Funds, see Notes 9 and 25.

Berkadia Commercial Mortgage, LLC. At December 31, 2016 and 2015, Jefferies has commitments to purchase $817.0 million and $752.4 million, respectively, in agency commercial mortgage-backed securities from Berkadia.

HRG Group, Inc.  As part of Jefferies loan secondary trading activities, it has unsettled purchases and sales of loans pertaining to portfolio companies within funds managed by HRG of $261.6 million at December 31, 2015.  Our Chairman also serves as HRG’s Chairman.

Officers, Directors and Employees.  We have $41.2 million and $28.3 million of loans outstanding to certain employees (none of whom are an executive officer or director of the Company) at December 31, 2016 and 2015, respectively.  Receivables from and payables to customers includes 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. During 2014, Jefferies sold private equity interests with a fair value of $4.0 million at their then fair value to a private equity fund owned by Jefferies employees and has also provided a guarantee of the fund’s credit agreement. At December 31, 2016 and 2015, Jefferies provided a guarantee of a credit agreement for a private equity fund owned by Jefferies employees.

National Beef.  National Beef participates in a cattle supply agreement with a minority owner and holder of a redeemable noncontrolling interest in National Beef.  Under this agreement  National Beef has agreed to purchase 735,385 head of cattle each year (subject to adjustment), from the members of the minority owner, with prices based on those published by the U.S. Department of Agriculture, subject to adjustments for cattle performance.  National Beef obtained approximately 27% and 28% of its cattle requirements under this agreement during 2016 and 2015, respectively.

National Beef also enters into transactions with an affiliate of another minority owner and holder of a redeemable noncontrolling interest in National Beef to buy and sell a limited number of beef products.   During the year ended December 31, 2016, sales to this affiliate were $30.9 million and purchases were $14.8 million.  During the year ended December 31, 2015, sales to this affiliate were $31.0 million and purchases were $15.1 million.  At December 31, 2016 and 2015, amounts due from and payable to these related parties were not significant. 

HomeFed.  As more fully described in Note 10, during 2014 we sold to HomeFed substantially all of our real estate properties and operations, our interest in BRP and cash of approximately $14.0 million, in exchange for 7,500,000 newly issued unregistered HomeFed common shares.  As discussed in Note 10, as a result of a 1998 distribution to all of our shareholders, approximately 4.8% of HomeFed is beneficially owned by our Chairman at December 31, 2016.  Our Chairman also serves as HomeFed’s Chairman and our President is a Director of HomeFed.

54 Madison. At December 31, 2016 and 2015, approximately $230.2 million and $115.7 million, respectively, of long-term debt held by 54 Madison is owed to minority owners of 54 Madison. The interest rate on these long-term notes range between 4.2% and 6.0%.

The employees of the asset manager of 54 Madison and employees of certain asset managers of 54 Madison's investments are also employees of Leucadia. These employees are also minority owners of 54 Madison.

In the first quarter of 2016, 54 Madison purchased the equity interests in a real estate investment from a minority owner of 54 Madison for $86.5 million.

See Note 10 for information on transactions with Jefferies Finance and Jefferies LoanCore.

Note 29.  Discontinued Operations and Assets Held for Sale

In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE:SWM) for $295 million in cash plus potential earn-out payments over five years of up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. At December 31, 2016, the net book value of our investment in Conwed was $100.6 million. A pre-tax gain of approximately $180 million will be recognized upon closing and will be reflected in our results of operations for the three months ended March 31, 2017. The sale of Conwed does not meet the GAAP criteria to be classified as a discontinued operation.

F-80

Assets held for sale at December 31, 2016, which primarily relate to Conwed, are as follows (in thousands):

Cash	$	5,206
Receivables	15,297
Property, equipment and leasehold improvements, net	18,664
Intangible assets, net and goodwill	56,854
Inventory	19,069
Other assets	12,993
	$	128,083

Liabilities held for sale at December 31, 2016 were $14.7 million and are included in Payables, expense accruals and other liabilities.

In September 2014, we decided not to proceed with further development of the Lake Charles clean energy project that would have used gasification technology to convert low-grade fossil fuels into clean-energy products.  Our decision was based on final estimates of the likely ultimate cost of completion of the project.  Project development costs had been expensed as incurred.  As a result, we classified the clean energy project as a discontinued operation in 2014.

In July 2014, we sold Premier Entertainment Biloxi LLC ("Premier"), through which we had conducted our gaming operations, for aggregate cash consideration of $250.0 million, subject to working capital adjustment.  We recorded a pre-tax gain on sale of discontinued operations of $12.1 million in the third quarter of 2014.

A summary of the results of discontinued operations for the clean energy project and Premier is as follows for the year ended December 31, 2014; discontinued operations for the years ended December 31, 2016 and 2015 were not significant (in thousands):

Revenues and other income:
Gaming entertainment	$	67,739
Investment and other income	4,700
	72,439
Expenses:
Direct operating expenses - Gaming entertainment	48,877
Compensation and benefits	4,503
Depreciation and amortization	5,208
Selling, general and other expenses	41,378
	99,966
Loss from discontinued operations before income taxes	(27,527		)
Income tax (benefit)	(9,634		)
Loss from discontinued operations after income taxes	$	(17,893	)

Gain on disposal of discontinued operations for the year ended December 31, 2015, primarily relates to additional consideration received related to the 2012 sale of our small Caribbean-based telecommunications provider, and a reversal of a legal reserve.

Note 30.  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.

F-81

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, Foursight Capital, Berkadia, our investment in HomeFed and our investment in FXCM.  Our other merchant banking businesses and investments primarily include Idaho Timber, Conwed, Vitesse, Juneau, real estate, and our investments in HRG, Linkem, Garcadia and Golden Queen.

Certain information concerning our segments for the years ended December 31, 2016, 2015 and 2014 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. 

	2016			2015			2014
				(In thousands)
Net Revenues:
Reportable Segments:
Jefferies	$	2,421,055		$	2,476,133		$	2,986,325
National Beef	7,027,243			7,402,419			7,832,424
Corporate and other	88,590			78,122			60,720
Total net revenues related to reportable segments	9,536,888			9,956,674			10,879,469
All other (1)	525,729			950,784			607,016
Intercompany eliminations (2)	—			(21,000		)	—
Total consolidated net revenues	$	10,062,617		$	10,886,458		$	11,486,485
Pre-tax income (loss) from continuing operations:
Reportable Segments:
Jefferies	$	43,508		$	119,165		$	358,396
National Beef	329,022			(123,915		)	(40,303		)
Corporate and other	18,386			(44,295		)	(142,728		)
Pre-tax income (loss) from continuing operations related to reportable segments	390,916			(49,045		)	175,365
All other (1)	(15,605		)	492,762			305,752
Parent Company interest	(58,881		)	(87,181		)	(99,895		)
Total consolidated pre-tax income from continuing operations	$	316,430		$	356,536		$	381,222
Depreciation and amortization expenses:
Reportable Segments:
Jefferies	$	60,206		$	92,165		$	78,566
National Beef	94,482			89,317			85,305
Corporate and other	3,619			3,744			5,627
Total depreciation and amortization expenses related to reportable segments	158,307			185,226			169,498
All other	53,286			38,907			16,495
Total consolidated depreciation and amortization expenses	$	211,593		$	224,133		$	185,993
Identifiable assets employed:
Reportable Segments:
Jefferies (3)	$	36,992,096		$	38,607,786		$	44,562,155
National Beef	1,498,317			1,514,249			1,716,069
Corporate and other	1,935,118			1,777,199			3,237,476
Identifiable assets employed related to reportable segments	40,425,531			41,899,234			49,515,700
All other	4,728,457			4,581,673			3,152,029
Intercompany eliminations	(82,681		)	(149,723		)	(53,405		)
Total consolidated assets	$	45,071,307		$	46,331,184		$	52,614,324

(1) All other revenue and pre-tax income from continuing operations include $(54.6) million and $491.3 million of realized and unrealized gains (losses) relating to our investment in FXCM for the years ended December 31, 2016 and 2015, respectively.

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(2) Revenue intercompany elimination for 2015 relates to an investment banking and advisory fee paid to Jefferies in connection with our entering into the agreement with FXCM.

(3) At December 31, 2016, 2015 and 2014, includes $337.6 million, $320.2 million and $399.6 million, respectively, of Jefferies deferred tax asset, net.

Net revenues for Jefferies are recorded in the geographic region in which the position was risk-managed, in the case of investment banking, in which the senior coverage banker is located, or for asset management, according to the location of the investment advisor.  Net revenues by geographic region for Jefferies for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

	2016		2015		2014
Americas (1)	$	1,876,796	$	1,887,899	$	2,257,870
Europe (2)	458,046		510,044		634,358
Asia	86,213		78,190		94,097
	$	2,421,055	$	2,476,133	$	2,986,325

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

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

Approximately 89.2%, 89.5% and 88.0% of National Beef's revenues for the years ended December 31, 2016, 2015 and 2014, respectively, relate to sales made in the U.S. The remainder of National Beef's revenues primarily relate to sales made in Asia. Consolidated net revenues exclusive of Jefferies and National Beef principally relate to the U.S. for 2016, 2015 and 2014.

Net realized securities gains for Corporate and other aggregated $16.4 million, $63.0 million and $30.4 million during 2016, 2015 and 2014, respectively. 

Interest expense classified as a component of Net revenues relates to Jefferies.  For the years ended December 31, 2016, 2015 and 2014, interest expense classified as a component of Expenses was primarily comprised of National Beef ($12.9 million, $16.6 million and $15.1 million, respectively), parent company interest ($58.9 million, $87.2 million and $99.9 million, respectively) and all other ($36.9 million, $12.0 million and $5.9 million, respectively).

Note 31.  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.  In addition, Jefferies initiated a plan to substantially exit the remaining aspects of its futures business, which was completed during the second quarter of 2016.

In addition, Jefferies terminated its $750.0 million credit facility on July 31, 2015. During the year ended December 31, 2015, Jefferies recognized costs of $3.8 million related to the Credit Facility.

During the years ended December 31, 2016 and 2015, Jefferies recorded restructuring and impairment costs as follows (in thousands):

	2016		2015
Severance costs	$	279	$	30,327
Accelerated amortization of restricted stock and restricted cash awards	41		7,922
Accelerated amortization of capitalized software	—		19,745
Contract termination costs	1,234		11,247
Selling, general and other expenses	300		3,853
Total	$	1,854	$	73,094

Of the above costs, $0.3 million and $28.7 million for the years ended December 31, 2016 and 2015, respectively, are of a non-cash nature.

F-83

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 year ended December 31, 2016.

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	30,327			2,774			11,247			44,348			$	7,922	$	19,745	$	1,079	$	73,094
Payments	(25,522		)	(2,774		)	(11,247		)	(39,543		)
Liability at December 31, 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 December 31, 2016	$	—		$	—		$	—		$	—

F-84

Note 32.  Selected Quarterly Financial Data (Unaudited)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share amounts)
2016
Net revenues	$	2,015,106		$	2,625,358		$	2,676,375		$	2,745,778
Income (loss) from continuing operations	$	(218,602	)	$	70,612		$	176,206		$	166,105
Income from discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Net (income) loss attributable to the noncontrolling interest	$	1,052		$	760		$	1,870		$	(2,256	)
Net income attributable to the redeemable noncontrolling interests	$	(4,314	)	$	(13,068	)	$	(22,702	)	$	(25,662	)
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	(222,880	)	$	57,289		$	154,358		$	137,171
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			370,404			369,299
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			374,567			374,693
2015
Net revenues	$	3,184,683		$	2,839,463		$	2,366,096		$	2,496,216
Income (loss) from continuing operations	$	374,429		$	15,034		$	(181,912	)	$	39,038
Income from discontinued operations, net of taxes	$	—		$	—		$	429		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	1,300		$	3,793
Net loss attributable to the noncontrolling interest	$	234		$	356		$	1,238		$	3,168
Net loss attributable to the redeemable noncontrolling interests	$	7,112		$	2,031		$	6,788		$	10,612
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	380,759		$	16,406		$	(173,173	)	$	55,595
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	1.00		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	1.00		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	373,541			373,654			372,547			369,840
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	0.99		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	0.99		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	377,713			373,662			372,547			369,840

In 2016 and 2015, the totals of quarterly per share amounts do not equal annual per share amounts because of changes in outstanding shares during the year.

F-85

Schedule I - Condensed Financial Information of Registrant

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Financial Condition

December 31, 2016 and 2015

(Dollars in thousands, except par value)

	2016		2015
ASSETS
Cash and cash equivalents	$	105,222	$	353
Financial instruments owned:
Trading assets, at fair value	223,218		750,116
Available for sale securities	15,635		14,104
Total financial instruments owned	238,853		764,220
Investments in subsidiaries	18,412,037		18,348,067
Advances to subsidiaries	235,879		123,805
Investments in associated companies	273,518		244,206
Deferred tax asset, net	346,684		221,310
Other assets	13,993		64,572
Total	$	19,626,186	$	19,766,533
LIABILITIES
Accrued interest payable	$	11,447	$	11,447
Pension liabilities	69,152		78,007
Other payables, expense accruals and other liabilities	39,284		103,438
Advances from subsidiaries	8,265,312		8,060,608
Long-term debt	987,891		986,822
Total liabilities	9,373,086		9,240,322
Commitments and contingencies
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares	125,000		125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425		362,617
Additional paid-in capital	4,812,587		4,986,819
Accumulated other comprehensive income	310,697		438,793
Retained earnings	4,645,391		4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100		10,401,211
Total	$	19,626,186	$	19,766,533

See accompanying notes to condensed financial statements.

S-1

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Operations

For the years ended December 31, 2016, 2015 and 2014

(In thousands, except per share amounts)

	2016			2015			2014
Revenues:
Principal transactions	$	16,735		$	491,341		$	—
Net realized securities gains (losses)	—			—			—
Other	2,300			1,477			752
Total revenues	19,035			492,818			752
Expenses:
Compensation and benefits	39,693			58,899			60,830
WilTel pension	2,989			50,836			9,298
Interest	58,881			87,181			99,895
Intercompany interest expense	293,527			241,906			178,027
Selling, general and other expenses	19,244			26,784			113,383
	414,334			465,606			461,433
Income (loss) from continuing operations before income taxes, income related to associated companies and equity in earnings of subsidiaries	(395,299		)	27,212			(460,681		)
Income related to associated companies	21,195			3,479			3,763
Income (loss) from continuing operations before income taxes and equity in earnings of subsidiaries	(374,104		)	30,691			(456,918		)
Income tax provision (benefit)	(117,699		)	267			(139,832		)
Income (loss) from continuing operations before equity in earnings of subsidiaries	(256,405		)	30,424			(317,086		)
Equity in earnings of subsidiaries, net of taxes	386,406			247,704			541,680
Income from continuing operations	130,001			278,128			224,594
Equity in income (loss) from discontinued operations, net of taxes	—			429			(17,893		)
Equity in gain on disposal of discontinued operations, net of taxes	—			5,093			1,667
Net income	130,001			283,650			208,368
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34		$	0.73		$	0.58
Income (loss) from discontinued operations	—			—			(0.05		)
Gain on disposal of discontinued operations	—			0.01			0.01
Net income	$	0.34		$	0.74		$	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34		$	0.73		$	0.58
Income (loss) from discontinued operations	—			—			(0.05		)
Gain on disposal of discontinued operations	—			0.01			0.01
Net income	$	0.34		$	0.74		$	0.54

See accompanying notes to condensed financial statements.

S-2

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Comprehensive Income (Loss)

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net income	$	130,001		$	283,650		$	208,368
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)	3,900			(9,057		)	(8,866		)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631	(4		)	(10,930		)	(2,939		)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)	3,896			(19,987		)	(11,805		)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)	(121,581		)	(36,477		)	(43,307		)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149	—			—			(267		)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)	(121,581		)	(36,477		)	(43,574		)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)	—			—			169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95	—			—			169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)	(5,451		)	17,073			(38,959		)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)	1,534			31,102			3,201
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)	(3,917		)	48,175			(35,758		)
Other comprehensive loss, net of income taxes	(128,096		)	(8,289		)	(90,968		)
Comprehensive income	1,905			275,361			117,400
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders	$	(2,158	)	$	271,298		$	113,338

See accompanying notes to condensed financial statements.

S-3

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Cash Flows

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from operating activities:
Net income	$	130,001		$	283,650		$	208,368
Adjustments to reconcile net income to net cash used for operations:
Deferred income tax benefit	(12,220		)	(2,457		)	(15,302		)
Accretion of interest	921			1,788			2,029
Share-based compensation	33,597			74,087			109,838
Equity in earnings of subsidiaries	(386,406		)	(253,226		)	(525,454		)
Income related to associated companies	(21,195		)	(3,479		)	(3,763		)
Distributions from associated companies	1,861			312			2,429
Change in estimated litigation reserve	—			(88,500		)	88,500
Net change in:
Trading assets	(40,235		)	(615,768		)	—
Other assets	(708		)	(49,006		)	(1,384		)
Accrued interest payable	—			(10,982		)	(762		)
Pension liabilities	(13,111		)	49,835			9,299
Other payables, expense accruals and other liabilities	(23,218		)	558			(15,127		)
Income taxes receivable/payable, net	(90,898		)	6,640			(5,374		)
Other	1,262			5,110			4,153
Net cash used for operating activities	(420,349		)	(601,438		)	(142,550		)
Net cash flows from investing activities:
Investments in subsidiaries	(427,933		)	(637,400		)	(1,460,159		)
Distributions from subsidiaries	868,612			119,695			97,331
Advances on notes, loans and other receivables	—			(279,000		)	(6,500		)
Collections on notes, loans and other receivables	16,233			144,652			6,500
Investments in associated companies	(11,611		)	(8,101		)	(1,399		)
Capital distributions from associated companies	1,501			1,317			730
Purchases of investments (other than short-term)	(2,242		)	(7,968		)	(11,628		)
Other	150			276			184
Net cash provided by (used for) investing activities	444,710			(666,529		)	(1,374,941		)

(continued)

See accompanying notes to condensed financial statements.

S-4

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Cash Flows, continued

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from financing activities:
Repayment of debt	$	—		$	(458,641	)	$	(34	)
Advances from (to) subsidiaries, net	265,762			1,943,961			1,683,949
Issuance of common shares	1,062			1,223			2,190
Purchase of common shares for treasury	(95,020		)	(125,754		)	(75,728		)
Dividends paid	(91,296		)	(92,550		)	(93,071		)
Net cash provided by financing activities	80,508			1,268,239			1,517,306
Net increase (decrease) in cash and cash equivalents	104,869			272			(185		)
Cash and cash equivalents at January 1,	353			81			266
Cash and cash equivalents at December 31,	$	105,222		$	353		$	81
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	57,813		$	95,074		$	96,847
Income tax payments, net	$	(10,199	)	$	(2,332	)	$	13,463
Non-cash investing activities:
Investments contributed to subsidiary	$	423,009		$	—		$	5,000
Investments transferred from subsidiary	$	2,022		$	—		$	43,602
Non-cash financing activities:
Issuance of common shares for debt conversion	$	—		$	—		$	97,546

See accompanying notes to condensed financial statements.

S-5

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Notes to Condensed Financial Statements

1. Introduction and Basis of Presentation

The notes to the consolidated financial statements of Leucadia National Corporation and Subsidiaries (the "Company") are incorporated by reference into this schedule. For purposes of these condensed non-consolidated financial statements, the Company's wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting ("equity method subsidiaries").

The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Significant Accounting Policies, in the Company's consolidated financial statements included in the 2016 10-K.

The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, 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.

2. Transactions with Subsidiaries

The Parent Company has transactions with its equity method subsidiaries, many of which are structured as interest bearing advances to/from its subsidiaries. Intercompany interest expense primarily reflects the interest on funding advances incurred by the Parent to its wholly-owned subsidiary which holds assets related to its treasury function. Interest is incurred on funding advances based on the prime rate plus .125%. Although there is frequent cash movement between these subsidiaries and the Parent, they do not represent cash dividends. As such, the Parent Company received no cash dividends from its subsidiaries during the three years ended December 31, 2016.

In 2014, the Parent Company agreed to a settlement relating to the acquisition of its wholly-owned subsidiary, Jefferies Group LLC. Amounts accrued in 2014, include $70.0 million to certain former equity holders of Jefferies Group Inc., along with attorney fees and are included in the Selling, general and other expenses line item in the Statements of Operations.

3. Commitments, Contingencies and Guarantees

In the normal course of its business, the Parent Company has various commitments, contingencies and guarantees as described in Note 25, Commitments, Contingencies and Guarantees, and Note 17, Mezzanine Equity, in the Company's consolidated financial statements.

4. Restricted Net Assets

For a discussion of the Company's regulatory requirements, see Note 26, Net Capital Requirements, in the Company's consolidated financial statements. Some of the Company's consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the Parent Company.

At December 31, 2016 and 2015, $5,994.1 million and $6,264.4 million, respectively, of net assets of the Parent Company's consolidated subsidiaries are restricted as to the payment of cash dividends, or the ability to make loans or advances to the Parent Company. At December 31, 2016 and 2015, $4,833.0 million and $5,202.7 million, respectively, of these net assets are restricted as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the Parent Company.

Included in retained earnings of the Parent Company at December 31, 2016 and 2015 are $126.2 million and $117.1 million, respectively, of undistributed earnings of unconsolidated associated companies. For further information, see Note 10, Loans to and Investments in Associated Companies, in the Company's consolidated financial statements.

S-6

EX-3.9

Exhibit 3.9

AMENDED AND RESTATED

BY-LAWS

(Effective February 23, 2017)

of

LEUCADIA NATIONAL CORPORATION

ARTICLE I. SHAREHOLDERS MEETING

Section 1. The annual meeting of shareholders of the Corporation shall be held at the principal office of the Corporation, or at such other place within or without the State of New York, on such date and at such time as shall be determined by the Board of Directors in each year for the purpose of electing directors, and for the transaction of such other business as may be brought before the meeting.

Section 2. Special meetings of shareholders may be called at any time by the Board of Directors.

Section 3. Written notice of meetings of shareholders shall be given whenever shareholders are to take any action at a meeting. Such notice shall state the place, date and hour of the meeting and, unless it is the annual meeting, indicate that it is being issued by or at the direction of the person or persons calling the meeting. Notice of a special meeting shall, in addition, state the purpose or purposes for which the meeting was called.

A copy of the notice of any meeting shall be given, personally or by mail, not less than ten nor more than fifty days before the date of the meeting, to each shareholder entitled to vote at such meeting. If mailed, such notice is given when deposited in the United States mail, with postage thereon prepaid, directed to the shareholder at his address as it appears on the record of shareholders, or, if he shall have filed with the Secretary of the Corporation a written request that such notices to him be mailed to some other address, then directed to him at such other address.

Section 4. For the purpose of determining the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or to express consent to or dissent from any proposal without a meeting, or for the purpose of determining shareholders entitled to receive payment of any dividend or the allotment of any rights, or for the purpose of any other action, the Board shall fix, in advance, a date as the record date for any such determination of shareholders. Such date shall not be more than sixty nor less than ten days before the date of such meeting, nor more than sixty days prior to any other action.

Section 5. Except as may be otherwise required by laws of the State of New York, the Certificate of Incorporation or these By-Laws, the holders of a majority of the shares entitled to vote thereat present in person or by proxy shall constitute a quorum at a meeting of shareholders for the transaction of any business, provided that when a specified item of business is required to be voted on by a class or a series, voting as a class, the holders of a majority of shares of such class

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or series present in person or by proxy shall constitute a quorum for the transaction of such specified item of business.

Section 6. In order to properly submit any business to an annual meeting of shareholders, a shareholder must give timely notice in writing to the Secretary of the Corporation of such shareholder’s intention to present such business. To be considered timely, a shareholder’s notice must be delivered, either in person or by United States certified mail, postage prepaid, and received at the principal executive office of the Corporation, not less than one hundred twenty (120) days prior to the first anniversary date of the Corporation’s proxy statement in connection with the last annual meeting or if no annual meeting was held in the previous year, not less than a reasonable time, as determined by the Board of Directors, prior to the date of the applicable annual meeting.

Each notice to the Secretary shall set forth (i) the name and address of the shareholder, (ii) a representation that the shareholder is entitled to vote at such meeting, indicating the number of shares owned of record and beneficially by such shareholder, together with a statement that such shareholder intends to appear in person or by proxy at the meeting to present such proposal or proposals, (iii) a description of the proposal or proposals to be presented, including the complete text of any resolutions to be presented at the meeting and the reasons for conducting such business at the meeting and (iv) any material interest of the shareholder in the business to be submitted at the meeting. In addition, the shareholder shall promptly provide any other information reasonably requested by the Corporation.

The presiding officer of the meeting may, if the facts warrant, determine that a proposal was not made in accordance with the foregoing procedure, and if he should so determine, he shall so declare to the meeting and the defective proposal shall be disregarded.

Notwithstanding the foregoing provisions of this Section 6, a shareholder who seeks to have any proposal included in the Corporation’s proxy statement shall comply with applicable state law and the requirements of the rules and regulations promulgated by the Securities and Exchange Commission.

ARTICLE II. DIRECTORS

Section 1. The number of the directors of the Corporation shall be such number not less than three, as is designated from time to time by resolution adopted by a majority of the members of the Board of Directors, plus the number of directors, if any, elected by the holders of the Preferred Stock, voting as a class, pursuant to Section 5 of the General Provisions Relating to All Series of the Preferred Stock in Article FOURTH of the Certificate of Incorporation of the Corporation. The terms of the directors, if any, elected by the holders of the Preferred Stock, voting as a class, pursuant to Section 5 of the General Provisions Relating to All Series of the Preferred Stock in Article FOURTH of the Certificate of Incorporation of the Corporation shall be as set forth in such Section 5. The directors other than those, if any, elected by the holders of the Preferred Stock, voting as a class, shall, except as otherwise set forth herein, be elected for one year terms which shall expire at each annual meeting of shareholders and when their successors shall have been elected and qualified. Such election shall be by ballot by the

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shareholders entitled to vote and present in person or by proxy at such meeting. In case of any vacancy in the Board of Directors (including any vacancy due to an increase in the size of the Board of Directors), the remaining directors, although less than a quorum, by affirmative vote of a majority thereof, may elect a successor to fill such vacancy to serve until the next annual meeting of shareholders and when such director’s successor shall have been elected and qualified. Any director or directors (other than a director or directors elected by the holders of the Preferred Stock pursuant to Section 5 of the General Provisions Relating to All Series of the Preferred Stock in Article FOURTH of the Certificate of Incorporation of the Corporation) may be removed for cause by the affirmative vote of a majority of the directors present (including by means of a conference telephone or similar communications equipment) at a meeting at which such action is considered, provided a quorum is present.

A nominee for director shall be elected to the Board of Directors if the votes cast for such nominee’s election exceed the number of against votes in respect of such nominee’s election; provided, however, that directors shall be elected by a plurality of the votes cast at any meeting of shareholders for which the number of director nominees exceeds the number of directors to be elected. If directors are to be elected by a plurality of the votes cast, shareholders shall not be permitted to vote against a nominee.

Section 2. Nominations of persons for election to the Board of Directors may be made in the following manner:

A.Committee or Board Nomination. A committee appointed by the Board of Directors (or, in the absence of such committee, the Board of Directors) may nominate persons for election to the Board of Directors.

B.Shareholder Nomination at an Annual or Special Meeting. Any shareholder entitled to vote generally in the election of directors may nominate one or more persons for election to the Board of Directors at a meeting only if written notice of such shareholder’s intention to make such nomination or nominations has been received by the Secretary of the Corporation at the principal executive office of the Corporation (1) with respect to an election to be held at an annual meeting of shareholders, (a) not less than 120 days nor more than 150 days prior to the first anniversary date of the Corporation’s proxy statement in connection with the preceding year’s annual meeting or (b) in the event that the date of the annual meeting is more than 30 days before or more than 60 days after the first anniversary date of the preceding year’s annual meeting, not more than 190 days prior to the date of such annual meeting and not less than the later of 160days prior to the date of such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made and (2) with respect to an election to be held at a special meeting of shareholders, not less than the tenth day following the date on which public announcement of the date of such Special Meeting is first made. In no event shall the public announcement of any adjournment or postponement of a meeting commence a new time period (or extend any time period) for the giving of a notice as described above.

Each such notice to the Secretary shall set forth: (1) the name and address of the shareholder and his or her nominees; (2) a representation that the shareholder is entitled to vote at such meeting

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and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice; (3) a description of all arrangements or understandings between the shareholder and each such nominee; and (4) the consent of each nominee to serve as a director of the Corporation if so elected. The Corporation may require such shareholder and any proposed nominee to furnish such other information as may reasonably be required by the Corporation to determine the eligibility of such proposed nominee to serve as a director of the Corporation. The presiding officer of the meeting may, if the facts warrant, determine that a nomination was not made in accordance with the foregoing procedure, and if so determined, shall so declare to the meeting and the defective nomination shall be disregarded.

C.Shareholder Nomination - Proxy Access. Any Eligible Shareholder (as defined below) is entitled to nominate one or more persons for election to the Board of Directors and have such nomination included in the Corporation’s proxy statement in connection with an annual meeting of shareholders if such nomination is made pursuant to the provisions of this ARTICLE II, Section 2.C.

(1)Subject to the provisions of this Section 2.C., the Corporation shall include in its proxy statement (including its form of proxy) for an annual meeting of shareholders the name of any shareholder nominee for election to the Board of Directors submitted pursuant to this Section 2.C. (each, a “Proxy Access Nominee”) provided (a) timely written notice of such Proxy Access Nominee satisfying this Section 2.C. (“Proxy Access Notice”) is delivered to the Secretary of the Corporation by or on behalf of a shareholder or shareholders that, at the time the Proxy Access Notice is delivered, satisfy the ownership and other requirements of this Section 2.C. (such shareholder or shareholders, and any person on whose behalf they are acting, the “Eligible Shareholder”), (b) the Eligible Shareholder expressly elects in writing at the time of providing the Proxy Access Notice to have its nominee included in the Corporation’s proxy statement pursuant to this Section 2.C., and (c) the Eligible Shareholder and the Proxy Access Nominee otherwise satisfy the requirements of this Section 2.C. and the Proxy Access Nominee satisfies the director qualification requirements set forth in the Corporation’s Corporate Governance Guidelines and any other documents setting forth qualifications for directors.

(2) To be timely, a Proxy Access Notice must be received by the Secretary of the Corporation at the principal executive office of the Corporation not less than 120 days nor more than 150 days prior to the first anniversary date of the Corporation’s proxy statement in connection with the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is more than 30 days before or more than 60 days after the first anniversary date of the preceding year’s annual meeting, a Proxy Access Notice to be timely must be so received not more than 190 days prior to the date of such annual meeting and not less than the later of 160days prior to the date of such annual meeting or the tenth day following the day on which public announcement of the date of such meeting is first made. In no event shall the public announcement of any adjournment or postponement of an annual meeting commence a new time period (or extend any time period) for the giving of a Proxy Access Notice as described above.

4

(3) In addition to including the name of the Proxy Access Nominee in the Corporation’s proxy statement for the annual meeting, the Corporation also shall include (a) the information concerning the Proxy Access Nominee and the Eligible Shareholder that is required to be disclosed in the Corporation’s proxy statement pursuant to Section 14 of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (“Exchange Act”) and (b) if the Eligible Shareholder so elects, a Statement (as defined below) (collectively, the “Required Information”). Nothing in this Section 2.C. shall limit the Corporation’s ability to solicit against and include in its proxy statement its own statements relating to any Proxy Access Nominee.

(4) The number of Proxy Access Nominees (including Proxy Access Nominees that were submitted by an Eligible Shareholder for inclusion in the Corporation’s proxy statement pursuant to this Section 2.C. but either are subsequently withdrawn or that the Board of Directors decides to nominate (a “Board Nominee”)) appearing in the Corporation’s proxy statement with respect to an annual meeting of shareholders shall not exceed the greater of (i) two or (ii) 20% of the number of directors in office as of the last day on which a Proxy Access Notice may be delivered pursuant to this Section 2.C. (the “Nomination Deadline”) or, if such amount is not a whole number, the closest whole number below 20% (the “Permitted Number”); provided, however, that (a) any director in office as of the Nomination Deadline who was included in the Corporation’s proxy statement as a Proxy Access Nominee for any of the two preceding annual meetings and whom the Board of Directors decides to nominate for election to the Board of Directors will be counted against the Permitted Number, (b) any individual who will be included in the Corporation's proxy materials as a nominee recommended by the Board of Directors pursuant to an agreement, arrangement or other understanding with a shareholder or group of shareholders (other than any such agreement, arrangement or understanding entered into in connection with an acquisition of stock from the Corporation by such shareholder or group of shareholders) will be counted against the Permitted Number, and (c) in the event that one or more vacancies for any reason occurs on the Board of Directors at any time after the Nomination Deadline and before the date of the applicable annual meeting of shareholders and the Board of Directors resolves to reduce the size of the Board of Directors in connection therewith, the Permitted Number shall be calculated based on the number of directors in office as so reduced. In the event that the number of Proxy Access Nominees submitted by Eligible Shareholders pursuant to this Section 2.C. exceeds the Permitted Number, each Eligible Shareholder shall select one Proxy Access Nominee for inclusion in the Corporation’s proxy statement until the Permitted Number is reached, going in order of the amount (greatest to least) of voting power of the capital stock of the Corporation entitled to vote on the election of directors as disclosed in the Proxy Access Notice. If the Permitted Number is not reached after each Eligible Shareholder has selected one Proxy Access Nominee, this selection process shall continue as many times as necessary, following the same order each time, until the Permitted Number is reached.

(5) An Eligible Shareholder must have owned (as defined below) continuously for at least three years a number of shares that represents 3% or more of the total voting power of the Corporation’s outstanding shares of capital stock entitled to vote in the election of directors (the “Required Shares”) as of both the date the Proxy Access Notice is received by the Corporation in accordance with this Section 2.C. and the record date for determining shareholders entitled to vote at the annual meeting and must continue to own the Required Shares through the meeting

5

date. For purposes of satisfying the ownership requirement under this Section 2.C., the shares of the capital stock of the Corporation owned by one or more shareholders, or by the person or persons who own shares of the capital stock of the Corporation and on whose behalf any shareholder is acting, may be aggregated, provided that (a) the number of shareholders and other persons whose ownership of shares is aggregated for such purposes shall not exceed 20, (b) each shareholder and other persons whose shares are aggregated shall have held such shares continuously for at least three years, and (c) a group of two or more funds that are (1) under common management and investment control, (2) under common management and funded primarily by the same employer (or by a group of related employers that are under common control), or (3) a “group of investment companies,” as such term is defined in Section 12(d)(1)(G)(ii) of the Investment Company Act of 1940, as amended, shall be treated as one shareholder or person for this purpose. Whenever an Eligible Shareholder consists of a group of shareholders and/or other persons, any and all requirements and obligations for an Eligible Shareholder set forth in this Section 2.C. must be satisfied by and as to each such shareholder or other person, except that shares may be aggregated to meet the Required Shares as provided in this Section 2.C. With respect to any one particular annual meeting, no shareholder or other person may be a member of more than one group of persons constituting an Eligible Shareholder under this Section 2.C.

(6) For purposes of this Section 2.C., an Eligible Shareholder shall be deemed to “own” only those outstanding shares of the capital stock of the Corporation as to which the person possesses both (a) the full voting and investment rights pertaining to the shares and (b) the full economic interest in (including the opportunity for profit and risk of loss on) such shares; provided that the number of shares calculated in accordance with clauses (a) and (b) shall not include any shares (x) sold by such person or any of its affiliates in any transaction that has not been settled or closed, (y) borrowed by such person or any of its affiliates for any purposes or purchased by such person or any of its affiliates pursuant to an agreement to resell, or (z) subject to any option, warrant, forward contract, swap, contract of sale, other derivative or similar instrument or agreement entered into by such person or any of its affiliates, whether any such instrument or agreement is to be settled with shares or with cash based on the notional amount or value of outstanding shares of the capital stock of the Corporation, in any such case which instrument or agreement has, or is intended to have, the purpose or effect of (1) reducing in any manner, to any extent or at any time in the future, such person’s or affiliates’ full right to vote or direct the voting of any such shares, and/or (2) hedging, offsetting or altering to any degree gain or loss arising from the full economic ownership of such shares by such person or affiliate. A person shall “own” shares held in the name of a nominee or other intermediary so long as the person retains the right to instruct how the shares are voted with respect to the election of directors and possesses the full economic interest in the shares. A person’s ownership of shares shall be deemed to continue during any period in which (i) the person has loaned such shares, provided that the person has the power to recall such loaned shares on five business days’ notice and provides a representation that it will promptly recall such loaned shares upon being notified that any of its Proxy Access Nominees will be included in the Corporation’s proxy statement, or (ii) the person has delegated any voting power by means of a proxy, power of attorney or other instrument or arrangement that is revocable at any time by the person. The terms “owned,” “owning” and other variations of the word “own” shall have correlative meanings. For purposes

6

of this Section 2.C., the term “affiliate” shall have the meaning ascribed thereto in the regulations promulgated under the Exchange Act.

(7) An Eligible Shareholder’s Proxy Access Notice must include: (a) one or more written statements from the record holder of the shares (and from each intermediary through which the shares are or have been held during the requisite three-year holding period) verifying that, as of a date within seven days prior to the date the Proxy Access Notice is received by the Corporation, the Eligible Shareholder owns, and has owned continuously for the preceding three years, the Required Shares, and the Eligible Shareholder’s agreement to provide (1) within five business days after the record date for the meeting, written statements from the record holder and intermediaries verifying the Eligible Shareholder’s continuous ownership of the Required Shares through the record date and (2) immediate notice if the Eligible Shareholder ceases to own any of the Required Shares prior to the date of the applicable annual meeting of shareholders; (b) documentation satisfactory to the Corporation demonstrating that a group of funds qualifies to be treated as one shareholder or person for purposes of this Section 2.C.; (c) a representation that the Eligible Shareholder (including each member of any group of shareholders that together is an Eligible Shareholder hereunder): (1) intends to continue to own the Required Shares through the date of the annual meeting, (2) acquired the Required Shares in the ordinary course of business and not with the intent to change or influence control of the Corporation, and does not presently have such intent, (3) has not nominated and will not nominate for election to the Board of Directors at the annual meeting any person other than the Proxy Access Nominee(s) being nominated pursuant to this Section 2.C., (4) has not engaged and will not engage in, and has not and will not be, a “participant” in another person’s “solicitation” within the meaning of Rule 14a-1(l) under the Exchange Act in support of the election of any individual as a director at the annual meeting other than its Proxy Access Nominee(s) or a Board Nominee, (5) will not distribute to any shareholder any form of proxy for the meeting other than the form distributed by the Corporation, and (6) has provided and will provide facts, statements and other information in all communications with the Corporation and its shareholders that are or will be true and correct and not misleading; (d) the written consent of each Proxy Access Nominee to be named in the Corporation’s proxy statement as a nominee and to serve as a director if elected; (e) a copy of the Schedule 14N that has been filed with the SEC as required by Rule 14a-18 under the Exchange Act; (f) in the case of a nomination by a group of shareholders that together is an Eligible Shareholder, the designation by all group members of one group member that is authorized to act on behalf of all members of the nominating shareholder group with respect to the nomination and matters related thereto, including withdrawal of the nomination; and (g) an undertaking that the Eligible Shareholder agrees to (1) assume all liability stemming from any legal or regulatory violation arising out of the Eligible Shareholder’s communications with the Corporation’s shareholders or out of the information that the Eligible Shareholder provides to the Corporation, (2) in a form satisfactory to the Corporation, indemnify and hold harmless the Corporation and each of its directors, officers and employees individually against any liability, loss or damages in connection with any threatened or pending action, suit or proceeding, whether legal, administrative or investigative, against the Corporation or any of its directors, officers or employees arising out of any nomination submitted by the Eligible Shareholder pursuant to this Section 2.C. or any solicitation or other activity in connection therewith, (3) file with the SEC any solicitation relating to the annual meeting at which the Proxy Access Nominee will be

7

nominated, regardless of whether any such filing is required under Section 14 of the Exchange Act or whether any exemption from filing is available for such solicitation, and (4) comply with all other applicable laws, rules, regulations and listing standards with respect to any solicitation in connection with the meeting. An Eligible Shareholder’s Proxy Access Notice must also include a written representation and agreement from its Proxy Access Nominee (in a form deemed satisfactory to the Corporation) that the Proxy Access Nominee (1) is not and will not become a party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such Proxy Access Nominee, if elected as a director of the Corporation, will act or vote on any issue or question (“Voting Commitment”) that has not been disclosed in writing to the Corporation, (2) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation (“Compensation Arrangement”) that has not been disclosed in writing to the Corporation, and (3) in the Proxy Access Nominee’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with, applicable law and all corporate governance, conflict of interest, corporate opportunities, confidentiality and stock ownership and trading policies and guidelines of the Corporation applicable to the Corporation’s directors.

(8) The Eligible Shareholder may include with its Proxy Access Notice, a written statement for inclusion in the Corporation’s proxy statement for the meeting, not to exceed 500 words, in support of the Proxy Access Nominee’s candidacy (the “Statement”). Notwithstanding anything to the contrary contained herein, the Corporation may omit from its proxy statement any information or Statement that it believes would violate any applicable law, rule, regulation or listing standard.

(9) Each Proxy Access Nominee must:

(a) complete, sign and submit all questionnaires required of the Corporation’s Board of Directors within five business days of receipt of each such questionnaire from the Corporation; and

(b) provide within five business days of the Corporation’s request such additional information as the Corporation determines may be necessary to permit the Board of Directors to determine whether such Proxy Access Nominee meets the requirements of this Section 2.C. and/or the Corporation’s requirements with regard to director qualifications and policies and guidelines applicable to directors, including whether (1) such Proxy Access Nominee is independent under the listing standards of each U.S. exchange upon which the capital stock of the Corporation is listed, any applicable rules of the SEC, and any publicly disclosed standards used by the Board of Directors in determining and disclosing the independence of the directors (the “Independence Standards”), (2) such Proxy Access Nominee has any direct or indirect relationship with the Corporation, and (3) such Proxy Access Nominee is not and has not been subject to (A) any event specified in Item 401(f) of Regulation S-K under

8

the Securities Act of 1933, as amended (the “Securities Act”), or (B) any order of the type specified in Rule 506(d) of Regulation D under the Securities Act.

(10) In the event that any information or communications provided by the Eligible Shareholder or Proxy Access Nominee to the Corporation or its shareholders ceases to be true and correct in any respect or misleading, each Eligible Shareholder or Proxy Access Nominee, as the case may be, shall promptly notify the Secretary of the Corporation of any such inaccuracy or omission in such previously provided information and of the information that is required to make such information or communication true and correct; it being understood that providing any such notification shall not be deemed to cure any defect or limit the Corporation’s right to omit a Proxy Access Nominee from its proxy materials as provided in this Section 2.C.

(11) The Corporation shall not be required to include, pursuant to this Section 2.C., a Proxy Access Nominee in its proxy statement (or, if the proxy statement has already been filed, to allow the nomination of a Proxy Access Nominee, notwithstanding that proxies in respect of such vote may have been received by the Corporation) (a) for any meeting for which the

Secretary of the Corporation receives a notice that any shareholder has nominated a person for election to the Board of Directors pursuant to Section 2.B. of these By-Laws, (b) if the Eligible Shareholder who has nominated such Proxy Access Nominee has nominated for election to the Board of Directors at the meeting any person other than pursuant to this Section 2.C., or has or is engaged in, or has been or is a “participant” in another person’s, “solicitation” within the meaning of Rule 14a-1(l) under the Exchange Act in support of the election of any individual as a director at the meeting other than its Proxy Access Nominee(s) or a Board Nominee, (c) who is not independent under the Independence Standards, (d) who does not meet the audit committee independence requirements under the listing standards of each U.S. exchange upon which the Corporation’s capital stock is listed, is not a “non-employee director” for purposes of Rule 16b-3 under the Exchange Act or is not an “outside director” for purposes of Section 162(m) of the Internal Revenue Code, (e) whose election as a member of the Board of Directors would violate or cause the Corporation to be in violation of these By-Laws, the Certificate of Incorporation, any applicable publicly disclosed corporate governance, conflict of interest, corporate opportunities, confidentiality and stock ownership and trading policies and guidelines of the Corporation (including, without limitation, policies and guidelines relating to Voting Commitments and Compensation Arrangements applicable to the Corporation’s directors) or other document setting forth qualifications for directors, the listing standards of each exchange upon which the capital stock of the Corporation is listed, or any applicable state or federal law, rule or regulation, (f) if the Proxy Access Nominee is or becomes a party to any Voting Commitment that has not been disclosed in writing to the Corporation, (g) if the Proxy Access Nominee is or becomes a party to any Compensation Arrangement that has not been disclosed in writing to the Corporation, (h) who is or has been, within the past three years, an officer or director of a competitor, as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended, (i) who is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses) or has been convicted in such a criminal proceeding within the past 10 years, (j) who is subject to any order of the type specified in Rule 506(d) of Regulation D under the Securities Act, or (k) if such Proxy Access Nominee or the applicable

9

Eligible Shareholder shall have provided untrue or misleading information to the Corporation in respect of such nomination or shall have breached its or their agreements, representations, undertakings and/or obligations pursuant to this Section 2.C.

(12) Any Proxy Access Nominee who is included in the Corporation’s proxy statement for a particular annual meeting of shareholders but either (a) withdraws from or becomes ineligible or unavailable for election at the meeting or (b) does not receive a number of votes cast in favor of his or her election at least equal to 20% of the shares present in person or represented by proxy at the annual meeting and entitled to vote on the Proxy Access Nominee’s election (excluding abstentions and broker non-votes, if applicable), shall be ineligible to be included in the Corporation’s proxy statement as a Proxy Access Nominee pursuant to this Section 2.C. for the next two annual meetings of shareholders following the meeting for which the Proxy Access Nominee has been nominated for election.

(13) The Board of Directors (and any other person or body authorized by the Board of Directors) shall have the power and authority to interpret this Section 2.C. and to make any and all determinations necessary or advisable to apply this Section 2.C. to any persons, facts or circumstances, including the power to determine (a) whether a person or group of persons qualifies as an Eligible Shareholder, (b) whether outstanding shares of the capital stock of the Corporation are “owned” for purposes of meeting the ownership requirements of this Section 2.C., (c) whether a notice complies with the requirements of this Section 2.C., (d) whether a person satisfies the qualifications and requirements to be a Proxy Access Nominee, (e) whether inclusion of the Required Information in the Corporation’s proxy statement is consistent with all applicable laws, rules, regulations and listing standards, and (f) whether any and all requirements of this Section 2.C. have been satisfied.

(14) This Section 2.C. provides the exclusive method for a shareholder to include nominees for election to the Board of Directors in the Corporation’s proxy materials.

Section 3. The Board of Directors may adopt such rules and regulations for the conduct of their meetings and management of the affairs of the Corporation, as they may deem proper, not inconsistent with the laws of the State of New York, the Certificate of Incorporation or these By-Laws.

Section 4. The regular meetings of the Board of Directors shall be held as determined by the Board of Directors. Special meetings shall be held whenever called by direction of the Chairman of the Board, or the Chief Executive Officer or of any two of the directors, on at least two days previous notice by mail, email or facsimile or twenty-four hours previous notice by telephone, followed by email or facsimile to each director; provided that no notice need be given of any special meeting at which all the members shall be present or notice of which shall be waived by all absent members before or after the meeting. Notice of such meeting shall be effective as of the sending of the notice by mail, email or facsimile, or the date of the telephone call. Unless otherwise indicated in the notice thereof or otherwise provided by the laws of the State of New York, the Certificate of Incorporation or these By-Laws, any and all business may be transacted at a special meeting. One-third of the directors shall constitute a quorum at any meeting of the

10

Board of Directors. At the first meeting of the Board of Directors held after the annual meeting of shareholders, the Board shall proceed to the election of the officers of the Corporation.

Section 5. Any action required or permitted to be taken by the Board of Directors may be taken without a meeting if all members of the Board of Directors consent in writing (including by electronic means) to the adoption of a resolution authorizing such action.

Section 6. Any one or more members of the Board of Directors may participate in a meeting of the Board of Directors by means of a conference telephone or similar communications equipment allowing all persons participating in such meeting to hear each other at the same time. Participation by such means shall constitute presence in person at such meeting.

ARTICLE III. COMMITTEES OF THE BOARD

Section 1. The Board of Directors may, by resolution or resolutions adopted by a majority of the members of the Board of Directors designate a committee of the Board to be known as the Finance Committee of the Board (“Finance Committee”) and to consist of the Chairman of the Board and such number of other directors as shall be designated from time to time by resolution adopted by a majority of the members of the Board of Directors. The Board of Directors may designate one or more directors as alternate members of the Finance Committee, who may replace any absent member or members of the Committee at any meeting of the Finance Committee. The Board shall have the power at any time to fill vacancies in, to change the membership of, or to dissolve the Finance Committee. The Finance Committee shall have and may exercise, when the Board is not in session, all authority of the Board of Directors with respect to designating as a depository any bank, banker or trust company, opening lines of credit with any bank, banker or trust company and all matters appertaining thereto, including, but not limited to, the authorization of all resolutions and agreements and the execution of all instruments required by any bank, banker or trust company in connection therewith, including the certification thereof by the Secretary of the Corporation, the designation of officers and employees of the Corporation authorized to withdraw or charge any of the funds of the Corporation so deposited upon checks, notes, drafts, bills of exchange, acceptances, undertakings or other instruments or orders for the payment of money drawn against the account of the Corporation, the designation of officers authorized to borrow or obtain credit for the Corporation from any bank, banker or trust company or to endorse for discount or otherwise, negotiable or non-negotiable instruments held by the Corporation, the authorization of leases of safe deposit boxes, the designation of officers and employees authorized to have access to said boxes, and the authorization of guarantees required by symbol endorsement.

Section 2. The Board of Directors may, by resolution or resolutions, passed by a majority of the

members of the Board of Directors designate a committee of the Board to be known as the Executive Committee of the Board (“Executive Committee”) and to consist of the Chairman of the Board of Directors, who shall be Chairman of the Executive Committee, and such number of other directors as shall be designated from time to time by resolution adopted by a majority of the members of the Board of Directors. The Executive Committee shall have and may exercise when the Board of Directors is not in session, all authority of the Board of Directors, except as

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may be limited by Section 712 of the Business Corporation Law of New York State. The Board of Directors may designate one or more directors as alternate members of such committee who may replace any absent member or members at any meeting of the Executive Committee.

Section 3. The Board of Directors shall, by resolution or resolutions passed by a majority of the members of the Board of Directors, designate at least three of its members, none of whom are members of management, as the Audit Committee of the Board (“Audit Committee”), and will further designate one member as Chairman of the Audit Committee. The Audit Committee shall have the responsibilities set out in the Audit Committee Charter and such other responsibilities as the Board may from time to time delegate to the Audit Committee, as well as responsibility for such other matters pertaining to internal controls, audit, or reporting of the financial affairs of the company as the Audit Committee, in its sole discretion, deems advisable and necessary. A full report of the activities of the Audit Committee will be made by the Chairman or his designee to each meeting of the Board of Directors.

Section 4. The Board of Directors may, by resolution or resolutions, passed by a majority of the members of the Board of Directors designate not less than two of its members to serve as the Nominating and Corporate Governance Committee of the Board (“Nominating Committee”), and will further designate one member as Chairman of the Nominating Committee. The Nominating Committee shall meet at least annually for the purpose of considering and presenting to the Board its nominations for officers and directors and shall such other responsibilities as are set forth in the Nominating and Corporate Governance Committee Charter, as well as such other responsibilities as the Board may from time to time delegate to the Nominating Committee.

Section 5. The Board of Directors may, by resolution or resolutions, passed by a majority of the members of the Board of Directors designate not less than two of its members to serve as the Compensation Committee of the Board (“Compensation Committee”), and will further designate one member as Chairman of the Compensation Committee. The Compensation Committee shall meet at least annually and shall have such responsibilities as are set forth in the Compensation Committee Charter, as well as such other responsibilities as the Board may from time to time delegate to the Compensation Committee.

Section 6. The Board of Directors may, by resolution or resolutions adopted by a majority of the members of the Board of Directors designate such other committees of the Board as shall be designated from time to time. Such committees shall have such number of directors as are designated by the Board and shall have such powers designated by the Board as are consistent with the provisions of the Business Corporation Law of New York State. The Board of Directors may designate one or more directors as alternate members of such committee who may replace any absent member or members at any meeting of any such committee. Any such committee shall have and exercise the authority of the Board of Directors.

Section 7. Such committees may meet either regularly at stated times or specially on notice given twenty-four hours in advance by any member thereof by mail, email, facsimile or telephone to all the other members thereof provided such notice is received before the meeting takes place; but no notice of any regular meeting need be given; and no notice need be given of any special meeting at which all the members shall be present or notice of which shall be waived by all the

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absent members before or after such meeting. Such committees may make rules for the holding and conduct of their meetings and may appoint such subcommittees and assistants, as they shall from time to time deem necessary. A number of regular members or alternate members or both equal to a majority of the number of regular members of a committee shall constitute a quorum and the act of a majority of those present at a meeting at which a quorum is present and action shall be the act of a committee. All action taken by a committee shall be reported to the Board of Directors at its meeting next succeeding such action. The Secretary or an Assistant Secretary shall attend and act as secretary of all meetings of a committee and keep the minutes thereof.

Section 8. Any action required or permitted to be taken by any committee of the Board may be taken without a meeting if all members of the committee consent in writing (including by electronic means) to the adoption of a resolution authorizing such action.

Section 9. Any one or more members of any committee of the Board may participate in a meeting of such committee by means of a conference telephone or similar communications equipment allowing all persons participating in such meeting to hear each other at the same time. Participation by such means shall constitute presence in person at such meeting.

ARTICLE IV. OFFICERS

Section 1. The officers of the Corporation shall be a Chairman of the Board of Directors, a Chief Executive Officer, a President, one or more Vice Presidents, one or more of whom may be designated Executive Vice President and one or more of whom may be designated Senior Vice President, a Treasurer, a Secretary and a Controller, all of whom may be appointed by the Board of Directors, and such other officers as the Board of Directors, from time to time may appoint and each officer shall serve at the discretion of the Board of Directors until the next annual election of officers. One person may serve as more than one of such officers, except that the same person shall not serve both as Chief Executive Officer and Secretary.

Section 2. The Board of Directors may appoint from their number a Chairman of the Board of Directors who shall preside at all meetings of the Board of Directors and of the shareholders of the Corporation, and shall have such other powers and duties as may be delegated to him or her by the Board of Directors.

Section 3. The Board of Directors shall appoint a Chief Executive Officer who shall, subject to the supervision of the Board of Directors, have general charge of the management of the affairs of the Corporation. In the absence of the Chairman of the Board (or if there be none), he or she shall preside at all meetings of the Board of Directors and of the shareholders. In the absence or incapacity of the Chairman of the Board, the Chief Executive Officer shall exercise all of the powers and duties of the Chairman of the Board.

Section 4. The Board of Directors shall appoint a President who shall have such powers and shall perform such duties as may be assigned by the Board of Directors. In the absence or incapacity of the Chief Executive Officer, the President shall exercise all of the powers and duties of the Chief Executive Officer.

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Section 5. The Board of Directors may appoint a chief operating officer of the Corporation who need not be a member of the Board of Directors of the Corporation. The chief operating officer shall be subject to the direction of the Chief Executive Officer and the President, and shall direct and supervise the administration of the business and affairs of the Corporation.

Section 6. The Board of Directors shall appoint one or more Vice Presidents, one or more of whom may be designated Executive Vice President or Senior Vice President, and one of whom may be designated Vice President-Finance, who shall have such powers and shall perform such duties as may be assigned by the Board of Directors. In the absence or incapacity of the President, the Executive Vice Presidents, in order of seniority determined by time of appointment to office, shall exercise all of the powers and duties of the President.

Section 7. The Board of Directors shall elect a Treasurer who shall have such powers and shall perform such duties as may be assigned to him by the Board of Directors.

Section 8. The Board of Directors shall appoint a Secretary who shall keep the minutes of all meetings of the Board of Directors and of the shareholders of the Corporation. The Secretary shall give or cause to be given notice of all meetings of the shareholders and of such meetings of the Board of Directors as may require notice. The Secretary shall keep in safe custody the seal of the Corporation and shall affix the same to all instruments requiring it when authorized by the Board of Directors, the Chairman of the Board of Directors or the Chief Executive Officer. The Secretary shall have such further powers and shall perform such further duties as may be assigned to the Secretary by the Board of Directors. The Secretary shall enforce the restrictions on the transfer of the capital stock of the Corporation set forth in Part III of Article FOURTH of the Certificate of Incorporation. In connection therewith, the Secretary shall supervise the Corporation’s transfer agent and/or registrar for the capital stock.

Section 9. The Board of Directors shall elect a Controller who shall be the chief accounting officer of the Corporation and shall be in charge of its books of account and accounting records and of its accounting procedures. The Controller shall have such further powers and shall perform such further duties as may be assigned to the Controller by the Board of Directors.

Section 10. The Board of Directors shall from time to time appoint such other officers to have such powers and to perform such duties as may be assigned to them by the Board of Directors.

ARTICLE V. INDEMNIFICATION

The Corporation, to the full extent permitted and in the manner required by the laws of the State of New York as in effect at the time of the adoption of this Article V or as the law may be amended from time to time, shall (i) indemnify any person (and the heirs and legal representatives of such person) made, or threatened to be made, a party in an action or proceeding (including, without limitation, one by or in the right of the Corporation to procure a judgment in its favor), whether civil, criminal, administrative or investigative, including an action by or in the right of any other corporation of any type or kind, domestic or foreign, or any partnership, joint venture, trust, employee benefit plan or other enterprise, which any director or officer of the Corporation served in any capacity at the request the Corporation, by reason of the

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fact that he, his testator or intestate, was a director or officer of the Corporation or served such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise in any capacity and (ii) provide to any such person (and their heirs and legal representatives of such person) advances for expenses incurred in pursuing such action or proceeding, upon receipt of an undertaking by or on behalf of such director or officer to repay such amount as, and to the extent, required by Section 725(a) of the Business Corporation Law.

The indemnification and advancement of expenses provided herein shall not be deemed exclusive of any other rights to which the person seeking indemnification or advancement of expenses may be entitled (i) under the Certificate of Incorporation or By-Laws of this or any other corporation, or (ii) by any resolution of shareholders, resolution of directors or agreement providing for such indemnification or advancement, all of which are authorized by these By-Laws (except with respect to matters which at the time of indemnification is sought are prohibited by applicable law), or (iii) otherwise.

ARTICLE VI. CAPITAL STOCK

Section 1. The shares of stock of the Corporation shall be represented by certificates, provided that the Board may allow by resolution or resolutions that some or all of any or all classes or series of its stock may be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to this Corporation. Subject to Part III of Article FOURTH of the Certificate of Incorporation, certificates for each class and series of stock shall be in such form as shall be adopted by the Board of Directors, shall be duly numbered and registered in the order issued and shall be signed by the Chairman of the Board or the Chief Executive Officer or the President or a Vice President and the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer of the Corporation, and may be sealed with the seal of the Corporation or facsimile thereof. The signatures of the officers upon a certificate may be facsimiles if the certificate is countersigned by a transfer agent or registered by a registrar other than the Corporation itself or its employee. In case any officer who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer at the date of issue.

Section 2. Subject to Part III of Article FOURTH of the Certificate of Incorporation, transfers of shares shall only be made upon the books of the Corporation by the registered holder in person or by attorney, duly authorized and upon surrender of the certificate or certificates, if any, for such shares, properly signed for transfer (or, with respect to uncertificated shares, by delivery of duly executed instructions or in any other manner permitted by applicable law), and new certificates (or uncertificated shares, as the case may be) shall thereupon be issued.

Section 3. A new certificate of stock may in the discretion of the Board of Directors, and under such regulations with respect to indemnification and otherwise as they may prescribe, be issued in place of the certificate claimed to have been lost, stolen or destroyed.

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Section 4. So long as the restrictions set forth in Part III of Article FOURTH of the Certificate of Incorporation shall not have lapsed, all share certificates representing shares of capital stock shall bear a conspicuous legend as follows:

“THE TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO RESTRICTIONS PURSUANT TO PART III OF ARTICLE FOURTH OF THE CERTIFICATE OF INCORPORATION OF LEUCADIA NATIONAL CORPORATION REPRINTED IN ITS ENTIRETY ON THE BACK OF THIS CERTIFICATE.”

With respect to uncertificated shares, the full text of such legend and Part III of Article Fourth of the Certificate of Incorporation may be recorded upon the books of the Corporation, sent to the registered holder thereof, or communicated to the registered holder by any other means in accordance with the laws of the State of New York.

Section 5. Subject to Part III of Article FOURTH of the Certificate of Incorporation, the Corporation shall be entitled to treat the registered holder of any share or shares as the holder thereof in fact and law and shall not be bound to recognize any equitable or other claim to, or interest in, such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, save as otherwise expressly provided by statute.

ARTICLE VII. DIVIDENDS

Dividends shall be declared and paid out of the surplus of the Corporation as often and at such times as the Board of Directors may determine, and in accordance with the New York Business Corporation Law.

ARTICLE VIII. INSPECTORS OF ELECTION

The Board of Directors, in advance of any shareholders’ meeting, shall appoint two inspectors to act at the meeting or any adjournment thereof. If inspectors are not so appointed, the person presiding at a shareholders’ meeting shall appoint two inspectors. In case any person appointed fails to appear or act, the vacancy may be filled by appointment made by the Board of Directors in advance of the meeting or at the meeting by the person presiding thereat.

ARTICLE IX. DIRECTOR EMERITUS

The Board of Directors may from time to time elect one or more individuals to serve as a Director Emeritus whose duty shall be to consult with and advise the Board of Directors and members of management of the Corporation, as requested. An individual serving as a Director Emeritus shall serve at the pleasure of the Board of Directors and shall have the right to receive notice of and attend all meetings of the Board of Directors (although no Director Emeritus shall be required to attend meetings of the Board of Directors, or to attend any such meetings in person), to participate in discussions held during the meetings of the Board of Directors (but not meetings of the committees of the Board of Directors), and to receive compensation as is from time to time determined to be appropriate by the Board of Directors. No Director Emeritus shall be entitled to vote on any business coming before the Board of Directors, nor shall he or she be

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counted as a member of the Board of Directors for any purpose including for the purpose of determining the number of directors necessary to constitute a quorum, for the purpose of determining whether a quorum is present, or otherwise. The position of Director Emeritus does not carry with it any rights, duties, privileges, liabilities or obligations otherwise associated with being a member of the Board of Directors; and accordingly no “Director Emeritus” shall be a “director” nor shall any “Director Emeritus” be deemed to be a “director” as that term is used in these By-Laws or otherwise.

ARTICLE X. SEAL

The seal of the Corporation shall be in the form of a circle and shall bear the name of the Corporation and the year of its incorporation.

ARTICLE XI. AMENDMENTS

By-Laws of the Corporation may be adopted, amended or repealed by vote of the holders of the shares at the time entitled to vote in the election of any directors. By-Laws may also be adopted, amended or repealed by the Board of Directors by vote of a majority of the directors present at the time of the vote if a quorum is then present. If any By-Law regulating an impending election of directors is adopted, amended or repealed by the Board of Directors, there shall be set forth in the notice of the next meeting of shareholders for the election of Directors the By-Law so adopted, amended or repealed, together with a concise statement of the changes made.

ARTICLE XII. WAIVERS OF NOTICE

Whenever the Corporation or the Board of Directors or any committee of the Board is authorized to take any action after notice to any person or persons or after the lapse of a prescribed period of time, such action may be taken without notice and without the lapse of such period of time, if at any time before or after such action is completed the person or persons entitled to such notice or entitled to participate in the action to be taken or, in the case of a shareholder, his attorney-in-fact or proxy, submits a signed waiver of notice of such requirement.

* * *

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EX-21

LEUCADIA NATIONAL CORPORATION	Exhibit 21
Subsidiaries as of December 31, 2016
	State/
	Country of
Name	Incorporation
Jefferies Execution Services, Inc.	California
Baldwin Enterprises, Inc.	Colorado
BEI Italia Wireless LLC	Delaware
Chrome Capital Group LLC	Delaware
Conwed Plastics LLC	Delaware
Foursight Funding LLC	Delaware
Garcadia Auto, LLC	Delaware
Jefferies Finance, LLC	Delaware
Jefferies Financial Products, LLC	Delaware
Jefferies Financial Services, Inc.	Delaware
Jefferies Funding LLC	Delaware
Jefferies Group LLC	Delaware
Jefferies Investment Advisers, LLC	Delaware
Jefferies LLC	Delaware
Jefferies LoanCore LLC	Delaware
Juneau Energy, LLC	Delaware
KUL Ventures LLC	Delaware
LAM Holding LLC	Delaware
Leucadia Asset Management LLC	Delaware
Leucadia Aviation, Inc.	Delaware
Leucadia Funding LLC	Delaware
Leucadia LLC	Delaware
LUK-FX Holdings, LLC	Delaware
LUK HRG LLC	Delaware
LUK Servicing, LLC	Delaware
National Beef California, L.P.	Delaware
National Beef Leathers, LLC	Delaware
National Beef Packing Company, LLC	Delaware
Nead Corporation	Delaware
Vitesse Energy, LLC	Delaware
Alumni Forest Products, LLC	Georgia
Idaho Timber of Carthage, LLC	Idaho
Kansas City Steak Company, LLC	Missouri
Foursight Capital LLC	Utah
Conwed Plastics NV	Belgium
Jefferies Securities, Inc.	British Columbia
Jefferies International Limited	England & Wales
Jefferies Hong Kong Limited	Hong Kong
Jefferies Singapore Limited	Hong Kong
Jefferies India Private Limited	India
Jefferies (Japan) Limited	Japan
Subsidiaries not included on this list, considered in the aggregate as a single subsidiary, would not
constitute a significant subsidiary as of December 31, 2016

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-169377, 333-51494, 333-143770 and 333-185318) and Form S-3ASR (No. 333-214759) of Leucadia National Corporation of our reportdated February 27, 2017 relating to the financial statements, financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/PricewaterhouseCoopers LLP
New York, New York
February 27, 2017

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Richard B. Handler, certify that:

1. I have reviewed this annual report on Form 10-K of Leucadia National Corporation;

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 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 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 the 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 control 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:  February 27, 2017	By:	/s/           Richard B. Handler
		Name:    Richard B. Handler
		Title:      Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Teresa S. Gendron, certify that:

1. I have reviewed this annual report on Form 10-K of Leucadia National Corporation;

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 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 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 the 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 control 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:  February 27, 2017	By:	/s/         Teresa S. Gendron
		Name:   Teresa S. Gendron
		Title:     Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard B. Handler, as Chief Executive Officer of Leucadia National Corporation (the "Company") certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the accompanying Form 10-K report for the period ending December 31, 2016 as filed with the U.S. Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.  

Date:  February 27, 2017	By:	/s/          Richard B. Handler
		Name:   Richard B. Handler
		Title:     Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Teresa S. Gendron, as Chief Financial Officer of Leucadia National Corporation (the "Company") certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the accompanying Form 10-K report for the period ending December 31, 2016 as filed with the U.S. Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.  

Date:  February 27, 2017	By:	/s/         Teresa S. Gendron
		Name:  Teresa S. Gendron
		Title:    Chief Financial Officer

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 16, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000096223
Entity Registrant Name	LEUCADIA NATIONAL CORP
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		359,807,465
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 5,757,059,412

XML

Consolidated Statements Of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 3,807,558	$ 3,638,648	$ 4,276,775	$ 3,907,595
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	857,337	751,084
Financial instruments owned, including securities pledged of $9,706,881 and $12,207,123:
Trading assets, at fair value	14,985,237	18,293,090
Available for sale securities	301,049	207,355
Total financial instruments owned	15,286,286	18,500,445
Investments in managed funds	515,318	603,720
Loans to and investments in associated companies	2,125,098	1,757,369
Securities borrowed	7,743,562	6,975,136
Securities purchased under agreements to resell	3,862,488	3,854,746
Receivables	4,425,178	3,830,967
Property, equipment and leasehold improvements, net	709,242	721,875
Intangible assets, net and goodwill	2,513,678	2,648,362
Deferred tax asset, net	1,461,815	1,575,368
Assets held for sale	128,083	0
Other assets	1,635,664	1,473,464
Total assets	45,071,307	46,331,184	52,614,324
LIABILITIES
Short-term borrowings	525,842	310,659
Trading liabilities, at fair value	8,388,619	6,840,430
Securities loaned	2,819,132	3,014,300
Securities sold under agreements to repurchase	6,791,676	9,966,868
Other secured financings	1,026,429	908,741
Payables, expense accruals and other liabilities	7,373,708	7,107,081
Long-term debt	7,380,443	7,400,582
Total liabilities	34,305,849	35,548,661
Commitments and contingencies
MEZZANINE EQUITY
Redeemable noncontrolling interests	336,809	191,633
Mandatorily redeemable convertible preferred shares	125,000	125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425	362,617
Additional paid-in capital	4,812,587	4,986,819
Accumulated other comprehensive income	310,697	438,793	447,082
Retained earnings	4,645,391	4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100	10,401,211
Noncontrolling interests	175,549	64,679
Total equity	10,303,649	10,465,890	$ 10,370,022	$ 10,173,053
Total	$ 45,071,307	$ 46,331,184

XML

Consolidated Statements Of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Securities pledged	$ 9,706,881	$ 12,207,123
EQUITY
Common shares, par value (USD per share)	$ 1	$ 1
Common shares, authorized	600,000,000	600,000,000
Common shares, issued and outstanding after deducting shares held in treasury	359,425,061	362,617,423
Treasury stock, shares	56,947,654	53,755,292

XML

Consolidated Statements Of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Beef processing services	$ 7,021,902	$ 7,396,869	$ 7,824,246
Commissions	611,574	659,002	668,801
Principal transactions	603,822	642,824	662,213
Investment banking	1,193,973	1,417,807	1,526,637
Interest income	926,255	955,240	1,052,151
Net realized securities gains	29,542	62,957	30,394
Other	488,186	549,228	570,465
Total revenues	10,875,254	11,683,927	12,334,907
Interest expense	108,703	115,804	120,935
Net revenues	10,062,617	10,886,458	11,486,485
Expenses:
Cost of sales	6,850,807	7,677,233	8,024,286
Compensation and benefits	1,730,585	1,665,465	1,841,674
Floor brokerage and clearing fees	167,205	199,780	215,329
Interest expense	108,703	115,804	120,935
Depreciation and amortization	211,593	224,133	185,993
Provision for doubtful accounts	24,580	7,353	59,695
Selling, general and other expenses	807,312	750,435	795,878
Total expenses	9,900,785	10,640,203	11,243,790
Income from continuing operations before income taxes and income related to associated companies	161,832	246,255	242,695
Income related to associated companies	154,598	110,281	138,527
Income from continuing operations before income taxes	316,430	356,536	381,222
Income tax provision	122,109	109,947	165,971
Income from continuing operations	194,321	246,589	215,251
Income (loss) from discontinued operations, net of income tax provision (benefit) of $0, $231 and $(9,634)	0	429	(17,893)
Gain on disposal of discontinued operations, net of income tax provision of $0, $2,743 and $899	0	5,093	1,667
Net income	194,321	252,111	199,025
Net loss attributable to the noncontrolling interests	1,426	4,996	727
Net (income) loss attributable to the redeemable noncontrolling interests	(65,746)	26,543	8,616
Preferred stock dividends	(4,063)	(4,063)	(4,062)
Net income attributable to Leucadia National Corporation common shareholders	$ 125,938	$ 279,587	$ 204,306
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)	$ 0.34	$ 0.73	$ 0.58
Income (loss) from discontinued operations (USD per share)	0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)	0.00	0.01	0.01
Net income (USD per share)	0.34	0.74	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)	0.34	0.73	0.58
Income (loss) from discontinued operations (USD per share)	0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)	0.00	0.01	0.01
Net income (USD per share)	$ 0.34	$ 0.74	$ 0.54
Amounts attributable to Leucadia National Corporation common shareholders:
Income from continuing operations, net of taxes	$ 125,938	$ 274,065	$ 220,584
Income (loss) from discontinued operations, net of taxes	0	429	(17,945)
Gain on disposal of discontinued operations, net of taxes	0	5,093	1,667
Net income attributable to Leucadia National Corporation common shareholders	125,938	279,587	204,306
Investment Banking And Capital Markets Segment [Member]
Revenues:
Interest expense	812,637	797,469	848,422
Expenses:
Interest expense	$ 812,637	$ 797,469	$ 848,422

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Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Income tax provision (benefit) from discontinued operations	$ 0	$ 231	$ (9,634)
Income tax provision (benefit) related to gain on disposal of discontinued operations	$ 0	$ 2,743	$ 899

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Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 194,321	$ 252,111	$ 199,025
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)	3,900	(9,057)	(8,866)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631	(4)	(10,930)	(2,939)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)	3,896	(19,987)	(11,805)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)	(121,581)	(36,477)	(43,307)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149	0	0	(267)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)	(121,581)	(36,477)	(43,574)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494)	0	0
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0	0	0	0
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494)	0	0
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0	0	0	0
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)	0	0	169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95	0	0	169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)	(5,451)	17,073	(38,959)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)	(1,534)	(31,102)	(3,201)
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)	(3,917)	48,175	(35,758)
Other comprehensive loss, net of income taxes	(128,096)	(8,289)	(90,968)
Comprehensive income	66,225	243,822	108,057
Comprehensive loss attributable to the noncontrolling interests	1,426	4,996	727
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	(65,746)	26,543	8,616
Preferred stock dividends	(4,063)	(4,063)	(4,062)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders	$ (2,158)	$ 271,298	$ 113,338

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Consolidated Statements Of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit)	$ 2,262	$ (5,029)	$ (4,923)
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit)	2	6,068	1,631
Net change in unrealized holding gains (losses) on investments, tax provision (benefit)	2,260	(11,097)	(6,554)
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit)	(3,530)	(5,174)	(6,837)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit)	0	0	149
Net change in unrealized foreign exchange gains (losses), tax provision (benefit)	(3,530)	(5,174)	(6,986)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, income tax provision (benefit)	(4,251)	0	0
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), income tax provision (benefit)	0	0	0
Net change in unrealized instrument specific credit risk gains (losses), income tax provision (benefit)	(4,251)	0	0
Net unrealized gains (losses) on derivatives arising during the period, tax provision (benefit)	0	0	0
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), tax provision (benefit)	0	0	(95)
Net change in unrealized derivative gains (losses), tax provision (benefit)	0	0	95
Net pension and postretirement gains (losses) arising during the period, tax provision (benefit)	(2,516)	7,152	(17,698)
Less: reclassification adjustment for pension and postretirement (gains) losses included in net income (loss), tax provision (benefit)	(700)	(17,159)	(1,676)
Net change in pension liability and postretirement benefits, tax provision (benefit)	$ (1,816)	$ 24,311	$ (16,022)

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net cash flows from operating activities:
Net income	$ 194,321	$ 252,111	$ 199,025
Adjustments to reconcile net income to net cash provided by (used for) operations:
Deferred income tax provision	118,631	134,016	126,885
Depreciation and amortization of property, equipment and leasehold improvements	144,116	164,067	124,977
Other amortization	22,673	8,006	14,767
Share-based compensation	33,597	74,087	109,838
Provision for doubtful accounts	34,252	20,168	69,907
Net securities gains	(29,542)	(62,957)	(30,394)
Income related to associated companies	(171,782)	(185,998)	(228,769)
Distributions from associated companies	191,455	223,658	176,491
Net (gains) losses related to property and equipment, and other assets	83,053	29,776	(27,784)
Gain on disposal of discontinued operations	0	(7,836)	(12,566)
Change in estimated litigation reserve	0	(96,500)	101,710
Net change in:
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	(107,771)	2,691,028	166,108
Trading assets	2,687,399	1,380,230	(3,223,327)
Investments in managed funds	75,144	(295,342)	(80,247)
Securities borrowed	(805,779)	(127,060)	(1,497,438)
Securities purchased under agreements to resell	(112,777)	56,377	(200,568)
Receivables from brokers, dealers and clearing organizations	(488,623)	551,021	11,872
Receivables from customers of securities operations	340,690	58,233	(349,767)
Other receivables	(162,748)	(145,634)	(161,415)
Other assets	(283,234)	83,414	(107,028)
Trading liabilities	1,727,698	(2,011,277)	1,832,930
Securities loaned	(122,946)	420,929	95,607
Securities sold under agreements to repurchase	(3,144,433)	(688,355)	(84,303)
Payables to brokers, dealers and clearing organizations	569,246	486,841	968,615
Payables to customers of securities operations	(483,188)	(3,455,080)	1,089,423
Trade payables, expense accruals and other liabilities	361,295	(225,711)	(3,546)
Other	(61,900)	(93,967)	(68,163)
Net cash provided by (used for) operating activities	608,847	(761,755)	(987,160)
Net cash flows from investing activities:
Acquisitions of property, equipment and leasehold improvements, and other assets	(318,678)	(295,894)	(600,837)
Proceeds from disposals of property and equipment, and other assets	62,463	22,820	52,011
Proceeds from disposal of discontinued operations, net of expenses and cash of operations sold	0	5,842	223,217
Acquisitions, net of cash acquired	(9,673)	0	(61,493)
Cash paid and cash of real estate operations sold to HomeFed Corporation	0	0	(19,730)
Advances on notes, loans and other receivables	(342,281)	(420,219)	(8,500)
Collections on notes, loans and other receivables	121,825	153,004	22,002
Loans to and investments in associated companies	(763,528)	(1,492,060)	(2,959,689)
Capital distributions and loan repayment from associated companies	703,108	1,389,262	2,756,320
Deconsolidation of asset management entities	(326)	(16,512)	(207,965)
Purchases of investments (other than short-term)	(739,298)	(873,831)	(1,821,635)
Proceeds from maturities of investments	162,393	379,629	1,191,349
Proceeds from sales of investments	483,360	1,931,656	1,878,427
Other	978	(2,532)	5,606
Net cash provided by (used for) investing activities	(639,657)	781,165	449,083
Net cash flows from financing activities:
Issuance of debt, net of issuance costs	1,020,050	363,595	1,002,636
Net change in short-term borrowings	204,882	298,659	0
Repayment of debt	(962,515)	(1,316,494)	(434,278)
Net change in other secured financings	116,702	205,231	470,415
Net change in bank overdrafts	(46,536)	0	0
Issuance of common shares	1,062	1,223	2,190
Net contributions from (distributions to) redeemable noncontrolling interests	(52,889)	5,165	(2,765)
Distributions to noncontrolling interests	(18,544)	(7,277)	(7,797)
Contributions from noncontrolling interests	154,522	15,469	54,259
Purchase of common shares for treasury	(95,020)	(125,754)	(75,728)
Dividends paid	(91,296)	(92,550)	(93,071)
Other	488	750	1,921
Net cash provided by (used for) financing activities	230,906	(651,983)	917,782
Effect of foreign exchange rate changes on cash	(25,980)	(5,554)	(10,525)
Cash classified as assets held for sale	(5,206)	0	0
Net increase (decrease) in cash and cash equivalents	168,910	(638,127)	369,180
Cash and cash equivalents at January 1,	3,638,648	4,276,775	3,907,595
Cash and cash equivalents at December 31,	3,807,558	3,638,648	4,276,775
Supplemental disclosures of cash flow information:
Interest	957,140	980,266	1,038,201
Income tax payments, net	(13,738)	510	9,880
Non-cash investing activities:
Transfer of investment in FXCM from trading assets to Loans to and investments in associated companies	334,500	0	0
Non-cash financing activities:
Issuance of common shares for debt conversion	$ 0	$ 0	$ 97,546

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Consolidated Statements Of Changes In Equity - USD ($) $ in Thousands	Total	Common Shares $1 Par Value [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Subtotal [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2013	$ 10,173,053	$ 364,541	$ 4,881,031	$ 538,050	$ 4,318,840	$ 10,102,462	$ 70,591
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	203,579				204,306	204,306	(727)
Other comprehensive loss, net of taxes	(90,968)			(90,968)		(90,968)
Contributions from noncontrolling interests	72,221					0	72,221
Distributions to noncontrolling interests	(8,977)					0	(8,977)
Deconsolidation of asset management entities	(77,475)					0	(77,475)
Change in interest in consolidated subsidiary	0		(3,654)			(3,654)	3,654
Share-based compensation expense	109,838		109,838			109,838
Change in fair value of redeemable noncontrolling interests	45,401		45,401			45,401
Issuance of common shares for debt conversion	97,546	4,606	92,940			97,546
Purchase of common shares for treasury	(75,728)	(2,990)	(72,738)			(75,728)
Dividends ($.25 per common share)	(95,077)				(95,077)	(95,077)
Other	16,609	1,342	6,690			8,032	8,577
Ending balance at Dec. 31, 2014	10,370,022	367,499	5,059,508	447,082	4,428,069	10,302,158	67,864
Beginning balance at Dec. 31, 2013	10,173,053	364,541	4,881,031	538,050	4,318,840	10,102,462	70,591
Ending balance at Dec. 31, 2015	10,465,890	362,617	4,986,819	438,793	4,612,982	10,401,211	64,679
Beginning balance at Dec. 31, 2014	10,370,022	367,499	5,059,508	447,082	4,428,069	10,302,158	67,864
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	274,591				279,587	279,587	(4,996)
Other comprehensive loss, net of taxes	(8,289)			(8,289)		(8,289)
Contributions from noncontrolling interests	16,189					0	16,189
Distributions to noncontrolling interests	(7,277)					0	(7,277)
Deconsolidation of asset management entities	(8,193)					0	(8,193)
Change in interest in consolidated subsidiary	0		(1,092)			(1,092)	1,092
Share-based compensation expense	74,087		74,087			74,087
Change in fair value of redeemable noncontrolling interests	(26,325)		(26,325)			(26,325)
Issuance of common shares for debt conversion	0
Purchase of common shares for treasury	(125,754)	(5,953)	(119,801)			(125,754)
Dividends ($.25 per common share)	(94,674)				(94,674)	(94,674)
Other	1,513	1,071	442			1,513
Ending balance at Dec. 31, 2015	10,465,890	362,617	4,986,819	438,793	4,612,982	10,401,211	64,679
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	124,512				125,938	125,938	(1,426)
Other comprehensive loss, net of taxes	(128,096)			(128,096)		(128,096)
Contributions from noncontrolling interests	154,522					0	154,522
Distributions to noncontrolling interests	(18,544)					0	(18,544)
Deconsolidation of asset management entities	(9,709)					0	(9,709)
Change in interest in consolidated subsidiary	0		(261)			(261)	261
Reclassification to redeemable noncontrolling interest	(14,234)					0	(14,234)
Share-based compensation expense	33,597		33,597			33,597
Change in fair value of redeemable noncontrolling interests	(115,963)		(115,963)			(115,963)
Issuance of common shares for debt conversion	0
Purchase of common shares for treasury	(95,020)	(5,434)	(89,586)			(95,020)
Dividends ($.25 per common share)	(93,529)				(93,529)	(93,529)
Other	223	2,242	(2,019)			223
Ending balance at Dec. 31, 2016	$ 10,303,649	$ 359,425	$ 4,812,587	$ 310,697	$ 4,645,391	$ 10,128,100	$ 175,549

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Consolidated Statements Of Changes In Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Common shares, par value (USD per share)	$ 1	$ 1	$ 1
Dividends per common share (USD per share)	$ 0.25	$ 0.25	$ 0.25

XML

Nature Of Operations

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature Of Operations

Nature of Operations

Leucadia National Corporation (“Leucadia” or the “Company”) is a diversified holding company focused on long-term value creation to maximize shareholder value.  We continuously review acquisitions of businesses, securities and assets that have the potential for significant long-term value creation, invest in a broad array of businesses, and evaluate the retention and disposition of our existing operations and holdings.  Changes in the mix of our businesses and investments should be expected.

Our financial services businesses and investments include Jefferies (investment banking and capital markets), Leucadia Asset Management (asset management), Berkadia (commercial mortgage banking, investment sales and servicing), FXCM (provider of online foreign exchange trading services), HomeFed (a publicly traded real estate company) and Foursight Capital (vehicle finance).  We also own and have investments in a diverse array of other businesses, including National Beef (beef processing), HRG Group ("HRG") (insurance and consumer products), Vitesse Energy and Juneau Energy (oil and gas exploration and development), Garcadia (automobile dealerships), Linkem (fixed wireless broadband services in Italy), Conwed Plastics ("Conwed") and Idaho Timber (manufacturing companies), and Golden Queen (gold and silver mining project). The structure of each of our investments was tailored to the unique opportunity each transaction presented. Our investments may be reflected in our consolidated results as consolidated subsidiaries, equity investments, securities or in other ways, depending on the structure of our specific holdings.

Jefferies is a global full-service, integrated securities and investment banking firm.  In March 2013, Jefferies became an indirect wholly-owned subsidiary of Leucadia, yet retains a separate credit rating and continues to be a separate SEC reporting company.  Through Jefferies, we own 50% of Jefferies Finance LLC ("Jefferies Finance"), our joint venture with Babson Capital Management LLC (now Barings, LLC) and Massachusetts Mutual Life Insurance Company.  Jefferies Finance is a commercial finance company whose primary focus is the origination and syndication of senior secured debt of middle market and growth companies in the form of term and revolving loans.  Through Jefferies, we also own a 48.5% voting interest in Jefferies LoanCore, a joint venture with the Government of Singapore Investment Corporation, the Canadian Pension Plan Investment Board and LoanCore, LLC.  Jefferies LoanCore originates, purchases and securitizes commercial real estate loans throughout the U.S.

Jefferies has a November 30^th year-end, which it retains for standalone reporting purposes.  We reflect Jefferies in our consolidated financial statements utilizing a one month lag.  We have reviewed Jefferies business and internal operating results for the month of December 2016 for the purpose of evaluating whether additional financial statement disclosures or adjustments are required to this Annual Report on Form 10-K, and we have concluded that no additional adjustments are warranted.

Leucadia Asset Management supports and develops focused alternative asset management businesses led by distinct management teams. These primarily include Folger Hill Asset Management LLC ("Folger Hill"), a multi-manager discretionary long/short equity hedge fund platform; Topwater Capital, a first-loss product; 54 Madison Capital, LLC ("54 Madison"), which invests in real estate projects; CoreCommodity Management LLC, an asset manager that focuses on commodities strategies; Tenacis Capital, a systematic macro investment platform; Lake Hill, an electronic trader in listed options and futures across asset classes; as well as several other smaller businesses. In addition, several investment management businesses, including Jefferies Strategic Investments Division, operate under Jefferies and are included under our marketing of the LAM platform.

Prior to September 1, 2016, our investment in FXCM Group, LLC ("FXCM") and associated companies consisted of a senior secured term loan due January 2017, with rights to a variable proportion of certain future distributions. On September 1, 2016, we, FXCM Inc. and FXCM Holdings, LLC ("FXCM Holdings") entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 to allow FXCM more time to optimize remaining asset sales ($154.5 million was outstanding under this loan at December 31, 2016); gave Leucadia a 49.9% common membership interest in FXCM and up to 65% of all distributions; created a six-member board for FXCM, comprised of three directors appointed by Leucadia and three directors appointed by FXCM Holdings; put in place a long-term incentive program for FXCM's senior management; entered into a management agreement pursuant to which FXCM Holdings will manage the assets and day-to-day operations of FXCM and its subsidiaries; and gave FXCM Holdings the same right Leucadia has to require a sale of FXCM beginning in January 2018. See Notes 4 and 10 to our consolidated financial statements for additional information.

Berkadia, our 50-50 equity method joint venture with Berkshire Hathaway Inc., is a U.S. commercial real estate company providing capital solutions, investment sales advisory and mortgage servicing for multifamily and commercial properties.

We own an approximate 65% equity method interest of HomeFed, which owns and develops residential and mixed use real estate properties.  HomeFed is a public company traded on the NASD OTC Bulletin Board. During 2014, we sold substantially all of our standalone real estate operations to HomeFed; see Notes 10 and 28 for more information.

We own 100% of Foursight Capital, an auto loan originator and servicer, and 85% of Chrome Capital, which owns and manages a portfolio of leases on used Harley-Davidson motorcycles and is in the process of winding down.

We own 78.9% of National Beef Packing Company.  National Beef processes and markets fresh and chilled boxed beef, ground beef, beef by-products, consumer-ready beef and pork, and wet blue leather for domestic and international markets.  National Beef operates two beef processing facilities, three consumer-ready facilities and a wet blue tanning facility, all located in the U.S. National Beef operates one of the largest wet blue tanning facilities in the world that sells processed hides to tanners that produce finished leather for the automotive, luxury goods, apparel and furniture industries.  National Beef owns Kansas City Steak Company, LLC, which sells portioned beef and other products directly to customers through the internet, direct mail and direct response television.  National Beef also owns a refrigerated and livestock transportation and logistics company that provides transportation services for National Beef and third parties.

We own approximately 23% of HRG, a publicly traded company (NYSE: HRG), and we reflect this investment at fair value based on quoted market prices. HRG primarily owns approximately 58% of Spectrum Brands, a publicly traded (NYSE: SPB) global consumer products company; an approximately 80% ownership stake in Fidelity & Guaranty Life ("FGL"), a publicly traded (NYSE: FGL) life insurance and annuity products company; and Front Street, a long-term reinsurance company. On November 8, 2015, FGL and Anbang Insurance Group Co., Ltd. ("Anbang") entered into a definitive merger agreement pursuant to which Anbang will acquire FGL for $26.80 per share in cash. In February 2017, FGL and Anbang amended the merger agreement which extends the outside termination date to April 17, 2017. The amendment also gives FGL the right to solicit, respond to, evaluate and negotiate competing offers, but provides that FGL may not sign a competing definitive agreement prior to the termination date.

Vitesse Energy, LLC ("Vitesse") is our 96% owned consolidated subsidiary that acquires and develops non-operated working and royalty oil and gas interests in the Bakken Shale oil field in North Dakota and Montana as well as the Denver-Julesburg Basin in Wyoming.

Juneau Energy, LLC ("Juneau") is our 98% owned consolidated subsidiary that engages in the exploration, development and production of oil and gas from onshore, unconventional resource areas.  Juneau currently has non-operated working interests and acreage in the Texas Gulf Coast region.

Garcadia is an equity method joint venture that owns and operates 28 automobile dealerships in California, Texas, Iowa and Michigan. We own approximately 75%.

We own approximately 42% of the common shares of Linkem, as well as convertible preferred shares which, if converted, would increase our ownership to approximately 57% of Linkem's common equity at December 31, 2016.  Linkem provides residential broadband services using LTE technologies deployed over the 3.5 GHz spectrum band.  Linkem operates in Italy, which has few cable television systems and poor broadband alternatives. Linkem is accounted for under the equity method.

Conwed is our consolidated subsidiary that manufactures and markets lightweight plastic netting used for building and construction, erosion and sediment control, packaging, agricultural purposes, carpet padding, filtration, consumer products and other purposes.  In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE:SWM) for $295 million in cash plus potential earn-out payments over five years of up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. The pre-tax gain of approximately $180 million recognized upon closing will be reflected in our results of operations for the three months ended March 31, 2017. See also Note 29 for more information.

Idaho Timber is our consolidated subsidiary engaged in the manufacture and distribution of various wood products, including the following principal activities:  remanufacturing dimension lumber; remanufacturing, bundling and bar coding of home center boards for large retailers; and production of pine dimension lumber and 5/4” radius-edge, pine decking. 

Golden Queen Mining Company, LLC ("Golden Queen") owns the Soledad Mountain project, an open pit, heap leach gold and silver mining project in Kern County, California, which commenced gold and silver production in March 2016.  We and the Clay family have formed and made contributions to a limited liability company, controlled by us, through which we invested in Golden Queen for the development and operation of the project. Our effective ownership of Golden Queen is approximately 35% and is accounted for under the equity method.

Certain amounts have been reclassified to be consistent with the 2016 presentation.

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts in the financial statements and disclosures of contingent assets and liabilities.  On an on-going basis, we evaluate all of these estimates and assumptions.  The most important of these estimates and assumptions relate to fair value measurements, compensation and benefits, asset impairment, the ability to realize deferred tax assets, the recognition and measurement of uncertain tax positions and contingencies.  Although these and other estimates and assumptions are based on the best available information, actual results could be different from these estimates.

Consolidation

Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock.  In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary.  The primary beneficiary is the party who has the power to direct the activities of a variable interest entity 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.  We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests.  All intercompany transactions and balances are eliminated in consolidation.

In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under GAAP.  We have also formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies.  Our subsidiaries may 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.

Revenue Recognition Policies

Beef Processing and Other Operations

Revenues are recognized when the following conditions are met: (1) collectibility is reasonably assured; (2) title to the product has passed or the service has been rendered and earned; (3) persuasive evidence of an arrangement exists; and (4) there is a fixed or determinable price.  National Beef’s revenues are recognized based on the terms of the sale, which for beef processing operations is typically upon delivery to customers.  Manufacturing revenues are recognized when title passes.

Investment Banking Activities

Commissions and Other Fees. All customer securities transactions are reported in 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 Operations.  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. Trading assets and trading liabilities are carried at fair value with gains and losses reflected in Principal transactions in the Consolidated Statements of Operations on a trade date basis.  Fees received on loans carried at fair value are also recorded within Principal transactions.

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 Selling, general and administrative expenses in the Consolidated Statements of Operations.

Interest Revenue and Expense.  Interest expense that is deducted from Revenues to arrive at Net revenues is related to Jefferies operations.  Contractual interest on Trading assets and Trading liabilities is recognized on an accrual basis as a component of Interest income and Interest expense.  Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions in the Consolidated Statements of Operations rather than as a component of interest income or expense.  Interest on short- and long-term borrowings is recorded on an accrual basis as Interest expense. Discounts/premiums arising on long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations.  Interest revenue related to Securities borrowed and Securities purchased under agreements to resell activities and interest expense related to Securities loaned and Securities sold under agreements to repurchase activities are recognized on an accrual basis.

Cash Equivalents

Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less.

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

In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients.  Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities.

Financial Instruments and Fair Value

Trading assets and Trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election.  Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations in Principal transactions.  Available for sales securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes.  When sold, realized gains and losses on available for sale securities are reflected in the caption Net realized securities gains.  The cost of securities sold is based on average cost.  Fair value 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 as of 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 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 as of 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 as of 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

The Jefferies Independent Price Verification ("IPV") Group, which is part of the Jefferies finance department, in partnership with Jefferies Risk Management, is responsible for establishing Jefferies valuation policies and procedures.  The IPV Group and Risk Management, which are independent of business functions, play an important role and serve as a control function in determining that Jefferies 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 Jefferies Global Controller and is subject to the oversight of the IPV Committee, which includes senior members of Jefferies finance department and other personnel.  Jefferies 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.  Jefferies business units are responsible for determining the fair value of Jefferies 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 the financial instruments inventory.  In the testing process, the IPV Group obtains prices and valuation inputs from sources independent of Jefferies, consistently adheres to established procedures set forth in the 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 the 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 management 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 Jefferies 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.  Jefferies processes challenges 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.  Jefferies process includes understanding and evaluating the external data providers’ valuation methodologies.  For corporate, U.S. government and agency, municipal debt securities, and loans, to the extent independent pricing services or broker quotes are utilized in Jefferies 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"), the 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, Jefferies considers pricing data from multiple service providers as available as well as compares pricing data to prices observed for recent transactions, if any, in order to corroborate 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 the Consolidated Statements of Operations.

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.

Loans to and Investments in Associated Companies

Loans to and investments in associated companies include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such investments.  Loans to and investments in associated companies are accounted for using the equity method.  See Note 10 for additional information regarding certain of these investments.

Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as Income (loss) related to associated companies, or as part of Other revenues if such investees are considered to be an extension of our business.  Income (loss) for investees for which the fair value option was elected is reported as Principal transactions revenues.

Receivables and Provision for Doubtful Accounts

At December 31, 2016 and 2015, Receivables include receivables from brokers, dealers and clearing organizations of $2,062.9 million and $1,616.3 million, respectively, and receivables from customers of securities operations of $843.1 million and $1,191.3 million, respectively.

During the fourth quarter of 2014, Jefferies recognized a bad debt provision, which primarily relates to a receivable of $52.3 million from a client to which Jefferies provided futures clearing and execution services, which declared bankruptcy.

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, Jefferies borrows 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.  Jefferies has an active securities borrowed and lending matched book business in which it borrows securities from one party and lends them to another party.  When Jefferies borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities borrowed.  Jefferies earns interest revenues on this cash collateral.  Similarly, when Jefferies lends securities to another party, that party provides cash to Jefferies as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities loaned.  Jefferies pays 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.  Jefferies monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns 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.  Jefferies earns and incurs interest over the term of the repo, which is reflected in Interest revenue and Interest expense in the 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 GAAP.  The fair value of the underlying securities is monitored 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.

Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation and amortization.  Depreciation and amortization are provided principally on the straight-line method over the estimated useful lives of the assets or, if less, the term of the underlying lease.

Impairment of Long-Lived Assets

We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable.  When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group).  The determination of whether an asset group is recoverable is based on management’s estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value.  If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value.

National Beef closed its Brawley beef processing facility in the second quarter of 2014.  National Beef incurred costs relating to the closing of the facility during 2014 of $6.9 million.  These costs include employee separation and retention, systems decommissioning and various other expenses.  Of these amounts, $4.6 million related to employee separation, which is included in Compensation and benefits, and the various other costs are included in Selling, general and other expenses in the Consolidated Statement of Operations.

In 2015, we recorded impairment charges in Selling, general and other expenses of $27.7 million, primarily related to a $20.3 million impairment at our Juneau oil and gas company and an impairment charge related to the Brawley plant of $4.7 million. For the oil and gas impairment test, we compare expected undiscounted future net cash flows to the unamortized capitalized cost of the asset. If the future undiscounted net cash flows are lower than the unamortized capital cost, we reduce the capitalized cost to fair market value. We used a third party reserve report in which the cash flows were calculated using West Texas Intermediate (oil) and Henry Hub (gas) NYMEX futures prices as of December 31, 2015. For one of our oil fields, the undiscounted net cash flows were lower than the unamortized capital cost and as a result, we wrote off the total capital cost. There were no significant impairment charges in 2014.

In 2016, Juneau recorded impairment charges in Selling, general and other expenses of $56.3 million related to write-downs of unproved oil and gas properties. Juneau assesses its unproved oil and gas properties for impairment based on remaining lease terms, drilling results or future plans to develop acreage and they record impairment expense for any decline in value. In the third quarter of 2016, Juneau curtailed development of its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage.

Substantially all of our operating businesses sell products or services that are impacted by general economic conditions in the U.S. and to a lesser extent internationally.  In recent years general economic conditions reduced the demand for products or services sold by our operating subsidiaries and/or resulted in reduced pricing for products or services.  A worsening of current economic conditions could cause a decline in estimated future cash flows expected to be generated by our operations and investments.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in intangible assets, property and equipment and other long-lived assets (for example, Jefferies, National Beef, manufacturing, oil and gas exploration and development and certain associated company investments), impairment charges would have to be recorded.

Intangible Assets, Net and Goodwill

Intangible Assets.  Intangible assets deemed to have finite lives are generally 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.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded.

An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary.  Impairment exists when the carrying amount exceeds its fair value.  Fair value will be determined using valuation techniques consistent with what a market participant would use.  All of our indefinite-lived intangible assets were recognized in connection with the Jefferies acquisition, and our annual impairment testing date for Jefferies is as of August 1.

Goodwill.  At acquisition, we allocate the cost of a business acquisition to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values.  Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant.  Any excess of the cost of a business acquisition over the fair values of the net assets and liabilities acquired is recorded as goodwill, which is not amortized to expense.  Substantially all of our goodwill was recognized in connection with the Jefferies acquisition.

At least annually, and more frequently if warranted, we will assess whether goodwill has been impaired.  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 values will be 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 fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of merger and acquisitions of similar businesses and/or projected cash flows.  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.  Our annual goodwill impairment testing date related to Jefferies is as of August 1 and National Beef as of December 31.

See Note 12 for further information with respect to our impairment charges related to intangible assets during 2015 and 2016.

Inventories and Cost of Sales

National Beef’s inventories consist primarily of beef products, beef by-products and supplies, and are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method for beef products and average cost for supplies.

Manufacturing inventories are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method.  Manufacturing cost of sales principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs.

Payables, expense accruals and other liabilities

At December 31, 2016 and 2015, Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $3,290.4 million and $2,757.2 million, respectively, and payables to customers of securities operations of $2,297.3 million and $2,780.5 million, respectively.

Income Taxes

We record a valuation allowance to reduce our net deferred tax asset to the net amount that is more likely than not to be realized.  If in the future we determine that it is more likely than not that we will be able to realize our net deferred tax asset in excess of our net recorded amount, an adjustment to increase the net deferred tax asset would increase income in such period.  If in the future we were to determine that we would not be able to realize all or part of our recorded net deferred tax asset, an adjustment to decrease the net deferred tax asset would be charged to income in such period.  We are required to consider all available evidence, both positive and negative, and to weigh the evidence when determining whether a valuation allowance is required and the amount of such valuation allowance.  Generally, greater weight is required to be placed on objectively verifiable evidence when making this assessment, in particular on recent historical operating results.

Our estimate of future taxable income considers all available evidence, both positive and negative, about our operating businesses and investments, includes an aggregation of individual projections for each significant operating business and investment, estimated apportionment factors for state and local taxing jurisdictions and included all future years that we estimate we will have available net operating loss carryforwards (“NOLs”) (until 2035).  We believe that our estimate of future taxable income is reasonable but inherently uncertain, and if our current or future operations and investments generate taxable income different than the projected amounts, further adjustments to the valuation allowance are possible.  The current balance of the deferred tax valuation allowance principally reserves for NOLs of certain subsidiaries that are not available to offset income generated by other members of the consolidated tax return group.

We also record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions.  Interest and penalties, if any, are recorded as components of income tax expense.  Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so estimating the amount.  If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which could be significant to our Consolidated Statement of Financial Condition or results of operations.

Share-based Compensation

Share-based awards are measured based on the fair value of the award as determined in accordance with GAAP and recognized over the required service or vesting period.  Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options and warrants are estimated at the date of grant using the Black-Scholes option pricing model.  Expected forfeitures are included in determining share-based compensation expense.

Foreign Currency Translation

Assets and liabilities of foreign subsidiaries are translated to U.S. dollars using the currency exchange rates at the end of the relevant period.  Revenues and expenses are translated at average exchange rates during the period.  The effects of exchange rate changes on the translation of the balance sheets, net of hedging gains or losses and taxes, if any, are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss) and classified as Accumulated other comprehensive income in the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity.  Gains or losses resulting from Jefferies foreign currency transactions are included in Principal transactions in the Consolidated Statements of Operations; gains or losses from foreign currency transactions unrelated to Jefferies were not significant.

Earnings per Common Share

Basic earnings per share ("EPS") is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued.  Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities.  Losses are not allocated to participating securities.  Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required.  Diluted EPS is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares and interest on convertible notes by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share.  Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security.  As such, we calculate basic and diluted earnings per share under the two-class method. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable. See Note 18 for more information regarding the senior executive compensation plan.

Securitization Activities

Jefferies engages 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 Jefferies has 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.  Jefferies may retain interests in the securitized financial assets as one or more tranches of the securitization.  These retained interests are included within Trading assets 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 in the Consolidated Statements of Operations.

When a transfer of assets does not meet the criteria of a sale, the transfer is accounted for as a secured borrowing and Jefferies continues to recognize the assets of a secured borrowing, and recognize the associated financing in Other secured financings in the Consolidated Statements of Financial Condition.

Beginning in 2014, another of our subsidiaries utilized a special purpose entity to securitize automobile loans receivable.  This special purpose entity is a variable interest entity and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statement of Financial Condition.  These secured borrowings do not have recourse to our subsidiary’s general credit.

Contingencies

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 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, can be highly subjective and is subject to significant change with the passage of time as more information becomes available.  Estimating the ultimate impact of litigation matters is inherently uncertain, in particular because the ultimate outcome will rest on events and decisions of others that may not be within our power to control.  We do not believe that any of our current litigation will have a significant adverse effect on our consolidated financial position, results of operations or liquidity; however, if amounts paid at the resolution of litigation are in excess of recorded reserve amounts, the excess could be significant in relation to results of operations for that period.  For further information, see Note 25.

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Accounting Developments

12 Months Ended

Dec. 31, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Accounting Developments

Accounting Developments

Revenue Recognition.  In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures.  The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  This guidance is effective for interim and annual periods beginning after December 15, 2017.  We intend to adopt the new guidance with a cumulative-effect adjustment to opening retained earnings and our evaluation of the impact this new guidance will have on our consolidated financial statements is ongoing.

Consolidation.  In January 2016, we adopted the FASB's new guidance that amended the consolidation guidance including changes to both the variable and voting interest models used to evaluate whether an entity should be consolidated.  This guidance also eliminates the deferral of certain consolidation standards for entities considered to be investment companies.  The adoption of this guidance did not have a significant impact on our consolidated financial statements.

Debt Issuance Costs.  In January 2016, we adopted the FASB's new guidance that requires debt issuance costs related to a recognized debt liability be presented 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 have adopted this guidance in the first quarter of 2016. The adoption of this guidance resulted in the following adjustments to the Consolidated Statement of Financial Condition on December 31, 2015: a decrease of $8.6 million to Other assets, a decrease of $7.0 million to Long-term debt and a decrease of $1.6 million to Other secured financings. The adoption of this guidance also resulted in the following adjustments to the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014: a decrease of $4.4 million and $3.8 million, respectively, to Selling, general and other expenses and an increase of $4.4 million and $3.8 million, respectively, to Interest expense.

Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017. 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 2016. The guidance on financial liabilities under the fair value option did not have a significant impact on our consolidated financial statements.

Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of lease assets and lease liabilities on the statement of financial condition. The guidance is effective for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Share-Based Payments to Employees. In March 2016, the FASB issued new guidance to simplify and improve accounting for share-based payments. 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 for annual and interim periods beginning after December 15, 2016. We do not believe the adoption of this accounting guidance will have a material effect on our consolidated financial statements.

Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective for annual and interim periods beginning after December 15, 2019. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. 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 for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual and interim periods beginning after December 15, 2017. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

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Fair Value Disclosures

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

The following is a summary of our financial instruments, trading liabilities and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV (within trading assets) of $24.3 million and $36.7 million, respectively, by level within the fair value hierarchy at December 31, 2016 and 2015 (in thousands):

	December 31, 2016
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,522,977	$	92,839	$	21,739	$	—		$	2,637,555
Corporate debt securities	—		2,675,020		25,005		—			2,700,025
CDOs and CLOs	—		54,306		54,354		—			108,660
U.S. government and federal agency securities	2,389,397		56,726		—		—			2,446,123
Municipal securities	—		708,469		27,257		—			735,726
Sovereign obligations	1,432,556		990,492		—		—			2,423,048
Residential mortgage-backed securities	—		960,494		38,772		—			999,266
Commercial mortgage-backed securities	—		296,405		20,580		—			316,985
Other asset-backed securities	—		63,587		40,911		—			104,498
Loans and other receivables	—		1,557,233		81,872		—			1,639,105
Derivatives	3,825		4,616,822		6,429		(4,255,998		)	371,078
Investments at fair value	—		—		314,359		—			314,359
Investment in FXCM	—		—		164,500		—			164,500
Total trading assets, excluding investments at fair value based on NAV	$	6,348,755	$	12,072,393	$	795,778	$	(4,255,998	)	$	14,960,928
Available for sale securities:
Corporate equity securities	$	79,425	$	—	$	—	$	—		$	79,425
Corporate debt securities	—		179		—		—			179
U.S. government securities	174,933		—		—		—			174,933
Residential mortgage-backed securities	—		19,133		—		—			19,133
Commercial mortgage-backed securities	—		8,337		—		—			8,337
Other asset-backed securities	—		19,042		—		—			19,042
Total available for sale securities	$	254,358	$	46,691	$	—	$	—		$	301,049
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,593,548	$	16,806	$	313	$	—		$	1,610,667
Corporate debt securities	—		1,718,424		523		—			1,718,947
U.S. government and federal agency securities	976,497		—		—		—			976,497
Sovereign obligations	1,375,590		1,253,754		—		—			2,629,344
Loans	—		801,977		378		—			802,355
Derivatives	2,566		4,867,586		9,870		(4,229,213		)	650,809
Total trading liabilities	$	3,948,201	$	8,658,547	$	11,084	$	(4,229,213	)	$	8,388,619
Other secured financings	$	—	$	41,350	$	418	$	—		$	41,768
Long-term debt - structured notes	$	—	$	248,856	$	—	$	—		$	248,856

	December 31, 2015
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,803,243	$	133,732	$	40,906	$	—		$	2,977,881
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	2,253		4,406,207		19,785		(4,165,446		)	262,799
Investments at fair value	—		26,224		199,794		—			226,018
Investment in FXCM	—		—		625,689		—			625,689
Total trading assets, excluding investments at fair value based on NAV	$	6,611,880	$	14,495,857	$	1,314,065	$	(4,165,446	)	$	18,256,356
Available for sale securities:
Corporate equity securities	$	73,579	$	—	$	—	$	—		$	73,579
Corporate debt securities	—		4,744		—		—			4,744
U.S. government securities	63,945		—		—		—			63,945
Residential mortgage-backed securities	—		23,240		—		—			23,240
Commercial mortgage-backed securities	—		2,374		—		—			2,374
Other asset-backed securities	—		39,473		—		—			39,473
Total available for sale securities	$	137,524	$	69,831	$	—	$	—		$	207,355
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,428,048	$	36,518	$	38	$	—		$	1,464,604
Corporate debt securities	—		1,556,941		—		—			1,556,941
U.S. government and federal agency securities (3)	1,488,121		—		—		—			1,488,121
Sovereign obligations (3)	837,614		505,382		—		—			1,342,996
Residential mortgage-backed securities (3)	—		117		—		—			117
Loans	—		758,939		10,469		—			769,408
Derivatives	364		4,456,334		19,543		(4,257,998		)	218,243
Total trading liabilities	$	3,754,147	$	7,314,231	$	30,050	$	(4,257,998	)	$	6,840,430
Other secured financings (4)	$	—	$	67,801	$	544	$	—		$	68,345

(1) There were no material transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015.

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

(3) There was an immaterial revision in the row labeling in our Annual Report on Form 10-K for the year ended December 31, 2015. We have revised the labels to "U.S. government and federal agency securities" (originally reported as "Collateralized debt obligations"), "Sovereign obligations" (originally reported as "U.S. government and federal agency securities") and "Residential mortgage-backed securities" (originally reported as "Sovereign obligations").

(4) 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 December 31, 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/Earnings before interest, taxes, depreciation and amortization ("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 measured primarily using pricing data from external pricing services, prices observed for recently executed market transactions and broker quotations are categorized within Level 2 of the fair value hierarchy. Where such information is not available, non-exchange traded equity warrants are generally categorized within Level 3 of the fair value hierarchy and 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 loss 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:  Agency residential mortgage-backed securities 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 Residential Mortgage-Backed Securities:  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:  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 Commercial Mortgage-Backed Securities:  Non-agency commercial mortgage-backed securities 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.

• National Beef Derivatives: National Beef uses futures contracts in order to reduce its exposure associated with entering into firm commitments to purchase live cattle at prices determined prior to the delivery of the cattle as well as firm commitments to sell certain beef products at sales prices determined prior to shipment. The futures contracts and their related firm purchase commitments are accounted for at fair value, which are classified as Level 1 or Level 2 within the fair value hierarchy. Certain firm commitments for live cattle purchases and all firm commitments for sales are treated as normal purchases and sales and therefore not marked to market. Fair values classified as Level 1 are calculated based on the quoted market prices of identical assets or liabilities compared to National Beef's cost of those same assets or liabilities. Fair values classified as Level 2 are calculated based on the difference between the contracted price for live cattle and the relevant quoted market price for live cattle futures.

• Oil Futures Derivatives: Vitesse uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse accounts for the derivative instruments at fair value, which are classified as Level 2 within the fair value hierarchy. Fair values classified as Level 2 are determined under the income valuation technique using an option-pricing model that is based on directly or indirectly observable inputs.

Investments at Fair Value

Investments at fair value included in Trading assets on the Consolidated Statements of Financial Condition 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 analysis 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 Jefferies defined benefit plan in Germany.  Fair value for the insurance contracts are determined using a third party and is categorized within Level 3 of the fair value hierarchy. 

Investment in FXCM

In January 2015, we entered into a credit agreement with FXCM, and provided FXCM a $300 million senior secured term loan due January 2017, with rights to a variable proportion of certain future distributions in connection with an FXCM sale of assets or certain other events, and to require a sale of FXCM beginning in January 2018.  FXCM is an online provider of foreign exchange trading services.  The loan had an initial interest rate of 10% per annum, increasing by 1.5% per annum each quarter, not to exceed 20.5% per annum.  The variable proportion of distributions was as follows: 100% until amounts due under the loan are repaid; 50% of the next $350 million; then 90% of the next $500 million (this was an amount initially set at a range between $500 million to $680 million and based on payments made by FXCM to us through April 16, 2015, this amount became $500 million); and 60% of all amounts thereafter.  During the year ended December 31, 2016, we received $72.1 million of principal, interest and fees from FXCM and $154.5 million remained outstanding under the credit agreement as of December 31, 2016.  Through the first quarter of 2016 interest accrued at 16.0% per annum; in the second quarter of 2016 interest accrued at 17.5% per annum; in the third quarter of 2016 interest accrued at 19.0% per annum; and in the fourth quarter of 2016 interest accrued at 20.5% per annum.

At December 31, 2015, we viewed the FXCM loan and associated rights as one integrated transaction; since the rights, as derivatives, were accounted for at fair value, we had elected the fair value option for the loan.  At December 31, 2015, the total amount of our investment in FXCM was reported within Trading assets, at fair value in our Consolidated Statements of Financial Condition, and unrealized and realized changes in value, including the component related to interest income on the loan, were included within Principal transactions in the Consolidated Statements of Operations.  We recorded in Principal transactions an aggregate $(54.6) million and $491.3 millionduring the years ended December 31, 2016 and 2015, respectively, of unrealized and realized gains (losses), interest income and fees relating to our investment in FXCM.

On September 1, 2016, we, FXCM Inc. and FXCM Holdings entered into an agreement that amended the terms of our loan and associated rights. Among other changes, the amendments extended the maturity of the term loan by one year to January 2018 to allow FXCM more time to optimize remaining asset sales; gave Leucadia a 49.9% common membership interest in FXCM, and up to 65% of all distributions; created a six-member board for FXCM, comprised of three directors appointed by Leucadia and three directors appointed by FXCM Holdings; put in place a long-term incentive program for FXCM's senior management; entered into a management agreement pursuant to which FXCM Holdings will manage the assets and day-to-day operations of FXCM and its subsidiaries; and gave FXCM Holdings the same right Leucadia has to require a sale of FXCM beginning in January 2018. Distributions to Leucadia under the amended agreements are now: 100% until amounts due under the loan are repaid; 45% of the next $350 million; then 79.2% of the next $500 million; and 51.6% of all amounts thereafter.

During February 2017, FXCM Holdings and FXCM's U.S. subsidiary, Forex Capital Markets LLC ("FXCM U.S.") settled complaints filed by the National Futures Association ("NFA") and the Commodity Futures Trading Commission ("CFTC") against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. The NFA settlement has no monetary fine and the CFTC settlement has a $7 million fine. As part of the settlements, FXCM U.S. will be withdrawing from business and has agreed to sell FXCM U.S.'s customer accounts to Gain Capital Holdings, Inc. FXCM U.S. generates approximately 20% of FXCM's revenue, but is not currently profitable. The proceeds from any sale of the U.S. accounts, net of closure and severance costs, as well as regulatory capital released after a sale, will be used to pay down the Leucadia term loan. As part of the settlement, Leucadia, FXCM Holdings and FXCM have amended the management and incentive compensation agreements, giving any three directors of the FXCM board the right to terminate management and any unvested incentive compensation at any time.

On February 21, 2017, Drew Niv resigned as the Chief Executive Officer of FXCM, although he will remain in an advisory position. Brendan Callan will become the interim Chief Executive Officer of FXCM and Leucadia's Jimmy Hallac will become Chairman of the Board of FXCM.

In addition, on February 21, 2017, Mr. Niv resigned from his positions as Chief Executive Officer and Chairman of the Board of FXCM Inc., but will remain as acting Chief Executive Officer of FXCM Inc. until his successor is identified. In addition, FXCM Inc. announced that it will be changing its name to Global Brokerage Inc. effective February 27, 2017.

We do not hold any interest in FXCM Inc., the publicly traded company and issuer of senior convertible notes. FXCM Inc. holds an economic interest of 68.0% in FXCM Holdings, LLC, which in turn holds 50.1% of FXCM Group, LLC. As more fully described above, we own the remaining 49.9% of FXCM Group, LLC, and our senior secured term loan is also with FXCM Group, LLC, which is a holding company for all of FXCM Group, LLC's affiliated operating subsidiaries. Net profits and proceeds generated by these subsidiaries, and from the sales of these subsidiaries, flow first to FXCM Group, LLC, where they are applied to the outstanding balance of our term loan and then, in accordance with the agreement described above, to us and FXCM Holdings, LLC. A portion of the profits and proceeds that flow to FXCM Holdings, LLC then flow to FXCM Inc., in accordance with its economic interest. We refer to FXCM Group, LLC as "FXCM."

Through the amendments on September 1, 2016, our derivative rights were exchanged for a 49.9% common membership interest in FXCM and up to 65% of all distributions. We gained the ability to significantly influence FXCM through our common membership interest and our seats on the board of directors. As a result, we classify our equity investment in FXCM in our December 31, 2016 Consolidated Statement of Financial Condition as Loans to and investments in associated companies. We account for our equity interest on a one month lag. As the amendments only extended the maturity of the term loan, we continue to use the fair value option and classify our term loan within Trading assets, at fair value.

FXCM is considered a variable interest entity ("VIE") and our term loan and equity ownership are variable interests.  We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM’s performance.  Therefore, we do not consolidate FXCM and we account for our equity interest as an investment in an associated company.

Our maximum exposure to loss as a result of our involvement with FXCM is limited to the carrying value of the term loan ($164.5 million) and the investment in associated company ($336.3 million), which totaled $500.8 million at December 31, 2016.

We engaged an independent valuation firm to assist management in estimating the fair value of our loan to FXCM.  Our estimate of fair value was determined using valuation models with inputs including management’s assumptions concerning the amount and timing of expected cash flows and the loan’s implied credit rating and effective yield.  Because of these inputs and the degree of judgment involved, we have categorized our term loan in Level 3.  We also engaged an independent valuation firm to assist management in estimating the fair value of our equity interest in FXCM on September 1, 2016. Our estimate of fair value was determined using valuation models with inputs including management's assumptions concerning the implied total equity value, based primarily on the publicly traded FXCM Inc. stock price; volatility; risk-free rate; and term.

Investments at Fair Value Based on NAV 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 other funds, which are measured at the NAV of the funds provided by the fund managers and are excluded from the fair value hierarchy.

The following tables present information about our investments in entities that have the characteristics of an investment company and are measured based on NAV (in thousands).

	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
December 31, 2016
Equity Long/Short Hedge Funds (2)	$	363,256	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	772		—		—
Fund of Funds (4)	230		—		—
Equity Funds (5)	42,179		20,295		—
Multi-strategy Fund (6)	133,190		—		Monthly/Quarterly
Total	$	539,627	$	20,295
December 31, 2015(7)
Equity Long/Short Hedge Funds (2)	$	430,207	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	1,703		—		—
Fund of Funds (4)	287		94		—
Equity Funds (5)	42,111		20,791		—
Multi-strategy Fund (6)	165,821		—		Monthly/Quarterly
Convertible Bond Funds (8)	326		—		At Will
Total	$	640,455	$	20,885

(1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements.

(2) This category includes investments in hedge funds that invest, long and short, in primarily equity securities in domestic and international markets in both the public and private sectors.  At December 31, 2016 and 2015, investments with a fair value of $363.3 million and $54.7 million, respectively, are redeemable with 15 to 90 days prior written notice.

(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 December 31, 2015, the underlying assets of 8% of these funds were 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 December 31, 2016 and 2015, approximately 100% 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 December 31, 2016 and 2015, 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 seven years. 

(6) This category includes investments in hedge funds that invest, long and short, primarily in multi-strategy securities in domestic and international markets in both the public and private sectors. At December 31, 2016 and 2015, investments representing approximately 12% and 32%, respectively, of the fair value of investments in this category are redeemable with 30 to 90 days prior written notice.

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

(8) Investment in the Jefferies Umbrella Fund, an open-ended investment company managed by Jefferies that invested primarily in convertible bonds.  The underlying assets were fully liquidated during the year ended December 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 Jefferies credit spreads is also included based on observed secondary bond market spreads and asset-swap spreads.

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

Year Ended December 31, 2016
	Balance, December 31, 2015			Total gains (losses) (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2016		Changes in unrealized gains (losses) relating to instruments still held at December 31, 2016 (1)
Assets:
Trading assets:
Corporate equity securities	$	40,906		$	(8,463	)	$	3,365	$	(49	)	$	(671	)	$	—	$	(13,349	)	$	21,739	$	291
Corporate debt securities	25,876			(16,230		)	27,242		(29,347		)	(7,223		)	—		24,687			25,005		(18,799		)
CDOs and CLOs	85,092			(14,918		)	52,316		(69,394		)	(2,750		)	—		4,008			54,354		(7,628		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
Residential mortgage-backed securities	70,263			(9,612		)	623		(12,249		)	(931		)	—		(9,322		)	38,772		(1,095		)
Commercial mortgage-backed securities	14,326			(7,550		)	3,132		(2,024		)	(2,229		)	—		14,925			20,580		(7,243		)
Other asset-backed securities	42,925			(14,381		)	133,986		(102,952		)	(8,769		)	—		(9,898		)	40,911		(18,056		)
Loans and other receivables	189,289			(42,566		)	75,264		(69,262		)	(46,851		)	—		(24,002		)	81,872		(52,003		)
Investments at fair value	199,794			54,538			29,728		(542		)	(1,107		)	—		31,948			314,359		54,608
Investment in FXCM (2)	625,689			(54,634		)	—		—			(406,555		)	—		—			164,500		(1,014		)
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—	$	313		$	(38	)	$	—	$	—		$	313	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (3)	(242		)	(1,760		)	—		11,101			31			2,067		(7,756		)	3,441		(6,458		)
Loans	10,469			—			—		378			—			—		(10,469		)	378		—
Other secured financings	544			(126		)	—		—			—			—		—			418		(126		)

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Includes $334.5 million related to the settlement of our participation rights for equity ownership in FXCM on September 1, 2016. We classify the equity ownership as a Loan to and investment in associated company at December 31, 2016.

(3) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2016

During the year ended December 31, 2016, transfers of assets of $179.6 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• CDOs and CLOs of $19.4 million, residential mortgage-backed securities of $17.5 million, commercial mortgage-backed securities of $17.4 million and other asset-backed securities of $16.9 million, for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $13.8 million due to a lower number of contributors for certain vendor quotes supporting classification within Level 2;

• Corporate debt securities of $28.1 million, investments at fair value of $31.9 million and municipal securities of $28.7 million due to a lack of observable market transactions.

During the year ended December 31, 2016, transfers of assets of $133.2 million from Level 3 to Level 2 are attributed to:

• Residential mortgage-backed securities of $26.8 million, other asset-backed securities of $26.8 million and CDOs and CLOs of $15.4 million, for which market trades were observed in the year for either identical or similar securities;

• Loans and other receivables of $37.8 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.

During the year ended December 31, 2016, there were transfers of loan liabilities of $10.5 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net losses on Level 3 assets were $115.3 million and net gains on Level 3 liabilities were $1.9 million for the year ended December 31, 2016.  Net losses on Level 3 assets were primarily due to decreased valuations of our investment in FXCM, loans and other receivables, corporate debt securities, CDOs and CLOs, other asset-backed securities, residential and commercial mortgage-backed securities and corporate equity securities partially offset by increased valuations of certain investments at fair value.  Net gains on Level 3 liabilities were primarily due to increased valuations of certain net derivatives.

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

Year Ended December 31, 2015
	Balance, December 31, 2014			Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31 ,2015			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2015 (1)
Assets:
Trading assets:
Corporate equity securities	$	20,964		$	11,154		$	21,385		$	(6,391	)	$	—		$	—	$	(6,206	)	$	40,906		$	11,424
Corporate debt securities	22,766			(11,013		)	21,534			(14,636		)	—			—		7,225			$	25,876		(9,443		)
CDOs and CLOS	124,650			(66,332		)	104,998			(107,381		)	(5,754		)	—		34,911			$	85,092		(48,514		)
Municipal securities	—			10			—			—			(21,551		)	—		21,541			—			—
Sovereign obligations	—			47			1,032			(1,031		)	—			—		72			120			39
Residential mortgage backed securities	82,557			(12,951		)	18,961			(31,762		)	(597		)	—		14,055			$	70,263		(4,498		)
Commercial mortgage-backed securities	26,655			(3,813		)	3,480			(10,146		)	(6,861		)	—		5,011			$	14,326		(3,205		)
Other asset-backed securities	2,294			(990		)	42,922			(1,299		)	(2		)	—		—			$	42,925		(254		)
Loans and other receivables	97,258			(14,755		)	792,345			(576,536		)	(124,365		)	—		15,342			$	189,289		(16,802		)
Investments at fair value	77,047			62,804			5,510			(425		)	(4,093		)	—		58,951			$	199,794		(1,964		)
Investment in FXCM	—			491,341			279,000			—			(144,652		)	—		—			625,689			491,341
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	223			(110		)	(6,804		)	6,691			—			—		—			$	—		—
Net derivatives (2)	(4,638		)	(7,310		)	(6,705		)	13,522			37			2,437		2,415			$	(242	)	4,754
Loans	14,450			(163		)	(2,059		)	229			—			—		(1,988		)	$	10,469		104
Other secured financings	30,825			—			—			—			(15,704		)	36,995		(51,572		)	$	544		—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2015

During the year ended December 31, 2015, transfers of assets of $236.7 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• CDOs and CLOs of $69.8 million, non-agency residential mortgage-backed securities of $30.4 million and commercial mortgage-backed securities of $11.3 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Municipal securities of $21.5 million and loans and other receivables of $20.1 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate debt securities of $7.4 million and investments at fair value of $74.7 million due to a lack of observable market transactions.

During the year ended December 31, 2015, transfers of assets of $85.8 million from Level 3 to Level 2 are attributed to:

• Non-agency residential mortgage-backed securities of $16.3 million and commercial mortgage-backed securities of $6.3 million for which market trades were observed in the period for either identical or similar securities;

• CDOs and CLOs of $34.9 million and loans and other receivables of $4.7 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Investments at fair value of $15.8 million due to an increase in observable market transactions;

• Corporate equity securities of $7.7 million due to an increase in observable market transactions.

During the year ended December 31, 2015, there were transfers of other secured financings of $51.6 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation.

Net gains on Level 3 assets were $455.5 million and net gains on Level 3 liabilities were $7.6 million for the year ended December 31, 2015.  Net gains on Level 3 assets were primarily due to increased valuations of our investment in FXCM and increase in valuation of certain investments at fair value and corporate equity securities partially offset by decreased valuations of CDOs and CLOs, certain loans and other receivables and residential and commercial mortgage-backed securities.  Net gains on Level 3 liabilities were primarily due to increased valuations of certain net derivatives.

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended December 31, 2014 (in thousands).

Year Ended December 31, 2014
	Balance, December 31, 2013		Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2014			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2014 (1)
Assets:
Trading assets:
Corporate equity securities	$	9,884	$	957		$	18,138		$	(12,826	)	$	—		$	—	$	4,811		$	20,964		$	2,324
Corporate debt securities	25,666		6,629			38,316			(40,328		)	—			—		(7,517		)	22,766			8,982
CDOs and CLOs	37,216		(6,386		)	204,337			(181,757		)	(1,297		)	—		72,537			124,650			(1,141		)
U.S. government and federal agency securities	—		13			2,505			(2,518		)	—			—		—			—			—
Residential mortgage-backed securities	105,492		(9,870		)	42,632			(61,689		)	(1,847		)	—		7,839			82,557			(4,679		)
Commercial mortgage-backed securities	17,568		(4,237		)	49,159			(51,360		)	(782		)	—		16,307			26,655			(2,384		)
Other asset-backed securities	12,611		1,784			4,987			(18,002		)	—			—		914			2,294			1,484
Loans and other receivables	145,890		(31,311		)	130,169			(92,140		)	(60,390		)	—		5,040			97,258			(26,864		)
Investments at fair value	66,931		17,642			32,493			(23,324		)	(1,243		)	—		(15,452		)	77,047			1,985
Liabilities:
Trading liabilities:
Corporate equity securities	$	38	$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	—		(149		)	(565		)	960			—			—		(23		)	223			(8		)
Net derivatives (2)	6,905		15,055			(24,682		)	1,094			322			—		(3,332		)	(4,638		)	(15,615		)
Loans	22,462		—			(18,332		)	11,338			—			—		(1,018		)	14,450			—
Other secured financings	8,711		—			—			—			(17,525		)	39,639		—			30,825			—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Analysis of Level 3 Assets and Liabilities for the year ended December 31, 2014

During the year ended December 31, 2014, transfers of assets of $139.0 million from Level 2 to Level 3 of the fair value hierarchy are attributed to:

• Non-agency residential mortgage-backed securities of $30.3 million and commercial mortgage-backed securities of $16.6 million for which no recent trade activity was observed for purposes of determining observable inputs;

• Loans and other receivables of $8.5 million due to a lower number of contributors comprising vendor quotes to support classification within Level 2;

• Corporate equity securities of $9.7 million due to lack of observable market transactions;

• CDOs and CLOs of $73.0 million which have little to no transparency in trade activity.

During the year ended December 31, 2014, transfers of assets of $54.6 million from Level 3 to Level 2 are attributed to:

• Non-agency residential mortgage-backed securities of $22.4 million for which market trades were observed in the period for either identical or similar securities;

• Loans and other receivables of $3.5 million and investments at fair value of $15.5 million due to a greater number of contributors for certain vendor quotes supporting classification into Level 2;

• Corporate equity securities of $4.9 million and corporate debt securities of $7.5 million due to an increase in observable market transactions.

During the year ended December 31, 2014, there were transfers of loan liabilities of $1.0 million from Level 3 to Level 2 and transfers of net derivative liabilities of $3.3 million from Level 3 to Level 2 due to an increase in observable inputs in the valuation and an increase in observable inputs used in the valuing of derivative contracts, respectively.

Net losses on Level 3 assets were $24.8 million and net losses on Level 3 liabilities were $14.9 million for the year ended December 31, 2014.  Net losses on Level 3 assets were primarily due to a decrease in valuation of certain loans and other receivables and residential and commercial mortgage-backed securities, partially offset by increased valuations of certain investments at fair value, certain corporate debt securities and other asset-backed securities.  Net losses on Level 3 liabilities were primarily due to increased valuations of certain 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.

December 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Corporate equity securities	$	19,799
Non-exchange traded securities			Market approach	Underlying stock price	$3 to $75	$15.0
			Comparable pricing	Underlying stock price	$218	—
				Comparable asset price	$11	—
			Present value	Average silver production (tons per day)	666	—
Corporate debt securities	$	25,005	Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Transaction level	$30	—
CDOs and CLOs	$	33,016	Discounted cash flows	Constant prepayment rate	10% to 20%	19	%
				Constant default rate	2% to 4%	2	%
				Loss severity	25% to 70%	40	%
				Yield	7% to 17%	12	%
			Scenario analysis	Estimated recovery percentage	28% to 38%	31	%
Residential mortgage-backed securities	$	38,772	Discounted cash flows	Constant prepayment rate	0% to 11%	5	%
				Constant default rate	1% to 7%	3	%
				Loss severity	35% to 100%	62	%
				Yield	2% to 10%	6	%
Commercial mortgage-backed securities	$	20,580	Discounted cash flows	Yield	6% to 11%	8	%
				Cumulative loss rate	5% to 95%	39	%
Other asset-backed securities	$	40,911	Discounted cash flows	Constant prepayment rate	4% to 20%	14	%
				Constant default rate	0% to 31%	13	%
				Loss severity	0% to 100%	90	%
				Yield	4% to 17%	15	%
			Market approach	Price	$72	—
Loans and other receivables	$	54,347	Market approach	Discount rate/yield	2% to 4%	3	%
				EBITDA (a) multiple	3.3	—
				Transaction level	$0.42	—
			Present value	Average silver production (tons per day)	666	—
			Scenario analysis	Estimated recovery percentage	6% to 50%	37	%
Derivatives	$	6,429
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Investments at fair value
Private equity securities	$	67,383	Market approach	Transaction Level	$250	—
				Price	$25,815,720	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	164,500	Discounted cash flows	Term based on the pay off	0 months to .5 years	0.4 years
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	9,870
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Unfunded commitments			Market approach	Discount rate/yield	4%	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	16%	—

December 31, 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 (a) multiple	4.4	—
				Transaction level	$1	—
				Underlying stock price	$5 to $102	$19.0
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% to 20%	13	%
				Constant default rate	2% to 8%	2	%
				Loss severity	25% to 90%	52	%
				Yield	6% to 13%	10	%
Residential mortgage-backed securities	$	70,263	Discounted cash flows	Constant prepayment rate	0% to 50%	13	%
				Constant default rate	1% to 9%	3	%
				Loss severity	25% to 70%	39	%
				Yield	1% to 9%	6	%
Commercial mortgage-backed securities	$	14,326	Discounted cash flows	Yield	7% to 30%	16	%
				Cumulative loss rate	2% to 63%	23	%
Other asset-backed securities	$	21,463	Discounted cash flows	Constant prepayment rate	6% to 8%	7	%
				Constant default rate	3% to 5%	4	%
				Loss severity	55% to 75%	62	%
				Yield	7% to 22%	18	%
			Over-collateralization	Over-collateralization percentage	117% to 125%	118	%
Loans and other receivables	$	161,470	Comparable pricing	Comparable asset price	$99 to $100	$99.7
			Market approach	Yield	2% to 17%	12	%
				EBITDA (a) multiple	10.0	—
			Scenario analysis	Estimated recovery percentage	6% to 100%	83	%
Derivatives	$	19,785
Commodity forwards			Market approach	Discount rate/yield	47%	—
				Transaction level	$9,500,000	—
Unfunded commitment			Comparable pricing	Comparable asset price	$100	—
			Market approach	Credit spread	298 bps	—
Total return swap			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Investments at fair value
Private equity securities	$	29,940	Market approach	Transaction Level	$64	—
				Price	$5,200,000	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	203,700	Discounted cash flows	Term based on the pay off	0 months to 1.0 year	0.4 years
Rights	422,000		Option pricing model	Volatility	110%	—
	$	625,700
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	19,543
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable asset price	$79 to $100	$82.6
			Market approach	Discount rate/yield	3% to 10%	10	%
			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	11%	—
Total return swaps			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Loans	$	10,469	Comparable pricing	Comparable asset price	$100	—

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

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 December 31, 2016 and 2015, asset exclusions consisted of $325.0 million and $280.6 million, respectively, primarily comprised of investments at fair value, private equity securities, CDOs and CLOs, municipal securities, non-exchange traded securities and loans and other receivables. At December 31, 2016 and 2015, liability exclusions consisted of $1.6 million and $0.6 million, respectively, of other secured financings, loans 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, non-exchange traded securities, equity swaps, total return swaps and loans using comparable pricing valuation techniques. A significant increase (decrease) in the comparable asset and underlying stock price in isolation would result in a significantly higher (lower) 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, 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 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, corporate debt security, loan and other receivable or certain derivatives 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 private equity securities or other asset-backed securities would result in a significantly higher (lower) fair value measurement.

• Loans and other receivables and CDOs and CLOs 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.

• CDOs and CLOs, residential and commercial mortgage-backed securities 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, loss severity or cumulative loss rate 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 security 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 higher (lower) 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 a significantly higher (lower) fair value measurement.

• Investment in FXCM using a discounted cash flow valuation technique and an option pricing model.  A significant increase (decrease) in term based on the time to pay off the loan would result in a higher (lower) fair value measurement.  A significant increase (decrease) in volatility or time to liquidity event would result in a significantly lower (higher) fair value measurement.

Fair Value Option Election

We have elected the fair value option for all loans and loan commitments made by Jefferies capital markets businesses.  These loans and loan commitments include loans entered into by Jefferies investment banking division in connection with client bridge financing and loan syndications, loans purchased by Jefferies 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 Jefferies leveraged credit and mortgage-backed businesses are managed on a fair value basis.  Loans are included in Trading assets and loan commitments are included in Trading liabilities.  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 associated companies and are accounted for on an amortized cost basis.  Jefferies has also elected the fair value option for certain of its structured notes which are managed by Jefferies capital markets business and are included in Long-term debt on the Consolidated Statements of Financial Condition. Jefferies has elected the fair value option for certain financial instruments held by its subsidiaries as the investments are risk managed on a fair value basis.  The fair value option has also been elected for certain secured financings that arise in connection with Jefferies securitization activities and other structured financings.  Other secured financings, receivables from brokers, dealers and clearing organizations, receivables from customers of securities operations, payables to brokers, dealers and clearing organizations and payables to customers of securities operations, 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 Jefferies 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 for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Financial Instruments Owned:
Loans and other receivables	$	(68,812	)	$	(17,389	)	$	(24,785	)
Financial Instruments Sold:
Loans	$	9		$	(162	)	$	(585	)
Loan commitments	$	5,509		$	7,502		$	(15,459	)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(10,745	)	$	—		$	—
Other changes in fair value (2)	$	30,995		$	—		$	—

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

(2) Other changes in fair value are included within Principal transactions revenues in the Consolidated Statements of Operations.

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):

	December 31, 2016		December 31, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	1,325,938	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	$	205,746	$	54,652
Long-term Debt	$	20,202	$	—

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

(2) Amounts include all loans and other receivables greater than 90 or more days past due of $64.6 million and $29.7 million at December 31, 2016 and 2015, respectively.

The aggregate fair value of Jefferies loans and other receivables on nonaccrual status and/or greater than 90 days or more past due, was $29.8 million and $307.5 million at December 31, 2016 and 2015, respectively, which includes loans and other receivables greater than 90 days past due of $18.9 million and $11.3 million at December 31, 2016 and 2015, respectively.

Jefferies has elected the fair value option for its investment in KCG Holdings, Inc. ("KCG").  The change in the fair value of this investment was $19.6 million, $49.1 million and $(14.7) million for 2016, 2015 and 2014, respectively. Additionally, in connection with a KCG shares and warrants exchange transaction, Jefferies earned advisory fees of $2.9 million during the year ended December 31, 2016. Jefferies has also separately entered into securities lending transactions with KCG in the normal course of its capital markets activities. The balances of Securities borrowed and Securities loaned were $9.2 million and $9.2 million, respectively, at December 31, 2016, and $6.3 million and $16.5 million, respectively, at December 31, 2015.

As of December 31, 2016 and 2015, we owned approximately 46.6 million common shares of HRG, representing approximately 23% of HRG’s outstanding common shares, which are accounted for under the fair value option. The shares are included in our Consolidated Statements of Financial Condition at fair value of $725.1 million and $631.9 million at December 31, 2016 and 2015, respectively.  The shares were acquired at an aggregate cost of $475.6 million.  The change in the fair value of our investment in HRG aggregated $93.2 million, $(28.0) million and $119.2 millionduring the years ended December 31, 2016, 2015 and 2014, respectively. We currently have two directors on HRG’s board. 

We believe accounting for these investments at fair value better reflects the economics of these investments, and quoted market prices for these investments provides an objectively determined fair value at each balance sheet date.  Our investment in HomeFed is the only other investment accounted for under the equity method of accounting that is also a publicly traded company for which we did not elect the fair value option.  HomeFed’s common stock is not listed on any stock exchange, and price information for the common stock is not regularly quoted on any automated quotation system.  It is traded in the over-the-counter market with high and low bid prices published by the NASD OTC Bulletin Board Service; however, trading volume is minimal.  For these reasons we did not elect the fair value option for HomeFed.

Financial Instruments Not Measured at Fair Value

Certain of our financial instruments are not carried at fair value but are recorded at amounts that approximate fair value due to their liquid or short-term nature and generally negligible credit risk. These financial assets include Cash and cash equivalents and Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations and would generally be presented in Level 1 of the fair value hierarchy. 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 at December 31, 2016. See Note 27 for additional information related to financial instruments not measured at fair value.

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Derivative Financial Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Off-Balance Sheet Risk

Jefferies has 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

Derivative activities are recorded at fair value in the Consolidated Statements of Financial Condition in Trading assets and Trading liabilities, 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 primarily recognized in Principal transactions in the Consolidated Statements of Operations 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, Jefferies and our Leucadia Asset Management businesses may enter into derivative transactions to satisfy the needs of its clients and to manage its own exposure to market and credit risks resulting from trading activities.  See Notes 4 and 25 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.  Jefferies manages the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of its firm wide risk management policies.  In connection with Jefferies derivative activities, Jefferies may enter into International Swaps and Derivative Association, Inc. (“ISDA”) master netting agreements and similar agreements with counterparties.  These agreements provide Jefferies with the ability to offset a counterparty’s rights and obligations, request additional collateral when necessary or liquidate the collateral in the event of counterparty default.  See Note 11 for additional information with respect to financial statement offsetting.

The following tables present the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at December 31, 2016 and 2015.  The fair value of assets/liabilities related to derivative contracts represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged (in thousands, except contract amounts):

	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
December 31, 2016
Interest rate contracts	$	3,282,245		29,032	$	3,159,457		34,845
Foreign exchange contracts	529,669			7,826	516,869			8,319
Equity contracts	786,987			2,843,329	1,169,201			2,414,715
Commodity contracts	1,906			2,766	6,430			7,289
Credit contracts: centrally cleared swaps	7,044			98	2,562			19,900
Credit contracts: other credit derivatives	19,225			213	25,503			184
Total	4,627,076				4,880,022
Counterparty/cash-collateral netting	(4,255,998		)		(4,229,213		)
Total per Consolidated Statement of Financial Condition	$	371,078			$	650,809
December 31, 2015
Interest rate contracts	$	2,910,093		56,748	$	2,849,958		74,904
Foreign exchange contracts (1)	453,527			8,089	466,021			7,376
Equity contracts	1,017,611			3,057,754	1,094,597			2,947,416
Commodity contracts (1)	27,590			2,896	5,510			2,001
Credit contracts: centrally cleared swaps	2,447			299	841			44
Credit contracts: other credit derivatives	16,977			100	59,314			135
Total	4,428,245				4,476,241
Counterparty/cash-collateral netting	(4,165,446		)		(4,257,998		)
Total per Consolidated Statement of Financial Condition	$	262,799			$	218,243

(1) 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 foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of contracts remained unchanged.

The following table presents unrealized and realized gains (losses) on derivative contracts as reflected in the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Interest rate contracts	$	(36,559	)	$	(36,792	)	$	(149,587	)
Foreign exchange contracts	20,401			36,233			39,872
Equity contracts	(635,305		)	(137,219		)	(327,978		)
Commodity contracts	(3,339		)	(13,625		)	58,746
Credit contracts	5,013			(16,223		)	(23,934		)
Total	$	(649,789	)	$	(167,626	)	$	(402,881	)

The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising Jefferies business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. Jefferies substantially mitigates its exposure to market risk on its cash instruments through derivative contracts, which generally provide offsetting revenues, and Jefferies manages the risk associated with these contracts in the context of its overall risk management framework.

OTC Derivatives.  The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at December 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	$	27,436	$	5,727	$	—	$	—		$	33,163
Credit default swaps	—		4,542		3,463		(1,588		)	6,417
Total return swaps	20,749		389		—		(200		)	20,938
Foreign currency forwards, swaps and options	95,112		35,988		—		(10,547		)	120,553
Interest rate swaps, options and forwards	120,053		189,153		134,507		(71,604		)	372,109
Total	$	263,350	$	235,799	$	137,970	$	(83,939	)	553,180
Cross product counterparty netting										(623		)
Total OTC derivative assets included in Trading assets										$	552,557

(1) At December 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.4 million, which are not included in this table.

(2) OTC derivative assets in the table above are gross of collateral received.  OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral received was $217.4 million.

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

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

	OTC Derivative Liabilities (1) (2) (3)
	0-12 Months		1-5 Years		Greater Than 5 Years		Cross-Maturity Netting (4)			Total
Commodity swaps, options and forwards	$	3,214	$	1,218	$	—	$	—		$	4,432
Equity swaps and options	10,993		20,354		—		—			31,347
Credit default swaps	16		1,594		7,147		(1,588		)	7,169
Total return swaps	12,088		2,407		—		(200		)	14,295
Foreign currency forwards, swaps and options	92,375		26,011		—		(10,547		)	107,839
Fixed income forwards	3,401		—		—		—			3,401
Interest rate swaps, options and forwards	108,085		121,975		92,029		(71,604		)	250,485
Total	$	230,172	$	173,559	$	99,176	$	(83,939	)	418,968
Cross product counterparty netting										(623		)
Total OTC derivative liabilities included in Trading liabilities										$	418,345

(1) At December 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $414.2 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 in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral pledged was $190.6 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 December 31, 2016, the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands):

Counterparty credit quality (1):
A- or higher	$	380,574
BBB- to BBB+	39,595
BB+ or lower	51,834
Unrated	80,554
Total	$	552,557

(1) Jefferies utilizes internal credit ratings determined by the Jefferies 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 Jefferies derivative instruments contain provisions that require their debt to maintain an investment grade credit rating from each of the major credit rating agencies.  If Jefferies 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 Jefferies 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 December 31, 2016 and 2015 is $70.6 million and $114.5 million, respectively, for which Jefferies has posted collateral of $44.4 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 December 31, 2016 and 2015, Jefferies would have been required to post an additional $26.1 million and $19.7 million, respectively, of collateral to its counterparties.

Other Derivatives

National Beef uses futures contracts in order to reduce its exposure associated with entering into firm commitments to purchase live cattle at prices determined prior to the delivery of the cattle as well as firm commitments to sell certain beef products at sales prices determined prior to shipment. National Beef accounts for the futures contracts at fair value. Firm commitments for sales are treated as normal sales and therefore not marked to market. Certain firm commitments to purchase cattle, are marked to market when a price has been agreed upon, otherwise they are treated as normal purchases and, therefore, not marked to market. The gains and losses associated with the change in fair value of the futures contracts and the offsetting gains and losses associated with changes in the market value of certain of the firm purchase commitments are recorded to income and expense in the period of change.

Vitesse uses swaps and call and put options in order to reduce exposure to future oil price fluctuations. Vitesse accounts for the derivative instruments at fair value. The gains and losses associated with the change in fair value of the derivatives are recorded in income.

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Collateralized Transactions

12 Months Ended

Dec. 31, 2016

Collateralized Transactions [Abstract]

Collateralized Transactions

Collateralized Transactions

Jefferies enters into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance trading asset inventory positions, meet customer needs or re-lend as part of its dealer operations.  Jefferies monitors the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and requests additional collateral or returns excess collateral, as appropriate.  Jefferies pledges financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements.  Jefferies 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 and remaining contractual maturity (in thousands):

Collateral Pledged	Securities Lending Arrangements		Repurchase Agreements		Total
December 31, 2016
Corporate equity securities	$	2,046,243	$	66,291	$	2,112,534
Corporate debt securities	731,276		1,907,888		2,639,164
Mortgage- and asset-backed securities	—		2,171,480		2,171,480
U.S. government and federal agency securities	41,613		9,232,624		9,274,237
Municipal securities	—		553,010		553,010
Sovereign securities	—		2,625,079		2,625,079
Loans and other receivables	—		455,960		455,960
Total	$	2,819,132	$	17,012,332	$	19,831,464
December 31, 2015
Corporate equity securities	$	2,200,273	$	271,519	$	2,471,792
Corporate debt securities	779,044		1,721,583		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,003,521		12,038,504
Municipal securities	—		357,350		357,350
Sovereign securities	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	3,014,300	$	20,158,422	$	23,172,722

	Contractual Maturity
	Overnight and Continuous		Up to 30 Days		30 to 90 Days		Greater than 90 Days		Total
December 31, 2016
Securities lending arrangements	$	2,131,891	$	39,673	$	104,516	$	543,052	$	2,819,132
Repurchase agreements	9,147,176		2,008,119		3,809,533		2,047,504		17,012,332
Total	$	11,279,067	$	2,047,792	$	3,914,049	$	2,590,556	$	19,831,464
December 31, 2015
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	518,624	$	3,014,300
Repurchase agreements	7,848,231		5,218,059		5,291,729		1,800,403		20,158,422
Total	$	9,370,706	$	5,218,059	$	6,264,930	$	2,319,027	$	23,172,722

Jefferies receives securities as collateral under resale agreements, securities borrowing transactions and customer margin loans.  Jefferies also receives securities as collateral in connection with securities-for-securities transactions in which it is the lender of securities.  In many instances, Jefferies is permitted by contract to rehypothecate the securities received as collateral.  These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions.  At December 31, 2016 and 2015, the approximate fair value of securities received as collateral by Jefferies that may be sold or repledged was $25.5 billion and $26.2 billion, respectively.  A substantial portion of these securities have been sold or repledged.

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Securitization Activities

12 Months Ended

Dec. 31, 2016

Securitization Activities [Abstract]

Securitization Activities

Securitization Activities

Jefferies engages in securitization activities related to corporate loans, commercial mortgage loans, consumer loans and mortgage-backed and other asset-backed securities.  In securitization transactions, Jefferies transfers assets to special purpose entities ("SPEs") and acts as the placement or structuring agent for the beneficial interests sold to investors by the SPE.  A significant portion of the securitization transactions are the securitization of assets issued or guaranteed by U.S. government agencies.  These SPEs generally meet the criteria of VIEs; however, the SPEs are generally not consolidated as Jefferies is not considered the primary beneficiary for these SPEs. 

Jefferies accounts for securitization transactions as sales provided it has relinquished control over the transferred assets.  Transferred assets are carried at fair value with unrealized gains and losses reflected in Principal transaction revenues in the Consolidated Statements of Operations prior to the identification and isolation for securitization.  Subsequently, revenues recognized upon securitization are reflected as net underwriting revenues.  Jefferies generally receives cash proceeds in connection with the transfer of assets to an SPE.  Jefferies 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 Trading assets and are generally initially categorized as Level 2 within the fair value hierarchy.  Jefferies applies fair value accounting to the securities. 

The following table presents activity related to Jefferies securitizations that were accounted for as sales in which it had continuing involvement during the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016		2015		2014
Transferred assets	$	5,786.0	$	5,770.5	$	6,112.6
Proceeds on new securitizations	5,809.0		5,811.3		6,221.1
Cash flows received on retained interests	28.2		31.2		46.3

Jefferies has no explicit or implicit arrangements to provide additional financial support to these SPEs, has no liabilities related to these SPEs and has no outstanding derivative contracts executed in connection with these securitizations at December 31, 2016 and 2015.

The following table summarizes Jefferies retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions):

	December 31, 2016				December 31, 2015
Securitization Type	Total Assets		Retained Interests		Total Assets		Retained Interests
U.S. government agency residential mortgage-backed securities	$	7,584.9	$	31.0	$	10,901.9	$	203.6
U.S. government agency commercial mortgage-backed securities	1,806.3		29.6		2,313.4		87.2
CLOs	4,102.2		37.0		4,538.4		51.5
Consumer and other loans	395.7		25.3		655.0		31.0

Total assets represent the unpaid principal amount of assets in the SPEs in which Jefferies has continuing involvement and are presented solely to provide information regarding the size of the transaction and the size of the underlying assets supporting its 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.  Jefferies risk of loss is limited to this fair value amount which is included within total Trading assets in our Consolidated Statements of Financial Condition.

Although not obligated, in connection with secondary market-making activities Jefferies may make a market in the securities issued by these SPEs.  In these market-making transactions, Jefferies buys these securities from and sells these securities to investors.  Securities purchased through these market-making activities are not considered to be continuing involvement in these SPEs.  To the extent Jefferies purchased securities through these market-making activities and Jefferies is 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 VIE section presented in Note 9.

Foursight Capital also utilized SPEs to securitize automobile loans receivable.  These SPEs are VIEs and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statements of Financial Condition.  These secured borrowings do not have recourse to our subsidiary’s general credit. See Note 9 for further information on securitization activities and VIEs.

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Available For Sale Securities

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Available For Sale Securities

Available for Sale Securities

The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale at December 31, 2016 and 2015 are as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
2016
Bonds and notes:
U.S. government securities	$	174,938	$	8	$	13	$	174,933
Residential mortgage-backed securities	19,129		108		104		19,133
Commercial mortgage-backed securities	8,275		64		2		8,337
Other asset-backed securities	18,918		124		—		19,042
All other corporates	180		—		1		179
Total fixed maturities	221,440		304		120		221,624
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		15,115		—		50,186
Industrial, miscellaneous and all other	17,946		11,293		—		29,239
Total equity securities	53,017		26,408		—		79,425
	$	274,457	$	26,712	$	120	$	301,049
2015
Bonds and notes:
U.S. government securities	$	63,968	$	2	$	25	$	63,945
Residential mortgage-backed securities	23,033		308		101		23,240
Commercial mortgage-backed securities	2,392		—		18		2,374
Other asset-backed securities	39,633		—		160		39,473
All other corporates	4,794		7		57		4,744
Total fixed maturities	133,820		317		361		133,776
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		10,201		—		45,272
Industrial, miscellaneous and all other	17,946		10,361		—		28,307
Total equity securities	53,017		20,562		—		73,579
	$	186,837	$	20,879	$	361	$	207,355

The amortized cost and estimated fair value of investments classified as available for sale at December 31, 2016, by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Due within one year	$	174,938	$	174,933
Due after one year through five years	180		179
	175,118		175,112
Mortgage-backed and asset-backed securities	46,322		46,512
	$	221,440	$	221,624

At December 31, 2016, the unrealized losses on investments which have been in a continuous unrealized loss position for less than 12 monthsand 12 months or longer were not significant.

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Variable Interest Entities

12 Months Ended

Dec. 31, 2016

Variable Interest Entity, Measure of Activity [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 the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and 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, equity interests in associated companies, commitments, guarantees and certain fees.  Our involvement with VIEs arises primarily from the following activities, but also includes other activities discussed below:

• 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,

• Real estate investments,

• 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 fund 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 most 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 tables present information about the assets and liabilities of our consolidated VIEs, which are presented within our Consolidated Statements of Financial Condition in the respective asset and liability categories, as of December 31, 2016 and 2015 (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation.

	December 31, 2016				December 31, 2015
	Securitization Vehicles		Real Estate Investment Vehicle		Securitization Vehicles
Cash	$	18.4	$	2.2	$	1.1
Financial instruments owned	86.6		—		68.3
Securities purchased under agreement to resell (1)	733.5		—		717.3
Receivables	277.7		296.9		149.8
Loans to and investments in associated companies	—		108.7		—
Other	14.5		10.8		8.8
Total assets	$	1,130.7	$	418.6	$	945.3
Other secured financings (2)	$	1,083.8	$	—	$	930.8
Long-term debt	24.1		243.9		—
Other	22.3		11.7		14.5
Total liabilities	$	1,130.2	$	255.6	$	945.3
Noncontrolling interests	$	—	$	98.7	$	—

(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 $57.6 million and $22.1 million of the secured financing represents an amount held by Jefferies in inventory and eliminated in consolidation at December 31, 2016 and 2015, respectively.

Securitization vehicles.  Jefferies is the primary beneficiary of securitization vehicles associated with their financing of consumer and small business loans. In the creation of the securitization vehicles, Jefferies was involved in the decisions made during the establishment and design of the entities and holds 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 Jefferies general credit and the assets of the VIEs are not available to satisfy any other debt.

Jefferies is also the primary beneficiary of mortgage-backed financing vehicles to which Jefferies sells agency and non-agency residential and commercial mortgage loans and mortgage-backed securities pursuant to the terms of a master repurchase agreement.  Jefferies manages the assets within these vehicles.  Jefferies variable interests in these vehicles consist of its 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 Jefferies general credit and each such VIE’s assets are not available to satisfy any other debt.

At December 31, 2016 and 2015, Foursight Capital is the primary beneficiary of SPEs it utilized to securitize automobile loans receivable.  Foursight Capital acts as the servicer for which it receives a fee, and owns the equity interest in the SPEs.  The notes issued by the SPEs are secured solely by the assets of the SPEs and do not have recourse to Foursight Capital's general credit and the assets of the VIEs are not available to satisfy any other debt. During the year ended December 31, 2016, a pool of automobile loan receivables aggregating $228.3 million was securitized by Foursight Capital in connection with a secured borrowing offering. The majority of the proceeds from issuance of the secured borrowing were used to pay down Foursight Capital’s two credit facilities.

Real Estate Investment Vehicle. 54 Madison, which we consolidate through our control of the 54 Madison investment committee, has real estate investments in which it is the primary beneficiary. 54 Madison was involved in the decisions made during the establishment and design of the investment entities. 54 Madison variable interests consist of its investment in and management of the assets within these entities. The assets of these VIEs consist primarily of financing note receivables and investments in associated companies, which are available for the benefit of the VIEs' debt holders. The debt holders of these VIEs have recourse to 54 Madison's general credit and the assets of the VIEs are not available to satisfy any other debt.

Nonconsolidated VIEs

The following tables present information about our variable interests in nonconsolidated VIEs as of December 31, 2016 and 2015 (in millions):

	Financial Statement Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
December 31, 2016
CLOs	$	264.7	$	4.8	$	930.0	$	4,472.9
Consumer loan vehicles	90.3		—		219.6		985.5
Related party private equity vehicles	37.6		—		63.6		155.6
Real estate investment vehicle	90.3		—		101.8		85.6
Other private investment vehicles	84.0		—		95.8		4,529.7
Total	$	566.9	$	4.8	$	1,410.8	$	10,229.3
December 31, 2015
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	88.0		—		91.4		4,846.1
Total	$	389.2	$	0.2	$	1,461.1	$	12,516.0

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 the 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 its 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.  Jefferies underwrites securities issued in CLO transactions on behalf of sponsors and provides advisory services to the sponsors.  Jefferies may also sell corporate loans to the CLOs.  Jefferies variable interests in connection with CLOs where it has been involved in providing underwriting and/or advisory services consist of the following:

• Forward sale agreements whereby Jefferies commits 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, and

• A guarantee to a CLO managed by Jefferies Finance, whereby Jefferies guarantees certain of the obligations of Jefferies Finance to the CLO.

In addition, Jefferies owned variable interests in a CLO previously managed by Jefferies.  During 2016, the CLO was liquidated and Jefferies variable interests, which consisted of debt securities and a right to a portion of the CLOs’ management and incentive fees, were repaid.  Jefferies exposure to loss from the CLO was limited to its investments in the debt securities held.  The assets of the CLO consisted primarily of senior secured loans, unsecured loans and high yield bonds.

Consumer Loan Vehicles. Jefferies provides 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 comprised of unsecured consumer and small business loans.  In addition, Jefferies may provide structuring and advisory services and act as an underwriter or placement agent for securities issued by the vehicles.  Jefferies does not control the activities of these entities.

Related Party Private Equity Vehicles. Jefferies has committed to invest equity in private equity funds (the "JCP Funds") managed by Jefferies Capital Partners, LLC (the "JCP Manager"). Additionally, Jefferies has committed to invest equity in the general partners of the JCP Funds (the "JCP General Partners") and the JCP Manager. Jefferies variable interests in the JCP Funds, JCP General Partners and JCP Manager (collectively, the "JCP Entities") consist of equity interests that, in total, provide Jefferies 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. Jefferies total equity commitment in the JCP Entities is $148.1 million, of which $125.1 million and $124.6 million was funded as of December 31, 2016 and 2015, respectively. The carrying value of Jefferies equity investments in the JCP Entities was $37.6 million and $39.3 million at December 31, 2016 and 2015, respectively. Jefferies exposure to loss is limited to the total of its carrying value and unfunded equity commitment. The assets of the JCP Entities primarily consist of private equity and equity related investments.

Jefferies has 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 as of December 31, 2016 and 2015.  Energy Partners I, LP, has assets consisting primarily of debt and equity investments.

Real Estate Investment Vehicle. In the first quarter of 2016, 54 Madison committed to invest $98.0 million in a real estate investment vehicle, of which $86.5 million was funded as of December 31, 2016. 54 Madison's maximum exposure to loss is limited to its equity commitment. 54 Madison is not the primary beneficiary of the investment vehicle as it does not have the power to control the most important activities of the VIE. The assets of the VIE consist primarily of an investment in a real estate project.

Other Private Investment Vehicles.  We had commitments to invest $111.4 million and $76.4 million as of December 31, 2016 and 2015, respectively, in various other private investment vehicles, of which $99.6 million and $73.0 million was funded as of December 31, 2016 and 2015, respectively. The carrying amount of our equity investment was $84.0 million and $88.0 million at December 31, 2016 and 2015, respectively.  Our exposure to loss is limited to the total loss 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 Vehicles.  In connection with Jefferies secondary trading and market-making activities, Jefferies buys and sells agency and non-agency mortgage-backed 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 Trading assets in our Consolidated Statements of Financial Condition.  Jefferies has no other involvement with the related SPEs and therefore does not consolidate these entities.

Jefferies also engages 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") and GNMA ("Ginnie Mae")) or non-agency-sponsored SPEs and may purchase loans or mortgage-backed securities from third parties that are subsequently transferred into the securitization trusts.  The securitizations are backed by residential and commercial mortgage, home equity and auto loans.  Jefferies does not consolidate agency-sponsored securitizations as it does not have the power to direct the activities of the SPEs that most significantly impact their economic performance.  Further, Jefferies is not the servicer of non-agency- sponsored securitizations and therefore does not have power to direct the most significant activities of the SPEs and accordingly, does not consolidate these entities.  Jefferies may retain unsold senior and/or subordinated interests at the time of securitization in the form of securities issued by the SPEs.

Jefferies transfers 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 non-agency-sponsored VIEs.  The consolidation analysis is largely dependent on Jefferies role and interest in the resecuritization trusts.  Most resecuritizations in which Jefferies is involved are in connection with investors seeking securities with specific risk and return characteristics.  As such, Jefferies has concluded that the decision-making power is shared between Jefferies 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, Jefferies does not consolidate the resecuritization VIEs.

At December 31, 2016 and 2015, Jefferies held $1,002.2 million and $3,359.1 million of agency mortgage-backed securities, respectively, and $439.4 million and $630.5 million of non-agency mortgage- and other asset-backed securities, respectively, as a result of its secondary trading and market-making activities, underwriting, placement and structuring activities and resecuritization activities.  Jefferies maximum exposure to loss on these securities is limited to the carrying value of its 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 Jefferies variable interests in nonconsolidated VIEs.

We also have a variable interest in a nonconsolidated VIE consisting of our equity interest in an associated company, Golden Queen.  See Note 10 for further discussion. In addition, we have a variable interest in a nonconsolidated VIE consisting of our senior secured term loan receivable and equity interest in FXCM.  See Notes 4 and 10 for further discussion.

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Loans To And Investments In Associated Companies

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Loans To And Investments In Associated Companies

Loans to and Investments in Associated Companies

A summary of loans to and investments in associated companies for the years ended December 31, 2016, 2015 and 2014 accounted for under the equity method of accounting is as follows (in thousands):

	Loans to and investments in associated companies as of December 31, 2015		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2016
Jefferies Finance	$	528,575	$	—		$	(1,761	)	$	(36,350	)	$	—		$	490,464
Jefferies LoanCore	288,741		—			21,221			(155,231		)	—			154,731
Berkadia	190,986		94,201			—			(100,766		)	22			184,443
FXCM (1)	—		1,919			—			—			334,339			336,258
Garcadia Companies	172,660		52,266			—			(39,111		)	—			185,815
Linkem	150,149		(22,867		)	—			33,303			(6,585		)	154,000
HomeFed	275,378		23,893			—			2,960			—			302,231
Golden Queen (2)	114,323		(3,021		)	—			—			—			111,302
54 Madison (3)	—		4,255			—			153,503			3,642			161,400
Other	36,557		3,952			(2,276		)	9,622			(3,401		)	44,454
Total	$	1,757,369	$	154,598		$	17,184		$	(132,070	)	$	328,017		$	2,125,098

	Loans to and investments in associated companies as of December 31, 2014		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2015
Jefferies Finance	$	508,891	$	—		$	40,884		$	(21,200	)	$	—		$	528,575
Jefferies LoanCore	258,947		—			36,554			(6,760		)	—			288,741
Berkadia	208,511		78,092			—			(89,560		)	(6,057		)	190,986
Garcadia Companies	167,939		53,182			—			(48,461		)	—			172,660
Linkem	159,054		(15,577		)	—			21,138			(14,466		)	150,149
HomeFed	271,782		3,596			—			—			—			275,378
Golden Queen (2)	103,598		(1,775		)	—			12,500			—			114,323
Other	33,846		(7,237		)	(1,721		)	11,483			186			36,557
Total	$	1,712,568	$	110,281		$	75,717		$	(120,860	)	$	(20,337	)	$	1,757,369

	Loans to and investments in associated companies as of December 31, 2013		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2014
Jefferies Finance	$	470,537	$	—		$	72,701		$	(34,347	)	$	—		$	508,891
Jefferies LoanCore	224,037		—			18,793			16,117			—			258,947
Berkadia	182,573		101,187			—			(72,721		)	(2,528		)	208,511
Garcadia Companies	120,017		49,416			—			(1,494		)	—			167,939
Linkem	173,577		(14,633		)	—			18,390			(18,280		)	159,054
HomeFed	52,923		3,150			—			—			215,709			271,782
Golden Queen (2)	—		(1,402		)	—			105,000			—			103,598
Other	34,677		809			(1,252		)	(4,067		)	3,679			33,846
Total	$	1,258,341	$	138,527		$	90,242		$	26,878		$	198,580		$	1,712,568

(1) As discussed more fully in Note 4, on September 1, 2016, we amended the terms of our loan and associated rights with FXCM. Through the amendments, we converted our participation rights for a 49.9% common membership ownership in FXCM. Our term loan remains classified within Trading assets, at fair value.

(2) At December 31, 2016, 2015 and 2014, the balance reflects $32.8 million, $33.7 million and $33.7 million, respectively, related to a noncontrolling interest.

(3) At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests.

Jefferies Finance

In October 2004, Jefferies entered into an agreement with Massachusetts Mutual Life Insurance Company ("MassMutual") and Babson Capital Management LLC (now Barings, 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.

Jefferies and MassMutual each made equity commitments to Jefferies Finance of $600.0 million.  At December 31, 2016, approximately $493.9 million of Jefferies commitment was funded.  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.

In addition, Jefferies and MassMutual have entered into a Secured Revolving Credit Facility, 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 Facility is for a committed amount of $500.0 million at December 31, 2016 and 2015.  Advances are shared equally between Jefferies 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 December 31, 2016 and 2015, $0.0 and $19.3 million, respectively, of Jefferies $250.0 million commitment were funded.

Jefferies engages in debt capital markets transactions with Jefferies Finance related to the originations of loans by Jefferies Finance.  In connection with such transactions, Jefferies earned fees of $112.6 million, $122.7 million and $199.5 million during 2016, 2015 and 2014, respectively, which are recognized in Investment banking revenues in the Consolidated Statements of Operations.  In addition, Jefferies paid fees to Jefferies Finance in respect of certain loans originated by Jefferies Finance of $0.5 million, $5.9 million and $10.6 million during 2016, 2015 and 2014, respectively, which are recognized within Selling, general and other expenses in the Consolidated Statements of Operations.

During the years ended December 31, 2016, 2015 and 2014, Jefferies acted as placement agent in connection with several CLOs managed by Jefferies Finance, for which Jefferies recognized fees of $2.6 million, $6.2 million and $4.6 million, respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations.  At December 31, 2016 and 2015, Jefferies held securities issued by the CLOs managed by Jefferies Finance, which are included within Trading assets, and provided a guarantee, whereby Jefferies is required to make payments to a CLO in the event Jefferies Finance is unable to meet its obligation to the CLO.  Additionally, Jefferies has entered into participation agreements and derivative contracts with Jefferies Finance based on certain securities issued by the CLO. 

Jefferies acted as underwriter in connection with senior notes issued by Jefferies Finance, for which Jefferies recognized underwriting fees of $1.3 million and $7.7 million during the years ended December 31, 2015 and 2014, respectively, which are included in Investment banking revenues in the Consolidated Statements of Operations.

Under a service agreement, Jefferies charged Jefferies Finance $46.1 million, $51.7 million and $41.6 million for services provided during 2016, 2015 and 2014, respectively.   At December 31, 2016, Jefferies had a payable to Jefferies Finance, included within Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition of $5.8 million. At December 31, 2015, Jefferies had a receivable from Jefferies Finance, included within Other assets in the Consolidated Statements of Financial Condition of $7.8 million.

Jefferies LoanCore

In February 2011, Jefferies 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's aggregate equity commitments were reduced from $600.0 million to $400.0 million.  At December 31, 2016 and 2015, Jefferies had funded $70.1 million and $207.4 million, respectively, of each of its $194.0 million and $291.0 million equity commitments, respectively, and has a 48.5% voting interest in Jefferies LoanCore.

Jefferies LoanCore has entered into master repurchase agreements with Jefferies. During 2016, 2015 and 2014, Jefferies recognized interest income of $8.4 million, $10.7 million and $1.2 million, respectively, related to these agreements. In connection with such master repurchase agreements, at December 31, 2016 and 2015, Jefferies had securities purchased with agreements to resell from Jefferies LoanCore of $68.1 million and $175.1 million, respectively.

Berkadia

Berkadia Commercial Mortgage LLC is a commercial mortgage banking and servicing joint venture formed in 2009 with Berkshire Hathaway Inc.  We and Berkshire Hathaway each contributed $217.2 million of equity capital to the joint venture and each have a 50% equity interest in Berkadia.  Through December 31, 2016, cumulative cash distributions received from this investment aggregated $494.6 million.  Berkadia originates commercial/multifamily real estate loans that are sold to U.S. government agencies, and originates and brokers commercial/multifamily mortgage loans which are not part of government agency programs.  Berkadia is an investment sales advisor focused on the multifamily industry. Berkadia is a servicer of commercial real estate loans in the U.S., performing primary, master and special servicing functions for U.S. government agency programs, commercial mortgage-backed securities transactions, banks, insurance companies and other financial institutions.

Berkadia uses all of the proceeds from the commercial paper sales of an affiliate of Berkadia to fund new mortgage loans, servicer advances, investments and other working capital requirements.  Repayment of the commercial paper is supported by a $2.5 billion surety policy issued by a Berkshire Hathaway insurance subsidiary and corporate guaranty, and we have agreed to reimburse Berkshire Hathaway for one-half of any losses incurred thereunder.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.

FXCM

As discussed more fully in Note 4, at December 31, 2016, Leucadia has a 49.9% common membership interest in FXCM and a senior secured term loan with FXCM due January 2018. On September 1, 2016, we gained the ability to significantly influence FXCM through our common membership interest and our seats on the board of directors. As a result, we now classify our equity investment in FXCM in our Consolidated Statements of Financial Condition as Loans to and investments in associated companies. Our term loan remains classified within Trading assets, at fair value. We account for our equity interest in FXCM on a one month lag. We are amortizing our basis difference between the estimated fair value and the underlying book value of FXCM customer relationships, technology, trade name, leases and long-term debt over their respective useful lives.

FXCM is considered a VIE and our term loan and equity interest are variable interests.  We have determined that we are not the primary beneficiary of FXCM because we do not have the power to direct the activities that most significantly impact FXCM's performance.  Therefore, we do not consolidate FXCM.

Garcadia

Garcadia is a joint venture between us and Garff Enterprises, Inc. ("Garff") that owns and operates 28 automobile dealerships comprised of domestic and foreign automobile makers.  The Garcadia joint venture agreement specifies that we and Garff shall have equal board representation and equal votes on all matters affecting Garcadia, and that all cash flows from Garcadia will be allocated 65% to us and 35% to Garff, with the exception of one dealership from which we receive 83% of all cash flows and four other dealerships from which we receive 71% of all cash flows.  Garcadia’s strategy is to acquire automobile dealerships in primary or secondary market locations meeting its specified return criteria. 

Linkem

We own approximately 42% of the common shares of Linkem, a fixed wireless broadband services provider in Italy, at a cost of $142.9 million.  In addition, we own 5% convertible preferred stock, which is automatically convertible to common shares in 2020. If all of our convertible preferred equity was converted, it would increase our ownership to approximately 57% of Linkem’s common equity at December 31, 2016.  The excess of our investment in Linkem’s common shares over our share of underlying book value is being amortized to expense over 12 years.

HomeFed

At December 31, 2016, we own 10,054,226 shares of HomeFed’s common stock, representing approximately 65% of HomeFed’s outstanding common shares; however, we have agreed to limit our voting rights such that we will not be able to vote more than 45% of HomeFed’s total voting securities voting on any matter, assuming all HomeFed shares not owned by us are voted.  HomeFed develops and owns residential and mixed-use real estate properties.  HomeFed is a public company traded on the NASD OTC Bulletin Board (Symbol: HOFD).  As a result of a 1998 distribution to all of our shareholders, approximately 4.8% of HomeFed is beneficially owned by our Chairman at December 31, 2016.  Our Chairman also serves as HomeFed’s Chairman, and our President is a Director of HomeFed.

During 2014, we sold to HomeFed substantially all of our real estate properties and operations, our interest in Brooklyn Renaissance Plaza (“BRP”) and cash of approximately $14.0 million, in exchange for 7,500,000 newly issued unregistered HomeFed common shares. Under GAAP, we are not permitted to immediately recognize any gain on real estate sale transactions in which the seller does not receive cash; accordingly the gain on sale of approximately $36.1 million was deferred and is being recognized into income over time. 

Since we do not control HomeFed, our investment in HomeFed is accounted for as an investment in an associated company. 

Golden Queen Mining Company

During 2014 and 2015, we invested $83.0 million, net cash in a limited liability company (Gauss LLC) to partner with the Clay family and Golden Queen Mining Co. Ltd., to jointly fund, develop and operate the Soledad Mountain gold and silver mine project.  Previously 100% owned by Golden Queen Mining Co. Ltd., the project is a fully-permitted, open pit, heap leach gold and silver project located in Kern County, California, which commenced gold and silver production in March 2016.  In exchange for a noncontrolling ownership interest in Gauss LLC, the Clay family contributed $34.5 million, net in cash.  Gauss LLC invested both our and the Clay family’s net contributions totaling $117.5 million to the joint venture, Golden Queen, in exchange for a 50% ownership interest.  Golden Queen Mining Co., Ltd. contributed the Soledad Mountain project to the joint venture in exchange for the other 50% interest.

As a result of our consolidating Gauss LLC, our Loans to and investments in associated companies reflects Gauss LLC’s net investment of $117.5 million in the joint venture, which includes both the amount we contributed and the amount contributed by the Clay family.  The joint venture, Golden Queen, is considered a VIE as the voting rights of the investors are not proportional to their obligations to absorb the expected losses and their rights to receive the expected residual returns, given the provision of services to the joint venture by Golden Queen Mining Co. Ltd.  Golden Queen Mining Co. Ltd. has entered into an agreement with the joint venture for the provision of executive officers, financial, managerial, administrative and other services, and office space and equipment.  We have determined that we are not the primary beneficiary of the joint venture and are therefore not consolidating its results.

Our maximum exposure to loss as a result of our involvement with the joint venture is limited to our investment. The excess of Gauss LLC's investment in Golden Queen's underlying book value is being amortized to expense over the estimated life of mine gold and silver sales.

54 Madison

We own approximately 48.1% of 54 Madison, which we consolidate through our control of the 54 Madison investment committee. 54 Madison seeks long-term capital appreciation through investment in real estate development and similar projects. 54 Madison invests both in projects which they consolidate and projects where they have significant influence and utilize the equity method of accounting. During the year ended December 31, 2016, 54 Madison invested $153.5 million in projects accounted for under the equity method and $90.7 million of that was contributed from noncontrolling interests.

Other

The following table provides summarized data for associated companies as of December 31, 2016 and 2015 and for the three years ended December 31, 2016 (in thousands):

	2016		2015
Assets	$	16,964,850	$	18,489,684
Liabilities	13,097,022		14,990,876
Noncontrolling interest	132,789		39,038
	2016		2015		2014
Revenues	$	4,275,016	$	3,946,252	$	3,201,823
Income from continuing operations before extraordinary items	$	422,167	$	398,369	$	431,654
Net income	$	430,291	$	398,369	$	431,654
The Company’s income related to associated companies	$	171,782	$	185,998	$	228,769

Except for our investment in Berkadia and Jefferies Finance, we have not provided any guarantees, nor are we contingently liable for any of the liabilities reflected in the above table.  All such liabilities are non-recourse to us.  Our exposure to adverse events at the investee companies is limited to the book value of our investment. See Note 25 for further discussion of these guarantees.

Included in consolidated retained earnings at December 31, 2016 is approximately $126.2 million of undistributed earnings of the associated companies accounted for under the equity method of accounting.

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Financial Statement Offsetting

12 Months Ended

Dec. 31, 2016

Offsetting [Abstract]

Financial Statement Offsetting

Financial Statement Offsetting

In connection with Jefferies derivative activities and securities financing activities, Jefferies may enter into master netting agreements and collateral arrangements with counterparties.  Generally, transactions are executed under standard industry agreements, including, but not limited to: derivative transactions – ISDA master netting agreements; securities lending transactions – master securities lending agreements; and repurchase transactions – master repurchase agreements.  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 to a counterparty against all or a portion of an amount due from the counterparty or a third party.  In addition, Jefferies may 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 Jefferies derivative ISDA master netting agreements, Jefferies typically will 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 Jefferies has not determined an agreement to be enforceable, the related amounts are not offset. Master netting agreements are a critical component of Jefferies risk management processes as part of reducing counterparty credit risk and managing liquidity risk.

Jefferies is also a party to clearing agreements with various central clearing parties.  Under these arrangements, the central clearing counterparty facilitates settlement between counterparties based on the net payable owed or receivable due and, with respect to daily settlement, cash is generally only required to be deposited to the extent of the net amount.  In the event of default, a net termination amount is determined based on the market values of all outstanding positions and the clearing organization or clearing member provides for the liquidation and settlement of the net termination amount among all counterparties to the open contracts or transactions.

The following table provides information regarding derivative contracts, 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 GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position.

(In thousands)	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 at December 31, 2016
Derivative contracts	$	4,627,076	$	(4,255,998	)	$	371,078	$	—		$	—		$	371,078
Securities borrowing arrangements	$	7,743,562	$	—		$	7,743,562	$	(710,611	)	$	(647,290	)	$	6,385,661
Reverse repurchase agreements	$	14,083,144	$	(10,220,656	)	$	3,862,488	$	(176,275	)	$	(3,591,654	)	$	94,559
Liabilities at December 31, 2016
Derivative contracts	$	4,880,022	$	(4,229,213	)	$	650,809	$	—		$	—		$	650,809
Securities lending arrangements	$	2,819,132	$	—		$	2,819,132	$	(710,611	)	$	(2,064,299	)	$	44,222
Repurchase agreements	$	17,012,332	$	(10,220,656	)	$	6,791,676	$	(176,275	)	$	(5,780,909	)	$	834,492
Assets at December 31, 2015
Derivative contracts	$	4,428,245	$	(4,165,446	)	$	262,799	$	—		$	—		$	262,799
Securities borrowing arrangements	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	$	14,046,300	$	(10,191,554	)	$	3,854,746	$	(83,452	)	$	(3,745,215	)	$	26,079
Liabilities at December 31, 2015
Derivative contracts	$	4,476,241	$	(4,257,998	)	$	218,243	$	—		$	—		$	218,243
Securities lending arrangements	$	3,014,300	$	—		$	3,014,300	$	(478,991	)	$	(2,499,395	)	$	35,914
Repurchase agreements	$	20,158,422	$	(10,191,554	)	$	9,966,868	$	(83,452	)	$	(8,068,468	)	$	1,814,948

(1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement.  These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other provisions of GAAP are not met.  Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received.

(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) At December 31, 2016, amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million, and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million, which are subject to master netting agreements but we have not yet determined the agreements to be legally enforceable. At December 31, 2015, 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 yet determined the agreements to be legally enforceable.

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Intangible Assets, Net And Goodwill

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net And Goodwill

Intangible Assets, Net and Goodwill

A summary of intangible assets, net and goodwill at December 31, 2016 and 2015 is as follows (in thousands):

	2016		2015
Indefinite lived intangibles:
Exchange and clearing organization membership interests and registrations	$	9,041	$	11,897
Amortizable intangibles:
Customer and other relationships, net of accumulated amortization of $198,674 and $191,761	378,136		456,222
Trademarks and tradename, net of accumulated amortization of $78,778 and $64,052	309,382		330,172
Supply contracts, net of accumulated amortization of $47,867 and $40,684	95,733		109,311
Other, net of accumulated amortization of $2,914 and $5,216	5,672		4,419
Total intangible assets, net	797,964		912,021
Goodwill:
National Beef	14,991		14,991
Jefferies	1,696,864		1,712,799
Other operations	3,859		8,551
Total goodwill	1,715,714		1,736,341
Total intangible assets, net and goodwill	$	2,513,678	$	2,648,362

Amortization expense on intangible assets was $63.4 million, $63.9 million and $66.2 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows:  2017 - $58.5 million; 2018 - $58.5 million; 2019 - $58.5 million; 2020 - $58.5 million; and 2021 - $58.1 million.

Goodwill Impairment Testing

The quantitative goodwill impairment test is performed at our reporting unit level 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. 

The estimated fair values are based on 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 fair value include price-to-book multiples of comparable exchange traded companies, multiples of mergers and acquisitions of similar businesses, projected cash flows and market capitalization. In addition, as the fair values determined under a market approach represent a noncontrolling interest, we applied a control premium to arrive at the estimated fair value of our reporting units on a controlling basis. An independent valuation specialist was engaged to assist with the valuation process for Jefferies as of August 1, 2016. The results of our annual impairment test related to Jefferies, National Beef and other operations indicated goodwill was not impaired.

Intangible Assets Impairment Testing

Jefferies also performed its annual impairment testing of its intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2016.  Jefferies 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 Jefferies indefinite-life intangible assets. In applying the quantitative assessment, Jefferies recognized an impairment loss of $1.3 million and $1.3 million on certain exchange membership interests and registrations during the during the years ended December 31, 2016 and 2015, respectively. With regard to its qualitative assessment of the remaining indefinite-life intangible assets, based on its assessment of market conditions, the utilization of the assets and replacement costs associated with the assets, Jefferies has concluded that it is not more likely than not that the intangible assets are impaired.

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Inventory

12 Months Ended

Dec. 31, 2016

Inventory, Net [Abstract]

Inventory

Inventory

A summary of inventory at December 31, 2016 and 2015 which is classified as Other assets is as follows (in thousands):

	2016		2015
Finished goods	$	243,488	$	211,426
Work in process	35,714		34,091
Raw materials, supplies and other	30,733		42,556
	$	309,935	$	288,073

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Property, Equipment And Leasehold Improvements, Net

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Equipment and Leasehold Improvements, Net

Property, Equipment and Leasehold Improvements, Net

A summary of property, equipment and leasehold improvements, net at December 31, 2016 and 2015 is as follows (in thousands):

	Depreciable Lives (in years)	2016			2015
Land, buildings and leasehold improvements	5-25	$	379,927		$	371,383
Beef processing machinery and equipment	2-15	330,453			315,238
Other machinery and equipment	3-15	30,716			113,412
Corporate aircraft	10	104,862			104,862
Furniture, fixtures and office equipment	3-10	323,276			311,845
Construction in progress	N/A	54,693			38,903
Other	3-10	3,441			4,909
		1,227,368			1,260,552
Accumulated depreciation and amortization		(518,126		)	(538,677		)
		$	709,242		$	721,875

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings December 31, 2016 and 2015 represent Jefferies 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):

	2016		2015
Bank loans (1)	$	372,301	$	262,000
Secured revolving loan facilities	57,086		48,659
Floating rate puttable notes	96,455		—
Total short-term borrowings	$	525,842	$	310,659

At December 31, 2016 and 2015, the weighted average interest rate on short-term borrowings outstanding is 1.77% and .85% per annum, respectively.

During 2016, under Jefferies $2.0 billion Euro Medium Term Note Program, Jefferies issued floating rate puttable notes with principal amounts of €91.0 million. These notes are currently redeemable, so Jefferies classifies them as short-term borrowings.

On February 19, 2016, Jefferies entered into a demand loan margin financing facility (“Demand Loan Facility”) in a maximum principal amount of $25.0 million to satisfy certain of its 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. The Demand Loan Facility was terminated with an effective date of November 30, 2016.

In October 2015, Jefferies entered into a secured revolving loan facility (“First 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 First Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus 3.75% or the maximum rate as defined in the Secured Revolving Loan Facility agreement. On December 14, 2015, Jefferies entered into a second secured revolving loan facility (“Second Secured Revolving Loan Facility”) whereby the lender agrees to make available a revolving loan facility in a maximum principal amount of $50.0 million to purchase eligible receivables that meet certain requirements as defined in the Second Secured Revolving Loan Facility agreement. Interest is based on an annual rate equal to the lesser of the LIBOR rate plus 4.25% or the maximum rate as defined in the Second 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 $250.0 million. 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 December 31, 2016, Jefferies was in compliance with debt covenants under the Intraday Credit Facility.

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Long-Term Debt

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The principal amount (net of unamortized discounts and premiums), stated interest rate and maturity date of outstanding debt at December 31, 2016 and 2015 are as follows (dollars in thousands):

	2016		2015
Parent Company Debt:
Senior Notes:
5.50% Senior Notes due October 18, 2023, $750,000 principal	$	741,264	$	740,239
6.625% Senior Notes due October 23, 2043, $250,000 principal	246,627		246,583
Total long-term debt – Parent Company	987,891		986,822
Subsidiary Debt (non-recourse to Parent Company):
Jefferies:
5.5% Senior Notes, due March 15, 2016, $350,000 principal	—		353,025
5.125% Senior Notes, due April 13, 2018, $800,000 principal	817,813		830,298
8.5% Senior Notes, due July 15, 2019, $700,000 principal	778,367		806,125
2.375% Euro Senior Notes, due May 20, 2020, $529,975 and $528,625 principal	528,250		526,436
6.875% Senior Notes, due April 15, 2021, $750,000 principal	823,797		838,765
2.25% Euro Medium Term Notes, due July 13, 2022, $4,240 and $4,229 principal	3,848		3,779
5.125% Senior Notes, due January 20, 2023, $600,000 principal	618,355		620,890
6.45% Senior Debentures, due June 8, 2027, $350,000 principal	377,806		379,711
3.875% Convertible Senior Debentures, due November 1, 2029, $345,000 principal	346,163		347,307
6.25% Senior Debentures, due January 15, 2036, $500,000 principal	512,396		512,730
6.50% Senior Notes, due January 20, 2043, $400,000 principal	421,333		421,656
Structured Notes (1) (2)	255,203		—
National Beef Term Loan	273,811		310,000
National Beef Revolving Credit Facility	—		120,080
54 Madison Term Loans	406,028		116,211
Foursight Capital Credit Facilities	97,138		109,501
Other	132,244		117,246
Total long-term debt – subsidiaries	6,392,552		6,413,760
Long-term debt	$	7,380,443	$	7,400,582

(1) Includes $248.9 million at fair value at December 31, 2016.

(2) Of the $255.2 million of structured notes at December 31, 2016, $6.3 million matures in 2018, $10.7 million matures in 2019, and the remaining $238.2 million matures in 2024 or thereafter.

At December 31, 2016, $2.0 billion of consolidated assets (primarily receivables, property and equipment and other assets) are pledged for indebtedness aggregating $916.0 million, principally for National Beef, Foursight Capital and 54 Madison subsidiary debt.

The aggregate annual mandatory redemptions of all long-term debt during the five year period ending December 31, 2021 are as follows:  2017 - $420.7 million; 2018 - $1,172.2 million; 2019 - $958.4 million; 2020 - $669.0 million; and 2021 - $792.0 million.

Parent Company Debt:

From time to time we have purchased our outstanding debt securities depending upon prevailing market conditions, our liquidity requirements and other factors; such purchases may be commenced or suspended at any time without notice. 

Our senior note indentures contain covenants that restrict our ability to incur more Indebtedness or issue Preferred Stock of Subsidiaries unless, at the time of such incurrence or issuance, the Company meets a specified ratio of Consolidated Debt to Consolidated Tangible Net Worth, limit the ability of the Company and Material Subsidiaries to incur, in certain circumstances, Liens, limit the ability of Material Subsidiaries to incur Funded Debt in certain circumstances, and contain other terms and restrictions all as defined in the senior note indentures.  We have the ability to incur substantial additional indebtedness or make distributions to our shareholders and still remain in compliance with these restrictions.  If we are unable to meet the specified ratio, we would not be able to issue additional Indebtedness or Preferred Stock, but our inability to meet the applicable ratio would not result in a default under our senior note indentures.  The senior note indentures do not restrict the payment of dividends.

Subsidiary Debt:

Jefferies 3.875% Convertible Senior Debentures due 2029 are convertible into our common shares; each $1,000 are convertible into 22.7634 common shares (equivalent to a conversion price of approximately $43.93 per share).  The debentures are convertible at the holders’ option any time beginning on August 1, 2029 and convertible at any time if: 1) our 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 our 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 our 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 5 trading days ending on and including the third trading day immediately preceding a six-month interest period equals or exceeds $1,200 per $1,000 debenture.

During the year ended December 31, 2016, Jefferies issued structured notes with a total principal amount of approximately $275.4 million. Structured notes of $248.9 million at December 31, 2016 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 Accumulated other comprehensive income and changes in fair value resulting from non-credit components recognized in Principal transaction revenues.

In addition, on January 21, 2016, Jefferies 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 Jefferies. In June 2016, the Class A Notes and the Class B Notes were repurchased and retired.

In January 2017, Jefferies issued 4.85% senior notes with a principal amount of $750.0 million, due 2027.

At December 31, 2016, National Beef’s credit facility consisted of a term loan with an outstanding balance of $273.8 million and a revolving credit facility with a commitment of $285.0 million, both of which mature in October 2018.  The revolving credit facility commitment was voluntarily reduced by National Beef in the third quarter of 2016 from $375.0 million to $285.0 million. The term loan and the revolving credit facility bear interest at the Base Rate or the LIBOR Rate (as defined in the credit facility), plus a margin ranging from .75% to 2.75% depending upon certain financial ratios and the rate selected.  At December 31, 2016, the interest rate on the outstanding term loan was 2.6%.  The credit facility contains a minimum tangible net worth covenant; at December 31, 2016, National Beef met this covenant.  The credit facility is secured by a first priority lien on substantially all of the assets of National Beef and its subsidiaries.

Borrowings under the revolving credit facility are available for National Beef’s working capital requirements, capital expenditures and other general corporate purposes.  Unused capacity under the facility can also be used to issue letters of credit; letters of credit aggregating $12.5 million were outstanding at December 31, 2016.  Amounts available under the revolver are subject to a borrowing base calculation primarily comprised of receivable and inventory balances.  At December 31, 2016, after deducting outstanding amounts and issued letters of credit, $234.5 million of the unused revolver was available to National Beef.

At December 31, 2016, 54 Madison had $63.9 million of 6.0% term loan debt maturing in January 2018, $162.5 million of 5.5% term loan debt that maturing in February 2019, $0.5 million of 3.5% term loan debt maturing in March 2019, $79.0 million of 4.15% term loan debt that maturing in April 2019, $104.0 million of 5.5% term loan debt maturing in January 2020 and $0.5 million of 3.5% term loan debt maturing in January 2020. As discussed further in Note 28, the majority of the debt holders are also investors in 54 Madison.

At December 31, 2016, Foursight Capital’s credit facilities consisted of two warehouse credit commitments aggregating $200.0 million, which mature in March 2017 and December 2018. The 2017 credit facility bears interest based on the three-month LIBOR plus a credit spread fixed through its maturity and the 2018 credit facility bears interest based on the one-month LIBOR plus a credit spread fixed through its maturity. As a condition of the 2017 credit facility, Foursight Capital is obligated to maintain interest rate caps with a notional amount no less than the outstanding loan on any day, which was $43.1 million at December 31, 2016. The credit facilities are secured by first priority liens on auto loan receivables owed to Foursight Capital of approximately $115.2 million at December 31, 2016.

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Mezzanine Equity

12 Months Ended

Dec. 31, 2016

Temporary Equity Disclosure [Abstract]

Mezzanine Equity

Mezzanine Equity

Redeemable Noncontrolling Interests

Redeemable noncontrolling interests primarily relate to National Beef and are held by its minority owners, principally USPB, NBPCo Holdings and the chief executive officer of National Beef.  The holders of these interests share in the profits and losses of National Beef on a pro rata basis with us.  However, the minority owners have the right to require us to purchase their interests under certain specified circumstances at fair value (put rights), and we also have the right to purchase their interests under certain specified circumstances at fair value (call rights).  Each of the holders of the put rights has the right to make an election that requires us to purchase up to one-third of their interests on December 30, 2016 , one-third on December 30, 2018, and the remainder on December 30, 2021. In addition, USPB may elect to exercise their put rights following the termination of the cattle supply agreement, and the chief executive officer following the termination of his employment. Holders of the put rights had from December 30, 2016 through January 29, 2017 to make an election that would require us to purchase up to one-third of their interests. The holders of the put rights did not make such election.

Our call rights with respect to USPB may be exercised following the termination of the cattle supply agreement or after USPB’s ownership interest is less than 20% of their interest held at the time we acquired National Beef.  Our call rights with respect to other members may be exercised after the ten year anniversary of our acquisition of National Beef if such member’s ownership interest is less than 50% of the interest held at the time we acquired National Beef.  Additionally, we may acquire the chief executive officer’s interest following the termination of his employment.

Redeemable noncontrolling interests in National Beef are reflected in the Consolidated Statements of Financial Condition at fair value.  The following table reconciles National Beef’s redeemable noncontrolling interests activity during the years ended December 31, 2016 and 2015 (in thousands):

	2016			2015
As of January 1,	$	189,358		$	184,333
Income (loss) allocated to redeemable noncontrolling interests	68,811			(26,465		)
Contributions from redeemable noncontrolling interests	—			5,263
Distributions to redeemable noncontrolling interests	(53,701		)	—
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital	117,494			26,227
Balance, December 31,	$	321,962		$	189,358

At acquisition, we prepared a projection of future cash flows of National Beef, which was used along with other information to allocate the purchase price to National Beef’s individual assets and liabilities.  At December 31, 2016, we calculated the fair value of the redeemable noncontrolling interests by updating our estimate of future cash flows.   The projected future cash flows consider estimated revenue growth, cost of sales changes, capital expenditures and other unobservable inputs.  However, the most significant unobservable inputs affecting the estimate of fair value are the discount rate (10.90%) and the terminal growth rate (2.00%) used to calculate the capitalization rate of the terminal value.

The table below is a sensitivity analysis which shows the fair value of the redeemable noncontrolling interests using the assumed discount and the terminal growth rates and fair values under different rate assumptions as of December 31, 2016 (dollars in millions):

		Discount Rates
Terminal Growth Rates		10.65%		10.90%		11.15%
1.75	%	$	326.5	$	317.8	$	309.6
2.00	%	$	331.0	$	322.0	$	313.4
2.25	%	$	335.7	$	326.3	$	317.5

The projection of future cash flows is updated with input from National Beef personnel.  The estimate is reviewed by personnel at our corporate office as part of the normal process for the preparation of our quarterly and annual financial statements.

At December 31, 2016, redeemable noncontrolling interests also includes other redeemable noncontrolling interests of $14.8 million, primarily related to our oil and gas exploration and development businesses. At December 31, 2015, redeemable noncontrolling interests also included the noncontrolling interest in a business acquired by Conwed of $2.3 million.

Mandatorily Redeemable Convertible Preferred Shares

In connection with the Jefferies acquisition we issued a new series of 3.25% Cumulative Convertible Preferred Shares (“Preferred Shares”) ($125.0 million at mandatory redemption value) in exchange for Jefferies outstanding 3.25% Series A-1 Cumulative Convertible Preferred Stock.  The Preferred Shares have a 3.25% annual, cumulative cash dividend and are currently convertible into 4,162,200 common shares, an effective conversion price of $30.03 per share.  The Preferred Shares are callable beginning in 2023 at a price of $1,000 per share plus accrued interest and are mandatorily redeemable in 2038.

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Compensation Plans

12 Months Ended

Dec. 31, 2016

Share-based Compensation [Abstract]

Compensation Plans

Compensation Plans

Incentive Plan

Upon completion of our combination with Jefferies, we assumed the 2003 Incentive Compensation Plan, as Amended and Restated July 25, 2013 (the "Incentive Plan"). The Incentive Plan allows awards in the form of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code), nonqualified stock options, stock appreciation rights, restricted stock, unrestricted stock, performance awards, restricted stock units ("RSUs"), dividend equivalents or other share-based awards.

RSUs give a participant the right to receive fully vested 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.

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 it is determined that it is probable that the performance condition will be achieved. Awards granted to senior executives related to the 2015 and 2014 fiscal years did not meet performance targets, and as a result, compensation expense has been adjusted to reflect the reduced number of shares that have vested.

The Deferred Compensation Plan (the “DCP”) has been implemented under the Incentive Plan.  The DCP permits eligible executive officers and other employees to defer cash compensation, some or all of which may be deemed invested in stock units.  A portion of the deferrals may also be directed to notional investments in a money market fund or certain of the employee investment opportunities.  Stock units generally have been acquired at a discounted price, which encourages employee participation in the DCP and enhances long-term retention of equity interests by participants and aligns executive interests with those of shareholders.  Amounts recognized as compensation cost under the DCP have not been significant.  The shares to be delivered in connection with DCP stock units and options are drawn from the Incentive Plan.

The Incentive Plan’s “evergreen” share reservation was terminated on March 21, 2014; the number of equity awards available under the Incentive Plan was set at 20,000,000.  At December 31, 2016, 14,838,855 common shares remained available for new grants under the Incentive Plan.  Shares issued pursuant to the DCP reduce the shares available under the Incentive Plan.  

The following table details the activity in restricted stock during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

			Weighted- Average Grant Date Fair Value
Balance at January 1, 2014	5,242		$	26.94
Grants	864		$	27.03
Forfeited	(202	)	$	26.90
Fulfillment of service requirement	(2,521	)	$	26.89
Balance at December 31, 2014	3,383		$	27.00
Grants	602		$	18.63
Forfeited	(94	)	$	28.12
Fulfillment of service requirement	(1,887	)	$	26.87
Balance at December 31, 2015	2,004		$	24.56
Grants	356		$	18.23
Forfeited	(24	)	$	26.90
Fulfillment of service requirement	(974	)	$	25.65
Balance at December 31, 2016	1,362		$	22.09

The following table details the activity in RSUs during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

	Future Service Required		No Future Service Required		Future Service Required		No Future Service Required
Balance at January 1, 2014	4,793		8,316		$	26.90	$	26.86
Grants	—		97		$	—	$	20.89
Distributions of underlying shares	—		(366	)	$	—	$	26.85
Forfeited	(135	)	—		$	26.90	$	—
Fulfillment of service requirement	(420	)	420		$	26.90	$	26.90
Balance at December 31, 2014	4,238		8,467		$	26.90	$	26.79
Grants	—		121		$	—	$	18.95
Distributions of underlying shares	—		(229	)	$	—	$	22.34
Forfeited	(626	)	—		$	26.90	$	—
Fulfillment of service requirement	(224	)	224		$	26.90	$	26.90
Balance at December 31, 2015	3,388		8,583		$	26.90	$	26.68
Grants	—		128		$	—	$	14.21
Distributions of underlying shares	—		(1,683	)	$	—	$	26.59
Forfeited	—		—		$	—	$	—
Fulfillment of service requirement	(3,320	)	3,320		$	26.90	$	26.90
Balance at December 31, 2016	68		10,348		$	26.90	$	26.61

At December 31, 2016 and 2015, respectively, grants include approximately 108,000 and 106,000 dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $13.53 and $18.13, respectively.

Senior Executive Compensation Plan

On February 19, 2016, the Compensation Committee of our Board of Directors approved an executive compensation plan for our CEO and our President (together, our "Senior Executives") in respect of 2016 that will be based on performance metrics achieved over a three-year period from 2016 through 2018. The Compensation Committee eliminated cash incentive bonuses for 2016 and 100% of each of our CEO and President's compensation beyond their base salaries will be composed entirely of performance based RSUs that will vest at the end of 2018 if certain performance criteria are met. Any vested RSUs will be subject to a post-vesting, three-year holding period such that no vested RSUs can be sold or transferred until the first quarter of 2022.

Performance-vesting of the award will be based equally on the compound annual growth rates of Leucadia's Total Shareholder Return ("TSR"), which will be measured from the December 31, 2015 stock price of $17.39, and Leucadia's Return on Tangible Deployable Equity ("ROTDE"), the annual, two- and three-year results of which will be used to determine vesting. TSR is based on annualized rate of return reflecting price appreciation plus reinvestment of dividends and distributions to shareholders. ROTDE is net income adjusted for amortization of intangible assets divided by tangible book value at the beginning of year adjusted for intangible assets and deferred tax assets.

If Leucadia's TSR and ROTDE annual compound growth rates are less than 4%, our Senior Executives will not receive any incentive compensation. If Leucadia's TSR and ROTDE grow between 4% and 8% on a compounded basis over the three-year measurement period, each of our Senior Executives will be eligible to receive between 846,882 and 1,693,766 RSUs. If TSR and ROTDE growth rates are greater than 8%, our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates. When determining whether RSUs will vest, the calculation will be weighted equally between TSR and ROTDE. If TSR growth was below minimum thresholds, but ROTDE growth was above minimum thresholds, our Senior Executives would still be eligible to receive some number of vested RSUs based on ROTDE growth. The TSR award contains a market condition and compensation expense is recognized over the service period and will not be reversed if the market condition is not met. The ROTDE award contains a performance condition and compensation expense is recognized over the service period if it is determined that it is probable that the performance condition will be achieved.

The following table details the activity in RSUs related to the senior executive compensation plan during the year ended December 31, 2016 (in thousands, except per share amounts):

	Target Number of Shares	Weighted- Average Grant Date Fair Value
Balance at December 31, 2015	—	$	—
Grants	3,434	$	9.68
Forfeited	—	$	—
Balance at December 31, 2016	3,434	$	9.68

At December 31, 2016, grants include approximately 47,000 dividend equivalents declared on RSUs; the weighted-average grant date fair values of the dividend equivalents were approximately $13.63.

In January 2017, the Compensation Committee of the Leucadia Board of Directors granted an executive-compensation plan for our Senior Executives for compensation year 2017 (the "2017 Plan") that is identical to the plan described above and is based upon performance metrics achieved over the three-year period from 2017 through 2019. For the 2017 Plan, if Leucadia's TSR and ROTDE annual compound growth rates are less than 4%, our Senior Executives will not receive any incentive compensation. If Leucadia's TSR and ROTDE grow between 4% and 8% on a compounded basis over the three-year measurement period, each of our Senior Executives will be eligible to receive between 537,634 and 1,075,268 RSUs. If TSR and ROTDE growth rates are greater than 8%, our Senior Executives are eligible to receive up to 50% additional incentive compensation on a pro rata basis up to 12% growth rates.

Directors’ Plan

Upon completion of our combination with Jefferies, we also assumed the 1999 Directors' Stock Compensation Plan, as Amended and Restated July 25, 2013 (the "Directors' Plan"). Under the Directors’ Plan, we issue each nonemployee director of Leucadia $120,000 of restricted stock or RSUs each year.  These grants are made on the date directors are elected or reelected at our annual shareholders’ meeting.  These shares vest over three years from the date of grant and are expensed over the requisite service period.  At December 31, 2016, 307,322 common shares were issuable upon settlement of outstanding restricted stock units and 340,759 shares are available for future grants.

Other Compensation Plans

Other Stock-Based Plans. Historically, Jefferies also sponsored an Employee Stock Purchase Plan and an Employee Stock Ownership Plan, both of which were assumed by us in connection with the Jefferies acquisition.  Amounts related to these plans have not been significant.

Prior to the acquisition of Jefferies, we had two share-based compensation plans: a fixed stock option plan and a senior executive warrant plan.

• 1999 Stock Option Plan. This plan provided for the issuance of stock options and stock appreciation rights to non-employee directors and certain employees at not less than the fair market value of the underlying stock at the date of grant.  Options granted to employees under this plan were intended to qualify as incentive stock options to the extent permitted under the Internal Revenue Code and became exercisable in five equal annual installments starting one year from date of grant.  Options granted to non-employee directors became exercisable in four equal annual installments starting one year from date of grant.  No stock appreciation rights have been granted.  In March 2014, we ceased issuing options and rights under our option plan. No shares remain available for future grants under this plan.

• Senior Executive Warrant Plan.  The warrants to purchase 2,000,000 common shares that were granted in 2011 to each of our then Chairman and then President expired unexercised during the first quarter of 2016.  We had recorded share-based compensation expense related to this grant of warrants of $1.0 million and $5.3 million for the years ended December 31, 2015 and 2014, respectively. No shares remain available for future grants under this warrant plan.

At December 31, 2016 and 2015, 641,478 and 4,661,272, respectively, of our common shares were reserved for stock options and warrants.

A summary of activity with respect to our stock options during the years ended December 31, 2016, 2015 and 2014 is as follows:

	Common Shares Subject to Option		Weighted- Average Exercise Prices		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at December 31, 2013	2,417,248		$	25.64
Granted	—		$	—
Exercised	(35,536	)	$	22.87		$	58,000
Cancelled	(741,678	)	$	27.39
Balance at December 31, 2014	1,640,034		$	24.91
Granted	—		$	—
Exercised	(2,030	)	$	21.66		$	6,000
Cancelled	(976,732	)	$	24.88
Balance at December 31, 2015	661,272		$	24.97
Granted	—		$	—
Exercised	—		$	—		$	—
Cancelled	(19,794	)	$	30.49
Balance at December 31, 2016	641,478		$	24.80	1.1 years	$	144,000
Exercisable at December 31, 2016	503,430		$	25.31	0.8 years	$	93,000

Restricted Cash Awards. Jefferies provides 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. These awards are amortized to compensation expense over the relevant service period.  At December 31, 2016, the remaining unamortized amount of these awards was $468.3 million and is included within Other assets in the Consolidated Statements of Financial Condition.

Stock-Based Compensation Expense

Compensation and benefits expense included $33.6 million, $74.1 million and $109.8 millionfor the years ended December 31, 2016, 2015 and 2014, respectively, for share-based compensation expense relating to grants made under our share-based compensation plans.  Total compensation cost includes the amortization of sign-on, retention and senior executive awards, less forfeitures and clawbacks.  The total tax benefit recognized in results of operations related to share-based compensation expenses was $12.4 million, $27.3 million and $39.9 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  As of December 31, 2016, total unrecognized compensation cost related to nonvested share-based compensation plans was $49.2 million; this cost is expected to be recognized over a weighted-average period of 1.8 years.

The net tax benefit (detriment) related to share-based compensation plans recognized in additional paid-in capital was $(4.2) million, $(5.9) million and $1.3 millionduring the years ended December 31, 2016, 2015 and 2014, respectively.  Cash flows resulting from tax deductions in excess of the grant date fair value of share-based awards are included in cash flows from financing activities; accordingly, we reflected the excess tax benefit related to share-based compensation in cash flows from financing activities. Such amounts for the years ended December 31, 2016, 2015 and 2014 were not significant.

At December 31, 2016, there were 1,362,000 shares of restricted stock outstanding with future service required, 3,502,000 RSUs outstanding with future service required (including target RSUs issuable under the senior executive compensation plan), 10,348,000 RSUs outstanding with no future service required and 800,000 shares issuable under other plans.  Excluding shares issuable pursuant to outstanding stock options, the maximum potential increase to common shares outstanding resulting from these outstanding awards is 14,650,000.

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

Activity in accumulated other comprehensive income is reflected in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Changes in Equity but not in the Consolidated Statements of Operations.  A summary of accumulated other comprehensive income, net of taxes at December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Net unrealized gains on available for sale securities	$	561,497		$	557,601		$	577,588
Net unrealized foreign exchange losses	(184,829		)	(63,248		)	(26,771		)
Net change in instrument specific credit risk	(6,494		)	—			—
Net minimum pension liability	(59,477		)	(55,560		)	(103,735		)
	$	310,697		$	438,793		$	447,082

For the years ended December 31, 2016 and 2015, significant amounts reclassified out of accumulated other comprehensive income to net income (loss) are as follows (in thousands):

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income						Affected Line Item in the Consolidated Statement of Operations
	2016			2015
Net unrealized gains (losses) on available for sale securities, net of income tax provision of $2 and $6,068	$	4		$	10,930		Net realized securities gains
Amortization of defined benefit pension plan actuarial gains (losses), net of income tax (benefit) of $(700) and $(17,159)	(1,534		)	(31,102		)	Compensation and benefits, which includes pension expense. See Note 20 for information on this component.
Total reclassifications for the period, net of tax	$	(1,530	)	$	(20,172	)

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Pension Plans And Postretirement Benefits

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefit Expense [Abstract]

Pension Plans And Postretirement Benefits

Pension Plans and Postretirement Benefits

U.S. Pension Plans

Pursuant to the agreement to sell one of our former subsidiaries, WilTel Communications Group, LLC, the responsibility for WilTel’s defined benefit pension plan was retained by us.  All benefits under this plan were frozen as of the date of sale.  Prior to the acquisition of Jefferies, Jefferies sponsored a defined benefit pension plan covering certain employees; benefits under that plan were frozen as of December 31, 2005.

Late in 2015, we launched a limited time voluntary lump sum offer to approximately 4,000 of the deferred vested participants of the WilTel plan. Approximately 2,400 participants accepted the lump sum offer and benefit payments totaling $110.7 million were paid out of plan assets. We also recorded a $40.7 million settlement charge in 2015 related to the participant acceptances.

A summary of activity with respect to both plans is as follows (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	207,025		$	352,126
Interest cost	8,464			12,958
Actuarial (gains) losses	(544		)	(35,799		)
Benefits paid	(9,540		)	(122,260		)
Projected benefit obligation, end of year	$	205,405		$	207,025
Change in plan assets:
Fair value of plan assets, beginning of year	$	117,719		$	240,010
Actual return on plan assets	2,947			(250		)
Employer contributions	19,100			1,000
Benefits paid	(9,540		)	(122,260		)
Administrative expenses	(2,712		)	(781		)
Fair value of plan assets, end of year	$	127,514		$	117,719
Funded status at end of year	$	(77,891	)	$	(89,306	)

As of December 31, 2016 and 2015, $58.9 million and $54.0 million, respectively, of the net amount recognized in the consolidated balance sheet was reflected as a charge to accumulated other comprehensive income (loss) (substantially all of which were cumulative losses) and $77.9 million and $89.3 million, respectively, was reflected as accrued pension cost.

The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands):

	2016			2015			2014
Components of net periodic pension cost:
Interest cost	$	8,464		$	12,958		$	14,239
Expected return on plan assets	(7,589		)	(10,581		)	(10,115		)
Settlement charge	—			40,973			—
Actuarial losses	1,908			6,963			4,634
Net periodic pension cost	$	2,783		$	50,313		$	8,758
Amounts recognized in other comprehensive income (loss):
Net (gain) loss arising during the period	$	6,811		$	(24,186	)	$	52,027
Settlement charge	—			(40,973		)	—
Amortization of net loss	(1,908		)	(6,963		)	(4,634		)
Total recognized in other comprehensive income (loss)	$	4,903		$	(72,122	)	$	47,393
Net amount recognized in net periodic benefit cost and other
comprehensive income (loss)	$	7,686		$	(21,809	)	$	56,151

The amounts in accumulated other comprehensive income (loss) at the end of each year have not yet been recognized as components of net periodic pension cost in the Consolidated Statements of Operations.  The estimated net loss that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2017 is $2.2 million.

$11.8 million of employer contributions are expected to be paid in 2017.

We use a December 31 measurement date for the WilTel plan and a November 30 date for the Jefferies plan.  The assumptions used are as follows:

	2016		2015
WilTel Plan
Discount rate used to determine benefit obligation	3.85	%	4.00	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.00	%	3.76	%
Expected long-term return on plan assets	7.00	%	4.00	%
Jefferies Plan
Discount rate used to determine benefit obligation	3.90	%	4.10	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.10	%	4.30	%
Expected long-term return on plan assets	6.25	%	6.75	%

The following pension benefit payments are expected to be paid (in thousands):

2017	$	10,214
2018	9,841
2019	9,879
2020	9,828
2021	9,625
2022 – 2026	66,359

U.S. Plan Assets

The information below on the plan assets for the WilTel plan and the Jefferies plan is presented separately for the plans as the investments are managed independently.  Cash equivalents are valued at cost, which approximates fair value and are categorized in Level 1 of the fair value hierarchy.  The estimated fair values for securities measured using Level 1 inputs are determined using publicly quoted market prices in active markets for identical assets.  Certain fixed income securities are measured using Level 2 inputs.  Although these securities trade in brokered markets, the market for certain securities is sometimes inactive.  Valuation inputs include benchmark yields, reported trades, broker dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers, reference data, and industry and economic events.  Neither plan had any assets classified within Level 3 of the fair value hierarchy.

WilTel Plan Assets.  At December 31, 2016 and 2015, the WilTel plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2
2016
Cash and cash equivalents	$	919	$	919	$	—
Growth Portfolio	51,852		—		51,852
Liability-Driven Investing Portfolio	24,751		—		24,751
Total	$	77,522	$	919	$	76,603
2015
Cash and cash equivalents	$	3,026	$	3,026	$	—
Fixed income securities:
U.S. government and agencies	5,988		5,988		—
Public utilities	8,978		—		8,978
All other corporates	52,696		—		52,696
Total	$	70,688	$	9,014	$	61,674

The current investment objectives are designed to close the funding gap while mitigating funded status volatility through a combination of liability hedging and investment returns. As plan funded status improves, the asset allocation will move along a predetermined, de-risking glide path that reallocates capital from growth assets to liability-hedging assets in order to reduce funded status volatility and lock in funded status gains. Plan assets are split into two separate portfolios, each with different asset mixes and objections

• The Growth Portfolio consists of global equities and high yield investments.

• The Liability-Driven Investing ("LDI") Portfolio consists of long duration credit bonds and a suite of long duration, Treasury-based instruments designed to provide capital-efficient interest rate exposure as well as target specific maturities. The objective of the LDI Portfolio is to seek to achieve performance similar to the WilTel plan's liability by seeking to match the interest rate sensitivity and credit sensitivity. The LDI Portfolio is managed to mitigate volatility in funded status deriving from changes in the discounted value of benefit obligations from market movements in the interest rate and credit components of the underlying discount curve.

To develop the assumption for the expected long-term rate of return on plan assets, we considered the following underlying assumptions: 2.25% current expected inflation, 1.0% to 1.5% real rate of return for long duration risk free investments and an additional 1.0% to 1.5% return premium for corporate credit risk. For U.S. and international equity we assume an equity risk premium over cash equal to 4.0%. We then weighted these assumptions based on invested assets and assumed that investment expenses were offset by expected returns in excess of benchmarks, which resulted in the selection of the 7.0% expected long-term rate of return assumption for 2016.

Jefferies Plan Assets.  At December 31, 2016 and 2015, the Jefferies plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total (1)		Level 1		Level 2
2016
Cash and cash equivalents	$	1,135	$	1,135	$	—
Listed equity securities (2)	32,342		32,342		—
Fixed income securities:
Corporate debt securities	4,906		—		4,906
Foreign corporate debt securities	1,835		—		1,835
U.S. government securities	5,370		5,370		—
Agency mortgage-backed securities	3,330		—		3,330
Commercial mortgage-backed securities	591		—		591
Asset-backed securities	483		—		483
Total	$	49,992	$	38,847	$	11,145
2015
Cash and cash equivalents	$	487	$	487	$	—
Listed equity securities (2)	29,156		29,156		—
Fixed income securities:
Corporate debt securities	6,598		—		6,598
Foreign corporate debt securities	2,140		—		2,140
U.S. government securities	3,975		3,975		—
Agency mortgage-backed securities	3,504		—		3,504
Commercial mortgage-backed securities	425		—		425
Asset-backed securities	746		—		746
Total	$	47,031	$	33,618	$	13,413

(1) There are no plan assets classified within Level 3 of the fair value hierarchy.

(2) Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies.

Assets in the plan are invested under guidelines adopted by the plan’s administrative committee.  Because the plan exists to provide a vehicle for funding future benefit obligations, the investment objectives of the portfolio take into account the nature and timing of future plan liabilities.  The policy recognizes that the portfolio’s long-term investment performance and its ability to meet the plan’s overall objectives are dependent on the strategic asset allocation which includes adequate diversification among assets classes.

The target allocation of plan assets for 2017 is approximately 50% equities and 50% fixed income securities.  The target asset allocation was determined based on the risk tolerance characteristics of the plan and, at times, may be adjusted to achieve the plan’s investment objective and to minimize any concentration of investment risk.  The plan’s administrative committee evaluates the asset allocation strategy and adjusts the allocation if warranted based upon market conditions and the impact of the investment strategy on future contribution requirements.  The expected long-term rate of return assumption is based on an analysis of historical experience of the portfolio and the summation of prospective returns for each asset class in proportion to the fund’s current asset allocation.

The equity portfolio may invest up to 5% of the market value of the portfolio in any one company and may invest up to 10% of the market value of the portfolio in any one sector or up to two times the percentage weighting of any one sector as defined by the S&P 500 or the Russell 1000 Value indices, whichever is higher.  Permissible investments specified under the equity portfolio of the plan include equity securities of U.S. and non-U.S. incorporated entities and private placement securities issued pursuant to Rule 144A.  At least 75% of the market value of the fixed income portfolio must be invested in investment grade securities rated BBB-/Baa3, including cash and cash equivalents.  Permissible investments specified under the fixed income portfolio of the plan include: public or private debt obligations issued or guaranteed by U.S. or foreign issuers; preferred, hybrid, mortgage- or asset-backed securities; senior loans; and derivatives and foreign currency exchange contracts.

German Pension Plan

In connection with the acquisition of Jefferies Bache from Prudential in 2011, Jefferies acquired a defined benefits pension plan located in Germany for the benefit of eligible employees of Jefferies Bache in that territory.  The German pension plan has no plan assets and is therefore unfunded; however, Jefferies has 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 - Trading assets in the Consolidated Statements of Financial Condition and has a fair value of $15.2 million and $15.3 million at December 31, 2016 and 2015, respectively.  Jefferies expects to pay the pension obligations from the cash flows available to it under the insurance contracts.  All costs relating to the plan (including insurance premiums and other costs as computed by the insurers) are paid by Jefferies.  In connection with the acquisition, Prudential agreed that any insurance premiums and funding obligations related to pre-acquisition date service will be reimbursed to Jefferies by Prudential.

The provisions and assumptions used in the German pension plan are based on local conditions in Germany.  Jefferies did not contribute to the plan during the year ended December 31, 2016.

The following tables summarize the changes in the projected benefit obligation and the components of net periodic pension cost for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	23,545		$	28,434
Interest cost	529			523
Actuarial (gains) losses	1,157			(40		)
Benefits paid	(1,104		)	(1,069		)
Currency adjustment	39			(4,303		)
Projected benefit obligation, end of year	$	24,166		$	23,545

	2016		2015		2014
Components of net periodic pension cost:
Service cost	$	—	$	—	$	40
Interest cost	529		523		801
Net amortization	326		325		244
Net periodic pension cost	$	855	$	848	$	1,085

The amounts in Accumulated other comprehensive income at December 31, 2016 and 2015 are charges of $5.7 million and $4.9 million, respectively.  The following are assumptions used to determine the actuarial present value of the projected benefit obligation and net periodic pension benefit cost for the years ended December 31, 2016 and 2015:

	2016		2015
Projected benefit obligation
Discount rate	1.70	%	2.20	%
Rate of compensation increase (1)	N/A		N/A
Net periodic pension benefit cost
Discount rate	2.20	%	2.10	%
Rate of compensation increase (1)	N/A		N/A

(1) There were no active participants in the plan at December 31, 2016 and 2015.

The following pension benefit payments are expected to be paid (in thousands):

2017	$	1,142
2018	1,147
2019	1,122
2020	1,169
2021	1,177
2022 – 2026	5,814

Other

We have defined contribution pension plans covering certain employees.  Contributions and costs are a percent of each covered employee’s salary.  Amounts charged to expense related to such plans were $9.6 million, $9.6 million and $9.3 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

We provide certain health care and other benefits to certain retired employees under plans which are currently unfunded.  We pay the cost of postretirement benefits as they are incurred.  Accumulated postretirement benefit obligations and amounts recognized in the consolidated statements of operations and in accumulated other comprehensive income (loss) were not significant.

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Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes for continuing operations for each of the three years in the period ended December 31, 2016 was as follows (in thousands):

	2016			2015			2014
Current taxes:
U.S. Federal	$	(574	)	$	709		$	746
U.S. State and local	8,672			(25,308		)	17,232
Foreign	(4,620		)	3,504			12,375
Total current	3,478			(21,095		)	30,353
Deferred taxes:
U.S. Federal	108,241			134,590			97,190
U.S. State and local	8,335			4,552			30,707
Foreign	2,055			(8,100		)	7,721
Total deferred	118,631			131,042			135,618
Total income tax provision	$	122,109		$	109,947		$	165,971

For the year ended December 31, 2016, our provision for income taxes included a $24.9 million charge related to previously issued stock awards. The majority of the awards expired during the first quarter of 2016. The tax deductions associated with the remainder of the awards was less than the compensation cost recognized for financial reporting purposes. For the year ended December 31, 2015, we recorded a benefit related to certain state and local net operating loss carryforwards which we believe are more likely than not to be realized in the future, a significant portion of which resulted from enacted state and local tax law changes. For the year ended December 31, 2014, we decreased our valuation allowance with respect to certain NOLs which we believed were more likely than not to be utilized before they expire. 

The following table presents the U.S. and non-U.S. components of income from continuing operations before income taxes for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
U.S.	$	337,374		$	336,856	$	374,547
Non-U.S. (1)	(20,944		)	19,680		6,675
Income from continuing operations before income taxes	$	316,430		$	356,536	$	381,222

(1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.

For each of the three years in the period ended December 31, 2016, income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to income from continuing operations before income taxes as a result of the following (dollars in thousands):

	2016					2015					2014
	Amount			Percent		Amount			Percent		Amount			Percent
Computed expected federal income tax	$	110,751		35.0	%	$	124,788		35.0	%	$	133,428		35.0	%
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of federal income tax benefit	1,045			0.3		(6,928		)	(1.9	)	31,160			8.2
International operations (including foreign rate differential)	(3,405		)	(1.1	)	(10,130		)	(2.8	)	(14,305		)	(3.8	)
Increase (decrease) in valuation allowance	2,825			0.9		(13,227		)	(3.7	)	(22,203		)	(5.8	)
Permanent differences	7,523			2.4		8,064			2.3		6,181			1.6
Tax exempt income	(4,640		)	(1.5	)	(6,789		)	(1.9	)	(6,812		)	(1.8	)
Income allocated to noncontrolling interest, not subject to tax	(22,512		)	(7.1	)	11,039			3.1		3,270			0.9
Excess stock detriment	24,907			7.9		—			—		—			—
Nondeductible settlements	—			—		—			—		24,500			6.4
Foreign taxes	268			0.1		(2,989		)	(1.0	)	2,542			0.7
Other	5,347			1.7		6,119			1.7		8,210			2.1
Actual income tax provision	$	122,109		38.6	%	$	109,947		30.8	%	$	165,971		43.5	%

The following table presents a reconciliation of gross unrecognized tax benefits for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015			2014
Balance at beginning of period	$	150,867		$	148,590		$	145,520
Increases based on tax positions related to the current period	5,045			3,475			5,630
Increases based on tax positions related to prior periods	3,697			22,030			4,340
Decreases based on tax positions related to prior periods	(9,414		)	(15,349		)	(3,940		)
Decreases related to settlements with taxing authorities	(1,347		)	(7,879		)	(2,960		)
Balance at end of period	$	148,848		$	150,867		$	148,590

Net interest expense related to unrecognized tax benefits was $8.6 million, $4.2 million and $9.2 millionfor the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, we had interest accrued of approximately $47.7 million and $39.1 million, respectively, included in Payables, expense accruals and other liabilities in the Consolidated Statements of Financial Condition. No material penalties were accrued for the years ended December 31, 2016 and 2015.

The statute of limitations with respect to our federal income tax returns has expired for all years through 2012. Our 2013 federal tax return is currently under examination by the Internal Revenue Service. Our New York State and New York City income tax returns are currently being audited for the 2012 to 2014 period and 2011 to 2012 period, respectively.  Prior to becoming a wholly-owned subsidiary, Jefferies filed a consolidated U.S. federal income tax return with its qualifying subsidiaries and was subject to income tax in various states, municipalities and foreign jurisdictions.  Jefferies is currently under examination by the Internal Revenue Service and other major tax jurisdictions.  The statute of limitations with respect to Jefferies federal income tax returns has expired for all years through 2006.

We do not expect that resolution of these examinations will have a significant effect on our consolidated financial position, but could have a significant impact on the consolidated results of operations for the period in which resolution occurs.  Over the next twelve months, we believe it is reasonably possible that various tax examinations will be concluded and statutes of limitation will expire which would have the effect of reducing the balance of unrecognized tax benefits by $3.7 million.  If recognized, the total amount of unrecognized tax benefits reflected in the table above would lower our effective income tax rate.

The principal components of deferred taxes at December 31, 2016 and 2015 are as follows (in thousands):

	2016			2015
Deferred tax asset:
Net operating loss carryover	$	1,262,584		$	1,375,759
Compensation and benefits	309,100			284,761
Long-term debt	54,102			89,160
Other assets	165,777			162,393
Securities valuation reserves	12,345			32,141
Intangible assets, net and goodwill	311			6,855
Other liabilities	39,188			40,393
	1,843,407			1,991,462
Valuation allowance	(106,042		)	(97,177		)
	1,737,365			1,894,285
Deferred tax liability:
Unrealized gains on investments	(998		)	(5,335		)
Amortization of intangible assets	(107,437		)	(103,561		)
Property and equipment	(14,228		)	(4,151		)
Investment in FXCM	(117,594		)	(147,700		)
Other	(35,293		)	(58,170		)
	(275,550		)	(318,917		)
Net deferred tax asset	$	1,461,815		$	1,575,368

As of December 31, 2016, we have consolidated U.S. federal NOLs of $1.6 billion that may be used to offset the taxable income of any member of our consolidated tax group.  In addition, we have $1.8 billion of U.S. federal NOLs that are only available to offset the taxable income of certain subsidiaries.  Federal NOLs begin to expire in 2022, with a substantial amount expiring between 2022 and 2025.  Approximately $258.6 million of our NOLs can be used to fully offset federal minimum taxable income, and no federal regular or minimum income tax would be payable on such income.  We have various state NOLs that expire at different times, which are reflected in the above table to the extent our estimate of future taxable income will be apportioned to those states.  We have gross foreign net operating loss carryforwards of approximately $56.3 million.  There is a valuation allowance with respect to $6.7 million of these foreign net operating loss carryforwards.  Uncertainties that may affect the utilization of our tax attributes include future operating results, tax law changes, rulings by taxing authorities regarding whether certain transactions are taxable or deductible and expiration of carryforward periods.

Under certain circumstances, the ability to use the NOLs and future deductions could be substantially reduced if certain changes in ownership were to occur.  In order to reduce this possibility, our certificate of incorporation includes a charter restriction that prohibits transfers of our common stock under certain circumstances.

At December 31, 2016 and 2015, we had approximately $157.0 million and $205.0 million, respectively, of earnings attributable to foreign subsidiaries that are indefinitely reinvested abroad and for which no U.S. federal income tax provision has been recorded.  Accordingly, deferred tax liabilities of approximately $55.0 million and $59.0 million have not been recorded with respect to these earnings at December 31, 2016 and 2015, respectively.

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Net Realized Securities Gains (Losses)

12 Months Ended

Dec. 31, 2016

Gain (Loss) on Investments [Abstract]

Net Realized Securities Gains (Losses)

Net Realized Securities Gains (Losses)

The following summarizes net realized securities gains (losses) for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
Net realized gains (losses) on securities	$	(286	)	$	14,112	$	30,686
Other (1)	29,828			48,845		(292		)
	$	29,542		$	62,957	$	30,394

(1)     In 2015, primarily relates to a recovery of $35.0 million of an investment in a non-public security written down in prior years.

Proceeds from sales of investments classified as available for sale were $0.5 billion, $1.9 billion and $1.9 billion during 2016, 2015 and 2014, respectively.  Gross gains of $0.1 million, $16.9 million and $12.6 million were realized on these sales during 2016, 2015 and 2014, respectively; gross losses were $0.4 million during 2016, $2.8 million during 2015 and not significant during 2014.

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Other Results Of Operations Information

12 Months Ended

Dec. 31, 2016

Nonoperating Income (Expense) [Abstract]

Other Results of Operations Information

Other Results of Operations Information

Other income for each of the three years in the period ended December 31, 2016 consists of the following (in thousands):

	2016			2015			2014
Manufacturing revenues	$	412,826		$	391,920		$	379,274
Income (loss) from managed funds	(69,038		)	(37,237		)	12,251
Asset management fees	29,492			34,777			27,990
Dividend income	3,856			5,482			7,379
Income from associated companies classified as other revenues	17,184			75,717			90,242
Revenues of oil and gas exploration and development businesses	49,890			45,939			19,373
Gain on sale of equity interest	—			—			22,714
Other	43,976			32,630			11,242
	$	488,186		$	549,228		$	570,465

Taxes, other than income or payroll, amounted to $35.4 million, $21.9 million and $17.0 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

Advertising costs amounted to $20.0 million, $18.1 million and $14.5 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.

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Common Shares and Earnings (Loss) Per Common Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Common Shares and Earnings (Loss) Per Common Share

Common Shares and Earnings (Loss) Per Common Share

Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted-average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Numerator for earnings (loss) per share:
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306
Allocation of earnings to participating securities (1)	(574		)	(4,711		)	(4,761		)
Net income attributable to Leucadia National Corporation common shareholders for basic earnings (loss) per share	125,364			274,876			199,545
Adjustment to allocation of earnings to participating securities related to diluted shares (1)	(19		)	(34		)	(75		)
Mandatorily redeemable convertible preferred share dividends	—			—			—
Interest on 3.75% Convertible Notes	—			—			739
Net income attributable to Leucadia National Corporation common shareholders for diluted earnings (loss) per share	$	125,345		$	274,842		$	200,209
Denominator for earnings (loss) per share:
Denominator for basic earnings (loss) per share – weighted-average shares	371,211			372,430			371,889
Stock options	—			1			29
Warrants	—			—			—
Senior executive compensation plan awards	307			—			—
Mandatorily redeemable convertible preferred shares	—			—			—
3.875% Convertible Senior Debentures	—			—			—
3.75% Convertible Notes	—			—			1,415
Denominator for diluted earnings (loss) per share	371,518			372,431			373,333

(1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities.  Net losses are not allocated to participating securities.  Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted-average shares of 1,986,800, 6,500,000 and 9,040,900for the years ended December 31, 2016, 2015 and 2014, respectively.  Dividends declared on participating securities during the years ended December 31, 2016, 2015 and 2014 were $0.4 million, $1.5 million and $2.2 million, respectively.  Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

Options to purchase 656,894, 1,000,137 and 1,572,777 weighted-average shares of common stock were outstanding during the years ended December 31, 2016, 2015 and 2014, respectively, but were not included in the computation of diluted per share amounts as the effect was antidilutive.

For the years ended December 31, 2016, 2015 and 2014 ,weighted-average common shares of 923,077, 4,000,000 and 4,000,000, respectively, related to outstanding warrants to purchase common shares at $33.33 per share, were not included in the computation of diluted per share amounts as the effect was antidilutive.

For the years ended December 31, 2016, 2015 and 2014, shares related to the 3.875% Convertible Senior Debentures were not included in the computation of diluted per share amounts as the conversion price exceeded the average market price.  For the years ended December 31, 2016, 2015 and 2014, 4,162,200 shares related to the mandatorily redeemable convertible preferred shares were not included in the computation of diluted per share amounts as the effect was antidilutive.

The Board of Directors from time to time has authorized the repurchase of our common shares.  At December 31, 2016, we are authorized to repurchase 16,161,588 common shares.

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Commitments, Contingencies And Guarantees

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies And Guarantees

Commitments, Contingencies and Guarantees

Commitments

We and our subsidiaries rent office space and office equipment under noncancellable operating leases with terms varying principally from one to twenty-three years.  Rental expense (net of sublease rental income) was $80.4 million, $84.0 million and $79.6 millionfor the years ended December 31, 2016, 2015 and 2014, respectively.  Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at December 31, 2016 are as follows (in thousands):

2017	$	91,057
2018	87,405
2019	76,194
2020	62,186
2021	57,704
Thereafter	572,845
	947,391
Less:  sublease income	(19,204		)
	$	928,187

Effective December 30, 2004, National Beef finalized an agreement with the City of Dodge City, Kansas, whereby in consideration of certain improvements made to the city water and wastewater systems, National Beef committed to make a series of service charge payments totaling $19.3 million over a 20 year period, of which $5.8 million remains as of December 31, 2016.  Payments under the commitment will be approximately $0.8 million in each of the years 2017 through 2018, with the remaining balance of $4.1 million to be paid in subsequent years.

National Beef makes verbal commitments to cattle producers to purchase cattle approximately one week in advance of delivery of those cattle to its plants.  The actual value paid for these cattle is determined after the cattle are delivered, weighed and inspected at National Beef’s facilities.  The total value of verbal commitments to purchase cattle as of December 31, 2016 was $103.8 million.

The following table summarizes commitments associated with certain business activities (in millions):

	Expected Maturity Date
	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Maximum Payout
Equity commitments (1)	$	192.4	$	22.1	$	13.0	$	—	$	243.3	$	470.8
Loan commitments (1)	315.3		16.9		71.6		44.0		—		447.8
Underwriting commitments	349.4		—		—		—		—		349.4
Forward starting reverse repos (2)	4,668.7		—		—		—		—		4,668.7
Forward starting repos (2)	2,539.2		—		—		—		—		2,539.2
Other unfunded commitments (1)	—		37.0		4.8		33.8		13.2		88.8
	$	8,065.0	$	76.0	$	89.4	$	77.8	$	256.5	$	8,564.7

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

(2) At December 31, 2016, $4,592.9 million within forward starting reverse repos and $2,464.6 million within repos settled within three business days.

Equity Commitments.  Equity commitments include commitments to invest in Jefferies 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 are managed by a team led by Brian P. Friedman, our President and a Director.  As of December 31, 2016, Jefferies outstanding commitments relating to Jefferies Capital Partners, LLC and its private equity funds was $23.1 million.

See Note 10 for additional information regarding Jefferies commitments related to Jefferies Finance and Jefferies LoanCore.

Our equity commitments also include our commitment to invest in 54 Madison, a fund which targets real estate projects. We plan to invest a cumulative total of $225.0 million to this fund, of which we have already contributed $114.9 million. Capital commitments are contingent upon approval of the related investment by the investment committee, which we control. Through December 31, 2016, approved unfunded commitments totaled $37.4 million.

In January 2017, we participated in a preferred equity financing for Linkem. Existing shareholders, along with funds managed by BlackRock, invested €100 million in cash in exchange for shares of Linkem to fund future expansion plans, of which Leucadia's share was €30 million.

In December 2016, we committed to invest $125.0 million in a separate account managed by Folger Hill Asia; we invested $75.0 million of this commitment in January 2017.

Additionally, as of December 31, 2016, we have other equity commitments to invest up to $23.4 million in various other investments.

Loan Commitments. From time to time Jefferies makes 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.  As of December 31, 2016, Jefferies has $182.1 million of outstanding loan commitments to clients.

Loan commitments outstanding as of December 31, 2016, also include Jefferies portion of the outstanding secured revolving credit facility provided to Jefferies Finance, to support loan underwritings by Jefferies Finance.  At December 31, 2016, $0.0 of Jefferies $250.0 million commitment was funded.

In August 2014, we and Solomon Kumin established Folger Hill; we committed to provide Folger Hill with a three-year, $20 million revolving credit facility to fund its start-up and initial operating expenses.  As of December 31, 2016, $9.4 million has been provided to Folger Hill under the revolving credit facility.

Underwriting Commitments. In connection with investment banking activities, Jefferies may from time to time provide underwriting commitments to our clients in connection with capital raising transactions.

Forward Starting Reverse Repos and Repos.  Jefferies enters 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.

Contingencies

Sykes v. Mel Harris & Associates, LLC. - We and certain of our subsidiaries and officers were named as defendants in a consumer class action captioned Sykes v. Mel Harris & Associates, LLC, et al., 9 Civ. 8486 (DC), in the United States District Court for the Southern District of New York.  The named defendants also included the Mel Harris law firm, certain individuals and members associated with the law firm, and a process server, Samserv, Inc. and certain of its employees.  The complaint alleges that default judgments obtained by the law firm against approximately 124,000 individuals in New York courts with respect to consumer debt purchased by our subsidiaries violated the Fair Debt Collection Practices Act, the Racketeer Influenced and Corrupt Organizations Act, the New York General Business Law and the New York Judiciary Law (alleged only as to the law firm) and sought injunctive relief, declaratory relief and damages on behalf of the named plaintiffs and others similarly situated. 

On March 18, 2015, we and plaintiffs executed a settlement agreement that provided additional detail regarding the terms of a settlement set out in a December 14, 2014 binding term sheet as a result of which we have previously accrued approximately $50 million.  On November 12, 2015, plaintiffs executed a settlement agreement with the other defendants in the case, and we and plaintiffs executed a first amendment to our settlement agreement to modify the agreement to reflect that settlement of all claims as to all parties had been reached. On June 23, 2016, the settlement agreement became final and the case was closed.

Haverhill Retirement System v. Asali, et al. - On May 2, 2014, plaintiff Haverhill Retirement System (“Haverhill”)  filed an amended putative class action and derivative lawsuit (the “Complaint”) entitled Haverhill Retirement System v. Asali, et al. in the Court of Chancery of the State of Delaware (the “Court of Chancery”) against Harbinger Capital Partners LLC, Harbinger Capital Partners Master Fund I, Ltd., Global Opportunities Breakaway Ltd., Harbinger Capital Partners Special Situations Fund, L.P. (collectively, the “Harbinger Funds”), the members of the board of directors of Harbinger Group, Inc. (“Harbinger”), nominal defendant Harbinger, as well as Leucadia. The Complaint alleges, among other things, that the directors of Harbinger breached their fiduciary duties in connection with Leucadia’s March 2014 purchase of preferred securities of subsidiaries of the Harbinger Funds that were exchangeable into Harbinger common stock owned by the Harbinger Funds, certain flaws in the process employed by the special committee of directors appointed by the Harbinger board in connection therewith, and that Leucadia aided and abetted the Harbinger board’s breaches of fiduciary, as well as a claim of unjust enrichment against Leucadia.  On April 1, 2014, the Chancery Court denied Haverhill’s motion for expedited proceedings associated with the complaint originally filed by Haverhill on March 26, 2014.  Haverhill filed an amended complaint on May 2, 2014.  On July 2, 2014, the defendants moved to dismiss the amended complaint.  On August 12, 2014, Plaintiffs filed another amended complaint. The amended complaint dropped Plaintiff’s unjust enrichment claim against Leucadia. With respect to remedies sought, the amended complaint no longer sought an injunction against installing Leucadia designees as Board members and no longer sought rescission of Leucadia’s right to select the director class to which one of its designees would be appointed. A term sheet reflecting a settlement among the parties, that did not provide for any payment by the Company, was signed on October 15, 2014.  On December 19, 2014, final settlement papers were submitted to the Court. On June 8, 2015, a settlement hearing took place, at which the Court rejected the settlement. The parties then negotiated a stipulation under which the case would be dismissed, which the Court approved on January 7, 2016. On February 17, 2016 the Court was notified that disclosure of the proposed dismissal had been provided to Harbinger's stockholders in accordance with that stipulation, and the case was closed.

We and our subsidiaries are parties to legal and regulatory proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to our consolidated financial position.  We and our subsidiaries 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 do not believe that any of these actions will have a significant adverse effect on our consolidated financial position or liquidity, but any amounts paid could be significant to results of operations for the period.

Guarantees

Derivative Contracts.  Jefferies dealer activities cause it to make markets and trade in a variety of derivative instruments. Certain derivative contracts that Jefferies has entered into meet the accounting definition of a guarantee under 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 Jefferies 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 GAAP as of December 31, 2016 (in millions):

	Expected Maturity Date
Guarantee Type	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Notional/ Maximum Payout
Derivative contracts – non-credit related	$	18,838.6	$	820.4	$	—	$	—	$	421.8	$	20,080.8
Written derivative contracts – credit related	—		52.2		24.6		360.8		—		437.6
Total derivative contracts	$	18,838.6	$	872.6	$	24.6	$	360.8	$	421.8	$	20,518.4

The following table summarizes the external credit ratings of the underlying or referenced assets for our credit related derivatives contracts as of December 31, 2016 (in millions):

	External Credit Rating
	AAA/ Aaa		AA/ Aa		A		BBB/Baa		Below Investment Grade		Unrated		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	54.0	$	—	$	—	$	—	$	—	$	—	$	54.0
Single name credit default swaps	—		—		79.5		42.9		261.2		—		383.6

The derivative contracts deemed to meet the definition of a guarantee under 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).  Jefferies substantially mitigates its exposure to market risk on these contracts through hedges, such as other derivative contracts and/or cash instruments and Jefferies manages the risk associated with these contracts in the context of its overall risk management framework.  Jefferies believes notional amounts overstate its expected payout and that fair value of these contracts is a more relevant measure of its obligations.  The fair value of derivative contracts meeting the definition of a guarantee is approximately $313.1 million as of December 31, 2016.

Berkadia.  We have agreed to reimburse Berkshire Hathaway for up to one-half of any losses incurred under a $2.5 billion surety policy securing outstanding commercial paper issued by an affiliate of Berkadia.  As of December 31, 2016, the aggregate amount of commercial paper outstanding was $1.47 billion.

Loan Guarantee. Jefferies has provided a guarantee to Jefferies Finance that matures in January 2021, whereby Jefferies is required to make certain payments to a SPE sponsored by Jefferies Finance in the event that Jefferies Finance is unable to meet its obligations to the SPE. The maximum amount payable under the guarantee is $18.1 million at December 31, 2016. Jefferies has also provided a guarantee of a portion of Energy Partners I, LP’s obligations under a credit agreement. At December 31, 2016, the maximum exposure to loss of the guarantee is $3.0 million.

Other Guarantees.  Jefferies is a member of various exchanges and clearing houses.  In the normal course of business Jefferies provides guarantees to securities clearinghouses and exchanges.  These guarantees generally are required under the standard membership agreements, such that members are required to guarantee the performance of other members.  Additionally, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet these shortfalls.  To mitigate these performance risks, the exchanges and clearinghouses often require members to post collateral.  Jefferies obligations under such guarantees could exceed the collateral amounts posted.  Jefferies maximum potential liability under these arrangements cannot be quantified; however, the potential for Jefferies to be required to make payments under such guarantees is deemed remote.  Accordingly, no liability has been recognized for these arrangements.

Indemnification.  In connection with the 2013 sale of Empire Insurance Company, we agreed to indemnify the buyer for certain of Empire’s lease obligations that were assumed by another subsidiary of ours as part of the sale of Empire.  Our subsidiary was subsequently sold in 2014 to HomeFed as part of the real estate transaction with HomeFed.  Although HomeFed has agreed to indemnify us for these lease obligations, our indemnification obligation under the Empire transaction remains.  The primary lease expires in 2018 and the aggregate amount of lease obligation as of December 31, 2016 was approximately $20.8 million. Substantially all of the space under the primary lease has been sublet to various third-party tenants for the full length of the lease term in amounts in excess of the obligations under the primary lease.

Standby Letters of Credit.  At December 31, 2016, Jefferies provided guarantees to certain counterparties in the form of standby letters of credit in the amount of $33.3 million.  Standby letters of credit commit Jefferies 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 subsidiaries of ours have outstanding letters of credit aggregating $13.6 million at December 31, 2016. Primarily all letters of credit expire within one year.

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Net Capital Requirements

12 Months Ended

Dec. 31, 2016

Brokers and Dealers [Abstract]

Net Capital Requirements

Net Capital Requirements

Jefferies operates broker-dealers registered with the SEC and member firms of the Financial Industry Regulatory Authority ("FINRA").  Jefferies LLC 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 under the alternative method as permitted by Rule 15c3-1 in calculating net capital. Jefferies LLC is also registered as a futures commission merchant ("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.

Jefferies LLC and Jefferies Execution’s net capital and excess net capital are as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies LLC	$	1,467,729	$	1,398,748
Jefferies Execution	8,260		8,010

FINRA is the designated self-regulatory organization (“DSRO”) for Jefferies U.S. broker-dealers and the NFA is the DSRO for Jefferies as an FCM.

Certain other U.S. and non-U.S. subsidiaries of Jefferies 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 United Kingdom.

The regulatory capital requirements referred to above may restrict our ability to withdraw capital from Jefferies regulated subsidiaries. Some of our other consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the parent company.

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Other Fair Value Information

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Other Fair Value Information

Other Fair Value Information

The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands):

	December 31, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Other Assets:
Notes and loans receivable (1)	$	962,938	$	958,377	$	488,690	$	490,208
Financial Liabilities:
Short-term borrowings (2)	525,842		525,842		310,659		310,659
Long-term debt (2)	7,131,587		7,221,459		7,400,582		7,299,405

(1) Notes and loans receivable:  The fair values are primarily measured using Level 2 and 3 inputs principally based on discounted future cash flows using market interest rates for similar instruments.

(2) Short-term borrowings and long-term debt:  The fair values of short-term borrowings are estimated to be the carrying amount.  The fair values of non-variable rate debt are estimated using quoted prices and estimated rates that would be available for debt with similar terms.  The fair value of variable rate debt is estimated to be the carrying amount.

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Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Jefferies Capital Partners Related Funds. Jefferies has equity investments in the JCP Manager and in private equity funds, which are managed by a team led by Brian P. Friedman, our President and a Director ("Private Equity Related Funds").  Reflected in our Consolidated Statements of Financial Condition at December 31, 2016 and 2015 are Jefferies equity investments in Private Equity Related Funds of $37.7 million and $39.6 million, respectively.  Net gains (losses) aggregating $(2.3) million, $(26.2) million and $(14.9) million were recorded related to the Private Equity Related Funds for the years ended December 31, 2016, 2015 and 2014, respectively.  For further information regarding our commitments and funded amounts to Private Equity Related Funds, see Notes 9 and 25.

Berkadia Commercial Mortgage, LLC. At December 31, 2016 and 2015, Jefferies has commitments to purchase $817.0 million and $752.4 million, respectively, in agency commercial mortgage-backed securities from Berkadia.

HRG Group, Inc.  As part of Jefferies loan secondary trading activities, it has unsettled purchases and sales of loans pertaining to portfolio companies within funds managed by HRG of $261.6 million at December 31, 2015.  Our Chairman also serves as HRG’s Chairman.

Officers, Directors and Employees.  We have $41.2 million and $28.3 million of loans outstanding to certain employees (none of whom are an executive officer or director of the Company) at December 31, 2016 and 2015, respectively.  Receivables from and payables to customers includes 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. During 2014, Jefferies sold private equity interests with a fair value of $4.0 million at their then fair value to a private equity fund owned by Jefferies employees and has also provided a guarantee of the fund’s credit agreement. At December 31, 2016 and 2015, Jefferies provided a guarantee of a credit agreement for a private equity fund owned by Jefferies employees.

National Beef.  National Beef participates in a cattle supply agreement with a minority owner and holder of a redeemable noncontrolling interest in National Beef.  Under this agreement  National Beef has agreed to purchase 735,385 head of cattle each year (subject to adjustment), from the members of the minority owner, with prices based on those published by the U.S. Department of Agriculture, subject to adjustments for cattle performance.  National Beef obtained approximately 27% and 28% of its cattle requirements under this agreement during 2016 and 2015, respectively.

National Beef also enters into transactions with an affiliate of another minority owner and holder of a redeemable noncontrolling interest in National Beef to buy and sell a limited number of beef products.   During the year ended December 31, 2016, sales to this affiliate were $30.9 million and purchases were $14.8 million.  During the year ended December 31, 2015, sales to this affiliate were $31.0 million and purchases were $15.1 million.  At December 31, 2016 and 2015, amounts due from and payable to these related parties were not significant. 

HomeFed.  As more fully described in Note 10, during 2014 we sold to HomeFed substantially all of our real estate properties and operations, our interest in BRP and cash of approximately $14.0 million, in exchange for 7,500,000 newly issued unregistered HomeFed common shares.  As discussed in Note 10, as a result of a 1998 distribution to all of our shareholders, approximately 4.8% of HomeFed is beneficially owned by our Chairman at December 31, 2016.  Our Chairman also serves as HomeFed’s Chairman and our President is a Director of HomeFed.

54 Madison. At December 31, 2016 and 2015, approximately $230.2 million and $115.7 million, respectively, of long-term debt held by 54 Madison is owed to minority owners of 54 Madison. The interest rate on these long-term notes range between 4.2% and 6.0%.

The employees of the asset manager of 54 Madison and employees of certain asset managers of 54 Madison's investments are also employees of Leucadia. These employees are also minority owners of 54 Madison.

In the first quarter of 2016, 54 Madison purchased the equity interests in a real estate investment from a minority owner of 54 Madison for $86.5 million.

See Note 10 for information on transactions with Jefferies Finance and Jefferies LoanCore.

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Discontinued Operations And Assets Held For Sale

12 Months Ended

Dec. 31, 2016

Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations And Assets Held For Sale

Discontinued Operations and Assets Held for Sale

In January 2017, we sold 100% of Conwed to Schweitzer-Mauduit International, Inc., (NYSE:SWM) for $295 million in cash plus potential earn-out payments over five years of up to $40 million in cash to the extent the results of Conwed’s subsidiary, Filtrexx International, exceed certain performance thresholds. At December 31, 2016, the net book value of our investment in Conwed was $100.6 million. A pre-tax gain of approximately $180 million will be recognized upon closing and will be reflected in our results of operations for the three months ended March 31, 2017. The sale of Conwed does not meet the GAAP criteria to be classified as a discontinued operation.

Assets held for sale at December 31, 2016, which primarily relate to Conwed, are as follows (in thousands):

Cash	$	5,206
Receivables	15,297
Property, equipment and leasehold improvements, net	18,664
Intangible assets, net and goodwill	56,854
Inventory	19,069
Other assets	12,993
	$	128,083

Liabilities held for sale at December 31, 2016 were $14.7 million and are included in Payables, expense accruals and other liabilities.

In September 2014, we decided not to proceed with further development of the Lake Charles clean energy project that would have used gasification technology to convert low-grade fossil fuels into clean-energy products.  Our decision was based on final estimates of the likely ultimate cost of completion of the project.  Project development costs had been expensed as incurred.  As a result, we classified the clean energy project as a discontinued operation in 2014.

In July 2014, we sold Premier Entertainment Biloxi LLC ("Premier"), through which we had conducted our gaming operations, for aggregate cash consideration of $250.0 million, subject to working capital adjustment.  We recorded a pre-tax gain on sale of discontinued operations of $12.1 million in the third quarter of 2014.

A summary of the results of discontinued operations for the clean energy project and Premier is as follows for the year ended December 31, 2014; discontinued operations for the years ended December 31, 2016 and 2015 were not significant (in thousands):

Revenues and other income:
Gaming entertainment	$	67,739
Investment and other income	4,700
	72,439
Expenses:
Direct operating expenses - Gaming entertainment	48,877
Compensation and benefits	4,503
Depreciation and amortization	5,208
Selling, general and other expenses	41,378
	99,966
Loss from discontinued operations before income taxes	(27,527		)
Income tax (benefit)	(9,634		)
Loss from discontinued operations after income taxes	$	(17,893	)

Gain on disposal of discontinued operations for the year ended December 31, 2015, primarily relates to additional consideration received related to the 2012 sale of our small Caribbean-based telecommunications provider, and a reversal of a legal reserve.

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Segment Information

12 Months Ended

Dec. 31, 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, Foursight Capital, Berkadia, our investment in HomeFed and our investment in FXCM.  Our other merchant banking businesses and investments primarily include Idaho Timber, Conwed, Vitesse, Juneau, real estate, and our investments in HRG, Linkem, Garcadia and Golden Queen.

Certain information concerning our segments for the years ended December 31, 2016, 2015 and 2014 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. 

	2016			2015			2014
				(In thousands)
Net Revenues:
Reportable Segments:
Jefferies	$	2,421,055		$	2,476,133		$	2,986,325
National Beef	7,027,243			7,402,419			7,832,424
Corporate and other	88,590			78,122			60,720
Total net revenues related to reportable segments	9,536,888			9,956,674			10,879,469
All other (1)	525,729			950,784			607,016
Intercompany eliminations (2)	—			(21,000		)	—
Total consolidated net revenues	$	10,062,617		$	10,886,458		$	11,486,485
Pre-tax income (loss) from continuing operations:
Reportable Segments:
Jefferies	$	43,508		$	119,165		$	358,396
National Beef	329,022			(123,915		)	(40,303		)
Corporate and other	18,386			(44,295		)	(142,728		)
Pre-tax income (loss) from continuing operations related to reportable segments	390,916			(49,045		)	175,365
All other (1)	(15,605		)	492,762			305,752
Parent Company interest	(58,881		)	(87,181		)	(99,895		)
Total consolidated pre-tax income from continuing operations	$	316,430		$	356,536		$	381,222
Depreciation and amortization expenses:
Reportable Segments:
Jefferies	$	60,206		$	92,165		$	78,566
National Beef	94,482			89,317			85,305
Corporate and other	3,619			3,744			5,627
Total depreciation and amortization expenses related to reportable segments	158,307			185,226			169,498
All other	53,286			38,907			16,495
Total consolidated depreciation and amortization expenses	$	211,593		$	224,133		$	185,993
Identifiable assets employed:
Reportable Segments:
Jefferies (3)	$	36,992,096		$	38,607,786		$	44,562,155
National Beef	1,498,317			1,514,249			1,716,069
Corporate and other	1,935,118			1,777,199			3,237,476
Identifiable assets employed related to reportable segments	40,425,531			41,899,234			49,515,700
All other	4,728,457			4,581,673			3,152,029
Intercompany eliminations	(82,681		)	(149,723		)	(53,405		)
Total consolidated assets	$	45,071,307		$	46,331,184		$	52,614,324

(1) All other revenue and pre-tax income from continuing operations include $(54.6) million and $491.3 million of realized and unrealized gains (losses) relating to our investment in FXCM for the years ended December 31, 2016 and 2015, respectively.

(2) Revenue intercompany elimination for 2015 relates to an investment banking and advisory fee paid to Jefferies in connection with our entering into the agreement with FXCM.

(3) At December 31, 2016, 2015 and 2014, includes $337.6 million, $320.2 million and $399.6 million, respectively, of Jefferies deferred tax asset, net.

Net revenues for Jefferies are recorded in the geographic region in which the position was risk-managed, in the case of investment banking, in which the senior coverage banker is located, or for asset management, according to the location of the investment advisor.  Net revenues by geographic region for Jefferies for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

	2016		2015		2014
Americas (1)	$	1,876,796	$	1,887,899	$	2,257,870
Europe (2)	458,046		510,044		634,358
Asia	86,213		78,190		94,097
	$	2,421,055	$	2,476,133	$	2,986,325

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

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

Approximately 89.2%, 89.5% and 88.0% of National Beef's revenues for the years ended December 31, 2016, 2015 and 2014, respectively, relate to sales made in the U.S. The remainder of National Beef's revenues primarily relate to sales made in Asia. Consolidated net revenues exclusive of Jefferies and National Beef principally relate to the U.S. for 2016, 2015 and 2014.

Net realized securities gains for Corporate and other aggregated $16.4 million, $63.0 million and $30.4 million during 2016, 2015 and 2014, respectively. 

Interest expense classified as a component of Net revenues relates to Jefferies.  For the years ended December 31, 2016, 2015 and 2014, interest expense classified as a component of Expenses was primarily comprised of National Beef ($12.9 million, $16.6 million and $15.1 million, respectively), parent company interest ($58.9 million, $87.2 million and $99.9 million, respectively) and all other ($36.9 million, $12.0 million and $5.9 million, respectively).

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Exit Costs

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Exit Costs

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.  In addition, Jefferies initiated a plan to substantially exit the remaining aspects of its futures business, which was completed during the second quarter of 2016.

In addition, Jefferies terminated its $750.0 million credit facility on July 31, 2015. During the year ended December 31, 2015, Jefferies recognized costs of $3.8 million related to the Credit Facility.

During the years ended December 31, 2016 and 2015, Jefferies recorded restructuring and impairment costs as follows (in thousands):

	2016		2015
Severance costs	$	279	$	30,327
Accelerated amortization of restricted stock and restricted cash awards	41		7,922
Accelerated amortization of capitalized software	—		19,745
Contract termination costs	1,234		11,247
Selling, general and other expenses	300		3,853
Total	$	1,854	$	73,094

Of the above costs, $0.3 million and $28.7 million for the years ended December 31, 2016 and 2015, respectively, are of a non-cash nature.

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 year ended December 31, 2016.

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	30,327			2,774			11,247			44,348			$	7,922	$	19,745	$	1,079	$	73,094
Payments	(25,522		)	(2,774		)	(11,247		)	(39,543		)
Liability at December 31, 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 December 31, 2016	$	—		$	—		$	—		$	—

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Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2016

Selected Quarterly Financial Information [Abstract]

Selected Quarterly Financial Data

Selected Quarterly Financial Data (Unaudited)

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share amounts)
2016
Net revenues	$	2,015,106		$	2,625,358		$	2,676,375		$	2,745,778
Income (loss) from continuing operations	$	(218,602	)	$	70,612		$	176,206		$	166,105
Income from discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Net (income) loss attributable to the noncontrolling interest	$	1,052		$	760		$	1,870		$	(2,256	)
Net income attributable to the redeemable noncontrolling interests	$	(4,314	)	$	(13,068	)	$	(22,702	)	$	(25,662	)
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	(222,880	)	$	57,289		$	154,358		$	137,171
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			370,404			369,299
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			374,567			374,693
2015
Net revenues	$	3,184,683		$	2,839,463		$	2,366,096		$	2,496,216
Income (loss) from continuing operations	$	374,429		$	15,034		$	(181,912	)	$	39,038
Income from discontinued operations, net of taxes	$	—		$	—		$	429		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	1,300		$	3,793
Net loss attributable to the noncontrolling interest	$	234		$	356		$	1,238		$	3,168
Net loss attributable to the redeemable noncontrolling interests	$	7,112		$	2,031		$	6,788		$	10,612
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	380,759		$	16,406		$	(173,173	)	$	55,595
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	1.00		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	1.00		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	373,541			373,654			372,547			369,840
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	0.99		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	0.99		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	377,713			373,662			372,547			369,840

In 2016 and 2015, the totals of quarterly per share amounts do not equal annual per share amounts because of changes in outstanding shares during the year.

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Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

Schedule I - Condensed Financial Information of Registrant

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Financial Condition

December 31, 2016 and 2015

(Dollars in thousands, except par value)

	2016		2015
ASSETS
Cash and cash equivalents	$	105,222	$	353
Financial instruments owned:
Trading assets, at fair value	223,218		750,116
Available for sale securities	15,635		14,104
Total financial instruments owned	238,853		764,220
Investments in subsidiaries	18,412,037		18,348,067
Advances to subsidiaries	235,879		123,805
Investments in associated companies	273,518		244,206
Deferred tax asset, net	346,684		221,310
Other assets	13,993		64,572
Total	$	19,626,186	$	19,766,533
LIABILITIES
Accrued interest payable	$	11,447	$	11,447
Pension liabilities	69,152		78,007
Other payables, expense accruals and other liabilities	39,284		103,438
Advances from subsidiaries	8,265,312		8,060,608
Long-term debt	987,891		986,822
Total liabilities	9,373,086		9,240,322
Commitments and contingencies
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares	125,000		125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425		362,617
Additional paid-in capital	4,812,587		4,986,819
Accumulated other comprehensive income	310,697		438,793
Retained earnings	4,645,391		4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100		10,401,211
Total	$	19,626,186	$	19,766,533

See accompanying notes to condensed financial statements.

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Operations

For the years ended December 31, 2016, 2015 and 2014

(In thousands, except per share amounts)

	2016			2015			2014
Revenues:
Principal transactions	$	16,735		$	491,341		$	—
Net realized securities gains (losses)	—			—			—
Other	2,300			1,477			752
Total revenues	19,035			492,818			752
Expenses:
Compensation and benefits	39,693			58,899			60,830
WilTel pension	2,989			50,836			9,298
Interest	58,881			87,181			99,895
Intercompany interest expense	293,527			241,906			178,027
Selling, general and other expenses	19,244			26,784			113,383
	414,334			465,606			461,433
Income (loss) from continuing operations before income taxes, income related to associated companies and equity in earnings of subsidiaries	(395,299		)	27,212			(460,681		)
Income related to associated companies	21,195			3,479			3,763
Income (loss) from continuing operations before income taxes and equity in earnings of subsidiaries	(374,104		)	30,691			(456,918		)
Income tax provision (benefit)	(117,699		)	267			(139,832		)
Income (loss) from continuing operations before equity in earnings of subsidiaries	(256,405		)	30,424			(317,086		)
Equity in earnings of subsidiaries, net of taxes	386,406			247,704			541,680
Income from continuing operations	130,001			278,128			224,594
Equity in income (loss) from discontinued operations, net of taxes	—			429			(17,893		)
Equity in gain on disposal of discontinued operations, net of taxes	—			5,093			1,667
Net income	130,001			283,650			208,368
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34		$	0.73		$	0.58
Income (loss) from discontinued operations	—			—			(0.05		)
Gain on disposal of discontinued operations	—			0.01			0.01
Net income	$	0.34		$	0.74		$	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations	$	0.34		$	0.73		$	0.58
Income (loss) from discontinued operations	—			—			(0.05		)
Gain on disposal of discontinued operations	—			0.01			0.01
Net income	$	0.34		$	0.74		$	0.54

See accompanying notes to condensed financial statements.

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Comprehensive Income (Loss)

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net income	$	130,001		$	283,650		$	208,368
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)	3,900			(9,057		)	(8,866		)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631	(4		)	(10,930		)	(2,939		)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)	3,896			(19,987		)	(11,805		)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)	(121,581		)	(36,477		)	(43,307		)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149	—			—			(267		)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)	(121,581		)	(36,477		)	(43,574		)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0	(6,494		)	—			—
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0	—			—			—
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)	—			—			169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95	—			—			169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)	(5,451		)	17,073			(38,959		)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)	1,534			31,102			3,201
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)	(3,917		)	48,175			(35,758		)
Other comprehensive loss, net of income taxes	(128,096		)	(8,289		)	(90,968		)
Comprehensive income	1,905			275,361			117,400
Preferred stock dividends	(4,063		)	(4,063		)	(4,062		)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders	$	(2,158	)	$	271,298		$	113,338

See accompanying notes to condensed financial statements.

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Cash Flows

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from operating activities:
Net income	$	130,001		$	283,650		$	208,368
Adjustments to reconcile net income to net cash used for operations:
Deferred income tax benefit	(12,220		)	(2,457		)	(15,302		)
Accretion of interest	921			1,788			2,029
Share-based compensation	33,597			74,087			109,838
Equity in earnings of subsidiaries	(386,406		)	(253,226		)	(525,454		)
Income related to associated companies	(21,195		)	(3,479		)	(3,763		)
Distributions from associated companies	1,861			312			2,429
Change in estimated litigation reserve	—			(88,500		)	88,500
Net change in:
Trading assets	(40,235		)	(615,768		)	—
Other assets	(708		)	(49,006		)	(1,384		)
Accrued interest payable	—			(10,982		)	(762		)
Pension liabilities	(13,111		)	49,835			9,299
Other payables, expense accruals and other liabilities	(23,218		)	558			(15,127		)
Income taxes receivable/payable, net	(90,898		)	6,640			(5,374		)
Other	1,262			5,110			4,153
Net cash used for operating activities	(420,349		)	(601,438		)	(142,550		)
Net cash flows from investing activities:
Investments in subsidiaries	(427,933		)	(637,400		)	(1,460,159		)
Distributions from subsidiaries	868,612			119,695			97,331
Advances on notes, loans and other receivables	—			(279,000		)	(6,500		)
Collections on notes, loans and other receivables	16,233			144,652			6,500
Investments in associated companies	(11,611		)	(8,101		)	(1,399		)
Capital distributions from associated companies	1,501			1,317			730
Purchases of investments (other than short-term)	(2,242		)	(7,968		)	(11,628		)
Other	150			276			184
Net cash provided by (used for) investing activities	444,710			(666,529		)	(1,374,941		)

(continued)

See accompanying notes to condensed financial statements.

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Cash Flows, continued

For the years ended December 31, 2016, 2015 and 2014

(In thousands)

	2016			2015			2014
Net cash flows from financing activities:
Repayment of debt	$	—		$	(458,641	)	$	(34	)
Advances from (to) subsidiaries, net	265,762			1,943,961			1,683,949
Issuance of common shares	1,062			1,223			2,190
Purchase of common shares for treasury	(95,020		)	(125,754		)	(75,728		)
Dividends paid	(91,296		)	(92,550		)	(93,071		)
Net cash provided by financing activities	80,508			1,268,239			1,517,306
Net increase (decrease) in cash and cash equivalents	104,869			272			(185		)
Cash and cash equivalents at January 1,	353			81			266
Cash and cash equivalents at December 31,	$	105,222		$	353		$	81
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest	$	57,813		$	95,074		$	96,847
Income tax payments, net	$	(10,199	)	$	(2,332	)	$	13,463
Non-cash investing activities:
Investments contributed to subsidiary	$	423,009		$	—		$	5,000
Investments transferred from subsidiary	$	2,022		$	—		$	43,602
Non-cash financing activities:
Issuance of common shares for debt conversion	$	—		$	—		$	97,546

See accompanying notes to condensed financial statements.

Schedule I - Condensed Financial Information of Registrant, continued

LEUCADIA NATIONAL CORPORATION

(PARENT COMPANY ONLY)

Notes to Condensed Financial Statements

1. Introduction and Basis of Presentation

The notes to the consolidated financial statements of Leucadia National Corporation and Subsidiaries (the "Company") are incorporated by reference into this schedule. For purposes of these condensed non-consolidated financial statements, the Company's wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting ("equity method subsidiaries").

The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). The significant accounting policies of the Parent Company Financial Statements are those used by the Company on a consolidated basis, to the extent applicable. For further information regarding the significant accounting policies refer to Note 2, Significant Accounting Policies, in the Company's consolidated financial statements included in the 2016 10-K.

The Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most important of these estimates and assumptions relate to fair value measurements, 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.

2. Transactions with Subsidiaries

The Parent Company has transactions with its equity method subsidiaries, many of which are structured as interest bearing advances to/from its subsidiaries. Intercompany interest expense primarily reflects the interest on funding advances incurred by the Parent to its wholly-owned subsidiary which holds assets related to its treasury function. Interest is incurred on funding advances based on the prime rate plus .125%. Although there is frequent cash movement between these subsidiaries and the Parent, they do not represent cash dividends. As such, the Parent Company received no cash dividends from its subsidiaries during the three years ended December 31, 2016.

In 2014, the Parent Company agreed to a settlement relating to the acquisition of its wholly-owned subsidiary, Jefferies Group LLC. Amounts accrued in 2014, include $70.0 million to certain former equity holders of Jefferies Group Inc., along with attorney fees and are included in the Selling, general and other expenses line item in the Statements of Operations.

3. Commitments, Contingencies and Guarantees

In the normal course of its business, the Parent Company has various commitments, contingencies and guarantees as described in Note 25, Commitments, Contingencies and Guarantees, and Note 17, Mezzanine Equity, in the Company's consolidated financial statements.

4. Restricted Net Assets

For a discussion of the Company's regulatory requirements, see Note 26, Net Capital Requirements, in the Company's consolidated financial statements. Some of the Company's consolidated subsidiaries also have credit agreements which may restrict the payment of cash dividends, or the ability to make loans or advances to the Parent Company.

At December 31, 2016 and 2015, $5,994.1 million and $6,264.4 million, respectively, of net assets of the Parent Company's consolidated subsidiaries are restricted as to the payment of cash dividends, or the ability to make loans or advances to the Parent Company. At December 31, 2016 and 2015, $4,833.0 million and $5,202.7 million, respectively, of these net assets are restricted as they reflect regulatory capital requirements or require regulatory approval prior to the payment of cash dividends and advances to the Parent Company.

Included in retained earnings of the Parent Company at December 31, 2016 and 2015 are $126.2 million and $117.1 million, respectively, of undistributed earnings of unconsolidated associated companies. For further information, see Note 10, Loans to and Investments in Associated Companies, in the Company's consolidated financial statements.

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Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation

Consolidation

Our policy is to consolidate all entities in which we can vote a majority of the outstanding voting stock.  In addition, we consolidate entities which meet the definition of a variable interest entity for which we are the primary beneficiary.  The primary beneficiary is the party who has the power to direct the activities of a variable interest entity 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.  We consider special allocations of cash flows and preferences, if any, to determine amounts allocable to noncontrolling interests.  All intercompany transactions and balances are eliminated in consolidation.

In situations where we have significant influence, but not control, of an entity that does not qualify as a variable interest entity, we apply either the equity method of accounting or fair value accounting pursuant to the fair value option election under GAAP.  We have also formed nonconsolidated investment vehicles with third-party investors that are typically organized as partnerships or limited liability companies.  Our subsidiaries may 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.

Revenue Recognition Policies

Revenue Recognition Policies

Beef Processing and Other Operations

Revenues are recognized when the following conditions are met: (1) collectibility is reasonably assured; (2) title to the product has passed or the service has been rendered and earned; (3) persuasive evidence of an arrangement exists; and (4) there is a fixed or determinable price.  National Beef’s revenues are recognized based on the terms of the sale, which for beef processing operations is typically upon delivery to customers.  Manufacturing revenues are recognized when title passes.

Investment Banking Activities

Commissions and Other Fees. All customer securities transactions are reported in 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 Operations.  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. Trading assets and trading liabilities are carried at fair value with gains and losses reflected in Principal transactions in the Consolidated Statements of Operations on a trade date basis.  Fees received on loans carried at fair value are also recorded within Principal transactions.

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 Selling, general and administrative expenses in the Consolidated Statements of Operations.

Interest Revenue and Expense.  Interest expense that is deducted from Revenues to arrive at Net revenues is related to Jefferies operations.  Contractual interest on Trading assets and Trading liabilities is recognized on an accrual basis as a component of Interest income and Interest expense.  Interest flows on derivative trading transactions and dividends are included as part of the fair valuation of these contracts and recognized in Principal transactions in the Consolidated Statements of Operations rather than as a component of interest income or expense.  Interest on short- and long-term borrowings is recorded on an accrual basis as Interest expense. Discounts/premiums arising on long-term debt are accreted/amortized to Interest expense using the effective yield method over the remaining lives of the underlying debt obligations.  Interest revenue related to Securities borrowed and Securities purchased under agreements to resell activities and interest expense related to Securities loaned and Securities sold under agreements to repurchase activities are recognized on an accrual basis.

Cash Equivalents

Cash Equivalents

Cash equivalents include highly liquid investments, including money market funds and certificates of deposit, not held for resale with original maturities of three months or less.

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

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

In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, Jefferies LLC, as a broker-dealer carrying client accounts, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its clients.  Certain other entities are also obligated by rules mandated by their primary regulators to segregate or set aside cash or equivalent securities to satisfy regulations, promulgated to protect customer assets. In addition, certain exchange and/or clearing organizations require cash and/or securities to be deposited by us to conduct day to day activities.

Financial Instruments and Fair Value

Financial Instruments and Fair Value

Trading assets and Trading liabilities are recorded at fair value, either as required by accounting pronouncements or through the fair value option election.  Gains and losses on trading assets and trading liabilities are recognized in our Consolidated Statements of Operations in Principal transactions.  Available for sales securities are reflected at fair value, with unrealized gains and losses reflected as a separate component of equity, net of taxes.  When sold, realized gains and losses on available for sale securities are reflected in the caption Net realized securities gains.  The cost of securities sold is based on average cost.  Fair value 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

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 as of 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 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 as of 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 as of 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

Valuation Process for Financial Instruments

The Jefferies Independent Price Verification ("IPV") Group, which is part of the Jefferies finance department, in partnership with Jefferies Risk Management, is responsible for establishing Jefferies valuation policies and procedures.  The IPV Group and Risk Management, which are independent of business functions, play an important role and serve as a control function in determining that Jefferies 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 Jefferies Global Controller and is subject to the oversight of the IPV Committee, which includes senior members of Jefferies finance department and other personnel.  Jefferies 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.  Jefferies business units are responsible for determining the fair value of Jefferies 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 the financial instruments inventory.  In the testing process, the IPV Group obtains prices and valuation inputs from sources independent of Jefferies, consistently adheres to established procedures set forth in the 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 the 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 management 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 Jefferies 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.  Jefferies processes challenges 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.  Jefferies process includes understanding and evaluating the external data providers’ valuation methodologies.  For corporate, U.S. government and agency, municipal debt securities, and loans, to the extent independent pricing services or broker quotes are utilized in Jefferies 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"), the 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, Jefferies considers pricing data from multiple service providers as available as well as compares pricing data to prices observed for recent transactions, if any, in order to corroborate 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 the Consolidated Statements of Operations.

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.

Loans to and Investments in Associated Companies

Loans to and Investments in Associated Companies

Loans to and investments in associated companies include investments in private equity and other operating entities in which we exercise significant influence over operating and capital decisions and loans issued in connection with such investments.  Loans to and investments in associated companies are accounted for using the equity method.  See Note 10 for additional information regarding certain of these investments.

Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as Income (loss) related to associated companies, or as part of Other revenues if such investees are considered to be an extension of our business.  Income (loss) for investees for which the fair value option was elected is reported as Principal transactions revenues.

Receivables and Provision for Doubtful Accounts

Receivables and Provision for Doubtful Accounts

At December 31, 2016 and 2015, Receivables include receivables from brokers, dealers and clearing organizations of $2,062.9 million and $1,616.3 million, respectively, and receivables from customers of securities operations of $843.1 million and $1,191.3 million, respectively.

During the fourth quarter of 2014, Jefferies recognized a bad debt provision, which primarily relates to a receivable of $52.3 million from a client to which Jefferies provided futures clearing and execution services, which declared bankruptcy.

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, Jefferies borrows 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.  Jefferies has an active securities borrowed and lending matched book business in which it borrows securities from one party and lends them to another party.  When Jefferies borrows securities, it generally provides cash to the lender as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities borrowed.  Jefferies earns interest revenues on this cash collateral.  Similarly, when Jefferies lends securities to another party, that party provides cash to Jefferies as collateral, which is reflected in the Consolidated Statements of Financial Condition as Securities loaned.  Jefferies pays 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.  Jefferies monitors the fair value of the securities borrowed and loaned on a daily basis and requests additional collateral or returns 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.  Jefferies earns and incurs interest over the term of the repo, which is reflected in Interest revenue and Interest expense in the 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 GAAP.  The fair value of the underlying securities is monitored 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.

Property, Equipment and Leasehold Improvements

Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation and amortization.  Depreciation and amortization are provided principally on the straight-line method over the estimated useful lives of the assets or, if less, the term of the underlying lease.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets may not be recoverable.  When testing for impairment, we group our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (or asset group).  The determination of whether an asset group is recoverable is based on management’s estimate of undiscounted future cash flows directly attributable to the asset group as compared to its carrying value.  If the carrying amount of the asset group is greater than the undiscounted cash flows, an impairment loss would be recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value.

National Beef closed its Brawley beef processing facility in the second quarter of 2014.  National Beef incurred costs relating to the closing of the facility during 2014 of $6.9 million.  These costs include employee separation and retention, systems decommissioning and various other expenses.  Of these amounts, $4.6 million related to employee separation, which is included in Compensation and benefits, and the various other costs are included in Selling, general and other expenses in the Consolidated Statement of Operations.

In 2015, we recorded impairment charges in Selling, general and other expenses of $27.7 million, primarily related to a $20.3 million impairment at our Juneau oil and gas company and an impairment charge related to the Brawley plant of $4.7 million. For the oil and gas impairment test, we compare expected undiscounted future net cash flows to the unamortized capitalized cost of the asset. If the future undiscounted net cash flows are lower than the unamortized capital cost, we reduce the capitalized cost to fair market value. We used a third party reserve report in which the cash flows were calculated using West Texas Intermediate (oil) and Henry Hub (gas) NYMEX futures prices as of December 31, 2015. For one of our oil fields, the undiscounted net cash flows were lower than the unamortized capital cost and as a result, we wrote off the total capital cost. There were no significant impairment charges in 2014.

In 2016, Juneau recorded impairment charges in Selling, general and other expenses of $56.3 million related to write-downs of unproved oil and gas properties. Juneau assesses its unproved oil and gas properties for impairment based on remaining lease terms, drilling results or future plans to develop acreage and they record impairment expense for any decline in value. In the third quarter of 2016, Juneau curtailed development of its southern acreage in the East Eagle Ford and its Houston County acreage. As a result, an impairment was recorded for the difference between the carrying value and the estimated net realizable value of the acreage.

Substantially all of our operating businesses sell products or services that are impacted by general economic conditions in the U.S. and to a lesser extent internationally.  In recent years general economic conditions reduced the demand for products or services sold by our operating subsidiaries and/or resulted in reduced pricing for products or services.  A worsening of current economic conditions could cause a decline in estimated future cash flows expected to be generated by our operations and investments.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in intangible assets, property and equipment and other long-lived assets (for example, Jefferies, National Beef, manufacturing, oil and gas exploration and development and certain associated company investments), impairment charges would have to be recorded.

Intangible Assets, Net and Goodwill

Intangible Assets, Net and Goodwill

Intangible Assets.  Intangible assets deemed to have finite lives are generally 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.  If future undiscounted cash flows are estimated to be less than the carrying amounts of the asset groups used to generate those cash flows in subsequent reporting periods, particularly for those with large investments in amortizable intangible assets, impairment charges would have to be recorded.

An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when certain events or circumstances exist indicating an assessment for impairment is necessary.  Impairment exists when the carrying amount exceeds its fair value.  Fair value will be determined using valuation techniques consistent with what a market participant would use.  All of our indefinite-lived intangible assets were recognized in connection with the Jefferies acquisition, and our annual impairment testing date for Jefferies is as of August 1.

Goodwill.  At acquisition, we allocate the cost of a business acquisition to the specific tangible and intangible assets acquired and liabilities assumed based upon their fair values.  Significant judgments and estimates are often made by management to determine these values, and may include the use of appraisals, consideration of market quotes for similar transactions, use of discounted cash flow techniques or consideration of other information we believe to be relevant.  Any excess of the cost of a business acquisition over the fair values of the net assets and liabilities acquired is recorded as goodwill, which is not amortized to expense.  Substantially all of our goodwill was recognized in connection with the Jefferies acquisition.

At least annually, and more frequently if warranted, we will assess whether goodwill has been impaired.  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 values will be 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 fair value include market capitalization, price-to-book multiples of comparable exchange traded companies, multiples of merger and acquisitions of similar businesses and/or projected cash flows.  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.  Our annual goodwill impairment testing date related to Jefferies is as of August 1 and National Beef as of December 31.

Inventories and Cost of Sales

Inventories and Cost of Sales

National Beef’s inventories consist primarily of beef products, beef by-products and supplies, and are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method for beef products and average cost for supplies.

Manufacturing inventories are stated at the lower of cost or market, with cost principally determined under the first-in-first-out method.  Manufacturing cost of sales principally includes product and manufacturing costs, inbound and outbound shipping costs and handling costs.

Payables, Expense Accruals and other Liabilities

Payables, expense accruals and other liabilities

At December 31, 2016 and 2015, Payables, expense accruals and other liabilities include payables to brokers, dealers and clearing organizations of $3,290.4 million and $2,757.2 million, respectively, and payables to customers of securities operations of $2,297.3 million and $2,780.5 million, respectively.

Income Taxes

Income Taxes

We record a valuation allowance to reduce our net deferred tax asset to the net amount that is more likely than not to be realized.  If in the future we determine that it is more likely than not that we will be able to realize our net deferred tax asset in excess of our net recorded amount, an adjustment to increase the net deferred tax asset would increase income in such period.  If in the future we were to determine that we would not be able to realize all or part of our recorded net deferred tax asset, an adjustment to decrease the net deferred tax asset would be charged to income in such period.  We are required to consider all available evidence, both positive and negative, and to weigh the evidence when determining whether a valuation allowance is required and the amount of such valuation allowance.  Generally, greater weight is required to be placed on objectively verifiable evidence when making this assessment, in particular on recent historical operating results.

Our estimate of future taxable income considers all available evidence, both positive and negative, about our operating businesses and investments, includes an aggregation of individual projections for each significant operating business and investment, estimated apportionment factors for state and local taxing jurisdictions and included all future years that we estimate we will have available net operating loss carryforwards (“NOLs”) (until 2035).  We believe that our estimate of future taxable income is reasonable but inherently uncertain, and if our current or future operations and investments generate taxable income different than the projected amounts, further adjustments to the valuation allowance are possible.  The current balance of the deferred tax valuation allowance principally reserves for NOLs of certain subsidiaries that are not available to offset income generated by other members of the consolidated tax return group.

We also record reserves for unrecognized tax benefits based on our assessment of the probability of successfully sustaining tax filing positions.  Interest and penalties, if any, are recorded as components of income tax expense.  Management exercises significant judgment when assessing the probability of successfully sustaining tax filing positions, and in determining whether a contingent tax liability should be recorded and if so estimating the amount.  If our tax filing positions are successfully challenged, payments could be required that are in excess of reserved amounts or we may be required to reduce the carrying amount of our net deferred tax asset, either of which could be significant to our Consolidated Statement of Financial Condition or results of operations.

Share-based Compensation

Share-based Compensation

Share-based awards are measured based on the fair value of the award as determined in accordance with GAAP and recognized over the required service or vesting period.  Certain executive share-based awards contain market, performance and service conditions. Market conditions are incorporated into the grant-date fair value using a Monte Carlo valuation model. Compensation expense for awards with market conditions is recognized over the service period and is not reversed if the market condition is not met. Awards with performance conditions are amortized over the service period if it is determined that it is probable that the performance condition will be achieved. The fair value of options and warrants are estimated at the date of grant using the Black-Scholes option pricing model.  Expected forfeitures are included in determining share-based compensation expense.

Foreign Currency Translation

Foreign Currency Translation

Assets and liabilities of foreign subsidiaries are translated to U.S. dollars using the currency exchange rates at the end of the relevant period.  Revenues and expenses are translated at average exchange rates during the period.  The effects of exchange rate changes on the translation of the balance sheets, net of hedging gains or losses and taxes, if any, are included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss) and classified as Accumulated other comprehensive income in the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Equity.  Gains or losses resulting from Jefferies foreign currency transactions are included in Principal transactions in the Consolidated Statements of Operations; gains or losses from foreign currency transactions unrelated to Jefferies were not significant.

Earnings per Common Share

Earnings per Common Share

Basic earnings per share ("EPS") is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued.  Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities.  Losses are not allocated to participating securities.  Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units ("RSUs") for which no future service is required.  Diluted EPS is computed by dividing net earnings available to common shareholders plus dividends on dilutive mandatorily redeemable convertible preferred shares and interest on convertible notes by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period.

Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share.  Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security.  As such, we calculate basic and diluted earnings per share under the two-class method. RSUs granted under the senior executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable.

Securitization Activities

Securitization Activities

Jefferies engages 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 Jefferies has 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.  Jefferies may retain interests in the securitized financial assets as one or more tranches of the securitization.  These retained interests are included within Trading assets 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 in the Consolidated Statements of Operations.

When a transfer of assets does not meet the criteria of a sale, the transfer is accounted for as a secured borrowing and Jefferies continues to recognize the assets of a secured borrowing, and recognize the associated financing in Other secured financings in the Consolidated Statements of Financial Condition.

Beginning in 2014, another of our subsidiaries utilized a special purpose entity to securitize automobile loans receivable.  This special purpose entity is a variable interest entity and our subsidiary is the primary beneficiary; the related assets and the secured borrowings are recognized in the Consolidated Statement of Financial Condition.  These secured borrowings do not have recourse to our subsidiary’s general credit.

Contingencies

Contingencies

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 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, can be highly subjective and is subject to significant change with the passage of time as more information becomes available.  Estimating the ultimate impact of litigation matters is inherently uncertain, in particular because the ultimate outcome will rest on events and decisions of others that may not be within our power to control.  We do not believe that any of our current litigation will have a significant adverse effect on our consolidated financial position, results of operations or liquidity; however, if amounts paid at the resolution of litigation are in excess of recorded reserve amounts, the excess could be significant in relation to results of operations for that period.  For further information, see Note 25.

Accounting Developments

Revenue Recognition.  In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures.  The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.  This guidance is effective for interim and annual periods beginning after December 15, 2017.  We intend to adopt the new guidance with a cumulative-effect adjustment to opening retained earnings and our evaluation of the impact this new guidance will have on our consolidated financial statements is ongoing.

Consolidation.  In January 2016, we adopted the FASB's new guidance that amended the consolidation guidance including changes to both the variable and voting interest models used to evaluate whether an entity should be consolidated.  This guidance also eliminates the deferral of certain consolidation standards for entities considered to be investment companies.  The adoption of this guidance did not have a significant impact on our consolidated financial statements.

Debt Issuance Costs.  In January 2016, we adopted the FASB's new guidance that requires debt issuance costs related to a recognized debt liability be presented 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 have adopted this guidance in the first quarter of 2016. The adoption of this guidance resulted in the following adjustments to the Consolidated Statement of Financial Condition on December 31, 2015: a decrease of $8.6 million to Other assets, a decrease of $7.0 million to Long-term debt and a decrease of $1.6 million to Other secured financings. The adoption of this guidance also resulted in the following adjustments to the Consolidated Statements of Operations for the years ended December 31, 2015 and 2014: a decrease of $4.4 million and $3.8 million, respectively, to Selling, general and other expenses and an increase of $4.4 million and $3.8 million, respectively, to Interest expense.

Financial Instruments. In January 2016, the FASB issued new guidance that affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The guidance is effective for annual and interim periods beginning after December 15, 2017. 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 2016. The guidance on financial liabilities under the fair value option did not have a significant impact on our consolidated financial statements.

Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of lease assets and lease liabilities on the statement of financial condition. The guidance is effective for annual and interim periods beginning after December 15, 2018. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Share-Based Payments to Employees. In March 2016, the FASB issued new guidance to simplify and improve accounting for share-based payments. 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 for annual and interim periods beginning after December 15, 2016. We do not believe the adoption of this accounting guidance will have a material effect on our consolidated financial statements.

Financial Instruments - Credit Losses. In June 2016, the FASB issued new guidance for estimating credit losses on certain types of financial instruments by introducing an approach based on expected losses. The guidance is effective for annual and interim periods beginning after December 15, 2019. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. 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 for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for annual and interim periods beginning after December 15, 2017. We are currently evaluating the impact this new guidance will have on our consolidated financial statements.

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Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value

The following is a summary of our financial instruments, trading liabilities and long-term debt that are accounted for at fair value on a recurring basis, excluding Investments at fair value based on NAV (within trading assets) of $24.3 million and $36.7 million, respectively, by level within the fair value hierarchy at December 31, 2016 and 2015 (in thousands):

	December 31, 2016
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,522,977	$	92,839	$	21,739	$	—		$	2,637,555
Corporate debt securities	—		2,675,020		25,005		—			2,700,025
CDOs and CLOs	—		54,306		54,354		—			108,660
U.S. government and federal agency securities	2,389,397		56,726		—		—			2,446,123
Municipal securities	—		708,469		27,257		—			735,726
Sovereign obligations	1,432,556		990,492		—		—			2,423,048
Residential mortgage-backed securities	—		960,494		38,772		—			999,266
Commercial mortgage-backed securities	—		296,405		20,580		—			316,985
Other asset-backed securities	—		63,587		40,911		—			104,498
Loans and other receivables	—		1,557,233		81,872		—			1,639,105
Derivatives	3,825		4,616,822		6,429		(4,255,998		)	371,078
Investments at fair value	—		—		314,359		—			314,359
Investment in FXCM	—		—		164,500		—			164,500
Total trading assets, excluding investments at fair value based on NAV	$	6,348,755	$	12,072,393	$	795,778	$	(4,255,998	)	$	14,960,928
Available for sale securities:
Corporate equity securities	$	79,425	$	—	$	—	$	—		$	79,425
Corporate debt securities	—		179		—		—			179
U.S. government securities	174,933		—		—		—			174,933
Residential mortgage-backed securities	—		19,133		—		—			19,133
Commercial mortgage-backed securities	—		8,337		—		—			8,337
Other asset-backed securities	—		19,042		—		—			19,042
Total available for sale securities	$	254,358	$	46,691	$	—	$	—		$	301,049
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,593,548	$	16,806	$	313	$	—		$	1,610,667
Corporate debt securities	—		1,718,424		523		—			1,718,947
U.S. government and federal agency securities	976,497		—		—		—			976,497
Sovereign obligations	1,375,590		1,253,754		—		—			2,629,344
Loans	—		801,977		378		—			802,355
Derivatives	2,566		4,867,586		9,870		(4,229,213		)	650,809
Total trading liabilities	$	3,948,201	$	8,658,547	$	11,084	$	(4,229,213	)	$	8,388,619
Other secured financings	$	—	$	41,350	$	418	$	—		$	41,768
Long-term debt - structured notes	$	—	$	248,856	$	—	$	—		$	248,856

	December 31, 2015
	Level 1 (1)		Level 2 (1)		Level 3		Counterparty and Cash Collateral Netting (2)			Total
Assets:
Trading assets, at fair value:
Corporate equity securities	$	2,803,243	$	133,732	$	40,906	$	—		$	2,977,881
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	2,253		4,406,207		19,785		(4,165,446		)	262,799
Investments at fair value	—		26,224		199,794		—			226,018
Investment in FXCM	—		—		625,689		—			625,689
Total trading assets, excluding investments at fair value based on NAV	$	6,611,880	$	14,495,857	$	1,314,065	$	(4,165,446	)	$	18,256,356
Available for sale securities:
Corporate equity securities	$	73,579	$	—	$	—	$	—		$	73,579
Corporate debt securities	—		4,744		—		—			4,744
U.S. government securities	63,945		—		—		—			63,945
Residential mortgage-backed securities	—		23,240		—		—			23,240
Commercial mortgage-backed securities	—		2,374		—		—			2,374
Other asset-backed securities	—		39,473		—		—			39,473
Total available for sale securities	$	137,524	$	69,831	$	—	$	—		$	207,355
Liabilities:
Trading liabilities:
Corporate equity securities	$	1,428,048	$	36,518	$	38	$	—		$	1,464,604
Corporate debt securities	—		1,556,941		—		—			1,556,941
U.S. government and federal agency securities (3)	1,488,121		—		—		—			1,488,121
Sovereign obligations (3)	837,614		505,382		—		—			1,342,996
Residential mortgage-backed securities (3)	—		117		—		—			117
Loans	—		758,939		10,469		—			769,408
Derivatives	364		4,456,334		19,543		(4,257,998		)	218,243
Total trading liabilities	$	3,754,147	$	7,314,231	$	30,050	$	(4,257,998	)	$	6,840,430
Other secured financings (4)	$	—	$	67,801	$	544	$	—		$	68,345

(1) There were no material transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015.

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

(3) There was an immaterial revision in the row labeling in our Annual Report on Form 10-K for the year ended December 31, 2015. We have revised the labels to "U.S. government and federal agency securities" (originally reported as "Collateralized debt obligations"), "Sovereign obligations" (originally reported as "U.S. government and federal agency securities") and "Residential mortgage-backed securities" (originally reported as "Sovereign obligations").

(4) 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 December 31, 2015.

Investments Measured At Fair Value Based On Net Asset Value

The following tables present information about our investments in entities that have the characteristics of an investment company and are measured based on NAV (in thousands).

	Fair Value (1)		Unfunded Commitments		Redemption Frequency (if currently eligible)
December 31, 2016
Equity Long/Short Hedge Funds (2)	$	363,256	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	772		—		—
Fund of Funds (4)	230		—		—
Equity Funds (5)	42,179		20,295		—
Multi-strategy Fund (6)	133,190		—		Monthly/Quarterly
Total	$	539,627	$	20,295
December 31, 2015(7)
Equity Long/Short Hedge Funds (2)	$	430,207	$	—	(2)
Fixed Income and High Yield Hedge Funds (3)	1,703		—		—
Fund of Funds (4)	287		94		—
Equity Funds (5)	42,111		20,791		—
Multi-strategy Fund (6)	165,821		—		Monthly/Quarterly
Convertible Bond Funds (8)	326		—		At Will
Total	$	640,455	$	20,885

(1) Where fair value is calculated based on NAV, fair value has been derived from each of the funds' capital statements.

(2) This category includes investments in hedge funds that invest, long and short, in primarily equity securities in domestic and international markets in both the public and private sectors.  At December 31, 2016 and 2015, investments with a fair value of $363.3 million and $54.7 million, respectively, are redeemable with 15 to 90 days prior written notice.

(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 December 31, 2015, the underlying assets of 8% of these funds were 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 December 31, 2016 and 2015, approximately 100% 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 December 31, 2016 and 2015, 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 seven years. 

(6) This category includes investments in hedge funds that invest, long and short, primarily in multi-strategy securities in domestic and international markets in both the public and private sectors. At December 31, 2016 and 2015, investments representing approximately 12% and 32%, respectively, of the fair value of investments in this category are redeemable with 30 to 90 days prior written notice.

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

(8) Investment in the Jefferies Umbrella Fund, an open-ended investment company managed by Jefferies that invested primarily in convertible bonds.  The underlying assets were fully liquidated during the year ended December 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 year ended December 31, 2015 (in thousands):

Year Ended December 31, 2015
	Balance, December 31, 2014			Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31 ,2015			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2015 (1)
Assets:
Trading assets:
Corporate equity securities	$	20,964		$	11,154		$	21,385		$	(6,391	)	$	—		$	—	$	(6,206	)	$	40,906		$	11,424
Corporate debt securities	22,766			(11,013		)	21,534			(14,636		)	—			—		7,225			$	25,876		(9,443		)
CDOs and CLOS	124,650			(66,332		)	104,998			(107,381		)	(5,754		)	—		34,911			$	85,092		(48,514		)
Municipal securities	—			10			—			—			(21,551		)	—		21,541			—			—
Sovereign obligations	—			47			1,032			(1,031		)	—			—		72			120			39
Residential mortgage backed securities	82,557			(12,951		)	18,961			(31,762		)	(597		)	—		14,055			$	70,263		(4,498		)
Commercial mortgage-backed securities	26,655			(3,813		)	3,480			(10,146		)	(6,861		)	—		5,011			$	14,326		(3,205		)
Other asset-backed securities	2,294			(990		)	42,922			(1,299		)	(2		)	—		—			$	42,925		(254		)
Loans and other receivables	97,258			(14,755		)	792,345			(576,536		)	(124,365		)	—		15,342			$	189,289		(16,802		)
Investments at fair value	77,047			62,804			5,510			(425		)	(4,093		)	—		58,951			$	199,794		(1,964		)
Investment in FXCM	—			491,341			279,000			—			(144,652		)	—		—			625,689			491,341
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	223			(110		)	(6,804		)	6,691			—			—		—			$	—		—
Net derivatives (2)	(4,638		)	(7,310		)	(6,705		)	13,522			37			2,437		2,415			$	(242	)	4,754
Loans	14,450			(163		)	(2,059		)	229			—			—		(1,988		)	$	10,469		104
Other secured financings	30,825			—			—			—			(15,704		)	36,995		(51,572		)	$	544		—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

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

Year Ended December 31, 2016
	Balance, December 31, 2015			Total gains (losses) (realized and unrealized) (1)			Purchases		Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2016		Changes in unrealized gains (losses) relating to instruments still held at December 31, 2016 (1)
Assets:
Trading assets:
Corporate equity securities	$	40,906		$	(8,463	)	$	3,365	$	(49	)	$	(671	)	$	—	$	(13,349	)	$	21,739	$	291
Corporate debt securities	25,876			(16,230		)	27,242		(29,347		)	(7,223		)	—		24,687			25,005		(18,799		)
CDOs and CLOs	85,092			(14,918		)	52,316		(69,394		)	(2,750		)	—		4,008			54,354		(7,628		)
Municipal securities	—			(1,462		)	—		—			—			—		28,719			27,257		(1,462		)
Sovereign obligations	120			5			—		(125		)	—			—		—			—		—
Residential mortgage-backed securities	70,263			(9,612		)	623		(12,249		)	(931		)	—		(9,322		)	38,772		(1,095		)
Commercial mortgage-backed securities	14,326			(7,550		)	3,132		(2,024		)	(2,229		)	—		14,925			20,580		(7,243		)
Other asset-backed securities	42,925			(14,381		)	133,986		(102,952		)	(8,769		)	—		(9,898		)	40,911		(18,056		)
Loans and other receivables	189,289			(42,566		)	75,264		(69,262		)	(46,851		)	—		(24,002		)	81,872		(52,003		)
Investments at fair value	199,794			54,538			29,728		(542		)	(1,107		)	—		31,948			314,359		54,608
Investment in FXCM (2)	625,689			(54,634		)	—		—			(406,555		)	—		—			164,500		(1,014		)
Liabilities:
Trading liabilities:
Corporate equity securities	$	38		$	—		$	—	$	313		$	(38	)	$	—	$	—		$	313	$	—
Corporate debt securities	—			(27		)	—		550			—			—		—			523		—
Net derivatives (3)	(242		)	(1,760		)	—		11,101			31			2,067		(7,756		)	3,441		(6,458		)
Loans	10,469			—			—		378			—			—		(10,469		)	378		—
Other secured financings	544			(126		)	—		—			—			—		—			418		(126		)

The following is a summary of changes in fair value of our financial assets and liabilities that have been categorized within Level 3 of the fair value hierarchy for the year ended December 31, 2014 (in thousands).

Year Ended December 31, 2014
	Balance, December 31, 2013		Total gains (losses) (realized and unrealized) (1)			Purchases			Sales			Settlements			Issuances		Net transfers into (out of) Level 3			Balance at December 31, 2014			Changes in unrealized gains (losses) relating to instruments still held at December 31, 2014 (1)
Assets:
Trading assets:
Corporate equity securities	$	9,884	$	957		$	18,138		$	(12,826	)	$	—		$	—	$	4,811		$	20,964		$	2,324
Corporate debt securities	25,666		6,629			38,316			(40,328		)	—			—		(7,517		)	22,766			8,982
CDOs and CLOs	37,216		(6,386		)	204,337			(181,757		)	(1,297		)	—		72,537			124,650			(1,141		)
U.S. government and federal agency securities	—		13			2,505			(2,518		)	—			—		—			—			—
Residential mortgage-backed securities	105,492		(9,870		)	42,632			(61,689		)	(1,847		)	—		7,839			82,557			(4,679		)
Commercial mortgage-backed securities	17,568		(4,237		)	49,159			(51,360		)	(782		)	—		16,307			26,655			(2,384		)
Other asset-backed securities	12,611		1,784			4,987			(18,002		)	—			—		914			2,294			1,484
Loans and other receivables	145,890		(31,311		)	130,169			(92,140		)	(60,390		)	—		5,040			97,258			(26,864		)
Investments at fair value	66,931		17,642			32,493			(23,324		)	(1,243		)	—		(15,452		)	77,047			1,985
Liabilities:
Trading liabilities:
Corporate equity securities	$	38	$	—		$	—		$	—		$	—		$	—	$	—		$	38		$	—
Corporate debt securities	—		(149		)	(565		)	960			—			—		(23		)	223			(8		)
Net derivatives (2)	6,905		15,055			(24,682		)	1,094			322			—		(3,332		)	(4,638		)	(15,615		)
Loans	22,462		—			(18,332		)	11,338			—			—		(1,018		)	14,450			—
Other secured financings	8,711		—			—			—			(17,525		)	39,639		—			30,825			—

(1) Realized and unrealized gains (losses) are reported in Principal transactions in the Consolidated Statements of Operations.

(2) Net derivatives represent Trading assets - Derivatives and Trading liabilities - Derivatives.

Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements

December 31, 2016
Financial Instruments Owned	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Corporate equity securities	$	19,799
Non-exchange traded securities			Market approach	Underlying stock price	$3 to $75	$15.0
			Comparable pricing	Underlying stock price	$218	—
				Comparable asset price	$11	—
			Present value	Average silver production (tons per day)	666	—
Corporate debt securities	$	25,005	Convertible bond model	Discount rate/yield	9%	—
				Volatility	40%	—
			Market approach	Transaction level	$30	—
CDOs and CLOs	$	33,016	Discounted cash flows	Constant prepayment rate	10% to 20%	19	%
				Constant default rate	2% to 4%	2	%
				Loss severity	25% to 70%	40	%
				Yield	7% to 17%	12	%
			Scenario analysis	Estimated recovery percentage	28% to 38%	31	%
Residential mortgage-backed securities	$	38,772	Discounted cash flows	Constant prepayment rate	0% to 11%	5	%
				Constant default rate	1% to 7%	3	%
				Loss severity	35% to 100%	62	%
				Yield	2% to 10%	6	%
Commercial mortgage-backed securities	$	20,580	Discounted cash flows	Yield	6% to 11%	8	%
				Cumulative loss rate	5% to 95%	39	%
Other asset-backed securities	$	40,911	Discounted cash flows	Constant prepayment rate	4% to 20%	14	%
				Constant default rate	0% to 31%	13	%
				Loss severity	0% to 100%	90	%
				Yield	4% to 17%	15	%
			Market approach	Price	$72	—
Loans and other receivables	$	54,347	Market approach	Discount rate/yield	2% to 4%	3	%
				EBITDA (a) multiple	3.3	—
				Transaction level	$0.42	—
			Present value	Average silver production (tons per day)	666	—
			Scenario analysis	Estimated recovery percentage	6% to 50%	37	%
Derivatives	$	6,429
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Credit default swaps			Market approach	Credit spread	265 bps	—
Investments at fair value
Private equity securities	$	67,383	Market approach	Transaction Level	$250	—
				Price	$25,815,720	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	164,500	Discounted cash flows	Term based on the pay off	0 months to .5 years	0.4 years
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	9,870
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Equity swaps			Comparable pricing	Comparable asset price	$102	—
Unfunded commitments			Market approach	Discount rate/yield	4%	—
Variable funding note swaps			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	16%	—

December 31, 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 (a) multiple	4.4	—
				Transaction level	$1	—
				Underlying stock price	$5 to $102	$19.0
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% to 20%	13	%
				Constant default rate	2% to 8%	2	%
				Loss severity	25% to 90%	52	%
				Yield	6% to 13%	10	%
Residential mortgage-backed securities	$	70,263	Discounted cash flows	Constant prepayment rate	0% to 50%	13	%
				Constant default rate	1% to 9%	3	%
				Loss severity	25% to 70%	39	%
				Yield	1% to 9%	6	%
Commercial mortgage-backed securities	$	14,326	Discounted cash flows	Yield	7% to 30%	16	%
				Cumulative loss rate	2% to 63%	23	%
Other asset-backed securities	$	21,463	Discounted cash flows	Constant prepayment rate	6% to 8%	7	%
				Constant default rate	3% to 5%	4	%
				Loss severity	55% to 75%	62	%
				Yield	7% to 22%	18	%
			Over-collateralization	Over-collateralization percentage	117% to 125%	118	%
Loans and other receivables	$	161,470	Comparable pricing	Comparable asset price	$99 to $100	$99.7
			Market approach	Yield	2% to 17%	12	%
				EBITDA (a) multiple	10.0	—
			Scenario analysis	Estimated recovery percentage	6% to 100%	83	%
Derivatives	$	19,785
Commodity forwards			Market approach	Discount rate/yield	47%	—
				Transaction level	$9,500,000	—
Unfunded commitment			Comparable pricing	Comparable asset price	$100	—
			Market approach	Credit spread	298 bps	—
Total return swap			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Investments at fair value
Private equity securities	$	29,940	Market approach	Transaction Level	$64	—
				Price	$5,200,000	—
				Discount rate	15% to 30%	23	%
Investment in FXCM
Term loan	$	203,700	Discounted cash flows	Term based on the pay off	0 months to 1.0 year	0.4 years
Rights	422,000		Option pricing model	Volatility	110%	—
	$	625,700
Trading Liabilities	Fair Value (in thousands)		Valuation  Technique	Significant Unobservable Input(s)	Input/Range	Weighted Average
Derivatives	$	19,543
Equity options			Option model	Volatility	45%	—
			Default rate	Default probability	0%	—
Unfunded commitments			Comparable pricing	Comparable asset price	$79 to $100	$82.6
			Market approach	Discount rate/yield	3% to 10%	10	%
			Discounted cash flows	Constant prepayment rate	20%	—
				Constant default rate	2%	—
				Loss severity	25%	—
				Yield	11%	—
Total return swaps			Comparable pricing	Comparable asset price	$91.7 to $92.4	$92.1
Loans	$	10,469	Comparable pricing	Comparable asset price	$100	—

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

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

The following is a summary of Jefferies 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 for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Financial Instruments Owned:
Loans and other receivables	$	(68,812	)	$	(17,389	)	$	(24,785	)
Financial Instruments Sold:
Loans	$	9		$	(162	)	$	(585	)
Loan commitments	$	5,509		$	7,502		$	(15,459	)
Long-term Debt:
Changes in instrument specific credit risk (1)	$	(10,745	)	$	—		$	—
Other changes in fair value (2)	$	30,995		$	—		$	—

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

(2) Other changes in fair value are included within Principal transactions revenues in the Consolidated Statements of Operations.

Summary Of Amount By Which Contractual Principal Exceeds Fair Value For Loans And Other Receivables Measured At Fair Value Under Fair Value Option

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):

	December 31, 2016		December 31, 2015
Financial Instruments Owned:
Loans and other receivables (1)	$	1,325,938	$	408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due (1) (2)	$	205,746	$	54,652
Long-term Debt	$	20,202	$	—

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

(2) Amounts include all loans and other receivables greater than 90 or more days past due of $64.6 million and $29.7 million at December 31, 2016 and 2015, respectively.

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Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure

The fair value of assets/liabilities related to derivative contracts represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged (in thousands, except contract amounts):

	Assets				Liabilities
	Fair Value			Number of Contracts	Fair Value			Number of Contracts
December 31, 2016
Interest rate contracts	$	3,282,245		29,032	$	3,159,457		34,845
Foreign exchange contracts	529,669			7,826	516,869			8,319
Equity contracts	786,987			2,843,329	1,169,201			2,414,715
Commodity contracts	1,906			2,766	6,430			7,289
Credit contracts: centrally cleared swaps	7,044			98	2,562			19,900
Credit contracts: other credit derivatives	19,225			213	25,503			184
Total	4,627,076				4,880,022
Counterparty/cash-collateral netting	(4,255,998		)		(4,229,213		)
Total per Consolidated Statement of Financial Condition	$	371,078			$	650,809
December 31, 2015
Interest rate contracts	$	2,910,093		56,748	$	2,849,958		74,904
Foreign exchange contracts (1)	453,527			8,089	466,021			7,376
Equity contracts	1,017,611			3,057,754	1,094,597			2,947,416
Commodity contracts (1)	27,590			2,896	5,510			2,001
Credit contracts: centrally cleared swaps	2,447			299	841			44
Credit contracts: other credit derivatives	16,977			100	59,314			135
Total	4,428,245				4,476,241
Counterparty/cash-collateral netting	(4,165,446		)		(4,257,998		)
Total per Consolidated Statement of Financial Condition	$	262,799			$	218,243

(1) 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 foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of contracts remained unchanged.

Unrealized And Realized Gains (Losses) On Derivative Contracts

The following table presents unrealized and realized gains (losses) on derivative contracts as reflected in the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Interest rate contracts	$	(36,559	)	$	(36,792	)	$	(149,587	)
Foreign exchange contracts	20,401			36,233			39,872
Equity contracts	(635,305		)	(137,219		)	(327,978		)
Commodity contracts	(3,339		)	(13,625		)	58,746
Credit contracts	5,013			(16,223		)	(23,934		)
Total	$	(649,789	)	$	(167,626	)	$	(402,881	)

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 as reflected in the Consolidated Statement of Financial Condition at December 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	$	27,436	$	5,727	$	—	$	—		$	33,163
Credit default swaps	—		4,542		3,463		(1,588		)	6,417
Total return swaps	20,749		389		—		(200		)	20,938
Foreign currency forwards, swaps and options	95,112		35,988		—		(10,547		)	120,553
Interest rate swaps, options and forwards	120,053		189,153		134,507		(71,604		)	372,109
Total	$	263,350	$	235,799	$	137,970	$	(83,939	)	553,180
Cross product counterparty netting										(623		)
Total OTC derivative assets included in Trading assets										$	552,557

(1) At December 31, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.4 million, which are not included in this table.

(2) OTC derivative assets in the table above are gross of collateral received.  OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral received was $217.4 million.

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

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

	OTC Derivative Liabilities (1) (2) (3)
	0-12 Months		1-5 Years		Greater Than 5 Years		Cross-Maturity Netting (4)			Total
Commodity swaps, options and forwards	$	3,214	$	1,218	$	—	$	—		$	4,432
Equity swaps and options	10,993		20,354		—		—			31,347
Credit default swaps	16		1,594		7,147		(1,588		)	7,169
Total return swaps	12,088		2,407		—		(200		)	14,295
Foreign currency forwards, swaps and options	92,375		26,011		—		(10,547		)	107,839
Fixed income forwards	3,401		—		—		—			3,401
Interest rate swaps, options and forwards	108,085		121,975		92,029		(71,604		)	250,485
Total	$	230,172	$	173,559	$	99,176	$	(83,939	)	418,968
Cross product counterparty netting										(623		)
Total OTC derivative liabilities included in Trading liabilities										$	418,345

(1) At December 31, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $414.2 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 in the Consolidated Statements of Financial Condition.  At December 31, 2016, cash collateral pledged was $190.6 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 December 31, 2016, the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands):

Counterparty credit quality (1):
A- or higher	$	380,574
BBB- to BBB+	39,595
BB+ or lower	51,834
Unrated	80,554
Total	$	552,557

(1) Jefferies utilizes internal credit ratings determined by the Jefferies 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)

12 Months Ended

Dec. 31, 2016

Collateralized Transactions [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 and remaining contractual maturity (in thousands):

Collateral Pledged	Securities Lending Arrangements		Repurchase Agreements		Total
December 31, 2016
Corporate equity securities	$	2,046,243	$	66,291	$	2,112,534
Corporate debt securities	731,276		1,907,888		2,639,164
Mortgage- and asset-backed securities	—		2,171,480		2,171,480
U.S. government and federal agency securities	41,613		9,232,624		9,274,237
Municipal securities	—		553,010		553,010
Sovereign securities	—		2,625,079		2,625,079
Loans and other receivables	—		455,960		455,960
Total	$	2,819,132	$	17,012,332	$	19,831,464
December 31, 2015
Corporate equity securities	$	2,200,273	$	271,519	$	2,471,792
Corporate debt securities	779,044		1,721,583		2,500,627
Mortgage- and asset-backed securities	—		3,537,812		3,537,812
U.S. government and federal agency securities	34,983		12,003,521		12,038,504
Municipal securities	—		357,350		357,350
Sovereign securities	—		1,804,103		1,804,103
Loans and other receivables	—		462,534		462,534
Total	$	3,014,300	$	20,158,422	$	23,172,722

	Contractual Maturity
	Overnight and Continuous		Up to 30 Days		30 to 90 Days		Greater than 90 Days		Total
December 31, 2016
Securities lending arrangements	$	2,131,891	$	39,673	$	104,516	$	543,052	$	2,819,132
Repurchase agreements	9,147,176		2,008,119		3,809,533		2,047,504		17,012,332
Total	$	11,279,067	$	2,047,792	$	3,914,049	$	2,590,556	$	19,831,464
December 31, 2015
Securities lending arrangements	$	1,522,475	$	—	$	973,201	$	518,624	$	3,014,300
Repurchase agreements	7,848,231		5,218,059		5,291,729		1,800,403		20,158,422
Total	$	9,370,706	$	5,218,059	$	6,264,930	$	2,319,027	$	23,172,722

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Securitization Activities (Tables)

12 Months Ended

Dec. 31, 2016

Securitization Activities [Abstract]

Activity Related To Securitizations Accounted For As Sales

The following table presents activity related to Jefferies securitizations that were accounted for as sales in which it had continuing involvement during the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016		2015		2014
Transferred assets	$	5,786.0	$	5,770.5	$	6,112.6
Proceeds on new securitizations	5,809.0		5,811.3		6,221.1
Cash flows received on retained interests	28.2		31.2		46.3

Summary Of Retained Interests In SPEs

The following table summarizes Jefferies retained interests in SPEs where it transferred assets and has continuing involvement and received sale accounting treatment (in millions):

	December 31, 2016				December 31, 2015
Securitization Type	Total Assets		Retained Interests		Total Assets		Retained Interests
U.S. government agency residential mortgage-backed securities	$	7,584.9	$	31.0	$	10,901.9	$	203.6
U.S. government agency commercial mortgage-backed securities	1,806.3		29.6		2,313.4		87.2
CLOs	4,102.2		37.0		4,538.4		51.5
Consumer and other loans	395.7		25.3		655.0		31.0

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Available For Sale Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments [Abstract]

Amortized Cost, Gross Unrealized Gains And Losses And Estimated Fair Value Of Available For Sale Investments

The amortized cost, gross unrealized gains and losses and estimated fair value of investments classified as available for sale at December 31, 2016 and 2015 are as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
2016
Bonds and notes:
U.S. government securities	$	174,938	$	8	$	13	$	174,933
Residential mortgage-backed securities	19,129		108		104		19,133
Commercial mortgage-backed securities	8,275		64		2		8,337
Other asset-backed securities	18,918		124		—		19,042
All other corporates	180		—		1		179
Total fixed maturities	221,440		304		120		221,624
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		15,115		—		50,186
Industrial, miscellaneous and all other	17,946		11,293		—		29,239
Total equity securities	53,017		26,408		—		79,425
	$	274,457	$	26,712	$	120	$	301,049
2015
Bonds and notes:
U.S. government securities	$	63,968	$	2	$	25	$	63,945
Residential mortgage-backed securities	23,033		308		101		23,240
Commercial mortgage-backed securities	2,392		—		18		2,374
Other asset-backed securities	39,633		—		160		39,473
All other corporates	4,794		7		57		4,744
Total fixed maturities	133,820		317		361		133,776
Equity securities:
Common stocks:
Banks, trusts and insurance companies	35,071		10,201		—		45,272
Industrial, miscellaneous and all other	17,946		10,361		—		28,307
Total equity securities	53,017		20,562		—		73,579
	$	186,837	$	20,879	$	361	$	207,355

Amortized Cost And Estimated Fair Value Of Investments Classified As Available For Sale By Contractual Maturity

The amortized cost and estimated fair value of investments classified as available for sale at December 31, 2016, by contractual maturity, are shown below. Expected maturities are likely to differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Estimated Fair Value
	(In thousands)
Due within one year	$	174,938	$	174,933
Due after one year through five years	180		179
	175,118		175,112
Mortgage-backed and asset-backed securities	46,322		46,512
	$	221,440	$	221,624

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Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2016

Variable Interest Entity, Measure of Activity [Abstract]

Assets And Liabilities Of Consolidated VIEs

The following tables present information about the assets and liabilities of our consolidated VIEs, which are presented within our Consolidated Statements of Financial Condition in the respective asset and liability categories, as of December 31, 2016 and 2015 (in millions). The assets and liabilities in the table below are presented prior to consolidation and thus a portion of these assets and liabilities are eliminated in consolidation.

	December 31, 2016				December 31, 2015
	Securitization Vehicles		Real Estate Investment Vehicle		Securitization Vehicles
Cash	$	18.4	$	2.2	$	1.1
Financial instruments owned	86.6		—		68.3
Securities purchased under agreement to resell (1)	733.5		—		717.3
Receivables	277.7		296.9		149.8
Loans to and investments in associated companies	—		108.7		—
Other	14.5		10.8		8.8
Total assets	$	1,130.7	$	418.6	$	945.3
Other secured financings (2)	$	1,083.8	$	—	$	930.8
Long-term debt	24.1		243.9		—
Other	22.3		11.7		14.5
Total liabilities	$	1,130.2	$	255.6	$	945.3
Noncontrolling interests	$	—	$	98.7	$	—

(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 $57.6 million and $22.1 million of the secured financing represents an amount held by Jefferies in inventory and eliminated in consolidation at December 31, 2016 and 2015, respectively.

Non-Consolidated Variable Interest Entities

The following tables present information about our variable interests in nonconsolidated VIEs as of December 31, 2016 and 2015 (in millions):

	Financial Statement Carrying Amount				Maximum Exposure to Loss		VIE Assets
	Assets		Liabilities
December 31, 2016
CLOs	$	264.7	$	4.8	$	930.0	$	4,472.9
Consumer loan vehicles	90.3		—		219.6		985.5
Related party private equity vehicles	37.6		—		63.6		155.6
Real estate investment vehicle	90.3		—		101.8		85.6
Other private investment vehicles	84.0		—		95.8		4,529.7
Total	$	566.9	$	4.8	$	1,410.8	$	10,229.3
December 31, 2015
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	88.0		—		91.4		4,846.1
Total	$	389.2	$	0.2	$	1,461.1	$	12,516.0

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Loans To And Investments In Associated Companies (Tables)

12 Months Ended

Dec. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Schedule Of Loans To And Investments In Associated Companies

A summary of loans to and investments in associated companies for the years ended December 31, 2016, 2015 and 2014 accounted for under the equity method of accounting is as follows (in thousands):

	Loans to and investments in associated companies as of December 31, 2015		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2016
Jefferies Finance	$	528,575	$	—		$	(1,761	)	$	(36,350	)	$	—		$	490,464
Jefferies LoanCore	288,741		—			21,221			(155,231		)	—			154,731
Berkadia	190,986		94,201			—			(100,766		)	22			184,443
FXCM (1)	—		1,919			—			—			334,339			336,258
Garcadia Companies	172,660		52,266			—			(39,111		)	—			185,815
Linkem	150,149		(22,867		)	—			33,303			(6,585		)	154,000
HomeFed	275,378		23,893			—			2,960			—			302,231
Golden Queen (2)	114,323		(3,021		)	—			—			—			111,302
54 Madison (3)	—		4,255			—			153,503			3,642			161,400
Other	36,557		3,952			(2,276		)	9,622			(3,401		)	44,454
Total	$	1,757,369	$	154,598		$	17,184		$	(132,070	)	$	328,017		$	2,125,098

	Loans to and investments in associated companies as of December 31, 2014		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2015
Jefferies Finance	$	508,891	$	—		$	40,884		$	(21,200	)	$	—		$	528,575
Jefferies LoanCore	258,947		—			36,554			(6,760		)	—			288,741
Berkadia	208,511		78,092			—			(89,560		)	(6,057		)	190,986
Garcadia Companies	167,939		53,182			—			(48,461		)	—			172,660
Linkem	159,054		(15,577		)	—			21,138			(14,466		)	150,149
HomeFed	271,782		3,596			—			—			—			275,378
Golden Queen (2)	103,598		(1,775		)	—			12,500			—			114,323
Other	33,846		(7,237		)	(1,721		)	11,483			186			36,557
Total	$	1,712,568	$	110,281		$	75,717		$	(120,860	)	$	(20,337	)	$	1,757,369

	Loans to and investments in associated companies as of December 31, 2013		Income (losses) related to associated companies			Income (losses) related to associated companies classified as other revenues			Contributions to (distributions from) associated companies, net			Other, including foreign exchange and unrealized gains (losses)			Loans to and investments in associated companies as of December 31, 2014
Jefferies Finance	$	470,537	$	—		$	72,701		$	(34,347	)	$	—		$	508,891
Jefferies LoanCore	224,037		—			18,793			16,117			—			258,947
Berkadia	182,573		101,187			—			(72,721		)	(2,528		)	208,511
Garcadia Companies	120,017		49,416			—			(1,494		)	—			167,939
Linkem	173,577		(14,633		)	—			18,390			(18,280		)	159,054
HomeFed	52,923		3,150			—			—			215,709			271,782
Golden Queen (2)	—		(1,402		)	—			105,000			—			103,598
Other	34,677		809			(1,252		)	(4,067		)	3,679			33,846
Total	$	1,258,341	$	138,527		$	90,242		$	26,878		$	198,580		$	1,712,568

(1) As discussed more fully in Note 4, on September 1, 2016, we amended the terms of our loan and associated rights with FXCM. Through the amendments, we converted our participation rights for a 49.9% common membership ownership in FXCM. Our term loan remains classified within Trading assets, at fair value.

(2) At December 31, 2016, 2015 and 2014, the balance reflects $32.8 million, $33.7 million and $33.7 million, respectively, related to a noncontrolling interest.

(3) At December 31, 2016, the balance reflects $95.3 million related to noncontrolling interests.

Schedule Of Summarized Data For Investments In Associated Companies

The following table provides summarized data for associated companies as of December 31, 2016 and 2015 and for the three years ended December 31, 2016 (in thousands):

	2016		2015
Assets	$	16,964,850	$	18,489,684
Liabilities	13,097,022		14,990,876
Noncontrolling interest	132,789		39,038
	2016		2015		2014
Revenues	$	4,275,016	$	3,946,252	$	3,201,823
Income from continuing operations before extraordinary items	$	422,167	$	398,369	$	431,654
Net income	$	430,291	$	398,369	$	431,654
The Company’s income related to associated companies	$	171,782	$	185,998	$	228,769

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Financial Statement Offsetting (Tables)

12 Months Ended

Dec. 31, 2016

Offsetting [Abstract]

Summary Of Offsetting Assets And Liabilities

The following table provides information regarding derivative contracts, 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 GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our consolidated financial position.

(In thousands)	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 at December 31, 2016
Derivative contracts	$	4,627,076	$	(4,255,998	)	$	371,078	$	—		$	—		$	371,078
Securities borrowing arrangements	$	7,743,562	$	—		$	7,743,562	$	(710,611	)	$	(647,290	)	$	6,385,661
Reverse repurchase agreements	$	14,083,144	$	(10,220,656	)	$	3,862,488	$	(176,275	)	$	(3,591,654	)	$	94,559
Liabilities at December 31, 2016
Derivative contracts	$	4,880,022	$	(4,229,213	)	$	650,809	$	—		$	—		$	650,809
Securities lending arrangements	$	2,819,132	$	—		$	2,819,132	$	(710,611	)	$	(2,064,299	)	$	44,222
Repurchase agreements	$	17,012,332	$	(10,220,656	)	$	6,791,676	$	(176,275	)	$	(5,780,909	)	$	834,492
Assets at December 31, 2015
Derivative contracts	$	4,428,245	$	(4,165,446	)	$	262,799	$	—		$	—		$	262,799
Securities borrowing arrangements	$	6,975,136	$	—		$	6,975,136	$	(478,991	)	$	(667,099	)	$	5,829,046
Reverse repurchase agreements	$	14,046,300	$	(10,191,554	)	$	3,854,746	$	(83,452	)	$	(3,745,215	)	$	26,079
Liabilities at December 31, 2015
Derivative contracts	$	4,476,241	$	(4,257,998	)	$	218,243	$	—		$	—		$	218,243
Securities lending arrangements	$	3,014,300	$	—		$	3,014,300	$	(478,991	)	$	(2,499,395	)	$	35,914
Repurchase agreements	$	20,158,422	$	(10,191,554	)	$	9,966,868	$	(83,452	)	$	(8,068,468	)	$	1,814,948

(1) Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement.  These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other provisions of GAAP are not met.  Further, for derivative assets and liabilities, amounts netted include cash collateral paid or received.

(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) At December 31, 2016, amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million, and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million, which are subject to master netting agreements but we have not yet determined the agreements to be legally enforceable. At December 31, 2015, 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 yet determined the agreements to be legally enforceable. 

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Intangible Assets, Net And Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Intangible Assets, Net And Goodwill

A summary of intangible assets, net and goodwill at December 31, 2016 and 2015 is as follows (in thousands):

	2016		2015
Indefinite lived intangibles:
Exchange and clearing organization membership interests and registrations	$	9,041	$	11,897
Amortizable intangibles:
Customer and other relationships, net of accumulated amortization of $198,674 and $191,761	378,136		456,222
Trademarks and tradename, net of accumulated amortization of $78,778 and $64,052	309,382		330,172
Supply contracts, net of accumulated amortization of $47,867 and $40,684	95,733		109,311
Other, net of accumulated amortization of $2,914 and $5,216	5,672		4,419
Total intangible assets, net	797,964		912,021
Goodwill:
National Beef	14,991		14,991
Jefferies	1,696,864		1,712,799
Other operations	3,859		8,551
Total goodwill	1,715,714		1,736,341
Total intangible assets, net and goodwill	$	2,513,678	$	2,648,362

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Inventory (Tables)

12 Months Ended

Dec. 31, 2016

Inventory, Net [Abstract]

Summary Of Inventory

A summary of inventory at December 31, 2016 and 2015 which is classified as Other assets is as follows (in thousands):

	2016		2015
Finished goods	$	243,488	$	211,426
Work in process	35,714		34,091
Raw materials, supplies and other	30,733		42,556
	$	309,935	$	288,073

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Property, Equipment And Leasehold Improvements, Net (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Summary Of Property, Equipment And Leasehold Improvements

A summary of property, equipment and leasehold improvements, net at December 31, 2016 and 2015 is as follows (in thousands):

	Depreciable Lives (in years)	2016			2015
Land, buildings and leasehold improvements	5-25	$	379,927		$	371,383
Beef processing machinery and equipment	2-15	330,453			315,238
Other machinery and equipment	3-15	30,716			113,412
Corporate aircraft	10	104,862			104,862
Furniture, fixtures and office equipment	3-10	323,276			311,845
Construction in progress	N/A	54,693			38,903
Other	3-10	3,441			4,909
		1,227,368			1,260,552
Accumulated depreciation and amortization		(518,126		)	(538,677		)
		$	709,242		$	721,875

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of Short-term Debt

Short-term borrowings December 31, 2016 and 2015 represent Jefferies 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):

	2016		2015
Bank loans (1)	$	372,301	$	262,000
Secured revolving loan facilities	57,086		48,659
Floating rate puttable notes	96,455		—
Total short-term borrowings	$	525,842	$	310,659

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of outstanding debt

The principal amount (net of unamortized discounts and premiums), stated interest rate and maturity date of outstanding debt at December 31, 2016 and 2015 are as follows (dollars in thousands):

	2016		2015
Parent Company Debt:
Senior Notes:
5.50% Senior Notes due October 18, 2023, $750,000 principal	$	741,264	$	740,239
6.625% Senior Notes due October 23, 2043, $250,000 principal	246,627		246,583
Total long-term debt – Parent Company	987,891		986,822
Subsidiary Debt (non-recourse to Parent Company):
Jefferies:
5.5% Senior Notes, due March 15, 2016, $350,000 principal	—		353,025
5.125% Senior Notes, due April 13, 2018, $800,000 principal	817,813		830,298
8.5% Senior Notes, due July 15, 2019, $700,000 principal	778,367		806,125
2.375% Euro Senior Notes, due May 20, 2020, $529,975 and $528,625 principal	528,250		526,436
6.875% Senior Notes, due April 15, 2021, $750,000 principal	823,797		838,765
2.25% Euro Medium Term Notes, due July 13, 2022, $4,240 and $4,229 principal	3,848		3,779
5.125% Senior Notes, due January 20, 2023, $600,000 principal	618,355		620,890
6.45% Senior Debentures, due June 8, 2027, $350,000 principal	377,806		379,711
3.875% Convertible Senior Debentures, due November 1, 2029, $345,000 principal	346,163		347,307
6.25% Senior Debentures, due January 15, 2036, $500,000 principal	512,396		512,730
6.50% Senior Notes, due January 20, 2043, $400,000 principal	421,333		421,656
Structured Notes (1) (2)	255,203		—
National Beef Term Loan	273,811		310,000
National Beef Revolving Credit Facility	—		120,080
54 Madison Term Loans	406,028		116,211
Foursight Capital Credit Facilities	97,138		109,501
Other	132,244		117,246
Total long-term debt – subsidiaries	6,392,552		6,413,760
Long-term debt	$	7,380,443	$	7,400,582

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Mezzanine Equity (Tables)

12 Months Ended

Dec. 31, 2016

Temporary Equity Disclosure [Abstract]

Schedule Of Redeemable Noncontrolling Interests

The following table reconciles National Beef’s redeemable noncontrolling interests activity during the years ended December 31, 2016 and 2015 (in thousands):

	2016			2015
As of January 1,	$	189,358		$	184,333
Income (loss) allocated to redeemable noncontrolling interests	68,811			(26,465		)
Contributions from redeemable noncontrolling interests	—			5,263
Distributions to redeemable noncontrolling interests	(53,701		)	—
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital	117,494			26,227
Balance, December 31,	$	321,962		$	189,358

Sensitivity Analysis Of Fair Value Of Redeemable Noncontrolling Interests Using Discount And Terminal Growth Rates

The table below is a sensitivity analysis which shows the fair value of the redeemable noncontrolling interests using the assumed discount and the terminal growth rates and fair values under different rate assumptions as of December 31, 2016 (dollars in millions):

		Discount Rates
Terminal Growth Rates		10.65%		10.90%		11.15%
1.75	%	$	326.5	$	317.8	$	309.6
2.00	%	$	331.0	$	322.0	$	313.4
2.25	%	$	335.7	$	326.3	$	317.5

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Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Activity of Restricted Stock

The following table details the activity in restricted stock during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

			Weighted- Average Grant Date Fair Value
Balance at January 1, 2014	5,242		$	26.94
Grants	864		$	27.03
Forfeited	(202	)	$	26.90
Fulfillment of service requirement	(2,521	)	$	26.89
Balance at December 31, 2014	3,383		$	27.00
Grants	602		$	18.63
Forfeited	(94	)	$	28.12
Fulfillment of service requirement	(1,887	)	$	26.87
Balance at December 31, 2015	2,004		$	24.56
Grants	356		$	18.23
Forfeited	(24	)	$	26.90
Fulfillment of service requirement	(974	)	$	25.65
Balance at December 31, 2016	1,362		$	22.09

Activity of Restricted Stock Units

The following table details the activity in RSUs during the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):

	Future Service Required		No Future Service Required		Future Service Required		No Future Service Required
Balance at January 1, 2014	4,793		8,316		$	26.90	$	26.86
Grants	—		97		$	—	$	20.89
Distributions of underlying shares	—		(366	)	$	—	$	26.85
Forfeited	(135	)	—		$	26.90	$	—
Fulfillment of service requirement	(420	)	420		$	26.90	$	26.90
Balance at December 31, 2014	4,238		8,467		$	26.90	$	26.79
Grants	—		121		$	—	$	18.95
Distributions of underlying shares	—		(229	)	$	—	$	22.34
Forfeited	(626	)	—		$	26.90	$	—
Fulfillment of service requirement	(224	)	224		$	26.90	$	26.90
Balance at December 31, 2015	3,388		8,583		$	26.90	$	26.68
Grants	—		128		$	—	$	14.21
Distributions of underlying shares	—		(1,683	)	$	—	$	26.59
Forfeited	—		—		$	—	$	—
Fulfillment of service requirement	(3,320	)	3,320		$	26.90	$	26.90
Balance at December 31, 2016	68		10,348		$	26.90	$	26.61

Activity of Stock Options

A summary of activity with respect to our stock options during the years ended December 31, 2016, 2015 and 2014 is as follows:

	Common Shares Subject to Option		Weighted- Average Exercise Prices		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at December 31, 2013	2,417,248		$	25.64
Granted	—		$	—
Exercised	(35,536	)	$	22.87		$	58,000
Cancelled	(741,678	)	$	27.39
Balance at December 31, 2014	1,640,034		$	24.91
Granted	—		$	—
Exercised	(2,030	)	$	21.66		$	6,000
Cancelled	(976,732	)	$	24.88
Balance at December 31, 2015	661,272		$	24.97
Granted	—		$	—
Exercised	—		$	—		$	—
Cancelled	(19,794	)	$	30.49
Balance at December 31, 2016	641,478		$	24.80	1.1 years	$	144,000
Exercisable at December 31, 2016	503,430		$	25.31	0.8 years	$	93,000

Senior Executive Compensation Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Activity of Restricted Stock Units

The following table details the activity in RSUs related to the senior executive compensation plan during the year ended December 31, 2016 (in thousands, except per share amounts):

	Target Number of Shares	Weighted- Average Grant Date Fair Value
Balance at December 31, 2015	—	$	—
Grants	3,434	$	9.68
Forfeited	—	$	—
Balance at December 31, 2016	3,434	$	9.68

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Summary Of Accumulated Other Comprehensive Income, Net Of Taxes

A summary of accumulated other comprehensive income, net of taxes at December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Net unrealized gains on available for sale securities	$	561,497		$	557,601		$	577,588
Net unrealized foreign exchange losses	(184,829		)	(63,248		)	(26,771		)
Net change in instrument specific credit risk	(6,494		)	—			—
Net minimum pension liability	(59,477		)	(55,560		)	(103,735		)
	$	310,697		$	438,793		$	447,082

Schedule Of Accumulated Other Comprehensive Income Reclassifications

For the years ended December 31, 2016 and 2015, significant amounts reclassified out of accumulated other comprehensive income to net income (loss) are as follows (in thousands):

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income						Affected Line Item in the Consolidated Statement of Operations
	2016			2015
Net unrealized gains (losses) on available for sale securities, net of income tax provision of $2 and $6,068	$	4		$	10,930		Net realized securities gains
Amortization of defined benefit pension plan actuarial gains (losses), net of income tax (benefit) of $(700) and $(17,159)	(1,534		)	(31,102		)	Compensation and benefits, which includes pension expense. See Note 20 for information on this component.
Total reclassifications for the period, net of tax	$	(1,530	)	$	(20,172	)

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Pension Plans And Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2016

U.S. Pension Plans [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Components Of Defined Benefit Pension Plans

A summary of activity with respect to both plans is as follows (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	207,025		$	352,126
Interest cost	8,464			12,958
Actuarial (gains) losses	(544		)	(35,799		)
Benefits paid	(9,540		)	(122,260		)
Projected benefit obligation, end of year	$	205,405		$	207,025
Change in plan assets:
Fair value of plan assets, beginning of year	$	117,719		$	240,010
Actual return on plan assets	2,947			(250		)
Employer contributions	19,100			1,000
Benefits paid	(9,540		)	(122,260		)
Administrative expenses	(2,712		)	(781		)
Fair value of plan assets, end of year	$	127,514		$	117,719
Funded status at end of year	$	(77,891	)	$	(89,306	)

Components Of Net Periodic Pension Costs And Amounts Recognized In Other Comprehensive Income

The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive income (loss) excluding taxes (in thousands):

	2016			2015			2014
Components of net periodic pension cost:
Interest cost	$	8,464		$	12,958		$	14,239
Expected return on plan assets	(7,589		)	(10,581		)	(10,115		)
Settlement charge	—			40,973			—
Actuarial losses	1,908			6,963			4,634
Net periodic pension cost	$	2,783		$	50,313		$	8,758
Amounts recognized in other comprehensive income (loss):
Net (gain) loss arising during the period	$	6,811		$	(24,186	)	$	52,027
Settlement charge	—			(40,973		)	—
Amortization of net loss	(1,908		)	(6,963		)	(4,634		)
Total recognized in other comprehensive income (loss)	$	4,903		$	(72,122	)	$	47,393
Net amount recognized in net periodic benefit cost and other
comprehensive income (loss)	$	7,686		$	(21,809	)	$	56,151

Schedule Of Assumptions For Pension Plan

We use a December 31 measurement date for the WilTel plan and a November 30 date for the Jefferies plan.  The assumptions used are as follows:

	2016		2015
WilTel Plan
Discount rate used to determine benefit obligation	3.85	%	4.00	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.00	%	3.76	%
Expected long-term return on plan assets	7.00	%	4.00	%
Jefferies Plan
Discount rate used to determine benefit obligation	3.90	%	4.10	%
Weighted-average assumptions used to determine
net pension cost:
Discount rate	4.10	%	4.30	%
Expected long-term return on plan assets	6.25	%	6.75	%

Schedule Of Expected Pension Benefit Payments

The following pension benefit payments are expected to be paid (in thousands):

2017	$	10,214
2018	9,841
2019	9,879
2020	9,828
2021	9,625
2022 – 2026	66,359

U.S. Pension Plans [Member] | WilTel [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Plan's Assets At Fair Value

WilTel Plan Assets.  At December 31, 2016 and 2015, the WilTel plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total		Level 1		Level 2
2016
Cash and cash equivalents	$	919	$	919	$	—
Growth Portfolio	51,852		—		51,852
Liability-Driven Investing Portfolio	24,751		—		24,751
Total	$	77,522	$	919	$	76,603
2015
Cash and cash equivalents	$	3,026	$	3,026	$	—
Fixed income securities:
U.S. government and agencies	5,988		5,988		—
Public utilities	8,978		—		8,978
All other corporates	52,696		—		52,696
Total	$	70,688	$	9,014	$	61,674

U.S. Pension Plans [Member] | Jefferies [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Plan's Assets At Fair Value

At December 31, 2016 and 2015, the Jefferies plan assets at fair value consisted of the following (in thousands):

			Fair Value Measurements Using
	Total (1)		Level 1		Level 2
2016
Cash and cash equivalents	$	1,135	$	1,135	$	—
Listed equity securities (2)	32,342		32,342		—
Fixed income securities:
Corporate debt securities	4,906		—		4,906
Foreign corporate debt securities	1,835		—		1,835
U.S. government securities	5,370		5,370		—
Agency mortgage-backed securities	3,330		—		3,330
Commercial mortgage-backed securities	591		—		591
Asset-backed securities	483		—		483
Total	$	49,992	$	38,847	$	11,145
2015
Cash and cash equivalents	$	487	$	487	$	—
Listed equity securities (2)	29,156		29,156		—
Fixed income securities:
Corporate debt securities	6,598		—		6,598
Foreign corporate debt securities	2,140		—		2,140
U.S. government securities	3,975		3,975		—
Agency mortgage-backed securities	3,504		—		3,504
Commercial mortgage-backed securities	425		—		425
Asset-backed securities	746		—		746
Total	$	47,031	$	33,618	$	13,413

(1) There are no plan assets classified within Level 3 of the fair value hierarchy.

(2) Listed equity securities are diversified across a spectrum of primarily U.S. large-cap companies.

German Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Assumptions For Pension Plan

The following are assumptions used to determine the actuarial present value of the projected benefit obligation and net periodic pension benefit cost for the years ended December 31, 2016 and 2015:

	2016		2015
Projected benefit obligation
Discount rate	1.70	%	2.20	%
Rate of compensation increase (1)	N/A		N/A
Net periodic pension benefit cost
Discount rate	2.20	%	2.10	%
Rate of compensation increase (1)	N/A		N/A

(1) There were no active participants in the plan at December 31, 2016 and 2015.

Schedule Of Expected Pension Benefit Payments

The following pension benefit payments are expected to be paid (in thousands):

2017	$	1,142
2018	1,147
2019	1,122
2020	1,169
2021	1,177
2022 – 2026	5,814

Changes in Projected Benefit Obligation

The following tables summarize the changes in the projected benefit obligation and the components of net periodic pension cost for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015
Change in projected benefit obligation:
Projected benefit obligation, beginning of year	$	23,545		$	28,434
Interest cost	529			523
Actuarial (gains) losses	1,157			(40		)
Benefits paid	(1,104		)	(1,069		)
Currency adjustment	39			(4,303		)
Projected benefit obligation, end of year	$	24,166		$	23,545

Components Of Pension Expense

	2016		2015		2014
Components of net periodic pension cost:
Service cost	$	—	$	—	$	40
Interest cost	529		523		801
Net amortization	326		325		244
Net periodic pension cost	$	855	$	848	$	1,085

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule Of Provision For Income Taxes

The provision for income taxes for continuing operations for each of the three years in the period ended December 31, 2016 was as follows (in thousands):

	2016			2015			2014
Current taxes:
U.S. Federal	$	(574	)	$	709		$	746
U.S. State and local	8,672			(25,308		)	17,232
Foreign	(4,620		)	3,504			12,375
Total current	3,478			(21,095		)	30,353
Deferred taxes:
U.S. Federal	108,241			134,590			97,190
U.S. State and local	8,335			4,552			30,707
Foreign	2,055			(8,100		)	7,721
Total deferred	118,631			131,042			135,618
Total income tax provision	$	122,109		$	109,947		$	165,971

Schedule of Income before Income Tax, U.S. and non-U.S.

The following table presents the U.S. and non-U.S. components of income from continuing operations before income taxes for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
U.S.	$	337,374		$	336,856	$	374,547
Non-U.S. (1)	(20,944		)	19,680		6,675
Income from continuing operations before income taxes	$	316,430		$	356,536	$	381,222

(1) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S.

Schedule Of Reconciliation Of Expected Statutory Federal Income Tax To Actual Income Tax Provision (Benefit)

For each of the three years in the period ended December 31, 2016, income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate of 35% to income from continuing operations before income taxes as a result of the following (dollars in thousands):

	2016					2015					2014
	Amount			Percent		Amount			Percent		Amount			Percent
Computed expected federal income tax	$	110,751		35.0	%	$	124,788		35.0	%	$	133,428		35.0	%
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of federal income tax benefit	1,045			0.3		(6,928		)	(1.9	)	31,160			8.2
International operations (including foreign rate differential)	(3,405		)	(1.1	)	(10,130		)	(2.8	)	(14,305		)	(3.8	)
Increase (decrease) in valuation allowance	2,825			0.9		(13,227		)	(3.7	)	(22,203		)	(5.8	)
Permanent differences	7,523			2.4		8,064			2.3		6,181			1.6
Tax exempt income	(4,640		)	(1.5	)	(6,789		)	(1.9	)	(6,812		)	(1.8	)
Income allocated to noncontrolling interest, not subject to tax	(22,512		)	(7.1	)	11,039			3.1		3,270			0.9
Excess stock detriment	24,907			7.9		—			—		—			—
Nondeductible settlements	—			—		—			—		24,500			6.4
Foreign taxes	268			0.1		(2,989		)	(1.0	)	2,542			0.7
Other	5,347			1.7		6,119			1.7		8,210			2.1
Actual income tax provision	$	122,109		38.6	%	$	109,947		30.8	%	$	165,971		43.5	%

Schedule Of Reconciliation Of Unrecognized Tax Benefits

The following table presents a reconciliation of gross unrecognized tax benefits for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015			2014
Balance at beginning of period	$	150,867		$	148,590		$	145,520
Increases based on tax positions related to the current period	5,045			3,475			5,630
Increases based on tax positions related to prior periods	3,697			22,030			4,340
Decreases based on tax positions related to prior periods	(9,414		)	(15,349		)	(3,940		)
Decreases related to settlements with taxing authorities	(1,347		)	(7,879		)	(2,960		)
Balance at end of period	$	148,848		$	150,867		$	148,590

Schedule Of Principal Components Of Deferred Taxes

The principal components of deferred taxes at December 31, 2016 and 2015 are as follows (in thousands):

	2016			2015
Deferred tax asset:
Net operating loss carryover	$	1,262,584		$	1,375,759
Compensation and benefits	309,100			284,761
Long-term debt	54,102			89,160
Other assets	165,777			162,393
Securities valuation reserves	12,345			32,141
Intangible assets, net and goodwill	311			6,855
Other liabilities	39,188			40,393
	1,843,407			1,991,462
Valuation allowance	(106,042		)	(97,177		)
	1,737,365			1,894,285
Deferred tax liability:
Unrealized gains on investments	(998		)	(5,335		)
Amortization of intangible assets	(107,437		)	(103,561		)
Property and equipment	(14,228		)	(4,151		)
Investment in FXCM	(117,594		)	(147,700		)
Other	(35,293		)	(58,170		)
	(275,550		)	(318,917		)
Net deferred tax asset	$	1,461,815		$	1,575,368

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Net Realized Securities Gains (Losses) (Tables)

12 Months Ended

Dec. 31, 2016

Gain (Loss) on Investments [Abstract]

Summary Of Net Securities Gains (Losses)

The following summarizes net realized securities gains (losses) for each of the three years in the period ended December 31, 2016 (in thousands):

	2016			2015		2014
Net realized gains (losses) on securities	$	(286	)	$	14,112	$	30,686
Other (1)	29,828			48,845		(292		)
	$	29,542		$	62,957	$	30,394

(1)     In 2015, primarily relates to a recovery of $35.0 million of an investment in a non-public security written down in prior years

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Other Results Of Operations Information (Tables)

12 Months Ended

Dec. 31, 2016

Nonoperating Income (Expense) [Abstract]

Schedule Of Other Income

Other income for each of the three years in the period ended December 31, 2016 consists of the following (in thousands):

	2016			2015			2014
Manufacturing revenues	$	412,826		$	391,920		$	379,274
Income (loss) from managed funds	(69,038		)	(37,237		)	12,251
Asset management fees	29,492			34,777			27,990
Dividend income	3,856			5,482			7,379
Income from associated companies classified as other revenues	17,184			75,717			90,242
Revenues of oil and gas exploration and development businesses	49,890			45,939			19,373
Gain on sale of equity interest	—			—			22,714
Other	43,976			32,630			11,242
	$	488,186		$	549,228		$	570,465

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Common Shares and Earnings (Loss) Per Common Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share Computation

Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted-average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings (loss) per share are as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Numerator for earnings (loss) per share:
Net income attributable to Leucadia National Corporation common shareholders	$	125,938		$	279,587		$	204,306
Allocation of earnings to participating securities (1)	(574		)	(4,711		)	(4,761		)
Net income attributable to Leucadia National Corporation common shareholders for basic earnings (loss) per share	125,364			274,876			199,545
Adjustment to allocation of earnings to participating securities related to diluted shares (1)	(19		)	(34		)	(75		)
Mandatorily redeemable convertible preferred share dividends	—			—			—
Interest on 3.75% Convertible Notes	—			—			739
Net income attributable to Leucadia National Corporation common shareholders for diluted earnings (loss) per share	$	125,345		$	274,842		$	200,209
Denominator for earnings (loss) per share:
Denominator for basic earnings (loss) per share – weighted-average shares	371,211			372,430			371,889
Stock options	—			1			29
Warrants	—			—			—
Senior executive compensation plan awards	307			—			—
Mandatorily redeemable convertible preferred shares	—			—			—
3.875% Convertible Senior Debentures	—			—			—
3.75% Convertible Notes	—			—			1,415
Denominator for diluted earnings (loss) per share	371,518			372,431			373,333

(1) Represents dividends declared during the period on participating securities plus an allocation of undistributed earnings to participating securities.  Net losses are not allocated to participating securities.  Participating securities represent restricted stock and RSUs for which requisite service has not yet been rendered and amounted to weighted-average shares of 1,986,800, 6,500,000 and 9,040,900for the years ended December 31, 2016, 2015 and 2014, respectively.  Dividends declared on participating securities during the years ended December 31, 2016, 2015 and 2014 were $0.4 million, $1.5 million and $2.2 million, respectively.  Undistributed earnings are allocated to participating securities based upon their right to share in earnings if all earnings for the period had been distributed.

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Commitments, Contingencies and Guarantees (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Commitments for Noncancelable Operating Leases

Future minimum annual rentals (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges) under these leases at December 31, 2016 are as follows (in thousands):

2017	$	91,057
2018	87,405
2019	76,194
2020	62,186
2021	57,704
Thereafter	572,845
	947,391
Less:  sublease income	(19,204		)
	$	928,187

Commitments and Contingencies

The following table summarizes commitments associated with certain business activities (in millions):

	Expected Maturity Date
	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Maximum Payout
Equity commitments (1)	$	192.4	$	22.1	$	13.0	$	—	$	243.3	$	470.8
Loan commitments (1)	315.3		16.9		71.6		44.0		—		447.8
Underwriting commitments	349.4		—		—		—		—		349.4
Forward starting reverse repos (2)	4,668.7		—		—		—		—		4,668.7
Forward starting repos (2)	2,539.2		—		—		—		—		2,539.2
Other unfunded commitments (1)	—		37.0		4.8		33.8		13.2		88.8
	$	8,065.0	$	76.0	$	89.4	$	77.8	$	256.5	$	8,564.7

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

(2) At December 31, 2016, $4,592.9 million within forward starting reverse repos and $2,464.6 million within repos settled within three business days.

Guarantees

The following table summarizes the notional amounts associated with our derivative contracts meeting the definition of a guarantee under GAAP as of December 31, 2016 (in millions):

	Expected Maturity Date
Guarantee Type	2017		2018		2019 and 2020		2021 and 2022		2023 and Later		Notional/ Maximum Payout
Derivative contracts – non-credit related	$	18,838.6	$	820.4	$	—	$	—	$	421.8	$	20,080.8
Written derivative contracts – credit related	—		52.2		24.6		360.8		—		437.6
Total derivative contracts	$	18,838.6	$	872.6	$	24.6	$	360.8	$	421.8	$	20,518.4

External Credit Ratings of Underlying or Referenced Assets for Credit Related Derivatives Contracts

The following table summarizes the external credit ratings of the underlying or referenced assets for our credit related derivatives contracts as of December 31, 2016 (in millions):

	External Credit Rating
	AAA/ Aaa		AA/ Aa		A		BBB/Baa		Below Investment Grade		Unrated		Notional/ Maximum Payout
Credit related derivative contracts:
Index credit default swaps	$	54.0	$	—	$	—	$	—	$	—	$	—	$	54.0
Single name credit default swaps	—		—		79.5		42.9		261.2		—		383.6

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Net Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2016

Brokers and Dealers [Abstract]

Net Capital, Adjusted Net Capital And Excess Net Capital

Jefferies LLC and Jefferies Execution’s net capital and excess net capital are as follows (in thousands):

	Net Capital		Excess Net Capital
Jefferies LLC	$	1,467,729	$	1,398,748
Jefferies Execution	8,260		8,010

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Other Fair Value Information (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Methods And Assumptions Used To Estimate The Fair Values

The carrying amounts and estimated fair values of our principal financial instruments that are not recognized at fair value on a recurring basis are as follows (in thousands):

	December 31, 2016				December 31, 2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Other Assets:
Notes and loans receivable (1)	$	962,938	$	958,377	$	488,690	$	490,208
Financial Liabilities:
Short-term borrowings (2)	525,842		525,842		310,659		310,659
Long-term debt (2)	7,131,587		7,221,459		7,400,582		7,299,405

(1) Notes and loans receivable:  The fair values are primarily measured using Level 2 and 3 inputs principally based on discounted future cash flows using market interest rates for similar instruments.

(2) Short-term borrowings and long-term debt:  The fair values of short-term borrowings are estimated to be the carrying amount.  The fair values of non-variable rate debt are estimated using quoted prices and estimated rates that would be available for debt with similar terms.  The fair value of variable rate debt is estimated to be the carrying amount.

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Discontinued Operations And Assets Held For Sale (Tables)

12 Months Ended

Dec. 31, 2016

Conwed [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations Disclosure

Assets held for sale at December 31, 2016, which primarily relate to Conwed, are as follows (in thousands):

Cash	$	5,206
Receivables	15,297
Property, equipment and leasehold improvements, net	18,664
Intangible assets, net and goodwill	56,854
Inventory	19,069
Other assets	12,993
	$	128,083

Premier [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations Disclosure

A summary of the results of discontinued operations for the clean energy project and Premier is as follows for the year ended December 31, 2014; discontinued operations for the years ended December 31, 2016 and 2015 were not significant (in thousands):

Revenues and other income:
Gaming entertainment	$	67,739
Investment and other income	4,700
	72,439
Expenses:
Direct operating expenses - Gaming entertainment	48,877
Compensation and benefits	4,503
Depreciation and amortization	5,208
Selling, general and other expenses	41,378
	99,966
Loss from discontinued operations before income taxes	(27,527		)
Income tax (benefit)	(9,634		)
Loss from discontinued operations after income taxes	$	(17,893	)

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule Of Segment Reporting Information, By Segment

Certain information concerning our segments for the years ended December 31, 2016, 2015 and 2014 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. 

	2016			2015			2014
				(In thousands)
Net Revenues:
Reportable Segments:
Jefferies	$	2,421,055		$	2,476,133		$	2,986,325
National Beef	7,027,243			7,402,419			7,832,424
Corporate and other	88,590			78,122			60,720
Total net revenues related to reportable segments	9,536,888			9,956,674			10,879,469
All other (1)	525,729			950,784			607,016
Intercompany eliminations (2)	—			(21,000		)	—
Total consolidated net revenues	$	10,062,617		$	10,886,458		$	11,486,485
Pre-tax income (loss) from continuing operations:
Reportable Segments:
Jefferies	$	43,508		$	119,165		$	358,396
National Beef	329,022			(123,915		)	(40,303		)
Corporate and other	18,386			(44,295		)	(142,728		)
Pre-tax income (loss) from continuing operations related to reportable segments	390,916			(49,045		)	175,365
All other (1)	(15,605		)	492,762			305,752
Parent Company interest	(58,881		)	(87,181		)	(99,895		)
Total consolidated pre-tax income from continuing operations	$	316,430		$	356,536		$	381,222
Depreciation and amortization expenses:
Reportable Segments:
Jefferies	$	60,206		$	92,165		$	78,566
National Beef	94,482			89,317			85,305
Corporate and other	3,619			3,744			5,627
Total depreciation and amortization expenses related to reportable segments	158,307			185,226			169,498
All other	53,286			38,907			16,495
Total consolidated depreciation and amortization expenses	$	211,593		$	224,133		$	185,993
Identifiable assets employed:
Reportable Segments:
Jefferies (3)	$	36,992,096		$	38,607,786		$	44,562,155
National Beef	1,498,317			1,514,249			1,716,069
Corporate and other	1,935,118			1,777,199			3,237,476
Identifiable assets employed related to reportable segments	40,425,531			41,899,234			49,515,700
All other	4,728,457			4,581,673			3,152,029
Intercompany eliminations	(82,681		)	(149,723		)	(53,405		)
Total consolidated assets	$	45,071,307		$	46,331,184		$	52,614,324

(1) All other revenue and pre-tax income from continuing operations include $(54.6) million and $491.3 million of realized and unrealized gains (losses) relating to our investment in FXCM for the years ended December 31, 2016 and 2015, respectively.

(2) Revenue intercompany elimination for 2015 relates to an investment banking and advisory fee paid to Jefferies in connection with our entering into the agreement with FXCM.

(3) At December 31, 2016, 2015 and 2014, includes $337.6 million, $320.2 million and $399.6 million, respectively, of Jefferies deferred tax asset, net.

Schedule Of Net Revenues By Geographic Region

Net revenues by geographic region for Jefferies for the years ended December 31, 2016, 2015 and 2014 were as follows (in thousands):

	2016		2015		2014
Americas (1)	$	1,876,796	$	1,887,899	$	2,257,870
Europe (2)	458,046		510,044		634,358
Asia	86,213		78,190		94,097
	$	2,421,055	$	2,476,133	$	2,986,325

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

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

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Exit Costs (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

During the years ended December 31, 2016 and 2015, Jefferies recorded restructuring and impairment costs as follows (in thousands):

	2016		2015
Severance costs	$	279	$	30,327
Accelerated amortization of restricted stock and restricted cash awards	41		7,922
Accelerated amortization of capitalized software	—		19,745
Contract termination costs	1,234		11,247
Selling, general and other expenses	300		3,853
Total	$	1,854	$	73,094

Schedule of Restructuring Reserve

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	30,327			2,774			11,247			44,348			$	7,922	$	19,745	$	1,079	$	73,094
Payments	(25,522		)	(2,774		)	(11,247		)	(39,543		)
Liability at December 31, 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 December 31, 2016	$	—		$	—		$	—		$	—

XML

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Selected Quarterly Financial Information [Abstract]

Schedule Of Selected Quarterly Financial Data

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(In thousands, except per share amounts)
2016
Net revenues	$	2,015,106		$	2,625,358		$	2,676,375		$	2,745,778
Income (loss) from continuing operations	$	(218,602	)	$	70,612		$	176,206		$	166,105
Income from discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	—		$	—
Net (income) loss attributable to the noncontrolling interest	$	1,052		$	760		$	1,870		$	(2,256	)
Net income attributable to the redeemable noncontrolling interests	$	(4,314	)	$	(13,068	)	$	(22,702	)	$	(25,662	)
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	(222,880	)	$	57,289		$	154,358		$	137,171
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			370,404			369,299
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	(0.60	)	$	0.15		$	0.41		$	0.37
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			—
Net income (loss)	$	(0.60	)	$	0.15		$	0.41		$	0.37
Number of shares used in calculation	372,367			372,556			374,567			374,693
2015
Net revenues	$	3,184,683		$	2,839,463		$	2,366,096		$	2,496,216
Income (loss) from continuing operations	$	374,429		$	15,034		$	(181,912	)	$	39,038
Income from discontinued operations, net of taxes	$	—		$	—		$	429		$	—
Gain on disposal of discontinued operations, net of taxes	$	—		$	—		$	1,300		$	3,793
Net loss attributable to the noncontrolling interest	$	234		$	356		$	1,238		$	3,168
Net loss attributable to the redeemable noncontrolling interests	$	7,112		$	2,031		$	6,788		$	10,612
Preferred stock dividends	$	(1,016	)	$	(1,015	)	$	(1,016	)	$	(1,016	)
Net income (loss) attributable to Leucadia National Corporation common shareholders	$	380,759		$	16,406		$	(173,173	)	$	55,595
Basic earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	1.00		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	1.00		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	373,541			373,654			372,547			369,840
Diluted earnings (loss) per common share attributable to
Leucadia National Corporation common shareholders:
Income (loss) from continuing operations	$	0.99		$	0.04		$	(0.47	)	$	0.14
Income from discontinued operations	—			—			—			—
Gain on disposal of discontinued operations	—			—			—			0.01
Net income (loss)	$	0.99		$	0.04		$	(0.47	)	$	0.15
Number of shares used in calculation	377,713			373,662			372,547			369,840

XML

Nature Of Operations (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Sep. 01, 2016 director	Jan. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) facility	Dec. 31, 2015	Nov. 08, 2015 $ / shares	Jan. 31, 2015 USD ($)	Dec. 31, 2009
Jefferies Finance [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				50.00%
Jefferies LoanCore [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				48.50%
54 Madison [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				48.10%
FXCM [Member]
Schedule of Equity Method Investments [Line Items]
Senior secured term loan receivable | $				$ 154.5			$ 300.0
Berkadia [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				50.00%				50.00%
HomeFed Corporation [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				65.00%
Foursight Capital [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary				100.00%
Chrome Capital [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary				85.00%
National Beef [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary				78.90%
National Beef [Member] | Beef Processing Facility [Member]
Schedule of Equity Method Investments [Line Items]
Domestic facilities | facility				2
National Beef [Member] | Consumer-Ready Facility [Member]
Schedule of Equity Method Investments [Line Items]
Domestic facilities | facility				3
National Beef [Member] | Tanning Facility [Member]
Schedule of Equity Method Investments [Line Items]
Domestic facilities | facility				1
HRG [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of outstanding common stock owned				23.00%	23.00%
Spectrum Brands [Member] | Product Segment [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of outstanding common stock owned				58.00%
Fidelity & Guaranty Life [Member] | Anbang [Member]
Schedule of Equity Method Investments [Line Items]
Acquisition price, share price (USD per share) | $ / shares						$ 26.80
Fidelity & Guaranty Life [Member] | Insurance Segment [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of outstanding common stock owned				80.00%
Vitesse Energy, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary				96.00%
Juneau Energy, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary				98.00%
Garcadia [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				75.00%
Number of automobile dealerships | facility				28
Linkem [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				42.00%
Percentage of ownership upon conversion of preferred shares				57.00%
Golden Queen Mining Company, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned				35.00%
FXCM Term Loan Receivable [Member]
Schedule of Equity Method Investments [Line Items]
Debt instrument, extension term	1 year
Investment in FXCM [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership owned	49.90%			49.90%
Maximum percentage of all distributions	65.00%
Number of board of directors | director	6
Number of directors appointed by Company | director	3
Number of directors appointed by co-investee | director	3
Conwed [Member] | Disposed of by Sale [Member] | Subsequent Event [Member]
Schedule of Equity Method Investments [Line Items]
Percentage interest owned in subsidiary		100.00%
Cash received from sale of subsidiary | $		$ 295.0
Potential earn-out payment to be received from sale of subsidiary, period		5 years
Pre-tax gain from sale of subsidiary | $			$ 180.0
Maximum [Member] | Conwed [Member] | Disposed of by Sale [Member] | Subsequent Event [Member]
Schedule of Equity Method Investments [Line Items]
Potential earn-out payment to be received from sale of subsidiary | $		$ 40.0

XML

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Long Lived Assets Held-for-sale [Line Items]
Receivables from brokers, dealers and clearing organizations		$ 2,062,900	$ 1,616,300
Receivables from customers of securities operations		843,100	1,191,300
Provision for doubtful accounts		24,580	7,353	$ 59,695
Payables to brokers, dealers and clearing organizations		3,290,400	2,757,200
Payables to customers of securities operations		2,297,300	2,780,500
Selling, General And Other Expenses [Member]
Long Lived Assets Held-for-sale [Line Items]
Asset impairment charges			27,700
Jefferies [Member]
Long Lived Assets Held-for-sale [Line Items]
Provision for doubtful accounts	$ 52,300
National Beef [Member]
Long Lived Assets Held-for-sale [Line Items]
Additional costs related to closing the facility				6,900
National Beef [Member] | Selling, General And Other Expenses [Member]
Long Lived Assets Held-for-sale [Line Items]
Asset impairment charges			4,700
National Beef [Member] | Compensation And Benefits [Member]
Long Lived Assets Held-for-sale [Line Items]
Additional costs related to closing the facility				$ 4,600
Juneau Energy, LLC [Member]
Long Lived Assets Held-for-sale [Line Items]
Asset impairment charges		$ 56,300	$ 20,300

XML

Accounting Developments Accounting Developments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest expense	$ 108,703	$ 115,804	$ 120,935
Selling, general and other expenses	$ 807,312	750,435	795,878
Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest expense		4,400	3,800
Selling, general and other expenses		(4,400)	$ (3,800)
Accounting Standards Update 2015-03 [Member] | Other Secured Financing [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		1,600
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		7,000
Accounting Standards Update 2015-03 [Member] | Other Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ (8,600)

XML

Fair Value Disclosures (Schedule Of Assets And Liabilities Measured On Recurring Basis At Fair Value) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value based on NAV	$ 24,300	$ 36,700
Derivatives	371,078	262,799
Counterparty/cash-collateral netting, Assets	(4,255,998)	(4,165,446)
Total trading assets, excluding investments at fair value based on NAV	14,960,928	18,256,356
Total available for sale securities	301,049	207,355
Derivatives	650,809	218,243
Counterparty/cash-collateral netting, Liabilities	(4,229,213)	(4,257,998)
Total trading liabilities	8,388,619	6,840,430
Other secured financings	41,768	68,345
Long-term debt - structured notes	248,856
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	857,337	751,084
Trading Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	1,610,667	1,464,604
Corporate debt securities	1,718,947	1,556,941
U.S. government and federal agency securities	976,497	1,488,121
Sovereign obligations	2,629,344	1,342,996
Loans	802,355	769,408
Derivatives	650,809	218,243
Counterparty/cash-collateral netting, Liabilities	(4,229,213)	(4,257,998)
Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage-backed securities		117
Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	2,637,555	2,977,881
Corporate debt securities	2,700,025	2,893,041
CDOs and CLOs	108,660	174,236
U.S. government and federal agency securities	2,446,123	2,645,651
Municipal securities	735,726	487,141
Sovereign obligations	2,423,048	2,659,441
Loans and other receivables	1,639,105	1,312,333
Derivatives	371,078	262,799
Counterparty/cash-collateral netting, Assets	(4,255,998)	(4,165,446)
Investments at fair value	314,359	226,018
Investment in FXCM, senior secured term loan receivable	164,500
Investment in FXCM, senior secured term loan receivable and rights to future distributions		625,689
Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	79,425	73,579
Corporate debt securities	179	4,744
U.S. government and federal agency securities	174,933	63,945
Residential Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	999,266	2,801,333
Residential Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	19,133	23,240
Commercial Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	316,985	1,029,239
Commercial Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	8,337	2,374
Other Asset Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	104,498	161,554
Other Asset Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	19,042	39,473
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total trading assets, excluding investments at fair value based on NAV	6,348,755	6,611,880
Total available for sale securities	254,358	137,524
Total trading liabilities	3,948,201	3,754,147
Other secured financings	0	0
Long-term debt - structured notes	0
Level 1 [Member] | Trading Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	1,593,548	1,428,048
Corporate debt securities	0	0
U.S. government and federal agency securities	976,497	1,488,121
Sovereign obligations	1,375,590	837,614
Loans	0	0
Derivatives	2,566	364
Level 1 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage-backed securities		0
Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	99,900
Level 1 [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	2,522,977	2,803,243
Corporate debt securities	0	0
CDOs and CLOs	0	0
U.S. government and federal agency securities	2,389,397	2,555,018
Municipal securities	0	0
Sovereign obligations	1,432,556	1,251,366
Loans and other receivables	0	0
Derivatives	3,825	2,253
Investments at fair value	0	0
Investment in FXCM, senior secured term loan receivable	0
Investment in FXCM, senior secured term loan receivable and rights to future distributions		0
Level 1 [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	79,425	73,579
Corporate debt securities	0	0
U.S. government and federal agency securities	174,933	63,945
Level 1 [Member] | Residential Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Residential Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Other Asset Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 1 [Member] | Other Asset Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total trading assets, excluding investments at fair value based on NAV	12,072,393	14,495,857
Total available for sale securities	46,691	69,831
Total trading liabilities	8,658,547	7,314,231
Other secured financings	41,350	67,801
Long-term debt - structured notes	248,856
Level 2 [Member] | Trading Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	16,806	36,518
Corporate debt securities	1,718,424	1,556,941
U.S. government and federal agency securities	0	0
Sovereign obligations	1,253,754	505,382
Loans	801,977	758,939
Derivatives	4,867,586	4,456,334
Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage-backed securities		117
Level 2 [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	92,839	133,732
Corporate debt securities	2,675,020	2,867,165
CDOs and CLOs	54,306	89,144
U.S. government and federal agency securities	56,726	90,633
Municipal securities	708,469	487,141
Sovereign obligations	990,492	1,407,955
Loans and other receivables	1,557,233	1,123,044
Derivatives	4,616,822	4,406,207
Investments at fair value	0	26,224
Investment in FXCM, senior secured term loan receivable	0
Investment in FXCM, senior secured term loan receivable and rights to future distributions		0
Level 2 [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	0	0
Corporate debt securities	179	4,744
U.S. government and federal agency securities	0	0
Level 2 [Member] | Residential Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	960,494	2,731,070
Level 2 [Member] | Residential Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	19,133	23,240
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	296,405	1,014,913
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	8,337	2,374
Level 2 [Member] | Other Asset Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	63,587	118,629
Level 2 [Member] | Other Asset Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	19,042	39,473
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total trading assets, excluding investments at fair value based on NAV	795,778	1,314,065
Total available for sale securities	0	0
Total trading liabilities	11,084	30,050
Other secured financings	418	544
Long-term debt - structured notes	0
Level 3 [Member] | Trading Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	313	38
Corporate debt securities	523	0
U.S. government and federal agency securities	0	0
Sovereign obligations	0	0
Loans	378	10,469
Derivatives	9,870	19,543
Level 3 [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Residential mortgage-backed securities		0
Level 3 [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	21,739	40,906
Corporate debt securities	25,005	25,876
CDOs and CLOs	54,354	85,092
U.S. government and federal agency securities	0	0
Municipal securities	27,257	0
Sovereign obligations	0	120
Loans and other receivables	81,872	189,289
Derivatives	6,429	19,785
Investments at fair value	314,359	199,794
Investment in FXCM, senior secured term loan receivable	164,500
Investment in FXCM, senior secured term loan receivable and rights to future distributions		625,689
Level 3 [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate equity securities	0	0
Corporate debt securities	0	0
U.S. government and federal agency securities	0	0
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	38,772	70,263
Level 3 [Member] | Residential Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	20,580	14,326
Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	0	0
Level 3 [Member] | Other Asset Backed Securities [Member] | Trading Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	40,911	42,925
Level 3 [Member] | Other Asset Backed Securities [Member] | Available For Sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage- and asset-backed securities, assets	$ 0	$ 0

XML

Fair Value Disclosures (Investment in FXCM Narrative) (Details)		1 Months Ended	3 Months Ended				12 Months Ended
	Sep. 01, 2016 USD ($) director	Feb. 24, 2017	Dec. 31, 2016 USD ($)	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Feb. 01, 2017 USD ($)	Jan. 31, 2015 USD ($)	Dec. 31, 2013 USD ($)
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Unrealized and realized gains and interest income							$ 603,822,000	$ 642,824,000	$ 662,213,000
Equity method investments			$ 2,125,098,000				2,125,098,000	1,757,369,000	$ 1,712,568,000			$ 1,258,341,000
FXCM [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Senior secured term loan receivable			$ 154,500,000				154,500,000				$ 300,000,000
Loan receivable interest rate percentage											10.00%
Increase in Interest rate per annum each quarter											1.50%
Percentage of distributions from sale of assets or certain other events until loan repayment											100.00%
Percentage of distributions from sale of assets or certain other events until next milestone amount											50.00%
Distributions milestone after loan repayment											$ 350,000,000
Percentage of distributions from sale of assets or certain other events until next milestone as a percentage of balance outstanding											90.00%
Balance outstanding used to calculate percentage of distributions from sale of assets or certain other events											$ 500,000,000
Percentage of distributions from sale of assets or certain other events thereafter											60.00%
Principal and interest payments received							72,100,000
Loan receivable interest rate during period			20.50%	19.00%	17.50%	16.00%
Unrealized and realized gains and interest income							(54,600,000)	491,300,000
Equity method investments			$ 336,258,000				336,258,000	$ 0
Carrying value of Senior Secured Term Loan receivable and rights to future distributions			$ 500,800,000				$ 500,800,000
FXCM [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Loan receivable interest rate percentage											20.50%
Balance outstanding used to calculate percentage of distributions from sale of assets or certain other events											$ 680,000,000
FXCM [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance outstanding used to calculate percentage of distributions from sale of assets or certain other events											$ 500,000,000
FXCM Inc. [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Percentage interest owned in subsidiary			68.00%				68.00%
FXCM Holdings, LLC [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Percentage interest owned in subsidiary			50.10%				50.10%
FXCM Term Loan Receivable [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Debt instrument, extension term	1 year
Investment in FXCM [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Percentage of distributions from sale of assets or certain other events until loan repayment	100.00%
Percentage of distributions from sale of assets or certain other events until next milestone amount	45.00%
Distributions milestone after loan repayment	$ 350,000,000
Percentage of distributions from sale of assets or certain other events thereafter	51.60%
Percentage of ownership owned	49.90%		49.90%				49.90%
Maximum percentage of all distributions	65.00%
Number of board of directors | director	6
Number of directors appointed by Company | director	3
Number of directors appointed by co-investee | director	3
Percentage of distributions from sale of assets or certain other events until milestone two	79.20%
Distributions milestone two after loan repayment	$ 500,000,000
Subsequent Event [Member] | National Futures Association [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Settlement fine amount										$ 0
Subsequent Event [Member] | Commodity Futures Trading Commission [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Settlement fine amount										$ 7,000,000
Sales [Member] | U.S. | Geographic Concentration Risk [Member] | Subsequent Event [Member] | FXCM [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Percentage of revenue from subsidiary		20.00%
Trading Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Investment in FXCM, senior secured term loan receivable			$ 164,500,000				$ 164,500,000

XML

Fair Value Disclosures (Investments Measured At Fair Value Based On Net Asset Value) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	$ 539,627	$ 640,455
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	363,256	430,207
Unfunded Commitments	0	0
Fixed Income and High Yield Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	772	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	230	287
Unfunded Commitments	0	94
Equity Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	42,179	42,111
Unfunded Commitments	20,295	20,791
Multi-Strategy Fund [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value	133,190	165,821
Unfunded Commitments	$ 0	0
Convertible Bond Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Fair Value		326
Unfunded Commitments		$ 0

XML

Fair Value Disclosures (Investments Measured At Fair Value Based On Net Asset Value - Footnote) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Investments in managed funds	$ 515,318	$ 603,720
Equity Long/Short Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Amount redeemable	$ 363,300	$ 54,700
Equity Long/Short Hedge Funds [Member] | Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investments prior written notice period		15 days
Equity Long/Short Hedge Funds [Member] | Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investments prior written notice period		90 days
Fixed Income and High Yield Hedge Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of funds being liquidated		8.00%
Funds Of Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of investments with no redemption provisions	100.00%	95.00%
Equity Funds [Member] | Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Estimated period for the liquidation of the underlying assets	1 year
Equity Funds [Member] | Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Estimated period for the liquidation of the underlying assets	7 years
Multi-asset Funds [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Percentage of Investments Redeemable	12.00%	32.00%
Multi-asset Funds [Member] | Minimum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investments prior written notice period	30 days
Multi-asset Funds [Member] | Maximum [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notice period redemption of investments prior written notice period	90 days

XML

Fair Value Disclosures (Summary Of Changes In Fair Value Of Financial Assets And Liabilities Classified As Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains (losses) (realized and unrealized)	$ (115,300)	$ 455,500	$ (24,800)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains (losses) (realized and unrealized)	1,900	7,600	(14,900)
Corporate Equity Securities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	38	38	38
Total gains (losses) (realized and unrealized)	0	0	0
Purchases	0	0	0
Sales	313	0	0
Settlements	(38)	0	0
Issuances	0	0
Net transfers into/ (out of) Level 3	0	0	0
Ending Balance	313	38	38
Change in unrealized gains/(losses) relating to instruments still held	0	0	0
Corporate Debt Securities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	223	0
Total gains (losses) (realized and unrealized)	(27)	(110)	(149)
Purchases	0	(6,804)	(565)
Sales	550	6,691	960
Settlements	0	0	0
Issuances	0	0
Net transfers into/ (out of) Level 3	0	0	(23)
Ending Balance	523	0	223
Change in unrealized gains/(losses) relating to instruments still held	0	0	(8)
Net Derivative [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	(242)	(4,638)	6,905
Total gains (losses) (realized and unrealized)	(1,760)	(7,310)	15,055
Purchases	0	(6,705)	(24,682)
Sales	11,101	13,522	1,094
Settlements	31	37	322
Issuances	2,067	2,437
Net transfers into/ (out of) Level 3	(7,756)	2,415	(3,332)
Ending Balance	3,441	(242)	(4,638)
Change in unrealized gains/(losses) relating to instruments still held	(6,458)	4,754	(15,615)
Loans [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	10,469	14,450	22,462
Total gains (losses) (realized and unrealized)	0	(163)	0
Purchases	0	(2,059)	(18,332)
Sales	378	229	11,338
Settlements	0	0	0
Issuances	0	0
Net transfers into/ (out of) Level 3	(10,469)	(1,988)	(1,018)
Ending Balance	378	10,469	14,450
Change in unrealized gains/(losses) relating to instruments still held	0	104	0
Other Secured Financings [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	544	30,825	8,711
Total gains (losses) (realized and unrealized)	(126)	0	0
Purchases	0	0	0
Sales	0	0	0
Settlements	0	(15,704)	(17,525)
Issuances	0	36,995	39,639
Net transfers into/ (out of) Level 3	0	(51,572)	0
Ending Balance	418	544	30,825
Change in unrealized gains/(losses) relating to instruments still held	(126)	0	0
Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	40,906	20,964	9,884
Total gains (losses) (realized and unrealized)	(8,463)	11,154	957
Purchases	3,365	21,385	18,138
Sales	(49)	(6,391)	(12,826)
Settlements	(671)	0	0
Net transfers into (out of) Level 3	(13,349)	(6,206)	4,811
Ending Balance	21,739	40,906	20,964
Change in unrealized gains/(losses) relating to instruments still held	291	11,424	2,324
Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	25,876	22,766	25,666
Total gains (losses) (realized and unrealized)	(16,230)	(11,013)	6,629
Purchases	27,242	21,534	38,316
Sales	(29,347)	(14,636)	(40,328)
Settlements	(7,223)	0	0
Net transfers into (out of) Level 3	24,687	7,225	(7,517)
Ending Balance	25,005	25,876	22,766
Change in unrealized gains/(losses) relating to instruments still held	(18,799)	(9,443)	8,982
CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	85,092	124,650	37,216
Total gains (losses) (realized and unrealized)	(14,918)	(66,332)	(6,386)
Purchases	52,316	104,998	204,337
Sales	(69,394)	(107,381)	(181,757)
Settlements	(2,750)	(5,754)	(1,297)
Net transfers into (out of) Level 3	4,008	34,911	72,537
Ending Balance	54,354	85,092	124,650
Change in unrealized gains/(losses) relating to instruments still held	(7,628)	(48,514)	(1,141)
Municipal securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0	0
Total gains (losses) (realized and unrealized)	(1,462)	10
Purchases	0	0
Sales	0	0
Settlements	0	(21,551)
Net transfers into (out of) Level 3	28,719	21,541
Ending Balance	27,257	0	0
Change in unrealized gains/(losses) relating to instruments still held	(1,462)	0
Sovereign securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	120	0
Total gains (losses) (realized and unrealized)	5	47
Purchases	0	1,032
Sales	(125)	(1,031)
Settlements	0	0
Net transfers into (out of) Level 3	0	72
Ending Balance	0	120	0
Change in unrealized gains/(losses) relating to instruments still held	0	39
U.S. Government And Federal Agency Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		0	0
Total gains (losses) (realized and unrealized)			13
Purchases			2,505
Sales			(2,518)
Settlements			0
Net transfers into (out of) Level 3			0
Ending Balance			0
Change in unrealized gains/(losses) relating to instruments still held			0
Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	70,263	82,557	105,492
Total gains (losses) (realized and unrealized)	(9,612)	(12,951)	(9,870)
Purchases	623	18,961	42,632
Sales	(12,249)	(31,762)	(61,689)
Settlements	(931)	(597)	(1,847)
Net transfers into (out of) Level 3	(9,322)	14,055	7,839
Ending Balance	38,772	70,263	82,557
Change in unrealized gains/(losses) relating to instruments still held	(1,095)	(4,498)	(4,679)
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	14,326	26,655	17,568
Total gains (losses) (realized and unrealized)	(7,550)	(3,813)	(4,237)
Purchases	3,132	3,480	49,159
Sales	(2,024)	(10,146)	(51,360)
Settlements	(2,229)	(6,861)	(782)
Net transfers into (out of) Level 3	14,925	5,011	16,307
Ending Balance	20,580	14,326	26,655
Change in unrealized gains/(losses) relating to instruments still held	(7,243)	(3,205)	(2,384)
Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	42,925	2,294	12,611
Total gains (losses) (realized and unrealized)	(14,381)	(990)	1,784
Purchases	133,986	42,922	4,987
Sales	(102,952)	(1,299)	(18,002)
Settlements	(8,769)	(2)	0
Net transfers into (out of) Level 3	(9,898)	0	914
Ending Balance	40,911	42,925	2,294
Change in unrealized gains/(losses) relating to instruments still held	(18,056)	(254)	1,484
Loans and Other Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	189,289	97,258	145,890
Total gains (losses) (realized and unrealized)	(42,566)	(14,755)	(31,311)
Purchases	75,264	792,345	130,169
Sales	(69,262)	(576,536)	(92,140)
Settlements	(46,851)	(124,365)	(60,390)
Net transfers into (out of) Level 3	(24,002)	15,342	5,040
Ending Balance	81,872	189,289	97,258
Change in unrealized gains/(losses) relating to instruments still held	(52,003)	(16,802)	(26,864)
Investments at Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	199,794	77,047	66,931
Total gains (losses) (realized and unrealized)	54,538	62,804	17,642
Purchases	29,728	5,510	32,493
Sales	(542)	(425)	(23,324)
Settlements	(1,107)	(4,093)	(1,243)
Net transfers into (out of) Level 3	31,948	58,951	(15,452)
Ending Balance	314,359	199,794	77,047
Change in unrealized gains/(losses) relating to instruments still held	54,608	(1,964)	1,985
Investment in FXCM, Senior Secured Term Loan and Rights to Future Distributions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	625,689	0
Total gains (losses) (realized and unrealized)	(54,634)	491,341
Purchases	0	279,000
Sales	0	0
Settlements	(406,555)	(144,652)
Net transfers into (out of) Level 3	0	0
Ending Balance	164,500	625,689	$ 0
Change in unrealized gains/(losses) relating to instruments still held	(1,014)	$ 491,341
Loans to and Investments in Associated Companies [Member] | Investment in FXCM, Senior Secured Term Loan and Rights to Future Distributions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Settlements	$ (334,500)

XML

Fair Value Disclosures (Analysis of Level 3 Assets and Liabilities Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	$ 179,600	$ 236,700	$ 139,000
Transfers of assets from Level 3 to Level 2	133,200	85,800	54,600
Net gains (losses) on Level 3 assets (realized and unrealized)	(115,300)	455,500	(24,800)
Net gains (losses) on Level 3 liabilities (realized and unrealized)	1,900	7,600	(14,900)
Excluded assets from unobservable quantitative information	325,000	280,600
Excluded liabilities from unobservable quantitative information	1,600	600
Other Secured Financings [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of liabilities from Level 3 to Level 2		51,600
Net gains (losses) on Level 3 liabilities (realized and unrealized)	(126)	0	0
Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of liabilities from Level 3 to Level 2	10,500		1,000
Net gains (losses) on Level 3 liabilities (realized and unrealized)	0	(163)	0
Derivative Financial Instruments Liabilities Net [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of liabilities from Level 3 to Level 2			3,300
CDOs and CLOs [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	19,400	69,800	73,000
Transfers of assets from Level 3 to Level 2	15,400	34,900
Net gains (losses) on Level 3 assets (realized and unrealized)	(14,918)	(66,332)	(6,386)
Residential Mortgage Backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	17,500
Transfers of assets from Level 3 to Level 2	26,800
Net gains (losses) on Level 3 assets (realized and unrealized)	(9,612)	(12,951)	(9,870)
Non-Agency Residential Mortgage-Backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3		30,400	30,300
Transfers of assets from Level 3 to Level 2		16,300	22,400
Commercial Mortgage Backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	17,400	11,300	16,600
Transfers of assets from Level 3 to Level 2		6,300
Net gains (losses) on Level 3 assets (realized and unrealized)	(7,550)	(3,813)	(4,237)
Municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	28,700	21,500
Net gains (losses) on Level 3 assets (realized and unrealized)	(1,462)	10
Other Asset Backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	16,900
Transfers of assets from Level 3 to Level 2	26,800
Net gains (losses) on Level 3 assets (realized and unrealized)	(14,381)	(990)	1,784
Loans and Other Receivables [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	13,800	20,100	8,500
Transfers of assets from Level 3 to Level 2	37,800	4,700	3,500
Net gains (losses) on Level 3 assets (realized and unrealized)	(42,566)	(14,755)	(31,311)
Corporate Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	28,100	7,400
Transfers of assets from Level 3 to Level 2			7,500
Net gains (losses) on Level 3 assets (realized and unrealized)	(16,230)	(11,013)	6,629
Corporate Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3			9,700
Transfers of assets from Level 3 to Level 2	19,200	7,700	4,900
Net gains (losses) on Level 3 assets (realized and unrealized)	(8,463)	11,154	957
Investments at Fair Value [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Transfers of assets from Level 2 to Level 3	31,900	74,700
Transfers of assets from Level 3 to Level 2		15,800	15,500
Net gains (losses) on Level 3 assets (realized and unrealized)	$ 54,538	$ 62,804	$ 17,642

XML

Fair Value Disclosures (Quantitative Information About Significant Unobservable Inputs Used In Level 3 Fair Value Measurements) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) T / d $ / shares $ / Bond	Dec. 31, 2015 USD ($) $ / shares $ / Bond	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Rights	$ 371,078	$ 262,799
Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Trading Liabilities	378	10,469	$ 14,450	$ 22,462
Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	21,739	40,906	20,964	9,884
Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	25,005	25,876	22,766	25,666
CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	54,354	85,092	124,650	37,216
Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	38,772	70,263	82,557	105,492
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	20,580	14,326	26,655	17,568
Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	40,911	42,925	2,294	12,611
Loans and Other Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	81,872	189,289	97,258	145,890
Investments at Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	314,359	199,794	77,047	$ 66,931
Investment in FXCM, Senior Secured Term Loan and Rights to Future Distributions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	164,500	625,689	$ 0
Financial Instruments Owned [Member] | Derivatives, Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Trading Liabilities	9,870	19,543
Financial Instruments Owned [Member] | Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Trading Liabilities		10,469
Financial Instruments Owned [Member] | Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	19,799	20,285
Financial Instruments Owned [Member] | Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	25,005	20,257
Financial Instruments Owned [Member] | CDOs and CLOs [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	33,016	49,923
Financial Instruments Owned [Member] | Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	38,772	70,263
Financial Instruments Owned [Member] | Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	20,580	14,326
Financial Instruments Owned [Member] | Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	40,911	21,463
Financial Instruments Owned [Member] | Loans and Other Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	54,347	161,470
Financial Instruments Owned [Member] | Derivatives, Assets [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	6,429	19,785
Financial Instruments Owned [Member] | Investments at Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned	67,383	29,940
Financial Instruments Owned [Member] | Investment in FXCM, Senior Secured Term Loan and Rights to Future Distributions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Financial Instruments Owned		625,700
Fair Value of Term loan		203,700
Fair Value of Rights		$ 422,000
Financial Instruments Owned [Member] | Investment in FXCM, Senior Secured Term Loan [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value of Term loan	$ 164,500
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares	$ 3
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares	$ 75
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Transaction Level | $ / Bond	30	59
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Other Asset Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Price | $ / Bond	72
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Loans and Other Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Transaction Level | $ / Bond	0.42
Fair Value Inputs, EBITDA multiple	3.3	10.0
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Loans and Other Receivables [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield	2.00%
Fair Value Inputs, Yield		2.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Loans and Other Receivables [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield	4.00%
Fair Value Inputs, Yield		17.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Loans and Other Receivables [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield	3.00%
Fair Value Inputs, Yield		12.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate	15.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate	30.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Convertible Bond Model [Member] | Corporate Debt Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield	9.00%	86.00%
Fair Value Inputs, Volatility	40.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | CDOs and CLOs [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	10.00%	5.00%
Fair Value Inputs, Constant default rate	2.00%	2.00%
Fair Value Inputs, Loss severity	25.00%	25.00%
Fair Value Inputs, Yield	7.00%	6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | CDOs and CLOs [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	20.00%	20.00%
Fair Value Inputs, Constant default rate	4.00%	8.00%
Fair Value Inputs, Loss severity	70.00%	90.00%
Fair Value Inputs, Yield	17.00%	13.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | CDOs and CLOs [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	19.00%	13.00%
Fair Value Inputs, Constant default rate	2.00%	2.00%
Fair Value Inputs, Loss severity	40.00%	52.00%
Fair Value Inputs, Yield	12.00%	10.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Residential Mortgage Backed Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	0.00%	0.00%
Fair Value Inputs, Constant default rate	1.00%	1.00%
Fair Value Inputs, Loss severity	35.00%	25.00%
Fair Value Inputs, Yield	2.00%	1.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Residential Mortgage Backed Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	11.00%	50.00%
Fair Value Inputs, Constant default rate	7.00%	9.00%
Fair Value Inputs, Loss severity	100.00%	70.00%
Fair Value Inputs, Yield	10.00%	9.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Residential Mortgage Backed Securities [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	5.00%	13.00%
Fair Value Inputs, Constant default rate	3.00%	3.00%
Fair Value Inputs, Loss severity	62.00%	39.00%
Fair Value Inputs, Yield	6.00%	6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Commercial Mortgage Backed Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Yield	6.00%	7.00%
Fair Value Inputs, Cumulative loss rate	5.00%	2.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Commercial Mortgage Backed Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Yield	11.00%	30.00%
Fair Value Inputs, Cumulative loss rate	95.00%	63.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Commercial Mortgage Backed Securities [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Yield	8.00%	16.00%
Fair Value Inputs, Cumulative loss rate	39.00%	23.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Other Asset Backed Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	4.00%	6.00%
Fair Value Inputs, Constant default rate	0.00%	3.00%
Fair Value Inputs, Loss severity	0.00%	55.00%
Fair Value Inputs, Yield	4.00%	7.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Other Asset Backed Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	20.00%	8.00%
Fair Value Inputs, Constant default rate	31.00%	5.00%
Fair Value Inputs, Loss severity	100.00%	75.00%
Fair Value Inputs, Yield	17.00%	22.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Other Asset Backed Securities [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	14.00%	7.00%
Fair Value Inputs, Constant default rate	13.00%	4.00%
Fair Value Inputs, Loss severity	90.00%	62.00%
Fair Value Inputs, Yield	15.00%	18.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Investment in FXCM, Senior Secured Term Loan [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Term based on the pay off	0 months	0 months
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Investment in FXCM, Senior Secured Term Loan [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Term based on the pay off	6 months	1 year
Level 3 [Member] | Financial Instruments Owned [Member] | Discounted Cash Flows [Member] | Investment in FXCM, Senior Secured Term Loan [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Term based on the pay off	5 months	4 months 24 days
Level 3 [Member] | Financial Instruments Owned [Member] | Over Collateralization Percentage Valuation Technique [Member] | Other Asset Backed Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Over-collateralization percentage		117.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Over Collateralization Percentage Valuation Technique [Member] | Other Asset Backed Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Over-collateralization percentage		125.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Over Collateralization Percentage Valuation Technique [Member] | Other Asset Backed Securities [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Over-collateralization percentage		118.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Loans and Other Receivables [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		99
Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Loans and Other Receivables [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		100
Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Loans and Other Receivables [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		99.7
Level 3 [Member] | Financial Instruments Owned [Member] | Present Value [Member] | Loans and Other Receivables [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Average silver production Tons Per Day | T / d	666
Level 3 [Member] | Financial Instruments Owned [Member] | Option Pricing Model [Member] | Investment in FXCM, Rights to Future Distributions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Volatility		110.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | CDOs and CLOs [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	28.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | CDOs and CLOs [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	38.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | CDOs and CLOs [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	31.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | Loans and Other Receivables [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	6.00%	6.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | Loans and Other Receivables [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	50.00%	100.00%
Level 3 [Member] | Financial Instruments Owned [Member] | Scenario Analysis [Member] | Loans and Other Receivables [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Estimated recovery percentage	37.00%	83.00%
Level 3 [Member] | Private Equity Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Transaction Level | $ / Bond	250	64
Fair Value Inputs, Price | $ / Bond	25,815,720	5,200,000
Level 3 [Member] | Private Equity Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate		15.00%
Level 3 [Member] | Private Equity Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate		30.00%
Level 3 [Member] | Private Equity Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Investments at Fair Value [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate	23.00%	23.00%
Level 3 [Member] | Loans [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		100
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Transaction Level | $ / Bond		1
Fair Value Inputs, EBITDA multiple		4.4
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares		$ 5
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares		102
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Corporate Equity Securities [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares	$ 15	$ 19.0
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Underlying stock price | $ / shares	$ 218
Fair Value Inputs, Comparable asset price | $ / Bond	11
Level 3 [Member] | Non Exchange Traded Securities [Member] | Financial Instruments Owned [Member] | Present Value [Member] | Corporate Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Average silver production Tons Per Day | T / d	666
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Derivatives, Assets [Member] | Credit Default Swaps [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Credit Spread	2.65%
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Derivatives, Assets [Member] | Forward Contracts [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield		47.00%
Fair Value Inputs, Transaction Level | $ / Bond		9,500,000
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Approach Valuation Technique [Member] | Derivatives, Assets [Member] | Unfunded Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Credit Spread		2.98%
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Derivatives, Assets [Member] | Equity Swap [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond	102
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Derivatives, Assets [Member] | Total Return Swaps [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		91.7
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Derivatives, Assets [Member] | Total Return Swaps [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		92.4
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Derivatives, Assets [Member] | Total Return Swaps [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		92.1
Derivative [Member] | Level 3 [Member] | Financial Instruments Owned [Member] | Market Pricing [Member] | Derivatives, Assets [Member] | Unfunded Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		100
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Approach Valuation Technique [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield	4.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Approach Valuation Technique [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield		3.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Approach Valuation Technique [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield		10.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Approach Valuation Technique [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Discount rate/yield		10.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Discounted Cash Flows [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate		20.00%
Fair Value Inputs, Constant default rate		2.00%
Fair Value Inputs, Loss severity		25.00%
Fair Value Inputs, Yield		11.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Discounted Cash Flows [Member] | Derivatives, Liabilities [Member] | Variable Funding Note Swaps [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Constant prepayment rate	20.00%
Fair Value Inputs, Constant default rate	2.00%
Fair Value Inputs, Loss severity	25.00%
Fair Value Inputs, Yield	16.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Equity Swap [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond	102
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Total Return Swaps [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		91.7
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Total Return Swaps [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		92.4
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Total Return Swaps [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		92.1
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		79
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		100
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Market Pricing [Member] | Derivatives, Liabilities [Member] | Unfunded Commitments [Member] | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Comparable asset price | $ / Bond		83
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Option Pricing Model [Member] | Derivatives, Liabilities [Member] | Equity Option [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Volatility	45.00%	45.00%
Derivative [Member] | Level 3 [Member] | Securities Sold, Not yet Purchased [Member] | Default Rate [Member] | Derivatives, Liabilities [Member] | Equity Option [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value Inputs, Default probability	0.00%	0.00%

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Fair Value Disclosures (Summary Of Gains (Losses) Due To Changes In Instrument Specific Credit Risk For Loans and Other Receivables And Loan Commitments Measured At Fair Value Under Fair Value Option) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans and other receivables	$ (68,812)	$ (17,389)	$ (24,785)
Financial Instruments Sold [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (losses) due to changes in instrument specific credit risk on loans	9	(162)	(585)
Gains (losses) due to changes in instrument specific credit riskLoan commitments	5,509	7,502	(15,459)
Long-term Debt [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (losses) due to changes in instrument specific credit riskLoan commitments	(10,745)	0	0
Gains (losses) due to other changes in fair value	$ 30,995	$ 0	$ 0

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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) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Loans and other receivables	$ 1,325,938	$ 408,369
Loans and other receivables on nonaccrual status and/or greater than 90 days past due	205,746	54,652
Long-term Debt	20,202	0
Loans and other receivables greater than 90 days past due	$ 64,600	$ 29,700

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Fair Value Disclosures (Fair Value Option Election Narrative) (Details) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) director shares	Dec. 31, 2015 USD ($) shares	Dec. 31, 2014 USD ($)
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Securities borrowed	$ 7,743,562	$ 6,975,136
Securities loaned	2,819,132	3,014,300
Trading assets, at fair value	14,985,237	18,293,090
Jefferies [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Aggregate fair value of loans and other receivables on nonaccrual status and/or greater than 90 days past due	29,800	307,500
Aggregate fair value of loans and other receivables greater than 90 days past due	18,900	11,300
Kcg Holdings Inc [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Changes in fair value of investments reflected as principal transactions	19,600	49,100	$ (14,700)
Advisory fees	2,900
Securities borrowed	9,200	6,300
Securities loaned	9,200	16,500
HRG [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Changes in fair value of investments reflected as principal transactions	$ 93,200	$ (28,000)	$ 119,200
Shares owned, number | shares	46.6	46.6
Percentage of outstanding common stock owned	23.00%	23.00%
Trading assets, at fair value	$ 725,100	$ 631,900
Cash consideration paid for shares	$ 475,600
Number of directors appointed | director	2

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Derivative Financial Instruments (Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure) (Details) $ in Thousands	Dec. 31, 2016 USD ($) Contract	Dec. 31, 2015 USD ($) Contract
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 4,627,076	$ 4,428,245
Fair Value, Liabilities	4,880,022	4,476,241
Counterparty/cash-collateral netting, Assets	(4,255,998)	(4,165,446)
Counterparty/cash-collateral netting, Liabilities	(4,229,213)	(4,257,998)
Total assets per Consolidated Statement of Financial Condition	371,078	262,799
Total liabilities per Consolidated Statement of Financial Condition	650,809	218,243
Interest Rate Contracts [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 3,282,245	$ 2,910,093
Number of Contracts, Assets | Contract	29,032	56,748
Fair Value, Liabilities	$ 3,159,457	$ 2,849,958
Number of Contracts, Liabilities | Contract	34,845	74,904
Foreign Exchange Contracts [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 529,669	$ 453,527
Number of Contracts, Assets | Contract	7,826	8,089
Fair Value, Liabilities	$ 516,869	$ 466,021
Number of Contracts, Liabilities | Contract	8,319	7,376
Equity Contracts [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 786,987	$ 1,017,611
Number of Contracts, Assets | Contract	2,843,329	3,057,754
Fair Value, Liabilities	$ 1,169,201	$ 1,094,597
Number of Contracts, Liabilities | Contract	2,414,715	2,947,416
Commodity Contracts [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 1,906	$ 27,590
Number of Contracts, Assets | Contract	2,766	2,896
Fair Value, Liabilities	$ 6,430	$ 5,510
Number of Contracts, Liabilities | Contract	7,289	2,001
Fair value, increase in assets		$ 19,300
Increase in number of contracts, assets | Contract		29
Fair value, increase in liabilities		$ 4,600
Increase in number of contracts, liabilities | Contract		28
Credit Contracts: Centrally Cleared Swaps [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 7,044	$ 2,447
Number of Contracts, Assets | Contract	98	299
Fair Value, Liabilities	$ 2,562	$ 841
Number of Contracts, Liabilities | Contract	19,900	44
Credit Contracts: Other Credit Derivatives [Member]
Derivatives, Fair Value [Line Items]
Fair Value, Assets	$ 19,225	$ 16,977
Number of Contracts, Assets | Contract	213	100
Fair Value, Liabilities	$ 25,503	$ 59,314
Number of Contracts, Liabilities | Contract	184	135

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Derivative Financial Instruments (Unrealized And Realized Gains (Losses) On Derivative Contracts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	$ (649,789)	$ (167,626)	$ (402,881)
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	(36,559)	(36,792)	(149,587)
Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	20,401	36,233	39,872
Equity Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	(635,305)	(137,219)	(327,978)
Commodity Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	(3,339)	(13,625)	58,746
Credit Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized and realized gains (losses)	$ 5,013	$ (16,223)	$ (23,934)

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Derivative Financial Instruments (Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
OTC Derivative Assets
0-12 Months	$ 263,350
1-5 Years	235,799
Greater Than 5 Years	137,970
Cross- Maturity Netting	(83,939)
Total	553,180
Cross product counterparty netting	(623)
Total	552,557
OTC Derivative Liabilities
0-12 Months	230,172
1-5 Years	173,559
Greater Than 5 Years	99,176
Cross-Maturity Netting	(83,939)
Total	418,968
Cross product counterparty netting	(623)
Total OTC derivative liabilities included in Trading liabilities	418,345
Exchange traded derivative assets and other credit agreements	25,400
Cash collateral received	217,400
Exchange traded derivative liabilities and other credit agreements	414,200
Cash collateral pledged	190,600
Commodity Swaps, Options And Forwards [Member]
OTC Derivative Liabilities
0-12 Months	3,214
1-5 Years	1,218
Greater Than 5 Years	0
Cross-Maturity Netting	0
Total	4,432
Equity Swaps And Options [Member]
OTC Derivative Assets
0-12 Months	27,436
1-5 Years	5,727
Greater Than 5 Years	0
Cross- Maturity Netting	0
Total	33,163
OTC Derivative Liabilities
0-12 Months	10,993
1-5 Years	20,354
Greater Than 5 Years	0
Cross-Maturity Netting	0
Total	31,347
Credit Default Swaps [Member]
OTC Derivative Assets
0-12 Months	0
1-5 Years	4,542
Greater Than 5 Years	3,463
Cross- Maturity Netting	(1,588)
Total	6,417
OTC Derivative Liabilities
0-12 Months	16
1-5 Years	1,594
Greater Than 5 Years	7,147
Cross-Maturity Netting	(1,588)
Total	7,169
Total Return Swaps [Member]
OTC Derivative Assets
0-12 Months	20,749
1-5 Years	389
Greater Than 5 Years	0
Cross- Maturity Netting	(200)
Total	20,938
OTC Derivative Liabilities
0-12 Months	12,088
1-5 Years	2,407
Greater Than 5 Years	0
Cross-Maturity Netting	(200)
Total	14,295
Foreign Currency Forwards, Swaps And Options [Member]
OTC Derivative Assets
0-12 Months	95,112
1-5 Years	35,988
Greater Than 5 Years	0
Cross- Maturity Netting	(10,547)
Total	120,553
OTC Derivative Liabilities
0-12 Months	92,375
1-5 Years	26,011
Greater Than 5 Years	0
Cross-Maturity Netting	(10,547)
Total	107,839
Fixed Income Forwards [Member]
OTC Derivative Liabilities
0-12 Months	3,401
1-5 Years	0
Greater Than 5 Years	0
Cross-Maturity Netting	0
Total	3,401
Interest Rate Swaps, Options And Forwards [Member]
OTC Derivative Assets
0-12 Months	120,053
1-5 Years	189,153
Greater Than 5 Years	134,507
Cross- Maturity Netting	(71,604)
Total	372,109
OTC Derivative Liabilities
0-12 Months	108,085
1-5 Years	121,975
Greater Than 5 Years	92,029
Cross-Maturity Netting	(71,604)
Total	$ 250,485

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Derivative Financial Instruments (Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of OTC derivatives assets, Counterparty credit quality, A- or higher	$ 380,574
Fair value of OTC derivatives assets, Counterparty credit quality, BBB- to BBB+	39,595
Fair value of OTC derivatives assets, Counterparty credit quality, BB+ or lower	51,834
Fair value of OTC derivatives assets, Counterparty credit quality, Unrated	80,554
Total	$ 552,557

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Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of derivative instruments in a liability position	$ 70.6	$ 114.5
Collateral posted for derivative instruments in a liability position	44.4	97.2
Potential additional collateral required for derivative instruments in a liability position	$ 26.1	$ 19.7

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Collateralized Transactions (Collateral Pledged) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	$ 2,819,132	$ 3,014,300
Repurchase agreements	17,012,332	20,158,422
Total	19,831,464	23,172,722
Corporate Equity Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	2,046,243	2,200,273
Repurchase agreements	66,291	271,519
Total	2,112,534	2,471,792
Corporate Debt Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	731,276	779,044
Repurchase agreements	1,907,888	1,721,583
Total	2,639,164	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	2,171,480	3,537,812
Total	2,171,480	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	41,613	34,983
Repurchase agreements	9,232,624	12,003,521
Total	9,274,237	12,038,504
Municipal securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	0	0
Repurchase agreements	553,010	357,350
Total	553,010	357,350
Sovereign securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	0	0
Repurchase agreements	2,625,079	1,804,103
Total	2,625,079	1,804,103
Loans and Finance Receivables [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	0	0
Repurchase agreements	455,960	462,534
Total	$ 455,960	$ 462,534

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Collateralized Transactions (Contractual Maturity) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	$ 2,819,132	$ 3,014,300
Repurchase agreements	17,012,332	20,158,422
Total	19,831,464	23,172,722
Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	2,131,891	1,522,475
Repurchase agreements	9,147,176	7,848,231
Total	11,279,067	9,370,706
Up to 30 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	39,673	0
Repurchase agreements	2,008,119	5,218,059
Total	2,047,792	5,218,059
30 to 90 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	104,516	973,201
Repurchase agreements	3,809,533	5,291,729
Total	3,914,049	6,264,930
Greater than 90 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities lending arrangements	543,052	518,624
Repurchase agreements	2,047,504	1,800,403
Total	$ 2,590,556	$ 2,319,027

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Collateralized Transactions (Details) - USD ($) $ in Billions	Dec. 31, 2016	Dec. 31, 2015
Collateralized Transactions [Abstract]
Fair value of securities received as collateral that may be sold or repledged	$ 25.5	$ 26.2

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Securitization Activities (Activity Related To Securitizations Accounted For As Sales) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Securitization Activities [Abstract]
Transferred assets	$ 5,786.0	$ 5,770.5	$ 6,112.6
Proceeds on new securitizations	5,809.0	5,811.3	6,221.1
Cash flows received on retained interests	$ 28.2	$ 31.2	$ 46.3

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Securitization Activities (Summary Of Retained Interests In SPEs) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Residential Mortgage Backed Securities [Member]
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
U.S. government agency residential mortgage-backed securities	$ 7,584.9	$ 10,901.9
Retained Interests	31.0	203.6
Commercial Mortgage Backed Securities [Member]
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
U.S. government agency commercial mortgage-backed securities	1,806.3	2,313.4
Retained Interests	29.6	87.2
Collateralized Loan Obligations Securitizations [Member]
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
CLOs	4,102.2	4,538.4
Retained Interests	37.0	51.5
Consumer and Other Loans [Member]
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items]
Consumer and other loans	395.7	655.0
Retained Interests	$ 25.3	$ 31.0

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Available For Sale Securities (Amortized Cost, Gross Unrealized Gains And Losses And Estimated Fair Value Of Available For Sale Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Investments [Line Items]
Amortized Cost	$ 274,457	$ 186,837
Gross Unrealized Gains	26,712	20,879
Gross Unrealized Losses	120	361
Estimated Fair Value	301,049	207,355
U.S. Government Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	174,938	63,968
Gross Unrealized Gains	8	2
Gross Unrealized Losses	13	25
Estimated Fair Value	174,933	63,945
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	19,129	23,033
Gross Unrealized Gains	108	308
Gross Unrealized Losses	104	101
Estimated Fair Value	19,133	23,240
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	8,275	2,392
Gross Unrealized Gains	64	0
Gross Unrealized Losses	2	18
Estimated Fair Value	8,337	2,374
Other Asset Backed Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	18,918	39,633
Gross Unrealized Gains	124	0
Gross Unrealized Losses	0	160
Estimated Fair Value	19,042	39,473
All Other Corporates [Member]
Schedule of Investments [Line Items]
Amortized Cost	180	4,794
Gross Unrealized Gains	0	7
Gross Unrealized Losses	1	57
Estimated Fair Value	179	4,744
Debt Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	221,440	133,820
Gross Unrealized Gains	304	317
Gross Unrealized Losses	120	361
Estimated Fair Value	221,624	133,776
Common Stocks: Banks, Trusts And Insurance Companies [Member]
Schedule of Investments [Line Items]
Amortized Cost	35,071	35,071
Gross Unrealized Gains	15,115	10,201
Gross Unrealized Losses	0	0
Estimated Fair Value	50,186	45,272
Common Stocks: Industrial, Miscellaneous And All Other [Member]
Schedule of Investments [Line Items]
Amortized Cost	17,946	17,946
Gross Unrealized Gains	11,293	10,361
Gross Unrealized Losses	0	0
Estimated Fair Value	29,239	28,307
Corporate Equity Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	53,017	53,017
Gross Unrealized Gains	26,408	20,562
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 79,425	$ 73,579

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Available For Sale Securities (Amortized Cost And Estimated Fair Value Of Investments Classified As Available For Sale By Contractual Maturity) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Due within one year, Amortized Cost	$ 174,938
Due after one year through five years, Amortized Cost	180
Fixed maturities investments excluding mortgage-backed and asset-backed securities, Amortized Cost	175,118
Mortgage-backed and asset-backed securities, Amortized Cost	46,322
Amortized Cost	274,457	$ 186,837
Due within one year, Estimated Fair Value	174,933
Due after one year through five years, Estimated Fair Value	179
Fixed maturities investments excluding mortgage-backed and asset-backed securities, Estimated Fair Value	175,112
Mortgage-backed and asset-backed securities, Estimated Fair Value	46,512
Estimated Fair Value	301,049	207,355
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	221,440	133,820
Estimated Fair Value	$ 221,624	$ 133,776

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Variable Interest Entities (Assets And Liabilities Of Consolidated VIEs) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Variable Interest Entity [Line Items]
Cash	$ 3,807,558	$ 3,638,648	$ 4,276,775	$ 3,907,595
Financial instruments owned	15,286,286	18,500,445
Securities purchased under agreement to resell	3,862,488	3,854,746
Receivables	4,425,178	3,830,967
Loans to and investments in associated companies	2,125,098	1,757,369
Other	1,635,664	1,473,464
Total assets	45,071,307	46,331,184	$ 52,614,324
Other secured financings	1,026,429	908,741
Long-term debt	7,380,443	7,400,582
Total liabilities	34,305,849	35,548,661
Noncontrolling interests	175,549	64,679
Jefferies [Member]
Variable Interest Entity [Line Items]
Secured financings eliminated in consolidation	57,600	22,100
Securitization Vehicles [Member]
Variable Interest Entity [Line Items]
Cash	18,400	1,100
Financial instruments owned	86,600	68,300
Securities purchased under agreement to resell	733,500	717,300
Receivables	277,700	149,800
Loans to and investments in associated companies	0	0
Other	14,500	8,800
Total assets	1,130,700	945,300
Other secured financings	1,083,800	930,800
Long-term debt	24,100	0
Other	22,300	14,500
Total liabilities	1,130,200	945,300
Noncontrolling interests	0	$ 0
Real Estate Investment Vehicles [Member]
Variable Interest Entity [Line Items]
Cash	2,200
Financial instruments owned	0
Securities purchased under agreement to resell	0
Receivables	296,900
Loans to and investments in associated companies	108,700
Other	10,800
Total assets	418,600
Other secured financings	0
Long-term debt	243,900
Other	11,700
Total liabilities	255,600
Noncontrolling interests	$ 98,700

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Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Total maximum exposure to loss in non-consolidated VIEs	$ 1,410.8	$ 1,461.1
Financial statement carrying amount, assets	566.9	389.2
Agency Mortgage-Backed Securitizations [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	1,002.2	3,359.1
Nonagency Mortgage- And Asset-Backed Securitizations [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	439.4	630.5
Real Estate Investment Vehicles [Member]
Variable Interest Entity [Line Items]
Equity commitments	98.0
Funded equity commitments	86.5
Total maximum exposure to loss in non-consolidated VIEs	101.8
Financial statement carrying amount, assets	90.3
Other Private Investment Vehicles [Member]
Variable Interest Entity [Line Items]
Equity commitments	111.4	76.4
Funded equity commitments	99.6	73.0
Carrying amount of equity investment	84.0	88.0
Total maximum exposure to loss in non-consolidated VIEs	95.8	91.4
Financial statement carrying amount, assets	84.0	88.0
Securitization Vehicles [Member]
Variable Interest Entity [Line Items]
Automobile loan receivables securitized	228.3
Energy Partners I, LP [Member]
Variable Interest Entity [Line Items]
Total maximum exposure to loss in non-consolidated VIEs	3.0	3.0
JCP Entities [Member] | Private Equity Vehicles [Member]
Variable Interest Entity [Line Items]
Equity commitments	148.1	148.1
Funded equity commitments	125.1	124.6
Carrying amount of equity investment	$ 37.6	$ 39.3

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Variable Interest Entities (Non-Consolidated Variable Interest Entities) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	$ 566.9	$ 389.2
Financial statement carrying amount, liabilities	4.8	0.2
Maximum Exposure to Loss	1,410.8	1,461.1
VIE Assets	10,229.3	12,516.0
Collateralized Loan Obligations [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	264.7	73.6
Financial statement carrying amount, liabilities	4.8	0.2
Maximum Exposure to Loss	930.0	458.1
VIE Assets	4,472.9	6,368.7
Consumer Loan Financing Vehicles [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	90.3	188.3
Financial statement carrying amount, liabilities	0.0	0.0
Maximum Exposure to Loss	219.6	845.8
VIE Assets	985.5	1,133.0
Related Party Private Equity Vehicles [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	37.6	39.3
Financial statement carrying amount, liabilities	0.0	0.0
Maximum Exposure to Loss	63.6	65.8
VIE Assets	155.6	168.2
Real Estate Investment Vehicles [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	90.3
Financial statement carrying amount, liabilities	0.0
Maximum Exposure to Loss	101.8
VIE Assets	85.6
Other Private Investment Vehicles [Member]
Variable Interest Entity [Line Items]
Financial statement carrying amount, assets	84.0	88.0
Financial statement carrying amount, liabilities	0.0	0.0
Maximum Exposure to Loss	95.8	91.4
VIE Assets	$ 4,529.7	$ 4,846.1

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Loans To And Investments In Associated Companies (Schedule of Loans to and Investments in Associated Companies) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 01, 2016	Dec. 31, 2009
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 1,757,369	$ 1,712,568	$ 1,258,341
Income related to associated companies	154,598	110,281	138,527
Income (losses) related to associated companies classified as other revenues	17,184	75,717	90,242
Contributions to (distributions from) associated companies, net	(132,070)	(120,860)	26,878
Other, including foreign exchange and unrealized gain (losses)	328,017	(20,337)	198,580
Loans to and investments in associated companies ending balance	2,125,098	1,757,369	1,712,568
Noncontrolling interests	175,549	64,679
Jefferies Finance [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	528,575	508,891	470,537
Income related to associated companies	0	0	0
Income (losses) related to associated companies classified as other revenues	(1,761)	40,884	72,701
Contributions to (distributions from) associated companies, net	(36,350)	(21,200)	(34,347)
Other, including foreign exchange and unrealized gain (losses)	0	0	0
Loans to and investments in associated companies ending balance	$ 490,464	528,575	508,891
Percentage of ownership owned	50.00%
Jefferies LoanCore [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 288,741	258,947	224,037
Income related to associated companies	0	0	0
Income (losses) related to associated companies classified as other revenues	21,221	36,554	18,793
Contributions to (distributions from) associated companies, net	(155,231)	(6,760)	16,117
Other, including foreign exchange and unrealized gain (losses)	0	0	0
Loans to and investments in associated companies ending balance	$ 154,731	288,741	258,947
Percentage of ownership owned	48.50%
Berkadia [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 190,986	208,511	182,573
Income related to associated companies	94,201	78,092	101,187
Income (losses) related to associated companies classified as other revenues	0	0	0
Contributions to (distributions from) associated companies, net	(100,766)	(89,560)	(72,721)
Other, including foreign exchange and unrealized gain (losses)	22	(6,057)	(2,528)
Loans to and investments in associated companies ending balance	$ 184,443	190,986	208,511
Percentage of ownership owned	50.00%				50.00%
Garcadia [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 172,660	167,939	120,017
Income related to associated companies	52,266	53,182	49,416
Income (losses) related to associated companies classified as other revenues	0	0	0
Contributions to (distributions from) associated companies, net	(39,111)	(48,461)	(1,494)
Other, including foreign exchange and unrealized gain (losses)	0	0	0
Loans to and investments in associated companies ending balance	$ 185,815	172,660	167,939
Percentage of ownership owned	75.00%
Linkem [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 150,149	159,054	173,577
Income related to associated companies	(22,867)	(15,577)	(14,633)
Income (losses) related to associated companies classified as other revenues	0	0	0
Contributions to (distributions from) associated companies, net	33,303	21,138	18,390
Other, including foreign exchange and unrealized gain (losses)	(6,585)	(14,466)	(18,280)
Loans to and investments in associated companies ending balance	$ 154,000	150,149	159,054
Percentage of ownership owned	42.00%
HomeFed Corporation [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 275,378	271,782	52,923
Income related to associated companies	23,893	3,596	3,150
Income (losses) related to associated companies classified as other revenues	0	0	0
Contributions to (distributions from) associated companies, net	2,960	0	0
Other, including foreign exchange and unrealized gain (losses)	0	0	215,709
Loans to and investments in associated companies ending balance	$ 302,231	275,378	271,782
Percentage of ownership owned	65.00%
Golden Queen Mining Company, LLC [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	$ 114,323	103,598	0
Income related to associated companies	(3,021)	(1,775)	(1,402)
Income (losses) related to associated companies classified as other revenues	0	0	0
Contributions to (distributions from) associated companies, net	0	12,500	105,000
Other, including foreign exchange and unrealized gain (losses)	0	0	0
Loans to and investments in associated companies ending balance	$ 111,302	114,323	103,598
Percentage of ownership owned	35.00%
Noncontrolling interests	$ 32,800	33,700	33,700
Other [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	36,557	33,846	34,677
Income related to associated companies	3,952	(7,237)	809
Income (losses) related to associated companies classified as other revenues	(2,276)	(1,721)	(1,252)
Contributions to (distributions from) associated companies, net	9,622	11,483	(4,067)
Other, including foreign exchange and unrealized gain (losses)	(3,401)	186	3,679
Loans to and investments in associated companies ending balance	44,454	36,557	$ 33,846
FXCM [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	0
Income related to associated companies	1,919
Income (losses) related to associated companies classified as other revenues	0
Contributions to (distributions from) associated companies, net	0
Other, including foreign exchange and unrealized gain (losses)	334,339
Loans to and investments in associated companies ending balance	336,258	0
54 Madison [Member]
Equity Method Investment [Roll Forward]
Loans to and investments in associated companies beginning balance	0
Income related to associated companies	4,255
Income (losses) related to associated companies classified as other revenues	0
Contributions to (distributions from) associated companies, net	153,503
Other, including foreign exchange and unrealized gain (losses)	3,642
Loans to and investments in associated companies ending balance	$ 161,400	$ 0
Percentage of ownership owned	48.10%
Noncontrolling interests	$ 95,300
Investment in FXCM [Member]
Equity Method Investment [Roll Forward]
Percentage of ownership owned	49.90%			49.90%

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Loans To And Investments In Associated Companies (Jefferies Finance) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investment [Line Items]
Investment banking	$ 1,193,973	$ 1,417,807	$ 1,526,637
Jefferies Finance [Member]
Investment [Line Items]
Equity commitment	600,000
Funded equity commitments	$ 493,900
Investment commitment extension	1 year
Termination notice	60 days
Total line of credit facility commitment under joint venture	$ 500,000	500,000
Credit facility, extension period	1 year
Funded portion of line of credit commitment	$ 0	19,300
Line of credit facility commitment of Jefferies	250,000	250,000
Payable amount	5,800
Receivables amount		7,800
Jefferies [Member]
Investment [Line Items]
Investment banking	112,600	122,700	199,500
Origination fees	500	5,900	10,600
Placement agent fees	2,600	6,200	4,600
Service fee income	$ 46,100	51,700	41,600
Net underwriting fees		$ 1,300	$ 7,700

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Loans To And Investments In Associated Companies (Jefferies LoanCore) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2016	Mar. 31, 2016
Investment [Line Items]
Interest income related to associated companies	$ 926,255	$ 955,240	$ 1,052,151
Securities purchased under agreements to resell	3,862,488	3,854,746
Jefferies LoanCore [Member]
Investment [Line Items]
Percentage of Equity Interest Transferred to New Joint Venture Partner					24.00%
Aggregate equity commitment				$ 400,000	$ 600,000
Funded equity commitments	70,100	207,400
Equity commitment	$ 194,000	$ 291,000
Percentage of voting interest	48.50%	48.50%
Interest income related to associated companies	$ 8,400	$ 10,700	$ 1,200
Securities purchased under agreements to resell	$ 68,100	$ 175,100

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Loans To And Investments In Associated Companies (Berkadia) (Narrative) (Details) - Berkadia [Member] - USD ($) $ in Millions	12 Months Ended		96 Months Ended
	Dec. 31, 2016	Dec. 31, 2009	Dec. 31, 2016
Investment [Line Items]
Capital contributed		$ 217.2
Percentage of ownership owned	50.00%	50.00%	50.00%
Contributions to (distributions from) associated companies, net			$ 494.6
Surety policy issued	$ 2,500.0
Reimbursement of losses incurred, maximum percentage	50.00%		50.00%
Commercial paper	$ 1,470.0		$ 1,470.0

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Loans To And Investments In Associated Companies (FXCM) (Narrative) (Details)	Dec. 31, 2016	Sep. 01, 2016
Investment in FXCM [Member]
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership owned	49.90%	49.90%

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Loans To And Investments In Associated Companies Loans To And Investments in Associated Companies (Garcadia) (Narrative) (Details) - Garcadia [Member]	12 Months Ended
	Dec. 31, 2016 facility
Investment [Line Items]
Number of automobile dealerships	28
Percent of cash allocated	65.00%
One Dealership [Member]
Investment [Line Items]
Percent of cash allocated	83.00%
Five Dealerships [Member]
Investment [Line Items]
Percent of cash allocated	71.00%
Garff Enterprises [Member]
Investment [Line Items]
Number of automobile dealerships	28
Percent of cash allocated	35.00%

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Loans To And Investments In Associated Companies (Linkem) (Narrative) (Details) - Linkem [Member] $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Investment [Line Items]
Percentage of ownership owned	42.00%
Cash consideration	$ 142.9
Dividend rate on preferred stock	5.00%
Percentage of ownership upon conversion of preferred shares	57.00%
Excess investment amortization period, years	12 years

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Loans To And Investments In Associated Companies (HomeFed) (Narrative) (Details) - HomeFed Corporation [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Investment [Line Items]
Shares of common stock owned	10,054,226
Percentage of ownership owned	65.00%
Maximum voting rights as a percentage of total voting securities voting	45.00%
Cash paid on acquisition of common shares		$ 14.0
Common shares acquired		7,500,000
Deferred gain on sale		$ 36.1
Company Chairman [Member]
Investment [Line Items]
Ownership percentage of company	4.80%

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Loans To And Investments In Associated Companies (Golden Queen Mining Company) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended			24 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2013
Investment [Line Items]
Contributions from noncontrolling interests	$ 154,522	$ 16,189	$ 72,221
Golden Queen Mining Company, LLC [Member]
Investment [Line Items]
Prior ownership percentage					100.00%
Percentage of ownership owned	35.00%
Golden Queen Mining Co, Ltd [Member]
Investment [Line Items]
Ownership percentage	50.00%
Gauss LLC [Member]
Investment [Line Items]
Cash invested in Limited Liability Company				$ 83,000
Gauss LLC [Member] | Golden Queen Mining Company, LLC [Member]
Investment [Line Items]
Percentage of ownership owned	50.00%
Total investment in associated company	$ 117,500
Clay Family [Member]
Investment [Line Items]
Contributions from noncontrolling interests				$ 34,500

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Loans To And Investments In Associated Companies (54 Madison) (Narrative) (Details) - 54 Madison [Member] $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($)
Investments in and Advances to Affiliates [Line Items]
Percentage of ownership owned	48.10%
Cash consideration	$ 153.5
Contributions from noncontrolling interests	$ 90.7

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Loans To And Investments In Associated Companies (Schedule Of Summarized Data For Investments In Associated Companies) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments in and Advances to Affiliates [Line Items]
Assets	$ 45,071,307	$ 46,331,184	$ 52,614,324
Liabilities	34,305,849	35,548,661
Noncontrolling interests	175,549	64,679
The Company’s income related to associated companies	171,782	185,998	228,769
Undistributed earnings of equity method investments	126,200
Associated Companies [Member]
Investments in and Advances to Affiliates [Line Items]
Assets	16,964,850	18,489,684
Liabilities	13,097,022	14,990,876
Noncontrolling interests	132,789	39,038
Revenues	4,275,016	3,946,252	3,201,823
Income from continuing operations before extraordinary items	422,167	398,369	431,654
Net income	430,291	398,369	431,654
The Company’s income related to associated companies	$ 171,782	$ 185,998	$ 228,769

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Financial Statement Offsetting (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Offsetting [Abstract]
Derivative contracts, Gross Amounts	$ 4,627,076	$ 4,428,245
Derivative contracts, Netting in Consolidated Statement of Financial Condition	(4,255,998)	(4,165,446)
Derivative contracts, Net Amounts in Consolidated Statement of Financial Condition	371,078	262,799
Derivative assets contracts, Additional Amounts Available for Setoff	0	0
Derivative assets contracts, Available Collateral	0	0
Derivative assets contracts, Net Amount	371,078	262,799
Securities borrowing arrangements, Gross Amounts	7,743,562	6,975,136
Securities borrowing agreements, Netting in Consolidated Statement of Financial Condition	0	0
Securities borrowing arrangements, Net Amounts in Consolidated Statement of Financial Condition	7,743,562	6,975,136
Securities borrowing agreements, Additional Amounts Available for Setoff	710,611	478,991
Securities borrowing agreements, Available Collateral	647,290	667,099
Securities borrowing agreements, Net Amount	6,385,661	5,829,046
Reverse repurchase agreements, Gross Amounts	14,083,144	14,046,300
Reverse repurchase agreements, Netting in Consolidated Statement of Financial Condition	10,220,656	10,191,554
Reverse repurchase agreements, Net Amounts in Consolidated Statement of Financial Condition	3,862,488	3,854,746
Reverse repurchase agreements, Additional Amounts Available for Setoff	176,275	83,452
Reverse repurchase agreements, Available Collateral	3,591,654	3,745,215
Reverse repurchase agreements, Net Amount	94,559	26,079
Derivative contracts, Gross Amounts	4,880,022	4,476,241
Derivative assets contacts, Netting in Consolidated Statement of Financial Condition	(4,229,213)	(4,257,998)
Derivative contracts, Net Amounts in Consolidated Statement of Financial Condition	650,809	218,243
Derivative liabilities contracts, Additional Amounts Available for Setoff	0	0
Derivative liabilities contracts, Available Collateral	0	0
Derivative liabilities contracts, Net Amount	650,809	218,243
Securities lending arrangements, Gross Amounts	2,819,132	3,014,300
Securities lending arrangements, Netting in Consolidated Statement of Financial Condition	0	0
Securities lending arrangements, Net Amounts in Consolidated Statement of Financial Condition	2,819,132	3,014,300
Securities lending arrangements, Additional Amounts Available for Setoff	710,611	478,991
Securities lending arrangements, Available Collateral	2,064,299	2,499,395
Securities lending arrangements, Net Amount	44,222	35,914
Repurchase agreements, Gross Amounts	17,012,332	20,158,422
Repurchase agreements, Netting in Consolidated Statement of Financial Condition	10,220,656	10,191,554
Repurchase agreements, Net Amounts in Consolidated Statement of Financial Condition	6,791,676	9,966,868
Repurchase agreements, Additional Amounts Available for Setoff	176,275	83,452
Repurchase agreements, Available Collateral	5,780,909	8,068,468
Repurchase agreements, Net Amount	834,492	1,814,948
Securities borrowing arrangements, subject to review	6,337,500	5,796,100
Securities borrowing arrangements, collateral received, subject to review	6,146,000	5,613,300
Repurchase agreements, subject to review	810,400	1,807,200
Repurchase agreements, collateral pledged, subject to review	$ 834,200	$ 1,875,300

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Intangible Assets, Net And Goodwill (Schedule Of Intangible Assets, Net And Goodwill) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	$ 797,964	$ 912,021
Goodwill	1,715,714	1,736,341
Total intangible assets, net and goodwill	2,513,678	2,648,362
Other Operations [Member]
Intangible Assets [Line Items]
Goodwill	3,859	8,551
National Beef [Member]
Intangible Assets [Line Items]
Goodwill	14,991	14,991
Jefferies [Member]
Intangible Assets [Line Items]
Goodwill	1,696,864	1,712,799
Customer And Other Relationships [Member]
Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	378,136	456,222
Intangibles, accumulated amortization	198,674	191,761
Trademarks And Tradename [Member]
Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	309,382	330,172
Intangibles, accumulated amortization	78,778	64,052
Supply Contracts [Member]
Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	95,733	109,311
Intangibles, accumulated amortization	47,867	40,684
Other Intangible Assets [Member]
Intangible Assets [Line Items]
Intangible assets, net (excluding goodwill)	5,672	4,419
Intangibles, accumulated amortization	2,914	5,216
Exchange And Clearing Organization Membership Interests And Registrations [Member]
Intangible Assets [Line Items]
Indefinite lived intangibles	$ 9,041	$ 11,897

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Intangible Assets, Net And Goodwill (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets [Line Items]
Amortization expense on intangible assets	$ 63.4	$ 63.9	$ 66.2
Future amortization expense, 2017	58.5
Future amortization expense, 2018	58.5
Future amortization expense, 2019	58.5
Future amortization expense, 2020	58.5
Future amortization expense, 2021	58.1
Jefferies [Member]
Intangible Assets [Line Items]
Impairment loss	$ 1.3	$ 1.3

XML

Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Finished goods	$ 243,488	$ 211,426
Work in process	35,714	34,091
Raw materials, supplies and other	30,733	42,556
Inventory, net	$ 309,935	$ 288,073

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Property, Equipment And Leasehold Improvements, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 1,227,368	$ 1,260,552
Accumulated depreciation and amortization	(518,126)	(538,677)
Property, equipment and leasehold improvements, net	709,242	721,875
Land, Buildings And Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 379,927	371,383
Land, Buildings And Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	5 years
Land, Buildings And Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	25 years
Beef Processing Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 330,453	315,238
Beef Processing Machinery And Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	2 years
Beef Processing Machinery And Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	15 years
Other Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 30,716	113,412
Other Machinery And Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	3 years
Other Machinery And Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	15 years
Corporate Aircraft [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 104,862	104,862
Depreciable Lives	10 years
Furniture, Fixtures And Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 323,276	311,845
Furniture, Fixtures And Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	3 years
Furniture, Fixtures And Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	10 years
Construction In Progress [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 54,693	38,903
Other [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and leasehold improvements, gross	$ 3,441	$ 4,909
Other [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	3 years
Other [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciable Lives	10 years

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Short-Term Borrowings (Details)		1 Months Ended	12 Months Ended
	Feb. 19, 2016 USD ($)	Oct. 31, 2015 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 EUR (€)	Dec. 31, 2015 USD ($)	Dec. 14, 2015 USD ($)
Short-term Debt [Line Items]
Short-term borrowings			$ 525,842,000		$ 310,659,000
Debt interest rate			1.77%	1.77%	0.85%
Euro Medium Term Note Program [Member]
Short-term Debt [Line Items]
Debt instrument, face amount			$ 2,000,000,000.0
Floating Rate Puttable Notes [Member]
Short-term Debt [Line Items]
Short-term borrowings			96,455,000		$ 0
Debt instrument, face amount | €				€ 91,000,000.0
Demand Loan Facility [Member]
Short-term Debt [Line Items]
Committed amount	$ 25,000,000.0
Demand Loan Facility [Member] | LIBOR [Member]
Short-term Debt [Line Items]
Basis spread on variable rate	150.00%
Loans [Member]
Short-term Debt [Line Items]
Short-term borrowings			372,301,000		262,000,000
Line of Credit [Member] | Loan Facility [Member]
Short-term Debt [Line Items]
Committed amount		$ 50,000,000.0				$ 50,000,000.0
Line of Credit [Member] | Loan Facility [Member] | LIBOR [Member]
Short-term Debt [Line Items]
Basis spread on variable rate		3.75%
Line of Credit [Member] | Intraday Credit Facility [Member]
Short-term Debt [Line Items]
Committed amount			$ 250,000,000.0
Line of Credit [Member] | Intraday Credit Facility [Member] | Federal Funds Rate [Member]
Short-term Debt [Line Items]
Basis spread on variable rate			0.50%
Revolving Credit Facility [Member] | Secured Revolving Loan Facility [Member]
Short-term Debt [Line Items]
Short-term borrowings			$ 57,086,000		$ 48,659,000
Revolving Credit Facility [Member] | Secured Revolving Loan Facility [Member] | LIBOR [Member]
Short-term Debt [Line Items]
Basis spread on variable rate			4.25%

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Long-Term Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 7,380,443	$ 7,400,582
Long-term debt, fair value	248,856
Debt matures in 2018	1,172,200
Debt maturities in 2019	958,400
Subsidiary [Member]
Debt Instrument [Line Items]
Long-term debt	6,392,552	6,413,760
Parent Company [Member]
Debt Instrument [Line Items]
Long-term debt	987,891	986,822
Credit Facility [Member] | Foursight Capital [Member]
Debt Instrument [Line Items]
Long-term debt	97,138	109,501
5.50% Senior Notes due October 18, 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 741,264	$ 740,239
Interest rate	5.50%	5.50%
Maturity date	Oct. 18, 2023	Oct. 18, 2023
Principal	$ 750,000	$ 750,000
6.625% Senior Notes due October 23, 2043 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 246,627	$ 246,583
Interest rate	6.625%	6.625%
Maturity date	Oct. 23, 2043	Oct. 23, 2043
Principal	$ 250,000	$ 250,000
5.5% Senior Notes, due March 15, 2016 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 353,025
Interest rate	5.50%	5.50%
Maturity date	Mar. 15, 2016	Mar. 15, 2016
Principal	$ 0	$ 350,000
5.125% Senior Notes, due April 13, 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 817,813	$ 830,298
Interest rate	5.125%	5.125%
Maturity date	Apr. 13, 2018	Apr. 13, 2018
Principal	$ 800,000	$ 800,000
8.5% Senior Notes, due July 15, 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 778,367	$ 806,125
Interest rate	8.50%	8.50%
Maturity date	Jul. 15, 2019	Jul. 15, 2019
Principal	$ 700,000	$ 700,000
2.375% Euro Senior Notes, due May 20, 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 528,250	$ 526,436
Interest rate	2.375%	2.375%
Maturity date	May 20, 2020	May 20, 2020
Principal	$ 529,975	$ 528,625
6.875% Senior Notes, due April 15, 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 823,797	$ 838,765
Interest rate	6.875%	6.875%
Maturity date	Apr. 15, 2021	Apr. 15, 2021
Principal	$ 750,000	$ 750,000
2.25% Euro Medium Term Notes, due July 13, 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 3,848	$ 3,779
Interest rate	2.25%	2.25%
Maturity date	Jul. 13, 2022	Jul. 13, 2022
Principal	$ 4,240	$ 4,229
5.125% Senior Notes, due January 20, 2023 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 618,355	$ 620,890
Interest rate	5.125%	5.125%
Maturity date	Jan. 20, 2023	Jan. 20, 2023
Principal	$ 600,000	$ 600,000
6.45% Senior Debentures, due June 8, 2027 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 377,806	$ 379,711
Interest rate	6.45%	6.45%
Maturity date	Jun. 08, 2027	Jun. 08, 2027
Principal	$ 350,000	$ 350,000
3.875% Convertible Senior Debentures, due November 1, 2029 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 346,163	$ 347,307
Interest rate	3.875%	3.875%	3.875%
Maturity date	Nov. 01, 2029	Nov. 01, 2029
Principal	$ 345,000	$ 345,000
6.25% Senior Debentures, due January 15, 2036 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 512,396	$ 512,730
Interest rate	6.25%	6.25%
Maturity date	Jan. 15, 2036	Jan. 15, 2036
Principal	$ 500,000	$ 500,000
6.50% Senior Notes, due January 20, 2043 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 421,333	$ 421,656
Interest rate	6.50%	6.50%
Maturity date	Jan. 20, 2043	Jan. 20, 2043
Principal	$ 400,000	$ 400,000
Structured Notes [Member]
Debt Instrument [Line Items]
Long-term debt	255,203	0
Long-term debt, fair value	248,900
Debt matures in 2018	6,300
Debt maturities in 2019	10,700
Debt maturities in 2024 or thereafter	238,200
Term Loan [Member] | National Beef [Member]
Debt Instrument [Line Items]
Long-term debt	$ 273,811	310,000
Interest rate	2.60%
Term Loan [Member] | 54 Madison [Member]
Debt Instrument [Line Items]
Long-term debt	$ 406,028	116,211
Revolving Credit Facility [Member] | National Beef [Member]
Debt Instrument [Line Items]
Long-term debt	0	120,080
Other [Member]
Debt Instrument [Line Items]
Long-term debt	$ 132,244	$ 117,246

XML

Long-Term Debt (Narrative) (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) Contract $ / shares shares	Jan. 01, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Jan. 21, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014
Debt Instrument [Line Items]
Assets pledged for indebtedness	$ 2,000,000,000
Nonrecourse indebtedness collateralized by assets	916,000,000
Debt subject to mandatory redemption, 2017	420,700,000
Debt subject to mandatory redemption, 2018	1,172,200,000
Debt subject to mandatory redemption, 2019	958,400,000
Debt subject to mandatory redemption, 2020	669,000,000
Debt subject to mandatory redemption, 2021	792,000,000
Long-term debt, fair value	248,856,000
Long-term debt	7,380,443,000					$ 7,400,582,000
National Beef [Member]
Debt Instrument [Line Items]
Aggregate outstanding letters of credit	12,500,000
Foursight Capital [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	$ 97,138,000					$ 109,501,000
3.875% Convertible Senior Debentures, due November 1, 2029 [Member]
Debt Instrument [Line Items]
Interest rate	3.875%					3.875%	3.875%
Conversion price per common share for convertible notes (USD per share) | $ / shares	$ 43.93
Common stock price as a percent of conversion price minimum	130.00%
Earliest period of conversion price	20 days
Consecutive trading days	30 days
Trading price per debenture related to common stock, maximum	95.00%
Consecutive trading days	10 days
Contingent interest rate percent	0.375%
Trading period for contingent interest	5 days
Minimum average trading price for 5 trading days per $1,000 debenture	$ 1,200
Incremental principal amount of notes	$ 1,000
Shares issuable upon conversion per $1000 debenture | shares	22.7634
Principal	$ 345,000,000					$ 345,000,000
Long-term debt	346,163,000					347,307,000
Revolving Credit Facility [Member] | National Beef [Member]
Debt Instrument [Line Items]
Long-term debt	0					120,080,000
Credit facility term loan, maximum amount	285,000,000		$ 285,000,000.0	$ 375,000,000.0
Revolving Credit Facility [Member] | National Beef [Member] | Maximum [Member]
Debt Instrument [Line Items]
Amount of revolver available	$ 234,500,000
Term Loan [Member] | National Beef [Member]
Debt Instrument [Line Items]
Interest rate	2.60%
Long-term debt	$ 273,811,000					310,000,000
Term Loan [Member] | 54 Madison [Member]
Debt Instrument [Line Items]
Long-term debt	$ 406,028,000					116,211,000
Term Loan [Member] | 54 Madison [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate	4.20%
Term Loan [Member] | 54 Madison [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate	6.00%
Revolving Credit Facility And Term Loan [Member] | National Beef [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage added to base rate or LIBOR rate	0.75%
Revolving Credit Facility And Term Loan [Member] | National Beef [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage added to base rate or LIBOR rate	2.75%
Structured Notes [Member]
Debt Instrument [Line Items]
Debt subject to mandatory redemption, 2018	$ 6,300,000
Debt subject to mandatory redemption, 2019	10,700,000
Long-term debt, fair value	248,900,000
Long-term debt	255,203,000					$ 0
Structured Notes [Member] | Jefferies [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	275,400,000
Long-term debt, fair value	$ 248,900,000
Class A Notes, Due 2022 [Member] | Jefferies [Member]
Debt Instrument [Line Items]
Principal					$ 15,000,000
Class B Notes, Due 2022 [Member] | Jefferies [Member]
Debt Instrument [Line Items]
Principal					$ 7,500,000
6.0% Term Loan Due January 2018 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	6.00%
Long-term debt	$ 63,900,000
5.5% Term Loan Maturing in February 2019 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	5.50%
Long-term debt	$ 162,500,000
3.5% Term Loan Due March 2019 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	3.50%
Long-term debt	$ 500,000
4.15% Term Loan Maturing in April 2019 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	4.15%
Long-term debt	$ 79,000,000
5.5% Term Loan Due January 2020 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	5.50%
Long-term debt	$ 104,000,000
3.5% Term Loan Due January 2020 [Member] | 54 Madison [Member] | Loans [Member]
Debt Instrument [Line Items]
Interest rate	3.50%
Long-term debt	$ 500,000
Foursight Credit Facilities [Member] | Foursight Capital [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Assets pledged for indebtedness	115,200,000
Credit facility term loan, maximum amount	$ 200,000,000.0
Number of warehouse credit commitment | Contract	2
Foursight Credit Facility Due 2017 [Member] | Foursight Capital [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	$ 43,100,000
Subsequent Event [Member] | Senior Notes Due 2027 [Member] | Jefferies [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate		4.85%
Debt instrument, face amount		$ 750,000,000.0

XML

Mezzanine Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 30, 2021	Dec. 30, 2018	Dec. 30, 2016	Dec. 31, 2015
Purchase Requirement [Line Items]
Redeemable noncontrolling interests	$ 336,809				$ 191,633
Mandatorily redeemable convertible preferred shares redemption value	$ 125,000				125,000
3.25% Cumulative Convertible Preferred Shares [Member]
Purchase Requirement [Line Items]
Dividend rate on preferred stock	3.25%
Mandatorily redeemable convertible preferred shares redemption value	$ 125,000
Mandatory redeemable preferred stock, number of shares in conversion	4,162,200
Mandatory redeemable preferred stock, effective conversion price per share (USD per share)	$ 30.03
Mandatorily redeemable preferred shares callable price per share	$ 1,000
Other [Member]
Purchase Requirement [Line Items]
Redeemable noncontrolling interests	$ 14,800
Conwed Plastics [Member]
Purchase Requirement [Line Items]
Redeemable noncontrolling interests					$ 2,300
Jefferies [Member]
Purchase Requirement [Line Items]
Dividend rate on preferred stock	3.25%
National Beef [Member] | Put Rights [Member]
Purchase Requirement [Line Items]
Put right interest percentage				33.30%
USPB [Member] | Call Rights [Member] | Maximum [Member]
Purchase Requirement [Line Items]
Ownership interests as a percent of original interest	20.00%
Other Members [Member] | Call Rights [Member] | Maximum [Member]
Purchase Requirement [Line Items]
Ownership interests as a percent of original interest	50.00%
Anniversary of acquisition	10 years
Scenario, Forecast [Member] | National Beef [Member] | Put Rights [Member]
Purchase Requirement [Line Items]
Put right interest percentage		33.30%	33.30%

XML

Mezzanine Equity (Schedule Of Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Redeemable Noncontrolling Interest [Roll Forward]
Beginning balance				$ 191,633					$ 191,633
Income (loss) allocated to redeemable noncontrolling interests	$ 25,662	$ 22,702	$ 13,068	4,314	$ (10,612)	$ (6,788)	$ (2,031)	$ (7,112)	65,746	$ (26,543)	$ (8,616)
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital									(115,963)	(26,325)	45,401
Ending balance	336,809				191,633				336,809	191,633
National Beef [Member]
Redeemable Noncontrolling Interest [Roll Forward]
Beginning balance				$ 189,358				$ 184,333	189,358	184,333
Income (loss) allocated to redeemable noncontrolling interests									68,811	(26,465)
Contributions from redeemable noncontrolling interests									0	5,263
Distributions to redeemable noncontrolling interests									(53,701)	0
Increase in fair value of redeemable noncontrolling interests charged to additional paid-in capital									117,494	26,227
Ending balance	$ 321,962				$ 189,358				$ 321,962	$ 189,358	$ 184,333

XML

Mezzanine Equity (Sensitivity Analysis Of Fair Value Of Redeemable Noncontrolling Interests Using Discount And Terminal Growth Rates) (Details) $ in Millions	Dec. 31, 2016 USD ($)
Rate 1.75% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Terminal growth rate assumed in determining fair value	1.75%
Rate 2.00% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Terminal growth rate assumed in determining fair value	2.00%
Rate 2.25% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Terminal growth rate assumed in determining fair value	2.25%
Discount Rate 10.65% [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount growth rate assumed in determining fair value	10.65%
Discount Rate 10.65% [Member] | Rate 1.75% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 326.5
Discount Rate 10.65% [Member] | Rate 2.00% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	331.0
Discount Rate 10.65% [Member] | Rate 2.25% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 335.7
Discount Rate 10.90% [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount growth rate assumed in determining fair value	10.90%
Discount Rate 10.90% [Member] | Rate 1.75% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 317.8
Discount Rate 10.90% [Member] | Rate 2.00% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	322.0
Discount Rate 10.90% [Member] | Rate 2.25% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 326.3
Discount Rate 11.15% [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount growth rate assumed in determining fair value	11.15%
Discount Rate 11.15% [Member] | Rate 1.75% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 309.6
Discount Rate 11.15% [Member] | Rate 2.00% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	313.4
Discount Rate 11.15% [Member] | Rate 2.25% Terminal Growth Rates [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of redeemable noncontrolling interests	$ 317.5

XML

Compensation Plans (Narrative) (Details)			1 Months Ended	12 Months Ended
	Feb. 19, 2016 shares	Mar. 21, 2014 shares	Jan. 31, 2017 shares	Dec. 31, 2016 USD ($) Installment $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 shares	Mar. 01, 2013 plan	Dec. 31, 2011 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of award plans | plan								2
Share-based compensation | $				$ 33,597,000	$ 74,087,000	$ 109,838,000
Shares reserved for stock options and warrants				641,478	4,661,272
Unamortized portion of compensation expense for restricted cash awards | $				$ 468,300,000
Tax benefit for issuance of share-based awards | $				12,400,000	$ 27,300,000	39,900,000
Total unrecognized compensation costs related to nonvested share-based compensation plans | $				$ 49,200,000
Total unrecognized compensation costs related to nonvested share-based compensation plans, period for recognition				1 year 10 months
Net tax benefit related to share-based compensation plans recognized as additional paid in capital | $				$ 4,200,000	5,900,000	(1,300,000)
Potential maximum increase to common shares outstanding from restricted stock and other shares				14,650,000
Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grant		20,000,000
Stock available for grant				14,838,855
1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock available for grant				0
Senior Executive Warrant Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock available for grant				0
Number of securities called by warrants (shares)									2,000,000
Share-based compensation | $					$ 1,000,000	$ 5,300,000
Sign-on and Retention Awards [Member] | Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for award granted				4 years
Award amortization period				4 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 18.23	$ 18.63	$ 27.03
Grants (shares)				356,000	602,000	864,000
Restricted shares, future service required				1,362,000	2,004,000	3,383,000	5,242,000
Restricted Stock Units (RSUs) [Member] | Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 9.68
Grants (shares)				3,434,000
Restricted shares, future service required				3,434,000	0
Restricted Stock Units (RSUs) [Member] | Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for award granted				3 years
Value of shares to be granted to each non employee director | $				$ 120,000
Restricted Stock Units (RSUs) [Member] | Dividend Equivalents [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend equivalents declared on restricted stock units				108,000	106,000
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 13.53	$ 18.13
Restricted Stock Units (RSUs) [Member] | Dividend Equivalents [Member] | Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend equivalents declared on restricted stock units				47,000
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 13.63
Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock available for grant				340,759
Shares issuable upon settlement of deferred shares				307,322
Stock Appreciation Rights (SARs) [Member] | 1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (shares)				0
Other Shares Issuable [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other shares issuable				800,000
Future Service Required [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares, future service required				1,362,000
Future Service Required [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 0.00	$ 0.00	$ 0.00
Grants (shares)				0	0	0
Restricted shares, future service required				68,000	3,388,000	4,238,000	4,793,000
Future Service Required [Member] | Restricted Stock Units (RSUs) [Member] | Incentive Plan and Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares, future service required				3,502,000
No Future Service Required [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants, weighted average grant date fair value (USD per share) | $ / shares				$ 14.21	$ 18.95	$ 20.89
Grants (shares)				128,000	121,000	97,000
Restricted shares, no future service required				10,348,000	8,583,000	8,467,000	8,316,000
Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award performance measurement period	3 years
Percentage of compensation beyond base salary will be performance-based	100.00%
Employee service share-based compensation, holding period	3 years
Stock price | $ / shares					$ 17.39
Performance measurement benchmark, percentage	8.00%
Additional incentive compensation, percentage	50.00%
Employees [Member] | 1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of annual installments | Installment				5
Director [Member] | 1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of annual installments | Installment				4
Minimum [Member] | Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement benchmark, percentage	4.00%
Number of awards eligible	846,882
Maximum [Member] | Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | Senior Executive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement benchmark, percentage	12.00%
Number of awards eligible	1,693,766
Subsequent Event [Member] | Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | 2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement benchmark, percentage			8.00%
Subsequent Event [Member] | Minimum [Member] | Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | 2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement benchmark, percentage			4.00%
Number of awards eligible			537,634
Subsequent Event [Member] | Maximum [Member] | Senior Executives [Member] | Restricted Stock Units (RSUs) [Member] | 2017 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance measurement benchmark, percentage			12.00%
Number of awards eligible			1,075,268
Additional incentive compensation, percentage			50.00%

XML

Compensation Plans (Activity of Restricted Stock) (Details) - Restricted Stock [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Balance, beginning of period (shares)	2,004	3,383	5,242
Grants (shares)	356	602	864
Forfeited (shares)	(24)	(94)	(202)
Fulfillment of service requirement (shares)	(974)	(1,887)	(2,521)
Balance, end of period (shares)	1,362	2,004	3,383
Weighted- Average Grant Date Fair Value
Balance, beginning of period (USD per share)	$ 24.56	$ 27.00	$ 26,940.00
Grants (USD per share)	18.23	18.63	27.03
Forfeited (USD per share)	26.90	28.12	26.90
Fulfillment of service requirement (USD per share)	25.65	26.87	26.89
Balance, end of period (USD per share)	$ 22.09	$ 24.56	$ 27.00

XML

Compensation Plans (Activity of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Future Service Required [Member]
Shares
Balance, beginning of period (shares)	3,388	4,238	4,793
Grants (shares)	0	0	0
Distributions of underlying shares	0	0	0
Forfeited (shares)	0	(626)	(135)
Fulfillment of service requirement (shares)	(3,320)	(224)	(420)
Balance, end of period (shares)	68	3,388	4,238
Weighted- Average Grant Date Fair Value
Balance, beginning of period (USD per share)	$ 26.90	$ 26.90	$ 26.90
Grants (USD per share)	0.00	0.00	0.00
Distribution of underlying shares (USD per share)	0.00	0.00	0.00
Forfeited (USD per share)	0.00	26.90	26.90
Fulfillment of service requirement (USD per share)	26.90	26.90	26.90
Balance, end of period (USD per share)	$ 26.90	$ 26.90	$ 26.90
No Future Service Required [Member]
Shares
Balance, beginning of period	8,583	8,467	8,316
Grants (shares)	128	121	97
Distributions of underlying shares	(1,683)	(229)	(366)
Forfeited (shares)	0	0	0
Fulfillment of service requirement (shares)	(3,320)	(224)	(420)
Balance, end of period	10,348	8,583	8,467
Weighted- Average Grant Date Fair Value
Balance, beginning of period (USD per share)	$ 26.68	$ 26.79	$ 26.86
Grants (USD per share)	14.21	18.95	20.89
Distribution of underlying shares (USD per share)	26.59	22.34	26.85
Forfeited (USD per share)	0.00	0.00	0.00
Fulfillment of service requirement (USD per share)	26.90	26.90	26.90
Balance, end of period, weighted average grant date fair value (USD per share)	$ 26.61	$ 26.68	$ 26.79
Senior Executive Compensation Plan [Member]
Shares
Balance, beginning of period (shares)	0
Grants (shares)	3,434
Forfeited (shares)	0
Balance, end of period (shares)	3,434	0
Weighted- Average Grant Date Fair Value
Balance, beginning of period (USD per share)	$ 0.00
Grants (USD per share)	9.68
Forfeited (USD per share)	0.00
Balance, end of period (USD per share)	$ 9.68	$ 0.00

XML

Compensation Plans (Summary Of Company's Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Common Shares Subject to Option
Beginning balance (shares)	661,272	1,640,034	2,417,248
Granted (shares)	0	0	0
Exercised (shares)	0	(2,030)	(35,536)
Cancelled (shares)	(19,794)	(976,732)	(741,678)
Ending balance (shares)	641,478	661,272	1,640,034
Exercisable (shares)	503,430
Weighted- Average Exercise Prices
Weighted-Average Exercise Prices, Beginning balance (USD per share)	$ 24.97	$ 24.91	$ 25.64
Weighted-Average Exercise Prices, Granted (USD per share)	0.00	0.00	0.00
Weighted-Average Exercise Prices, Exercised (USD per share)	0.00	21.66	22.87
Weighted-Average Exercise Prices, Cancelled (USD per share)	30.49	24.88	27.39
Weighted-Average Exercise Prices, Ending balance (USD per share)	24.80	$ 24.97	$ 24.91
Weighted-Average Exercise Prices, Exercisable (USD per share)	$ 25.31
Weighted-Average Remaining Contractual Term	1 year 1 month 6 days
Weighted-Average Remaining Contractual Term, Exercisable	9 months 18 days
Aggregate Intrinsic Value, Exercised	$ 0	$ 6	$ 58
Aggregate Intrinsic Value, Outstanding	144
Aggregate Intrinsic Value, Exercisable	$ 93

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Accumulated Other Comprehensive Income (Summary Of Accumulated Other Comprehensive Income, Net Of Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net	$ 310,697	$ 438,793	$ 447,082
Net unrealized gains on available for sale securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net	561,497	557,601	577,588
Net unrealized foreign exchange losses [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net	(184,829)	(63,248)	(26,771)
Net change in instrument specific credit risk [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net	(6,494)	0	0
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, net	$ (59,477)	$ (55,560)	$ (103,735)

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Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income Reclassifications) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized securities gains	$ 29,542	$ 62,957	$ 30,394
Income tax provision	122,109	109,947	$ 165,971
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,534)	(31,102)
Reclassification from AOCI, current period, tax	(700)	(17,159)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,530)	(20,172)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net unrealized gains (losses) on available for sale securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net realized securities gains	4	10,930
Income tax provision	$ 2	$ 6,068

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Pension Plans And Postretirement Benefits (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) portfolio	Dec. 31, 2015 USD ($) participant	Dec. 31, 2014 USD ($)
Pension Plan Disclosure [Line Items]
Number of portfolios | portfolio	2
Pension expense	$ 9,600	$ 9,600	$ 9,300
U.S. Pension Plans [Member]
Pension Plan Disclosure [Line Items]
Settlement charge	0	40,973	$ 0
Charge to accumulated other comprehensive income (loss)	58,900	54,000
Accrued pension cost	77,900	$ 89,300
Estimated net loss that will be amortized from AOCI next year	2,200
Estimated employer contributions in 2017	$ 11,800
U.S. Pension Plans [Member] | WilTel [Member]
Pension Plan Disclosure [Line Items]
Number of participants offered | participant		4,000
Number of participants accepted | participant		2,400
Distributions paid		$ 110,700
Settlement charge		$ 40,700
Current expected inflation rate	2.25%
Equity Risk Premium over Cash	4.00%
Expected long-term rate of return assumption	7.00%	4.00%
U.S. Pension Plans [Member] | WilTel [Member] | Minimum [Member]
Pension Plan Disclosure [Line Items]
Long Duration Risk Free Real Rate of Return	1.00%
Return Premium for Corporate Credit Risk	1.00%
U.S. Pension Plans [Member] | WilTel [Member] | Maximum [Member]
Pension Plan Disclosure [Line Items]
Long Duration Risk Free Real Rate of Return	1.50%
Return Premium for Corporate Credit Risk	1.50%
U.S. Pension Plans [Member] | Jefferies [Member]
Pension Plan Disclosure [Line Items]
Expected long-term rate of return assumption	6.25%	6.75%
Maximum percentage of investment in equity in one company	5.00%
Maximum percentage of investment in equity of one sector	10.00%
Minimum percentage of fixed income portfolio invested in investment grade securities rated BBB-/Baa3, including cash and cash equivalents	75.00%
U.S. Pension Plans [Member] | Corporate Equity Securities [Member] | Jefferies [Member]
Pension Plan Disclosure [Line Items]
Target allocation of plan assets	50.00%
U.S. Pension Plans [Member] | Fixed Income [Member] | Jefferies [Member]
Pension Plan Disclosure [Line Items]
Target allocation of plan assets	50.00%
German Pension Plan [Member]
Pension Plan Disclosure [Line Items]
Charge to accumulated other comprehensive income (loss)	$ 5,700	$ 4,900
Investment in Insurance contract	$ 15,200	$ 15,300

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Pension Plans And Postretirement Benefits (Components Of Defined Benefit Pension Plans) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S. Pension Plans [Member]
Change in Benefit Obligation [Roll Forward]
Projected benefit obligation at beginning of year	$ 207,025	$ 352,126
Interest cost	8,464	12,958	$ 14,239
Actuarial (gains) losses	(544)	(35,799)
Benefits paid	(9,540)	(122,260)
Projected benefit obligation at end of year	205,405	207,025	352,126
Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	117,719	240,010
Actual return on plan assets	2,947	(250)
Employer contributions	19,100	1,000
Administrative expenses	(2,712)	(781)
Fair value of plan assets at end of year	127,514	117,719	240,010
Funded status at end of year	(77,891)	(89,306)
German Pension Plan [Member]
Change in Benefit Obligation [Roll Forward]
Projected benefit obligation at beginning of year	23,545	28,434
Interest cost	529	523	801
Actuarial (gains) losses	(1,157)	40
Currency adjustment	39	(4,303)
Benefits paid	(1,104)	(1,069)
Projected benefit obligation at end of year	$ 24,166	$ 23,545	$ 28,434

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Pension Plans And Postretirement Benefits (Components Of Pension Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S. Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 8,464	$ 12,958	$ 14,239
Expected return on plan assets	(7,589)	(10,581)	(10,115)
Settlement charge	0	(40,973)	0
Actuarial losses	1,908	6,963	4,634
Net periodic pension cost	2,783	50,313	8,758
Net (gain) loss arising during the period	6,811	(24,186)	52,027
Amortization of net loss	(1,908)	(6,963)	(4,634)
Total recognized in other comprehensive income (loss)	4,903	(72,122)	47,393
Net amount recognized in net periodic benefit cost and other comprehensive income (loss)	7,686	(21,809)	56,151
German Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	40
Interest cost	529	523	801
Net amortization	326	325	244
Net periodic pension cost	$ 855	$ 848	$ 1,085

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Pension Plans And Postretirement Benefits (Schedule Of Assumptions For Pensions Plan) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
U.S. Pension Plans [Member] | WilTel [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	3.85%	4.00%
Discount rate, weighted-average assumptions used to determine net cost	4.00%	3.76%
Expected long-term return on plan assets, weighted-average assumptions used to determine net cost	7.00%	4.00%
U.S. Pension Plans [Member] | Jefferies [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	3.90%	4.10%
Discount rate, weighted-average assumptions used to determine net cost	4.10%	4.30%
Expected long-term return on plan assets, weighted-average assumptions used to determine net cost	6.25%	6.75%
German Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate used to determine benefit obligation	1.70%	2.20%
Discount rate, weighted-average assumptions used to determine net cost	2.20%	2.10%

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Pension Plans And Postretirement Benefits (Schedule Of Plan's Assets At Fair Value) (Details) - U.S. Pension Plans [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	$ 127,514	$ 117,719	$ 240,010
Jefferies [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	49,992	47,031
Jefferies [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	38,847	33,618
Jefferies [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	11,145	13,413
Jefferies [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	1,135	487
Jefferies [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	1,135	487
Jefferies [Member] | Cash and Cash Equivalents [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Listed Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	32,342	29,156
Jefferies [Member] | Listed Equity Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	32,342	29,156
Jefferies [Member] | Listed Equity Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	4,906	6,598
Jefferies [Member] | Corporate Debt Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Corporate Debt Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	4,906	6,598
Jefferies [Member] | Foreign Corporate Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	1,835	2,140
Jefferies [Member] | Foreign Corporate Debt Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Foreign Corporate Debt Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	1,835	2,140
Jefferies [Member] | U.S. Government Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	5,370	3,975
Jefferies [Member] | U.S. Government Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	5,370	3,975
Jefferies [Member] | U.S. Government Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Agency Mortgage-Backed Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	3,330	3,504
Jefferies [Member] | Agency Mortgage-Backed Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Agency Mortgage-Backed Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	3,330	3,504
Jefferies [Member] | Commercial Mortgage Backed Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	591	425
Jefferies [Member] | Commercial Mortgage Backed Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Commercial Mortgage Backed Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	591	425
Jefferies [Member] | Asset-Backed Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	483	746
Jefferies [Member] | Asset-Backed Securities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
Jefferies [Member] | Asset-Backed Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	483	746
WilTel [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	77,522	70,688
WilTel [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	919	9,014
WilTel [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	76,603	61,674
WilTel [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	919	3,026
WilTel [Member] | Cash and Cash Equivalents [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	919	3,026
WilTel [Member] | Cash and Cash Equivalents [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0	0
WilTel [Member] | Growth Portfolio [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	51,852
WilTel [Member] | Growth Portfolio [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0
WilTel [Member] | Growth Portfolio [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	51,852
WilTel [Member] | Liability-Driven Investing Portfolio [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	24,751
WilTel [Member] | Liability-Driven Investing Portfolio [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	0
WilTel [Member] | Liability-Driven Investing Portfolio [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value	$ 24,751
WilTel [Member] | U.S. Government and Agencies [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		5,988
WilTel [Member] | U.S. Government and Agencies [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		5,988
WilTel [Member] | U.S. Government and Agencies [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		0
WilTel [Member] | Public Utilities [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		8,978
WilTel [Member] | Public Utilities [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		0
WilTel [Member] | Public Utilities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		8,978
WilTel [Member] | All Other Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		52,696
WilTel [Member] | All Other Corporate Bonds [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		0
WilTel [Member] | All Other Corporate Bonds [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Plan assets at fair value		$ 52,696

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Pension Plans And Postretirement Benefits (Schedule Of Expected Pension Benefit Payments) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2017	$ 10,214
2018	9,841
2019	9,879
2020	9,828
2021	9,625
2022 - 2026	66,359
German Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2017	1,142
2018	1,147
2019	1,122
2020	1,169
2021	1,177
2022 - 2026	$ 5,814

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Income Taxes (Schedule Of Provision (Benefit) For Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current taxes:
Federal	$ (574)	$ 709	$ 746
State and local	8,672	(25,308)	17,232
Foreign	(4,620)	3,504	12,375
Total current income taxes	3,478	(21,095)	30,353
Deferred taxes:
Federal	108,241	134,590	97,190
State and local	8,335	4,552	30,707
Foreign	2,055	(8,100)	7,721
Total deferred income taxes	118,631	131,042	135,618
Actual income tax provision	$ 122,109	$ 109,947	$ 165,971

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Increase of income taxes provision	$ 24,907	$ 0	$ 0
Net interest expense related to unrecognized tax benefits	8,600	4,200	$ 9,200
Interest accrued related to unrecognized tax benefits	47,700	39,100
Expected decrease in unrecognized tax benefit related to uncertain tax position over next 12 months	3,700
NOLs to offset federal minimum taxable income	258,600
Valuation allowance	106,042	97,177
Undistributed earnings of foreign subsidiaries	157,000	205,000
Deferred tax liability not recorded on earnings of foreign subsidiaries permanently invested abroad	55,000	$ 59,000
Subsidiary [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	1,800,000
Consolidated Tax Group [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	1,600,000
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	56,300
Valuation allowance	$ 6,700

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Income Taxes (Components of Income from Continuing Operations before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S.	$ 337,374	$ 336,856	$ 374,547
Non-U.S.	(20,944)	19,680	6,675
Income from continuing operations before income taxes	$ 316,430	$ 356,536	$ 381,222

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Income Taxes (Schedule Of Principal Components Of Deferred Taxes) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net operating loss carryover	$ 1,262,584	$ 1,375,759
Compensation and benefits	309,100	284,761
Long-term debt	54,102	89,160
Other assets	165,777	162,393
Securities valuation reserves	12,345	32,141
Intangible assets, net and goodwill	311	6,855
Other liabilities	39,188	40,393
Gross tax assets	1,843,407	1,991,462
Valuation allowance	(106,042)	(97,177)
Total deferred tax assets, net	1,737,365	1,894,285
Unrealized gains on investments	(998)	(5,335)
Amortization of intangible assets	(107,437)	(103,561)
Property and equipment	(14,228)	(4,151)
Investment in FXCM	(117,594)	(147,700)
Other	(35,293)	(58,170)
Gross tax liability	(275,550)	(318,917)
Net deferred tax asset	$ 1,461,815	$ 1,575,368

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Income Taxes (Schedule Of Reconciliation Of Expected Statutory Federal Income Tax To Actual Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Computed expected federal income tax, Amount	$ 110,751	$ 124,788	$ 133,428
State and local income taxes, net of federal income tax benefit, Amount	1,045	(6,928)	31,160
International operations (including foreign rate differential), Amount	(3,405)	(10,130)	(14,305)
Increase (decrease) in valuation allowance, Amount	2,825	(13,227)	(22,203)
Permanent differences, Amount	7,523	8,064	6,181
Tax exempt income, Amount	(4,640)	(6,789)	(6,812)
Income allocated to noncontrolling interest, not subject to tax, Amount	(22,512)	11,039	3,270
Excess stock detriment, Amount	24,907	0	0
Nondeductible settlements, Amount	0	0	24,500
Foreign taxes, Amount	268	(2,989)	2,542
Other, Amount	5,347	6,119	8,210
Actual income tax provision	$ 122,109	$ 109,947	$ 165,971
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Computed expected federal income tax, Percent	35.00%	35.00%	35.00%
State and local income taxes, net of federal income tax benefit, Percent	0.30%	(1.90%)	8.20%
International operations (including foreign rate differential), Percent	(1.10%)	(2.80%)	(3.80%)
Increase (decrease) in valuation allowance, Percent	0.90%	(3.70%)	(5.80%)
Permanent differences, Percent	2.40%	2.30%	1.60%
Tax exempt income, Percent	(1.50%)	(1.90%)	(1.80%)
Income allocated to noncontrolling interest, not subject to tax, Percent	(7.10%)	3.10%	0.90%
Excess stock detriment, Percent	7.90%	0.00%	0.00%
Nondeductible settlements, Percent	0.00%	0.00%	6.40%
Foreign taxes, Percent	0.10%	(1.00%)	0.70%
Other, Percent	1.70%	1.70%	2.10%
Actual income tax provision, Percent	38.60%	30.80%	43.50%

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Income Taxes (Schedule Of Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Balance at beginning of period	$ 150,867	$ 148,590	$ 145,520
Increases based on tax positions related to current period	5,045	3,475	5,630
Increases based on tax positions related to prior periods	3,697	22,030	4,340
Decreases based on tax positions related to prior periods	(9,414)	(15,349)	(3,940)
Decreases related to settlements with taxing authorities	(1,347)	(7,879)	(2,960)
Balance at end of period	$ 148,848	$ 150,867	$ 148,590

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Net Realized Securities Gains (Losses) (Summary Of Net Securities Gains (Losses)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Gain (Loss) on Investments [Abstract]
Net realized gains (losses) on securities	$ (286)	$ 14,112	$ 30,686
Other	29,828	48,845	(292)
Net securities gains (losses)	$ 29,542	62,957	$ 30,394
Investment recovery		$ 35,000

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Net Realized Securities Gains (Losses) (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Gain (Loss) on Investments [Abstract]
Proceeds from sales of investments	$ 500.0	$ 1,900.0	$ 1,900.0
Gross gains	0.1	16.9	$ 12.6
Gross losses	$ 0.4	$ 2.8

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Other Results of Operations Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Nonoperating Income (Expense) [Abstract]
Manufacturing revenues	$ 412,826	$ 391,920	$ 379,274
Income (loss) from managed funds	(69,038)	(37,237)	12,251
Asset management fees	29,492	34,777	27,990
Dividend income	3,856	5,482	7,379
Income from associated companies classified as other revenues	17,184	75,717	90,242
Revenues of oil and gas exploration and development businesses	49,890	45,939	19,373
Gain on sale of equity interest	0	0	22,714
Other	43,976	32,630	11,242
Total other income	488,186	549,228	570,465
Taxes other than income or payroll	35,400	21,900	17,000
Advertising costs	$ 20,000	$ 18,100	$ 14,500

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Common Shares and Earnings (Loss) Per Common Share (Earnings Per Share Computation) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Leucadia National Corporation common shareholders	$ 137,171	$ 154,358	$ 57,289	$ (222,880)	$ 55,595	$ (173,173)	$ 16,406	$ 380,759	$ 125,938	$ 279,587	$ 204,306
Allocation of earnings to participating securities									(574)	(4,711)	(4,761)
Net income attributable to Leucadia National Corporation common shareholders for basic earnings (loss) per share									125,364	274,876	199,545
Adjustment to allocation of earnings to participating securities related to diluted shares									(19)	(34)	(75)
Mandatorily redeemable convertible preferred share dividends									0	0	0
Interest on 3.75% Convertible Notes									0	0	739
Net income attributable to Leucadia National Corporation common shareholders for diluted earnings (loss) per share									$ 125,345	$ 274,842	$ 200,209
Denominator for basic earnings (loss) per share – weighted average shares (shares)	369,299,000	370,404,000	372,556,000	372,367,000	369,840,000	372,547,000	373,654,000	373,541,000	371,211,000	372,430,000	371,889,000
Warrants (shares)									0	0	0
Mandatorily redeemable convertible preferred shares (shares)									0	0	0
Denominator for diluted earnings (loss) per share (shares)	374,693,000	374,567,000	372,556,000	372,367,000	369,840,000	372,547,000	373,662,000	377,713,000	371,518,000	372,431,000	373,333,000
Weighted average shares of participating securities									1,986,800	6,500,000	9,040,900
Dividends declared on participating securities									$ 400	$ 1,500	$ 2,200
3.875% Convertible Senior Debentures, due November 1, 2029 [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Convertible Debenture/Notes (shares)									0	0	0
3.75% Convertible Senior Subordinated Notes Due April 15, 2014 [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Convertible Debenture/Notes (shares)									0	0	1,415,000
Employee Stock Option [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive effect of share-based payment arrangements (shares)									0	1,000	29,000
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Dilutive effect of share-based payment arrangements (shares)									307,000	0	0

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Common Shares and Earnings (Loss) Per Common Share (Narrative) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common shares authorized to repurchase	16,161,588
3.875% Convertible Senior Debentures, due November 1, 2029 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Convertible notes interest rate	3.875%	3.875%	3.875%
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share amount	923,077	4,000,000	4,000,000
Exercise price	$ 33.33	$ 33.33	$ 33.33
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share amount	656,894	1,000,137	1,572,777
Redeemable Convertible Preferred Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share amount	4,162,200	4,162,200	4,162,200

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Commitments, Contingencies And Guarantees (Narrative) (Details) plaintif in Thousands, € in Millions		1 Months Ended		12 Months Ended
	Dec. 30, 2004 USD ($)	Jan. 31, 2017 EUR (€)	Aug. 31, 2014 USD ($)	Dec. 31, 2016 USD ($) plaintif	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jan. 31, 2017 USD ($)	Jan. 31, 2017 EUR (€)	Mar. 18, 2015 USD ($)
Loss Contingencies [Line Items]
Rental expense (net of sublease rental income)				$ 80,400,000	$ 84,000,000	$ 79,600,000
Loan commitments outstanding to clients				$ 182,100,000
Approximate number of plaintiffs | plaintif				124
Amount accrued for estimated probable losses in connection with litigation									$ 50,000,000
Fair value of derivative contracts meeting the definition of a guarantee				$ 313,100,000
Jefferies Capital Partners LLC And Its Private Equity Funds [Member]
Loss Contingencies [Line Items]
Equity commitments				23,100,000
Account Managed by Folger Hill Asia [Member]
Loss Contingencies [Line Items]
Equity commitments				125,000,000
Other Various Investments [Member]
Loss Contingencies [Line Items]
Equity commitments				23,400,000
Folger Hill Asset Management LLC [Member]
Loss Contingencies [Line Items]
Entity line of credit facility, Term			3 years
Entity line of credit facility			$ 20,000,000
Amount funded under credit facility				9,400,000
National Beef [Member]
Loss Contingencies [Line Items]
Service charge commitments for city improvements	$ 19,300,000
Service charge commitment for city improvements, duration of payments	20 years
Service charge commitments for city improvements, remaining amount				5,800,000
Service charge commitment future payment for city improvements, 2017				800,000
Service charge commitment future payment for city improvements, 2018				800,000
Service charge commitment for city improvements remaining balance to be paid in subsequent years				4,100,000
Purchase commitments				103,800,000
Letters of credit				12,500,000
54 Madison [Member]
Loss Contingencies [Line Items]
Maximum amount committed to invest as per agreement				225,000,000.0
Amount of contributed commitment				114,900,000
Approved unfunded commitment				37,400,000
Jefferies Finance [Member]
Loss Contingencies [Line Items]
Line of credit commitment to associated companies, funded portion				0	19,300,000
Line of credit facility commitment of Jefferies				250,000,000	$ 250,000,000
Maximum amount payable under guarantee				18,100,000
Energy Partners I, LP [Member]
Loss Contingencies [Line Items]
Maximum exposure to loss of guarantee				3,000,000
Jefferies [Member] | Standby Letters Of Credit [Member]
Loss Contingencies [Line Items]
Letters of credit				$ 33,300,000
Berkadia [Member]
Loss Contingencies [Line Items]
Reimbursement of losses incurred, maximum percentage				50.00%
Surety policy issued				$ 2,500,000,000
Aggregate amount of commercial paper outstanding				1,470,000,000
Other Subisidiaries [Member]
Loss Contingencies [Line Items]
Letters of credit				$ 13,600,000
Minimum [Member]
Loss Contingencies [Line Items]
Noncancellable operating lease terms				1 year
Maximum [Member]
Loss Contingencies [Line Items]
Noncancellable operating lease terms				23 years
Subsequent Event [Member]
Loss Contingencies [Line Items]
Payments to Acquire Equity Method Investments							$ 75,000,000
Subsequent Event [Member] | Preferred Equity Financing for Linkem [Member]
Loss Contingencies [Line Items]
Equity investments in related funds | €								€ 30
Subsequent Event [Member] | Linkem [Member]
Loss Contingencies [Line Items]
Preferred Equity Financing | €		€ 100
Empire Insurance Company [Member]
Loss Contingencies [Line Items]
Lease obligations				$ 20,800,000
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Debt instrument, term				1 year

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Commitments, Contingencies And Guarantees (Future Minimum Lease Commitments For Noncancelable Operating Leases) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 91,057
2018	87,405
2019	76,194
2020	62,186
2021	57,704
Thereafter	572,845
Future minimum annual rentals	947,391
Less: sublease income	(19,204)
Future minimum annual rentals net of sublease income	$ 928,187

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Commitments, Contingencies And Guarantees (Commitments And Contingencies) (Details) $ in Millions	Dec. 31, 2016 USD ($)
Guarantor Obligations [Line Items]
2017	$ 8,065.0
2018	76.0
2019 and 2020	89.4
2021 and 2022	77.8
2023 and Later	256.5
Maximum Payout	8,564.7
Equity Commitments [Member]
Guarantor Obligations [Line Items]
2017	192.4
2018	22.1
2019 and 2020	13.0
2021 and 2022	0.0
2023 and Later	243.3
Maximum Payout	470.8
Loan Commitments [Member]
Guarantor Obligations [Line Items]
2017	315.3
2018	16.9
2019 and 2020	71.6
2021 and 2022	44.0
2023 and Later	0.0
Maximum Payout	447.8
Underwriting Commitments [Member]
Guarantor Obligations [Line Items]
2017	349.4
2018	0.0
2019 and 2020	0.0
2021 and 2022	0.0
2023 and Later	0.0
Maximum Payout	349.4
Forward Starting Reverse Repos [Member]
Guarantor Obligations [Line Items]
2017	4,668.7
2018	0.0
2019 and 2020	0.0
2021 and 2022	0.0
2023 and Later	0.0
Maximum Payout	4,668.7
Other commitment, due in 2017 settled within three business days	4,592.9
Forward Starting Repos [Member]
Guarantor Obligations [Line Items]
2017	2,539.2
2018	0.0
2019 and 2020	0.0
2021 and 2022	0.0
2023 and Later	0.0
Maximum Payout	2,539.2
Other commitment, due in 2017 settled within three business days	2,464.6
Other Unfunded Commitments [Member]
Guarantor Obligations [Line Items]
2017	0.0
2018	37.0
2019 and 2020	4.8
2021 and 2022	33.8
2023 and Later	13.2
Maximum Payout	$ 88.8

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Commitments, Contingencies And Guarantees (Guarantees) (Details) - Notional [Member] $ in Millions	Dec. 31, 2016 USD ($)
Derivative Contracts - Non-Credit Related [Member]
Guarantor Obligations [Line Items]
2017	$ 18,838.6
2018	820.4
2019 and 2020	0.0
2021 and 2022	0.0
2023 and Later	421.8
Maximum Payout	20,080.8
Written Derivative Contracts - Credit Related [Member]
Guarantor Obligations [Line Items]
2017	0.0
2018	52.2
2019 and 2020	24.6
2021 and 2022	360.8
2023 and Later	0.0
Maximum Payout	437.6
Derivative [Member]
Guarantor Obligations [Line Items]
2017	18,838.6
2018	872.6
2019 and 2020	24.6
2021 and 2022	360.8
2023 and Later	421.8
Maximum Payout	$ 20,518.4

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Commitments, Contingencies And Guarantees (External Credit Ratings Of Underlying Or Referenced Assets For Credit Related Derivatives Contracts) (Details) $ in Millions	Dec. 31, 2016 USD ($)
Below Investment Grade [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	$ 0.0
Below Investment Grade [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	261.2
AAA/Aaa [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	54.0
AAA/Aaa [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
AA/Aa [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
AA/Aa [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
A [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
A [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	79.5
BBB/Baa [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
BBB/Baa [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	42.9
Unrated [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
Unrated [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Credit related derivative contracts by external credit ratings	0.0
Notional/Maximum Payout [Member] | Index credit default swaps [Member]
Guarantor Obligations [Line Items]
Notional/ Maximum Payout	54.0
Notional/Maximum Payout [Member] | Single name credit default swaps [Member]
Guarantor Obligations [Line Items]
Notional/ Maximum Payout	$ 383.6

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Net Capital Requirements (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Jefferies LLC [Member]
Net Capital Requirements [Line Items]
Net Capital	$ 1,467,729
Excess Net Capital	1,398,748
Jefferies Execution [Member]
Net Capital Requirements [Line Items]
Net Capital	8,260
Excess Net Capital	$ 8,010

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Other Fair Value Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term borrowings	$ 525,842	$ 310,659
Long-term debt	7,380,443	7,400,582
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes and loans receivable	962,938	488,690
Short-term borrowings	525,842	310,659
Long-term debt	7,131,587	7,400,582
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes and loans receivable	958,377	490,208
Short-term borrowings	525,842	310,659
Long-term debt	$ 7,221,459	$ 7,299,405

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Related Party Transactions (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($) cattle	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($) shares
Related Party Transaction [Line Items]
Head of cattle to be purchased per year from members of USPB, actual number | cattle		735,385
Percentage of cattle requirements obtained through USPB		27.00%	28.00%
Sales to related party		$ 30,900	$ 31,000
Purchases from related party		14,800	15,100
Long term debt		7,380,443	7,400,582
Jefferies [Member]
Related Party Transaction [Line Items]
Private equity related funds sold				$ 4,000
HomeFed Corporation [Member]
Related Party Transaction [Line Items]
Cash paid on acquisition of common shares				$ 14,000
Common shares acquired | shares				7,500,000
54 Madison [Member]
Related Party Transaction [Line Items]
Related party transaction amount	$ 86,500
Private Equity Related Funds [Member]
Related Party Transaction [Line Items]
Loans to and/or equity investments in related funds		37,700	39,600
Net income (losses) from private equity related funds		2,300	26,200	$ 14,900
Berkadia Commercial Mortgage, LLC [Member]
Related Party Transaction [Line Items]
Purchase commitments		817,000	752,400
Hrg Group [Member]
Related Party Transaction [Line Items]
Unsettled purchases and sales of loans			261,600
Employees [Member]
Related Party Transaction [Line Items]
Loans outstanding to related party		$ 41,200	28,300
Company Chairman [Member] | HomeFed Corporation [Member]
Related Party Transaction [Line Items]
Ownership percentage of company		4.80%
Term Loan [Member] | 54 Madison [Member]
Related Party Transaction [Line Items]
Long term debt		$ 406,028	116,211
Term Loan [Member] | Noncontrolling Interest [Member] | 54 Madison [Member]
Related Party Transaction [Line Items]
Long term debt		$ 230,200	$ 115,700
Minimum [Member] | Term Loan [Member] | 54 Madison [Member]
Related Party Transaction [Line Items]
Interest rate		4.20%
Maximum [Member] | Term Loan [Member] | 54 Madison [Member]
Related Party Transaction [Line Items]
Interest rate		6.00%

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Discontinued Operations And Assets Held For Sale (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2017	Jul. 31, 2014	Mar. 31, 2017	Sep. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain (loss) on sale of discontinued operations					$ 0	$ 7,836	$ 12,566
Premier [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration from sale of business		$ 250,000
Pre-tax gain (loss) on sale of discontinued operations				$ 12,100
Disposed of by Sale [Member] | Conwed [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net book value					100,600
Liabilities held for sale					$ 14,700
Subsequent Event [Member] | Disposed of by Sale [Member] | Conwed [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage	100.00%
Cash consideration from sale of business	$ 295,000
Potential earn-out payment to be received from sale of subsidiary, period	5 years
Pre-tax gain from sale of subsidiary			$ 180,000
Maximum [Member] | Subsequent Event [Member] | Disposed of by Sale [Member] | Conwed [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Potential earn-out payment to be received from sale of subsidiary	$ 40,000

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Discontinued Operations And Assets Held For Sale (Schedule of Assets Held for Sale) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 128,083	$ 0
Conwed [Member] | Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash	5,206
Receivables	15,297
Property, equipment and leasehold improvements, net	18,664
Intangible assets, net and goodwill	56,854
Inventory	19,069
Other assets	12,993
Assets held for sale	$ 128,083

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Discontinued Operations And Assets Held For Sale (Results Of Discontinued Operations) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income tax (benefit)									$ 0	$ 231	$ (9,634)
Loss from discontinued operations after income taxes	$ 0	$ 0	$ 0	$ 0	$ 0	$ 429	$ 0	$ 0	$ 0	$ 429	(17,893)
Discontinued Operating Companies [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues											67,739
Investment and other income											4,700
Total revenues											72,439
Direct operating expenses - Gaming entertainment											48,877
Compensation and benefits											4,503
Depreciation and amortization											5,208
Selling, general and other expenses											41,378
Total expenses											99,966
Loss from discontinued operations before income taxes											(27,527)
Income tax (benefit)											(9,634)
Loss from discontinued operations after income taxes											$ (17,893)

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Segment Information (Schedule Of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net Revenues	$ 2,745,778	$ 2,676,375	$ 2,625,358	$ 2,015,106	$ 2,496,216	$ 2,366,096	$ 2,839,463	$ 3,184,683	$ 10,062,617	$ 10,886,458	$ 11,486,485
Total consolidated pre-tax income from continuing operations									316,430	356,536	381,222
Depreciation and amortization									211,593	224,133	185,993
Assets	45,071,307				46,331,184				45,071,307	46,331,184	52,614,324
Unrealized and realized gains and interest income									603,822	642,824	662,213
Deferred tax asset, net	1,461,815				1,575,368				1,461,815	1,575,368
FXCM [Member]
Segment Reporting Information [Line Items]
Unrealized and realized gains and interest income									(54,600)	491,300
Jefferies [Member]
Segment Reporting Information [Line Items]
Deferred tax asset, net	337,600				320,200				337,600	320,200	399,600
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenues									9,536,888	9,956,674	10,879,469
Total consolidated pre-tax income from continuing operations									390,916	(49,045)	175,365
Depreciation and amortization									158,307	185,226	169,498
Assets	40,425,531				41,899,234				40,425,531	41,899,234	49,515,700
All other [Member]
Segment Reporting Information [Line Items]
Net Revenues									525,729	950,784	607,016
Total consolidated pre-tax income from continuing operations									(15,605)	492,762	305,752
Depreciation and amortization									53,286	38,907	16,495
Assets	4,728,457				4,581,673				4,728,457	4,581,673	3,152,029
Intercompany eliminations [Member]
Segment Reporting Information [Line Items]
Net Revenues									0	(21,000)	0
Assets	(82,681)				(149,723)				(82,681)	(149,723)	(53,405)
Parent Company Interest [Member]
Segment Reporting Information [Line Items]
Total consolidated pre-tax income from continuing operations									(58,881)	(87,181)	(99,895)
Jefferies [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenues									2,421,055	2,476,133	2,986,325
Total consolidated pre-tax income from continuing operations									43,508	119,165	358,396
Depreciation and amortization									60,206	92,165	78,566
Assets	36,992,096				38,607,786				36,992,096	38,607,786	44,562,155
National Beef [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenues									7,027,243	7,402,419	7,832,424
Total consolidated pre-tax income from continuing operations									329,022	(123,915)	(40,303)
Depreciation and amortization									94,482	89,317	85,305
Assets	1,498,317				1,514,249				1,498,317	1,514,249	1,716,069
Corporate and Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Revenues									88,590	78,122	60,720
Total consolidated pre-tax income from continuing operations									18,386	(44,295)	(142,728)
Depreciation and amortization									3,619	3,744	5,627
Assets	$ 1,935,118				$ 1,777,199				$ 1,935,118	$ 1,777,199	$ 3,237,476

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Segment Information (Schedule Of Net Revenues By Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 2,745,778	$ 2,676,375	$ 2,625,358	$ 2,015,106	$ 2,496,216	$ 2,366,096	$ 2,839,463	$ 3,184,683	$ 10,062,617	$ 10,886,458	$ 11,486,485
Jefferies [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									2,421,055	2,476,133	2,986,325
Americas [Member] | Jefferies [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									1,876,796	1,887,899	2,257,870
Europe [Member] | Jefferies [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									458,046	510,044	634,358
Asia [Member] | Jefferies [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues									$ 86,213	$ 78,190	$ 94,097

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Segment Information (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net realized securities gains	$ 29,542	$ 62,957	$ 30,394
Interest expense	108,703	115,804	120,935
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Net realized securities gains	16,400	63,000	30,400
National Beef [Member]
Segment Reporting Information [Line Items]
Interest expense	12,900	16,600	15,100
Parent Company [Member]
Segment Reporting Information [Line Items]
Net realized securities gains	0	0	0
Interest expense	58,881	87,181	99,895
All other [Member]
Segment Reporting Information [Line Items]
Interest expense	$ 36,900	$ 12,000	$ 5,900
U.S. | Geographic Concentration Risk [Member] | Total Revenues [Member] | National Beef [Member]
Segment Reporting Information [Line Items]
Concentration risk, percentage	89.20%	89.50%	88.00%

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Exit Costs - Narrative (Details) - Jefferies [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2015
Restructuring Cost and Reserve [Line Items]
Non-cash restructuring costs	$ 300,000	$ 28,700,000
Jefferies Senior Secured Revolving Credit Facility [Member]
Restructuring Cost and Reserve [Line Items]
Credit facility term loan, maximum amount			$ 750,000,000.0
Recognized costs related to credit facility termination		$ 3,800,000

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Exit Costs - Restructuring and Impairment Costs (Details) - Jefferies [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Impairment costs	$ 1,854	$ 73,094
Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	279	30,327
Accelerated Amortization of Restricted Stock and Restricted Cash Awards [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	41	7,922
Accelerated Amortization of Capitalized Software [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	0	19,745
Contract Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	1,234	11,247
Selling, General and Other Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Impairment costs	$ 300	$ 3,853

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Exit Costs - Restructuring Reserve (Details) - Jefferies [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016
Restructuring Reserve [Roll Forward]
Expenses	$ 73,094	$ 1,854
Severance Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0	4,805
Expenses	30,327	279
Payments	(25,522)	(5,084)
Ending balance	4,805	0
Other Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0	0
Expenses	2,774	300
Payments	(2,774)	(300)
Ending balance	0	0
Contract Termination Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0	0
Expenses	11,247	1,234
Payments	(11,247)	(1,234)
Ending balance	0	0
Restructuring Costs [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0	4,805
Expenses	44,348	1,813
Payments	(39,543)	(6,618)
Ending balance	4,805	0
Accelerated Amortization of Restricted Stock and Restricted Cash Awards [Member]
Restructuring Reserve [Roll Forward]
Expenses	7,922	41
Accelerated Amortization of Capitalized Software [Member]
Restructuring Reserve [Roll Forward]
Expenses	19,745	0
Impairments [Member]
Restructuring Reserve [Roll Forward]
Expenses	$ 1,079	$ 0

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Selected Quarterly Financial Data (Schedule of Selected Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Selected Quarterly Financial Information [Abstract]
Net revenues	$ 2,745,778	$ 2,676,375	$ 2,625,358	$ 2,015,106	$ 2,496,216	$ 2,366,096	$ 2,839,463	$ 3,184,683	$ 10,062,617	$ 10,886,458	$ 11,486,485
Income (loss) from continuing operations	166,105	176,206	70,612	(218,602)	39,038	(181,912)	15,034	374,429	194,321	246,589	215,251
Income from discontinued operations, net of taxes	0	0	0	0	0	429	0	0	0	429	(17,893)
Gain on disposal of discontinued operations, net of taxes	0	0	0	0	3,793	1,300	0	0	0	5,093	1,667
Net loss attributable to the noncontrolling interest	(2,256)	1,870	760	1,052	3,168	1,238	356	234	1,426	4,996	727
Net (income) loss attributable to the redeemable noncontrolling interests	(25,662)	(22,702)	(13,068)	(4,314)	10,612	6,788	2,031	7,112	(65,746)	26,543	8,616
Preferred stock dividends	(1,016)	(1,016)	(1,015)	(1,016)	(1,016)	(1,016)	(1,015)	(1,016)	(4,063)	(4,063)	(4,062)
Net income attributable to Leucadia National Corporation common shareholders	$ 137,171	$ 154,358	$ 57,289	$ (222,880)	$ 55,595	$ (173,173)	$ 16,406	$ 380,759	$ 125,938	$ 279,587	$ 204,306
Income (loss) from continuing operations (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.14	$ (0.47)	$ 0.04	$ 1.00	$ 0.34	$ 0.73	$ 0.58
Income (loss) from discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	(0.05)
Gain (loss) on disposal of discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.00	0.01	0.01
Net income (loss) (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.15	$ (0.47)	$ 0.04	$ 1.00	$ 0.34	$ 0.74	$ 0.54
Number of shares used in calculation - basic (shares)	369,299	370,404	372,556	372,367	369,840	372,547	373,654	373,541	371,211	372,430	371,889
Income (loss) from continuing operations (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.14	$ (0.47)	$ 0.04	$ 0.99	$ 0.34	$ 0.73	$ 0.58
Income (loss) from discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	(0.05)
Gain (loss) on disposal of discontinued operations - diluted (USD per share)	0.00	0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.00	0.01	0.01
Net income (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.15	$ (0.47)	$ 0.04	$ 0.99	$ 0.34	$ 0.74	$ 0.54
Number of shares used in calculation (shares)	374,693	374,567	372,556	372,367	369,840	372,547	373,662	377,713	371,518	372,431	373,333

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Schedule I - Condensed Financial Information of Registrant (Statements of Financial Condition) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 3,807,558	$ 3,638,648	$ 4,276,775	$ 3,907,595
Financial instruments owned, including securities pledged of $9,706,881 and $12,207,123:
Trading assets, at fair value	14,985,237	18,293,090
Available for sale securities	301,049	207,355
Total financial instruments owned	15,286,286	18,500,445
Loans to and investments in associated companies	2,125,098	1,757,369
Deferred tax asset, net	1,461,815	1,575,368
Other assets	1,635,664	1,473,464
Total assets	45,071,307	46,331,184	52,614,324
LIABILITIES
Payables, expense accruals and other liabilities	7,373,708	7,107,081
Long-term debt	7,380,443	7,400,582
Total liabilities	34,305,849	35,548,661
Commitments and contingencies
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares	125,000	125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425	362,617
Additional paid-in capital	4,812,587	4,986,819
Accumulated other comprehensive income	310,697	438,793	447,082
Retained earnings	4,645,391	4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100	10,401,211
Total	45,071,307	46,331,184
Parent Company [Member]
ASSETS
Cash and cash equivalents	105,222	353	$ 81	$ 266
Financial instruments owned, including securities pledged of $9,706,881 and $12,207,123:
Trading assets, at fair value	223,218	750,116
Available for sale securities	15,635	14,104
Total financial instruments owned	238,853	764,220
Investments in subsidiaries	18,412,037	18,348,067
Advances to subsidiaries	235,879	123,805
Loans to and investments in associated companies	273,518	244,206
Deferred tax asset, net	346,684	221,310
Other assets	13,993	64,572
Total assets	19,626,186	19,766,533
LIABILITIES
Accrued interest payable	11,447	11,447
Pension liabilities	69,152	78,007
Payables, expense accruals and other liabilities	39,284	103,438
Advances from subsidiaries	8,265,312	8,060,608
Long-term debt	987,891	986,822
Total liabilities	9,373,086	9,240,322
Commitments and contingencies
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares	125,000	125,000
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 359,425,061 and 362,617,423 shares issued and outstanding, after deducting 56,947,654 and 53,755,292 shares held in treasury	359,425	362,617
Additional paid-in capital	4,812,587	4,986,819
Accumulated other comprehensive income	310,697	438,793
Retained earnings	4,645,391	4,612,982
Total Leucadia National Corporation shareholders’ equity	10,128,100	10,401,211
Total	$ 19,626,186	$ 19,766,533

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Schedule I - Condensed Financial Information of Registrant (Statements of Financial Condition) (Parenthetical) (Details) - $ / shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Balance Sheet Statements, Captions [Line Items]
Common shares, par value (USD per share)	$ 1	$ 1	$ 1
Common shares, authorized	600,000,000	600,000,000
Common shares, issued and outstanding after deducting shares held in treasury	359,425,061	362,617,423
Treasury stock, shares	56,947,654	53,755,292
Parent Company [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Common shares, par value (USD per share)	$ 1	$ 1
Common shares, authorized	600,000,000	600,000,000
Common shares, issued and outstanding after deducting shares held in treasury	359,425,061	362,617,423
Treasury stock, shares	56,947,654	53,755,292

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Schedule I - Condensed Financial Information of Registrant (Statements of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Principal transactions									$ 603,822	$ 642,824	$ 662,213
Net realized securities gains									29,542	62,957	30,394
Other									488,186	549,228	570,465
Total revenues									10,875,254	11,683,927	12,334,907
Expenses:
Compensation and benefits									1,730,585	1,665,465	1,841,674
Interest expense									108,703	115,804	120,935
Selling, general and other expenses									807,312	750,435	795,878
Total expenses									9,900,785	10,640,203	11,243,790
Income related to associated companies									154,598	110,281	138,527
Income tax provision (benefit)									122,109	109,947	165,971
Income from continuing operations									125,938	274,065	220,584
Preferred stock dividends	$ (1,016)	$ (1,016)	$ (1,015)	$ (1,016)	$ (1,016)	$ (1,016)	$ (1,015)	$ (1,016)	(4,063)	(4,063)	(4,062)
Net income attributable to Leucadia National Corporation common shareholders	$ 137,171	$ 154,358	$ 57,289	$ (222,880)	$ 55,595	$ (173,173)	$ 16,406	$ 380,759	$ 125,938	$ 279,587	$ 204,306
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.14	$ (0.47)	$ 0.04	$ 1.00	$ 0.34	$ 0.73	$ 0.58
Income (loss) from discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.00	0.01	0.01
Net income (USD per share)	0.37	0.41	0.15	(0.60)	0.15	(0.47)	0.04	1.00	0.34	0.74	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)	0.37	0.41	0.15	(0.60)	0.14	(0.47)	0.04	0.99	0.34	0.73	0.58
Income from discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)	0.00	0.00	0.00	0.00	0.01	0.00	0.00	0.00	0.00	0.01	0.01
Net income (USD per share)	$ 0.37	$ 0.41	$ 0.15	$ (0.60)	$ 0.15	$ (0.47)	$ 0.04	$ 0.99	$ 0.34	$ 0.74	$ 0.54
Parent Company [Member]
Revenues:
Principal transactions									$ 16,735	$ 491,341	$ 0
Net realized securities gains									0	0	0
Other									2,300	1,477	752
Total revenues									19,035	492,818	752
Expenses:
Compensation and benefits									39,693	58,899	60,830
WilTel pension									2,989	50,836	9,298
Interest expense									58,881	87,181	99,895
Intercompany interest expense									293,527	241,906	178,027
Selling, general and other expenses									19,244	26,784	113,383
Total expenses									414,334	465,606	461,433
Income from continuing operations before income taxes and income related to associated companies									(395,299)	27,212	(460,681)
Income related to associated companies									21,195	3,479	3,763
Income (loss) from continuing operations before income taxes and equity in earnings of subsidiaries									(374,104)	30,691	(456,918)
Income tax provision (benefit)									(117,699)	267	(139,832)
Income (loss) from continuing operations before equity in earnings of subsidiaries									(256,405)	30,424	(317,086)
Equity in earnings of subsidiaries, net of taxes									386,406	247,704	541,680
Income from continuing operations									130,001	278,128	224,594
Equity in income (loss) from discontinued operations, net of taxes									0	429	(17,893)
Equity in gain on disposal of discontinued operations, net of taxes									0	5,093	1,667
Net income									130,001	283,650	208,368
Preferred stock dividends									(4,063)	(4,063)	(4,062)
Net income attributable to Leucadia National Corporation common shareholders									$ 125,938	$ 279,587	$ 204,306
Basic earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)									$ 0.34	$ 0.73	$ 0.58
Income (loss) from discontinued operations (USD per share)									0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)									0.00	0.01	0.01
Net income (USD per share)									0.34	0.74	0.54
Diluted earnings (loss) per common share attributable to Leucadia National Corporation common shareholders:
Income from continuing operations (USD per share)									0.34	0.73	0.58
Income from discontinued operations (USD per share)									0.00	0.00	(0.05)
Gain on disposal of discontinued operations (USD per share)									0.00	0.01	0.01
Net income (USD per share)									$ 0.34	$ 0.74	$ 0.54

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Schedule I - Condensed Financial Information of Registrant (Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)									$ 3,900	$ (9,057)	$ (8,866)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631									(4)	(10,930)	(2,939)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)									3,896	(19,987)	(11,805)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)									(121,581)	(36,477)	(43,307)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149									0	0	(267)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)									(121,581)	(36,477)	(43,574)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0									(6,494)	0	0
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0									0	0	0
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0									(6,494)	0	0
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0									0	0	0
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)									0	0	169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95									0	0	169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)									(5,451)	17,073	(38,959)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)									1,534	31,102	3,201
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)									(3,917)	48,175	(35,758)
Other comprehensive loss, net of income taxes									(128,096)	(8,289)	(90,968)
Preferred stock dividends	$ (1,016)	$ (1,016)	$ (1,015)	$ (1,016)	$ (1,016)	$ (1,016)	$ (1,015)	$ (1,016)	(4,063)	(4,063)	(4,062)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders									(2,158)	271,298	113,338
Parent Company [Member]
Condensed Statement of Income Captions [Line Items]
Net income									130,001	283,650	208,368
Other comprehensive income (loss):
Net unrealized holding gains (losses) on investments arising during the period, net of income tax provision (benefit) of $2,262, $(5,029) and $(4,923)									3,900	(9,057)	(8,866)
Less: reclassification adjustment for net (gains) losses included in net income (loss), net of income tax provision (benefit) of $2, $6,068 and $1,631									(4)	(10,930)	(2,939)
Net change in unrealized holding gains (losses) on investments, net of income tax provision (benefit) of $2,260, $(11,097) and $(6,554)									3,896	(19,987)	(11,805)
Net unrealized foreign exchange gains (losses) arising during the period, net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,837)									(121,581)	(36,477)	(43,307)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $149									0	0	(267)
Net change in unrealized foreign exchange gains (losses), net of income tax provision (benefit) of $(3,530), $(5,174) and $(6,986)									(121,581)	(36,477)	(43,574)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, net of income tax provision (benefit) of $(4,251), $0 and $0									(6,494)	0	0
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $0									0	0	0
Net change in unrealized instrument specific credit risk gains (losses), net of income tax provision (benefit) of $(4,251), $0 and $0									(6,494)	0	0
Net unrealized gains (losses) on derivatives arising during the period, net of income tax provision (benefit) of $0, $0 and $0									0	0	0
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), net of income tax provision (benefit) of $0, $0 and $(95)									0	0	169
Net change in unrealized derivative gains (losses), net of income tax provision (benefit) of $0, $0 and $95									0	0	169
Net pension gains (losses) arising during the period, net of income tax provision (benefit) of $(2,516), $7,152 and $(17,698)									(5,451)	17,073	(38,959)
Less: reclassification adjustment for pension (gains) losses included in net income (loss), net of income tax provision (benefit) of $(700), $(17,159) and $(1,676)									1,534	31,102	3,201
Net change in pension liability benefits, net of income tax provision (benefit) of $(1,816), $24,311 and $(16,022)									(3,917)	48,175	(35,758)
Other comprehensive loss, net of income taxes									(128,096)	(8,289)	(90,968)
Comprehensive income									1,905	275,361	117,400
Preferred stock dividends									(4,063)	(4,063)	(4,062)
Comprehensive income (loss) attributable to Leucadia National Corporation common shareholders									$ (2,158)	$ 271,298	$ 113,338

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Schedule I - Condensed Financial Information of Registrant (Statements of Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Statement of Income Captions [Line Items]
Net unrealized holding gains (losses) on investments arising during the period, tax provision (benefit)	$ 2,262	$ (5,029)	$ (4,923)
Less: reclassification adjustment for net (gains) losses included in net income (loss), tax provision (benefit)	(2)	(6,068)	(1,631)
Net change in unrealized holding gains (losses) on investments, tax provision (benefit)	2,260	(11,097)	(6,554)
Net unrealized foreign exchange gains (losses) arising during the period, tax provision (benefit)	(3,530)	(5,174)	(6,837)
Less: reclassification adjustment for foreign exchange (gains) losses included in net income (loss), tax provision (benefit)	0	0	(149)
Net change in unrealized foreign exchange gains (losses), tax provision (benefit)	(3,530)	(5,174)	(6,986)
Net unrealized gains (losses) on instrument specific credit risk arising during the period, income tax provision (benefit)	(4,251)	0	0
Less: reclassification adjustment for instrument specific credit risk (gains) losses included in net income (loss), income tax provision (benefit)	0	0	0
Net change in unrealized instrument specific credit risk gains (losses), income tax provision (benefit)	(4,251)	0	0
Net unrealized gains (losses) on derivatives arising during the period, tax provision (benefit)	0	0	0
Less: reclassification adjustment for derivative (gains) losses included in net income (loss), tax provision (benefit)	0	0	(95)
Net change in unrealized derivative gains (losses), tax provision (benefit)	0	0	95
Net pension and postretirement gains (losses) arising during the period, tax provision (benefit)	(2,516)	7,152	(17,698)
Less: reclassification adjustment for pension and postretirement (gains) losses included in net income (loss), tax provision (benefit)	(700)	(17,159)	(1,676)
Net change in pension liability and postretirement benefits, tax provision (benefit)	$ (1,816)	$ 24,311	$ (16,022)

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Schedule I - Condensed Financial Information of Registrant (Statements of Cash Flows) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Adjustments to reconcile net income to net cash provided by (used for) operations:
Deferred income tax benefit	$ 118,631	$ 131,042	$ 135,618
Share-based compensation	33,597	74,087	109,838
Income related to associated companies	(154,598)	(110,281)	(138,527)
Distributions from associated companies	191,455	223,658	176,491
Change in estimated litigation reserve	0	(96,500)	101,710
Net change in:
Trading assets	2,687,399	1,380,230	(3,223,327)
Other assets	(283,234)	83,414	(107,028)
Trade payables, expense accruals and other liabilities	361,295	(225,711)	(3,546)
Other	(61,900)	(93,967)	(68,163)
Net cash provided by (used for) operating activities	608,847	(761,755)	(987,160)
Net cash flows from investing activities:
Advances on notes, loans and other receivables	(342,281)	(420,219)	(8,500)
Collections on notes, loans and other receivables	121,825	153,004	22,002
Loans to and investments in associated companies	(763,528)	(1,492,060)	(2,959,689)
Purchases of investments (other than short-term)	(739,298)	(873,831)	(1,821,635)
Other	978	(2,532)	5,606
Net cash provided by (used for) investing activities	(639,657)	781,165	449,083
Net cash flows from financing activities:
Repayment of debt	(962,515)	(1,316,494)	(434,278)
Issuance of common shares	1,062	1,223	2,190
Purchase of common shares for treasury	(95,020)	(125,754)	(75,728)
Dividends paid	(91,296)	(92,550)	(93,071)
Net cash provided by (used for) financing activities	230,906	(651,983)	917,782
Net increase (decrease) in cash and cash equivalents	168,910	(638,127)	369,180
Cash and cash equivalents at January 1,	3,638,648	4,276,775	3,907,595
Cash and cash equivalents at December 31,	3,807,558	3,638,648	4,276,775
Supplemental disclosures of cash flow information:
Interest	957,140	980,266	1,038,201
Income tax payments, net	(13,738)	510	9,880
Non-cash financing activities:
Issuance of common shares for debt conversion	0	0	97,546
Parent Company [Member]
Net cash flows from operating activities:
Net income	130,001	283,650	208,368
Adjustments to reconcile net income to net cash provided by (used for) operations:
Deferred income tax benefit	(12,220)	(2,457)	(15,302)
Accretion of interest	921	1,788	2,029
Share-based compensation	33,597	74,087	109,838
Equity in earnings of subsidiaries	(386,406)	(253,226)	(525,454)
Income related to associated companies	(21,195)	(3,479)	(3,763)
Distributions from associated companies	1,861	312	2,429
Change in estimated litigation reserve	0	(88,500)	88,500
Net change in:
Trading assets	(40,235)	(615,768)	0
Other assets	(708)	(49,006)	(1,384)
Accrued interest payable	0	(10,982)	(762)
Pension liabilities	(13,111)	49,835	9,299
Trade payables, expense accruals and other liabilities	(23,218)	558	(15,127)
Income taxes receivable/payable, net	(90,898)	6,640	(5,374)
Other	1,262	5,110	4,153
Net cash provided by (used for) operating activities	(420,349)	(601,438)	(142,550)
Net cash flows from investing activities:
Investments in subsidiaries	(427,933)	(637,400)	(1,460,159)
Distributions from subsidiaries	868,612	119,695	97,331
Advances on notes, loans and other receivables	0	(279,000)	(6,500)
Collections on notes, loans and other receivables	16,233	144,652	6,500
Loans to and investments in associated companies	(11,611)	(8,101)	(1,399)
Capital distributions from associated companies	1,501	1,317	730
Purchases of investments (other than short-term)	(2,242)	(7,968)	(11,628)
Other	150	276	184
Net cash provided by (used for) investing activities	444,710	(666,529)	(1,374,941)
Net cash flows from financing activities:
Repayment of debt	0	(458,641)	(34)
Advances from (to) subsidiaries, net	265,762	1,943,961	1,683,949
Issuance of common shares	1,062	1,223	2,190
Purchase of common shares for treasury	(95,020)	(125,754)	(75,728)
Dividends paid	(91,296)	(92,550)	(93,071)
Net cash provided by (used for) financing activities	80,508	1,268,239	1,517,306
Net increase (decrease) in cash and cash equivalents	104,869	272	(185)
Cash and cash equivalents at January 1,	353	81	266
Cash and cash equivalents at December 31,	105,222	353	81
Supplemental disclosures of cash flow information:
Interest	57,813	95,074	96,847
Income tax payments, net	(10,199)	(2,332)	13,463
Non-cash investing activities:
Investments contributed to subsidiary	423,009	0	5,000
Investments transferred from subsidiary	2,022	0	43,602
Non-cash financing activities:
Issuance of common shares for debt conversion	$ 0	$ 0	$ 97,546

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Schedule I - Condensed Financial Information of Registrant (Transactions with Subsidiaries) (Details) - Parent Company [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Former Equity Holders of Jefferies Group Inc [Member]
Schedule of Equity Method Investments [Line Items]
Payments to former equity holders of Jefferies Group Inc		$ 70.0
Prime Rate [Member]
Schedule of Equity Method Investments [Line Items]
Basis spread on variable rate	0.125%

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Schedule I - Condensed Financial Information of Registrant (Restricted Net Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Registration Payment Arrangement [Line Items]
Undistributed earnings of unconsolidated subsidiaries	$ 126.2
Parent Company [Member]
Registration Payment Arrangement [Line Items]
Assets that may be restricted to the payment of cash dividends and advances	5,994.1	$ 6,264.4
Undistributed earnings of unconsolidated subsidiaries	126.2	117.1
Restricted Assets due to regulatory requirements or regulatory approvals [Member] | Parent Company [Member]
Registration Payment Arrangement [Line Items]
Assets that may be restricted to the payment of cash dividends and advances	$ 4,833.0	$ 5,202.7