Segment Information

12 Months Ended

Dec. 31, 2017

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, consumer-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. 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, and our investments in Berkadia, FXCM and HomeFed. Our other merchant banking businesses and investments primarily include Idaho Timber, Conwed, Vitesse, JETX, and our investments in HRG, Garcadia, Linkem and Golden Queen.

Certain information concerning our segments for the years ended December 31, 2017, 2016 and 2015 is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired. As discussed above, Jefferies is reflected in our consolidated financial statements utilizing a one month lag. 

	2017			2016			2015
				(In thousands)
Net Revenues:
Reportable Segments:
Jefferies	$	3,207,097		$	2,421,055		$	2,476,133
National Beef	7,358,948			7,027,243			7,402,419
Corporate and other	62,847			88,590			78,122
Total net revenues related to reportable segments	10,628,892			9,536,888			9,956,674
All other (1)	807,501			525,729			950,784
Intercompany eliminations (2)	—			—			(21,000		)
Total consolidated net revenues	$	11,436,393		$	10,062,617		$	10,886,458
Income (loss) from continuing operations before income taxes:
Reportable Segments:
Jefferies	$	527,804		$	43,508		$	119,165
National Beef	407,312			329,022			(123,915		)
Corporate and other	(78,926		)	18,386			(44,295		)
Income (loss) from continuing operations before income taxes related to reportable segments	856,190			390,916			(49,045		)
All other (1)	216,567			(15,605		)	492,762
Parent Company interest	(58,943		)	(58,881		)	(87,181		)
Total consolidated income from continuing operations before income taxes	$	1,013,814		$	316,430		$	356,536
Depreciation and amortization expenses:
Reportable Segments:
Jefferies	$	62,668		$	60,206		$	92,165
National Beef	98,515			94,482			89,317
Corporate and other	5,178			3,619			3,744
Total depreciation and amortization expenses related to reportable segments	166,361			158,307			185,226
All other	42,549			53,286			38,907
Total consolidated depreciation and amortization expenses	$	208,910		$	211,593		$	224,133
Identifiable assets employed:
Reportable Segments:
Jefferies (3)	$	39,575,732		$	36,992,096		$	38,607,786
National Beef	1,460,539			1,498,317			1,514,249
Corporate and other	2,006,536			1,935,118			1,777,199
Identifiable assets employed related to reportable segments	43,042,807			40,425,531			41,899,234
All other	4,196,622			4,728,457			4,581,673
Intercompany eliminations	(70,321		)	(82,681		)	(149,723		)
Total consolidated assets	$	47,169,108		$	45,071,307		$	46,331,184

(1) All other revenue and income from continuing operations before income taxes include $23.2 million and $(154.5) million, respectively, of realized and unrealized gains (losses) relating to our investment in FXCM for the year ended December 31, 2017. All other revenue and income from continuing operations before income taxes 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, 2017, 2016 and 2015, includes $213.0 million, $337.6 million and $320.2 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, 2017, 2016 and 2015 were as follows (in thousands):

	2017		2016		2015
Americas (1)	$	2,611,729	$	1,876,796	$	1,887,899
Europe (2)	489,583		458,046		510,044
Asia	105,785		86,213		78,190
	$	3,207,097	$	2,421,055	$	2,476,133

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

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

Approximately 88.8%, 89.2% and 89.5% of National Beef's revenues for the years ended December 31, 2017, 2016 and 2015, 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 2017, 2016 and 2015.

Net realized securities gains for Corporate and other aggregated $23.0 million, $16.4 million and $63.0 million during 2017, 2016 and 2015, respectively. 

Interest expense classified as a component of Net revenues relates to Jefferies. For the years ended December 31, 2017, 2016 and 2015, interest expense classified as a component of Expenses was primarily comprised of National Beef ($6.7 million, $12.9 million and $16.6 million, respectively), parent company interest ($58.9 million, $58.9 million and $87.2 million, respectively) and all other ($42.2 million, $36.9 million and $12.0 million, respectively).