XML 57 R38.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Information
 12 Months Ended
Nov. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
We are engaged in investment banking and capital markets, asset management and direct investing. During the first quarter of 2020, we changed our internal structure with regard to our operating segments. Previously, our segments consisted of (1) Investment Banking, Capital Markets and Asset Management, which included all of the financial results of Jefferies Group; (2) Merchant Banking; and (3) Corporate. In the first quarter of 2020, we appointed co-Presidents of Asset Management and created a separate operating segment that consists of the asset management activity previously included in our Investment Banking, Capital Markets and Asset Management segment, together with asset management activity previously included in our Merchant Banking segment. In order to compare results with prior periods, we have recast our segment results for the prior periods to conform to our current presentation.
The Investment Banking and Capital Markets segment includes investment banking, capital markets and other related services. Investment banking provides underwriting and financial advisory services to clients across most industry sectors in the Americas, Europe and Asia. Capital markets businesses operate across the spectrum of equities, fixed income and foreign exchange products. Related services include, among other things, prime brokerage and equity finance, research and strategy, corporate lending and real estate finance.
Our Asset Management segment includes both the operations of LAM as well as the asset management operations within Jefferies Group. Within Asset Management, we manage, invest in and provide services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. Asset Management offers institutional clients an innovative range of investment strategies through its affiliated managers.
Merchant Banking consists of our various merchant banking businesses and investments, primarily including Linkem, Vitesse Energy Finance and JETX Energy, real estate, Idaho Timber, FXCM and WeWork. Merchant Banking businesses and investments also included National Beef, prior to its sale in November 2019, Spectrum Brands, prior to its distribution to shareholders in October 2019, Berkadia, prior to its transfer to Jefferies Group in the fourth quarter of 2018, and Garcadia, prior to its sale in August 2018.
As discussed further in Notes 1 and 26, on June 5, 2018, we sold 48% of National Beef to Marfrig and deconsolidated our investment in National Beef. Results prior to June 5, 2018 are classified in discontinued operations and are not included in the table below. On November 29, 2019 we sold our remaining 31% interest in National Beef to Marfrig and other shareholders. Our retained 31% interest in National Beef was accounted for under the equity method, and results subsequent to the June 5, 2018 closing through November 29, 2019 are included in Merchant Banking in the table below.
Corporate assets primarily consist of cash and cash equivalents. Corporate revenues primarily include interest income.
Certain information concerning our segments is presented in the following table. Consolidated subsidiaries are reflected as of the date a majority controlling interest was acquired.
 Twelve Months Ended November 30, 2020Twelve Months Ended November 30, 2019Eleven Months Ended November 30, 2018
 (In thousands)
Net revenues:
Reportable Segments:
Investment Banking and Capital Markets$4,989,138 $3,035,988 $3,184,426 
Asset Management235,255 84,894 (14,280)
Merchant Banking764,460 735,213 577,278 
Corporate 13,258 32,833 22,300 
Total net revenues related to reportable segments6,002,111 3,888,928 3,769,724 
Consolidation adjustments8,763 4,048 (5,690)
Total consolidated net revenues$6,010,874 $3,892,976 $3,764,034 
Income (loss) from continuing operations before income taxes:   
Reportable Segments:   
Investment Banking and Capital Markets (1)$1,119,888 $347,050 $464,913 
Asset Management68,927 (41,126)(133,729)
Merchant Banking (1)(24,598)289,492 88,971 
Corporate
(55,619)(68,467)(66,140)
Income from continuing operations before income taxes related to reportable segments1,108,598 526,949 354,015 
Parent Company interest(53,445)(53,048)(54,090)
Consolidation adjustments11,930 4,707 (3,825)
Total consolidated income from continuing operations before income taxes
$1,067,083 $478,608 $296,100 
Depreciation and amortization expenses:   
Reportable Segments:   
Investment Banking and Capital Markets$82,334 $77,549 $67,467 
Asset Management5,247 2,042 1,324 
Merchant Banking 67,362 69,805 48,357 
Corporate
3,496 3,475 3,169 
Total consolidated depreciation and amortization expenses$158,439 $152,871 $120,317 
November 30, 2020November 30, 2019November 30, 2018
Identifiable assets employed:   
Reportable Segments:   
Investment Banking and Capital Markets (2)$44,835,126 $40,523,223 $38,617,201 
Asset Management3,231,059 3,313,716 2,633,585 
Merchant Banking3,173,064 3,285,671 4,164,605 
Corporate 2,178,699 2,432,119 1,838,037 
Identifiable assets employed related to reportable segments53,417,948 49,554,729 47,253,428 
Consolidation adjustments(299,596)(94,495)(122,333)
Total consolidated assets$53,118,352 $49,460,234 $47,131,095 

(1)Amounts related to Berkadia are included in Merchant Banking prior to their transfer to the Investment Banking and Capital Markets segment in the fourth quarter of 2018. Income from continuing operations before income taxes related to the net assets transferred were $78.7 million for the eleven months ended November 30, 2018.
(2)Includes $235.7 million, $197.7 million and $243.2 million at November 30, 2020, 2019 and 2018, respectively, of the deferred tax asset, net.
Net revenues for the Investment Banking and Capital Markets segment and Asset Management segment are recorded in the geographic region in which the position was risk-managed, in the case of Investment Banking and Capital Markets 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 were as follows (in thousands):
Twelve Months Ended November 30, 2020Twelve Months Ended November 30, 2019Eleven Months Ended November 30, 2018
Americas (1)$4,871,313 $3,188,353 $3,231,522 
Europe (2)853,674 592,087 436,861 
Asia Pacific285,887 112,536 95,651 
 $6,010,874 $3,892,976 $3,764,034 
(1)Substantially all relates to U.S. results.
(2)Substantially all relates to United Kingdom results.
Interest expense classified as a component of Net revenues relates to Jefferies Group. For the twelve months ended November 30, 2020 and 2019 and the eleven months ended November 30, 2018, interest expense classified as a component of Expenses was primarily comprised of parent company interest ($53.4 million, $53.0 million and $54.1 million, respectively) and Merchant Banking ($31.4 million, $34.1 million and $26.2 million, respectively). Interest expense for the eleven months ended November 30, 2018 also includes $9.0 million related to the Asset Management segment.
As discussed above, during the fourth quarter of 2019, we sold our 31% equity interest in National Beef and recognized a pre-tax gain of $205.0 million for the twelve months ended November 30, 2019 in Other revenues. The gain on the sale is included within Merchant Banking above.

As discussed above, during the third quarter of 2018, we sold 100% of our equity interests in Garcadia and our associated real estate to our former partners, the Garff family and recognized a pre-tax gain of $221.7 million for the eleven months ended November 30, 2018 in Other revenues. The gain on the sale is included within Merchant Banking above.