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Schedule I (PARENT COMPANY ONLY)
 12 Months Ended
Nov. 30, 2022
Condensed Financial Information Disclosure [Abstract]  
Schedule I (PARENT COMPANY ONLY)
JEFFERIES FINANCIAL GROUP INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
November 30,
20222021
ASSETS
Cash and cash equivalents
$2,411,270 $640,985 
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations57,876 8,219 
Financial instruments owned, at fair value
97,870 298,773 
Investments in and loans to related parties637,302 708,611 
Investment in subsidiaries
7,567,225 10,092,436 
Advances to subsidiaries
3,486,572 3,154,643 
Subordinated notes receivable
3,867,931 3,868,198 
Other assets
821,634 753,349 
Total assets$18,947,680 $19,525,214 
LIABILITIES AND EQUITY
Short-term borrowings
$10,868 $6,800 
Financial instruments sold, not yet purchased, at fair value
4,873 3,491 
Advances from subsidiaries430,846 402,786 
Accrued expenses and other liabilities
668,717 430,530 
Long-term debt
7,474,530 8,002,852 
Total liabilities8,589,834 8,846,459 
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares125,000 125,000 
EQUITY
Common shares, par value $1 per share, authorized 600,000,000 shares; 226,129,626 and 243,541,431 shares issued and outstanding, after deducting 90,334,082 and 72,922,277 shares held in treasury
226,130 243,541 
Additional paid-in capital1,967,781 2,742,244 
Accumulated other comprehensive loss(379,419)(372,143)
Retained earnings8,418,354 7,940,113 
Total Jefferies Financial Group Inc. common shareholders’ equity10,232,846 10,553,755 
Total liabilities and equity$18,947,680 $19,525,214 
See accompanying notes to condensed financial statements.
JEFFERIES FINANCIAL GROUP INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(In thousands)
Year Ended November 30,
202220212020
Revenues:
Principal transactions$(61,407)$98,373 $111,688 
Interest317,020 213,910 217,159 
Other(66,539)101,203 (43,375)
Total revenues189,074 413,486 285,472 
Interest expense317,916 318,138 338,535 
Net revenues(128,842)95,348 (53,063)
Non-interest expenses:
Total non-interest expenses69,962 147,761 85,339 
Earnings (loss) before income taxes(198,804)(52,413)(138,402)
Income tax expense (benefit)
(78,338)(11,806)(35,770)
Net earnings (loss) before undistributed earnings of subsidiaries(120,466)(40,607)(102,632)
Undistributed earnings of subsidiaries
905,915 1,714,959 877,871 
Net earnings 785,449 1,674,352 775,239 
Preferred stock dividends8,281 6,949 5,634 
Net earnings attributable to Jefferies Financial Group Inc.777,168 1,667,403 769,605 
Other comprehensive income (loss), net of tax:
Currency translation and other adjustments(53,572)(9,781)35,991 
Change in fair value of instrument specific credit risk49,146 (82,521)(52,262)
Minimum pension liability adjustments, net of tax3,311 9,320 21 
Unrealized gain (loss) on available-for-sale securities(6,161)(244)372 
Total other comprehensive loss, net of tax(7,276)(83,226)(15,878)
Comprehensive income attributable to Jefferies Financial Group Inc.$769,892 $1,584,177 $753,727 
See accompanying notes to condensed financial statements.
JEFFERIES FINANCIAL GROUP INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)

Year Ended November 30,
202220212020
Cash flows from operating activities:
Net earnings$785,449 $1,674,352 $775,239 
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Deferred income taxes(38,875)27,933 (1,787)
Share-based compensation43,919 78,160 40,038 
Amortization1,322 (24,379)(36,708)
Undistributed earnings of subsidiaries(905,915)(1,714,959)(877,871)
(Income) loss on investments in and loans to related parties71,405 (101,302)42,412 
Other adjustments(560,325)(203,947)187,486 
Net change in assets and liabilities:
Financial instruments owned200,903 (76,852)78,592 
Other assets129,322 (171,933)(4,069)
Financial instruments sold, not yet purchased1,382 3,491 (2,307)
Income taxes receivable/payable, net(158,732)(62,531)65,057 
Accrued expenses and other liabilities233,217 (126,894)446,386 
Net cash provided by (used in) operating activities(196,928)(698,861)712,468 
Cash flows from investing activities:
Contributions to investments in and loans to related parties(118)— (50,000)
Capital distributions from investments and repayments of loans from related parties22 50,000 — 
Advances on loan receivables— (50,000)(23,000)
Principal collections of loan receivables— — 23,000 
Distribution (to) from subsidiaries, net2,921,528 456,220 441,063 
Proceeds from sales of subsidiaries— — 180,664 
Other— (611)— 
Net cash provided by investing activities2,921,432 455,609 571,727 
Cash flows from financing activities:
Proceeds from short-term borrowings4,068 — 11,820 
Payments on short-term borrowings— (5,090)(20,263)
Proceeds from issuance of long-term debt, net of issuance costs400,059 1,681,058 1,169,722 
Repayments of long-term debt(202,172)(1,256,495)(1,494,696)
Advances (to) from subsidiaries, net30,428 (341,327)1,159,495 
Issuances of common shares2,752 2,107 1,034 
Purchase of common shares for treasury(859,593)(269,400)(816,871)
Dividends paid(280,104)(222,798)(160,940)
Net cash used in financing activities(904,562)(411,945)(150,699)
Net increase (decrease) in cash and cash equivalents and restricted cash1,819,942 (655,197)1,133,496 
Cash, cash equivalents and restricted cash at beginning of period649,204 1,304,401 170,905 
Cash, cash equivalents and restricted cash at end of period$2,469,146 $649,204 $1,304,401 
Year Ended November 30,
202220212020
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest$484,349 $381,117 $324,782 
Income taxes, net124,516 625,072 1,811 
Non-cash investing activities:
Investments contributed to subsidiary$— $5,451 $51,190 
Dividends received from subsidiaries— 1,970 40,805 
The following presents the Parent Company’s cash, cash equivalents and restricted cash by category within the Condensed Statements of Financial Condition (in thousands):
November 30,
20222021
Cash and cash equivalents$2,411,270 $640,985 
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations57,876 8,219 
Total cash, cash equivalents and restricted cash$2,469,146 $649,204 
See accompanying notes to condensed financial statements.
Introduction and Basis of Presentation
The accompanying condensed financial statements (the “Parent Company Financial Statements”), including the notes thereto, should be read in conjunction with the consolidated financial statements of Jefferies Financial Group Inc. (the “Company”) and the notes thereto found in the Company’s Annual Report on Form 10-K for the year ended November 30, 2022. For purposes of these condensed financial statements, the Company’s wholly-owned and majority owned subsidiaries are accounted for using the equity method of accounting (“equity method subsidiaries”).
On November 1, 2022, Jefferies Group LLC was merged into the Company with the Company as the surviving entity. Prior to the merger, Jefferies Group LLC was a direct wholly-owned subsidiary of the Company. Upon the merger, the Company recognized the assets and liabilities of Jefferies Group LLC transferred into the Company at their carrying amounts. The merger of Jefferies Group LLC into the Company is deemed a transfer between entities under common control and constitutes a change in the reporting entity of the Company. Accordingly, the financial statements of the Company are combined retrospectively as if the merger of Jefferies Group LLC with and into the Company had occurred as of December 1, 2019. The transfer of the net assets of Jefferies Group LLC into the Company resulted in an increase in total assets of $8.06 billion and an increase in total liabilities of $8.06 billion at November 30, 2021. There was no impact to total common shareholders’ equity, net earnings attributable to the Company or comprehensive income attributable to the Company as a result of the net transfer.
The Parent Company Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for financial information. 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, Summary of Significant Accounting Policies, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2022.
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, compensation and benefits, 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.
Transactions with SubsidiariesThe Parent Company has transactions with its consolidated subsidiaries and certain other affiliated entities determined on an agreed upon basis and has guaranteed certain unsecured lines of credit and contractual obligations of certain equity method subsidiaries.Guarantees
In the normal course of its business, the Parent Company issues guarantees in respect of obligations of certain of its wholly- owned subsidiaries under trading and other financial arrangements, including guarantees to various trading counterparties and banks. The Parent Company records all derivative contracts and Financial instruments owned and Financial instruments sold, not yet purchased at fair value in its Consolidated Statements of Financial Condition.
Certain of the Parent Company’s equity method subsidiaries are members of various exchanges and clearing houses. In the normal course of business, the Parent Company 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. The Parent Company’s obligations under such guarantees could exceed the collateral amounts posted. The maximum potential liability under these arrangements cannot be quantified; however, the potential for the Parent Company to be required to make payments under such guarantees is deemed remote. Accordingly, no liability has been recognized for these arrangements.
The Parent Company guarantees certain financing arrangements of subsidiaries. The maximum amount payable under these guarantees is $876.2 million at November 30, 2022. For further information, refer to Note 16, Short-Term Borrowings, and Note 17, Long-Term Debt, in the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended November 30, 2022.