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Schedule I (PARENT COMPANY ONLY)
12 Months Ended
Nov. 30, 2023
Condensed Financial Information Disclosure [Abstract]  
Schedule I (PARENT COMPANY ONLY)
JEFFERIES FINANCIAL GROUP INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share and per share amounts)
November 30,
20232022
ASSETS
Cash and cash equivalents
$2,455,437 $2,411,270 
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations68,076 57,876 
Financial instruments owned, at fair value
80,567 97,870 
Investments in and loans to related parties630,705 637,302 
Investment in subsidiaries
7,248,785 7,567,225 
Advances to subsidiaries
4,393,104 3,486,572 
Subordinated notes receivable
4,277,788 3,867,931 
Other assets
1,025,140 821,634 
Total assets$20,179,602 $18,947,680 
LIABILITIES AND EQUITY
Short-term borrowings
$— $10,868 
Financial instruments sold, not yet purchased, at fair value
690 4,873 
Advances from subsidiaries1,253,151 430,846 
Accrued expenses and other liabilities
718,634 668,717 
Long-term debt
8,497,300 7,474,530 
Total liabilities10,469,775 8,589,834 
MEZZANINE EQUITY
Mandatorily redeemable convertible preferred shares— 125,000 
EQUITY
Preferred shares, par value of $1 per share, authorized 70,000 shares; 42,000 shares issued and outstanding; liquidation preference of $17,500 per share
42 — 
Common shares, par value $1 per share, authorized 565,000,000 shares; 210,626,642 and 226,129,626 shares issued and outstanding, after deducting 110,491,428 and 90,334,082 shares held in treasury
210,627 226,130 
Additional paid-in capital2,044,859 1,967,781 
Accumulated other comprehensive loss(395,545)(379,419)
Retained earnings7,849,844 8,418,354 
Total Jefferies Financial Group Inc. shareholders’ equity9,709,827 10,232,846 
Total liabilities and equity$20,179,602 $18,947,680 
See accompanying notes to condensed financial statements.
JEFFERIES FINANCIAL GROUP INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(In thousands)
Year Ended November 30,
202320222021
Revenues:
Principal transactions$(95,642)$(61,407)$98,373 
Interest580,485 317,020 213,910 
Other(3,654)(66,539)101,203 
Total revenues481,189 189,074 413,486 
Interest expense446,786 317,916 318,138 
Net revenues34,403 (128,842)95,348 
Non-interest expenses:
Total non-interest expenses34,462 69,962 147,761 
Losses before income taxes(59)(198,804)(52,413)
Income tax benefit(42,322)(78,338)(11,806)
Net earnings (losses) before undistributed earnings of subsidiaries42,263 (120,466)(40,607)
Undistributed earnings of subsidiaries
235,425 905,915 1,714,959 
Net earnings 277,688 785,449 1,674,352 
Preferred stock dividends14,616 8,281 6,949 
Net earnings attributable to Jefferies Financial Group Inc. common shareholders263,072 777,168 1,667,403 
Other comprehensive income (loss), net of tax:
Currency translation adjustments and other 57,530 (53,572)(9,781)
Change in fair value related to instrument-specific credit risk(77,420)49,146 (82,521)
Minimum pension liability adjustments2,467 3,311 9,320 
Unrealized gain (losses) on available-for-sale securities1,297 (6,161)(244)
Total other comprehensive loss, net of tax(16,126)(7,276)(83,226)
Comprehensive income attributable to Jefferies Financial Group Inc. common shareholders$246,946 $769,892 $1,584,177 
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,
202320222021
Cash flows from operating activities:
Net earnings$277,688 $785,449 $1,674,352 
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Deferred income taxes53,728 (38,875)27,933 
Share-based compensation45,360 43,919 78,160 
Amortization1,040 1,322 (24,379)
Undistributed earnings of subsidiaries(235,425)(905,915)(1,714,959)
(Income) loss on investments in and loans to related parties6,808 71,405 (101,302)
Other adjustments(438,649)(560,325)(203,947)
Net change in assets and liabilities:
Financial instruments owned17,303 200,903 (76,852)
Other assets(67,626)129,322 (171,933)
Financial instruments sold, not yet purchased(4,183)1,382 3,491 
Income taxes receivable/payable, net(189,608)(158,732)(62,531)
Accrued expenses and other liabilities49,916 233,217 (126,894)
Net cash used in operating activities(483,648)(196,928)(698,861)
Cash flows from investing activities:
Contributions to investments in and loans to related parties(211)(118)— 
Capital distributions from investments and repayments of loans from related parties— 22 50,000 
Advances on loan receivables— — (50,000)
Distribution (to) from subsidiaries, net887,895 2,921,528 456,220 
Other— — (611)
Net cash provided by investing activities887,684 2,921,432 455,609 
Cash flows from financing activities:
Proceeds from short-term borrowings— 4,068 — 
Payments on short-term borrowings(10,868)— (5,090)
Proceeds from issuance of long-term debt, net of issuance costs1,718,992 400,059 1,681,058 
Repayments of long-term debt(813,182)(202,172)(1,256,495)
Advances (to) from subsidiaries, net(828,114)30,428 (341,327)
Issuances of common shares— 2,752 2,107 
Purchase of common shares for treasury(169,402)(859,593)(269,400)
Proceeds from conversion of common to preferred shares31,500 — — 
Dividends paid(278,595)(280,104)(222,798)
Net cash used in financing activities(349,669)(904,562)(411,945)
Net increase (decrease) in cash and cash equivalents and restricted cash54,367 1,819,942 (655,197)
Cash, cash equivalents and restricted cash at beginning of period2,469,146 649,204 1,304,401 
Cash, cash equivalents and restricted cash at end of period$2,523,513 $2,469,146 $649,204 
Year Ended November 30,
202320222021
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest$176,981 $484,349 $381,117 
Income taxes, net95,634 124,516 625,072 
Non-cash investing activities:
Investments contributed to subsidiary$— $— $5,451 
Dividends received from subsidiaries— — 1,970 
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,
20232022
Cash and cash equivalents$2,455,437 $2,411,270 
Cash and securities segregated and on deposit for regulatory purposes with clearing and depository organizations68,076 57,876 
Total cash, cash equivalents and restricted cash$2,523,513 $2,469,146 
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, 2023. 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”).
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, 2023.
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 Subsidiaries
The 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 $875.0 million at November 30, 2023. For further information, refer to Note 18, Short-Term Borrowings and Note 19, 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, 2023.