☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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 |
||
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Shares, par value $1 per share |
JEF |
New York Stock Exchange |
4.850% Senior Notes Due 2027 |
JEF 27A |
New York Stock Exchange |
5.875% Senior Notes Due 2028 |
JEF 28 |
New York Stock Exchange |
2.750% Senior Notes Due 2032 |
JEF 32A |
New York Stock Exchange |
6.200% Senior Notes Due 2034 |
JEF 34 |
New York Stock Exchange |
Large accelerated filer |
☒ |
Accelerated filer |
☐ |
|||
Non-accelerated filer |
☐ |
Smaller reporting company |
☐ |
|||
Emerging growth company |
☐ |
PART I. FINANCIAL INFORMATION | |
Page |
|
Consolidated Statements of Financial Condition (Unaudited) ......................................................................................................... |
|
Consolidated Statements of Earnings (Unaudited) ............................................................................................................................ |
|
Consolidated Statements of Comprehensive Income (Unaudited) .................................................................................................. |
|
Consolidated Statements of Changes in Equity (Unaudited) ............................................................................................................ |
|
Consolidated Statements of Cash Flows (Unaudited) ....................................................................................................................... |
|
Notes to Consolidated Financial Statements (Unaudited) ................................................................................................................ |
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................................... |
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk .................................................................................................... |
|
Item 4. Controls and Procedures .................................................................................................................................................................. |
|
PART II. OTHER INFORMATION | |
Item 1. Legal Proceedings ............................................................................................................................................................................. |
|
Item 1A. Risk Factors ..................................................................................................................................................................................... |
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds .................................................................................................. |
|
Item 5. Other Information .............................................................................................................................................................................. |
|
Item 6. Exhibits ................................................................................................................................................................................................ |
2 |
Jefferies Financial Group Inc. |
Consolidated Statements of Financial Condition (Unaudited) |
||
$ in thousands, except share and per share amounts |
February 28,
2025
|
November 30,
2024
|
Assets |
||
Cash and cash equivalents .............................................................................................................................................................. |
$11,176,343 |
$12,153,414 |
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository
organizations (includes $381,467 and $120,414 of securities at fair value) .......................................................................
|
1,665,894 |
1,132,612 |
Financial instruments owned, at fair value (includes securities pledged of $19,399,604 and $18,441,751) ...................... |
26,087,291 |
24,138,274 |
Investments in and loans to related parties .................................................................................................................................. |
1,383,293 |
1,385,658 |
Securities borrowed .......................................................................................................................................................................... |
8,402,198 |
7,213,421 |
Securities purchased under agreements to resell ........................................................................................................................ |
8,125,231 |
6,179,653 |
Securities received as collateral, at fair value ............................................................................................................................... |
287,078 |
185,588 |
Receivables: |
||
Brokers, dealers and clearing organizations .............................................................................................................................. |
3,534,080 |
2,666,591 |
Customers ....................................................................................................................................................................................... |
2,462,027 |
2,494,717 |
Fees, interest and other ................................................................................................................................................................. |
707,151 |
663,536 |
Premises and equipment .................................................................................................................................................................. |
1,217,202 |
1,194,720 |
Goodwill .............................................................................................................................................................................................. |
1,824,647 |
1,827,938 |
Assets held for sale ........................................................................................................................................................................... |
51,885 |
51,885 |
Other assets (includes assets pledged of $472,953 and $429,347) ......................................................................................... |
3,294,571 |
3,072,302 |
Total assets ........................................................................................................................................................................................ |
$70,218,891 |
$64,360,309 |
Liabilities and Equity |
||
Short-term borrowings ...................................................................................................................................................................... |
$1,172,806 |
$443,160 |
Financial instruments sold, not yet purchased, at fair value ....................................................................................................... |
13,997,227 |
11,007,328 |
Securities loaned ............................................................................................................................................................................... |
2,501,643 |
2,540,861 |
Securities sold under agreements to repurchase ......................................................................................................................... |
13,664,290 |
12,337,935 |
Other secured financings (includes $22,231 and $24,848 at fair value) ................................................................................... |
2,280,003 |
2,183,000 |
Obligation to return securities received as collateral, at fair value ............................................................................................ |
287,078 |
185,588 |
Payables: |
||
Brokers, dealers and clearing organizations .............................................................................................................................. |
4,221,702 |
3,686,367 |
Customers ....................................................................................................................................................................................... |
4,122,388 |
4,073,975 |
Lease liabilities .................................................................................................................................................................................. |
616,031 |
635,306 |
Accrued expenses and other liabilities ........................................................................................................................................... |
2,301,325 |
3,510,831 |
Long-term debt (includes $3,075,403 and $2,351,346 at fair value) .......................................................................................... |
14,785,553 |
13,530,565 |
Total liabilities ................................................................................................................................................................................... |
59,950,046 |
54,134,916 |
Mezzanine Equity |
||
Redeemable noncontrolling interests ............................................................................................................................................. |
406 |
406 |
Equity |
||
Preferred shares, par value of $1 per share, authorized 70,000 shares; 55,125 shares issued and outstanding;
liquidation preference of $17,500 per share .............................................................................................................................
|
55 |
55 |
Common shares, par value $1 per share, authorized 565,000,000 shares; 206,249,504 and 205,504,272 shares
issued and outstanding, after deducting 114,868,566 and 115,613,798 shares held in treasury .....................................
|
206,250 |
205,504 |
Non-voting common shares, par value $1 per share, authorized 35,000,000, shares; no shares issued and
outstanding ....................................................................................................................................................................................
|
— |
— |
Additional paid-in capital .................................................................................................................................................................. |
2,094,138 |
2,104,199 |
Accumulated other comprehensive loss ....................................................................................................................................... |
(408,072) |
(423,131) |
Retained earnings .............................................................................................................................................................................. |
8,311,857 |
8,270,145 |
Total Jefferies Financial Group Inc. shareholders' equity ......................................................................................................... |
10,204,228 |
10,156,772 |
Noncontrolling interests ................................................................................................................................................................... |
64,211 |
68,215 |
Total equity ........................................................................................................................................................................................ |
10,268,439 |
10,224,987 |
Total liabilities and equity ............................................................................................................................................................... |
$70,218,891 |
$64,360,309 |
February 2025 Form 10-Q |
3 |
$ in thousands, except per share amounts |
Three Months Ended |
||
February 28,
2025
|
February 29,
2024
|
||
Revenues |
|||
Investment banking ................................................................................................................................................................... |
$729,510 |
$679,065 |
|
Principal transactions ............................................................................................................................................................... |
407,230 |
640,736 |
|
Commissions and other fees .................................................................................................................................................. |
288,300 |
245,543 |
|
Asset management fees and revenues ................................................................................................................................. |
85,408 |
50,372 |
|
Interest ........................................................................................................................................................................................ |
845,171 |
819,489 |
|
Other ............................................................................................................................................................................................ |
117,245 |
116,737 |
|
Total revenues ........................................................................................................................................................................... |
2,472,864 |
2,551,942 |
|
Interest expense ........................................................................................................................................................................ |
879,845 |
813,739 |
|
Net revenues .............................................................................................................................................................................. |
1,593,019 |
1,738,203 |
|
Non-interest expenses |
|||
Compensation and benefits ..................................................................................................................................................... |
841,127 |
926,871 |
|
Brokerage and clearing fees .................................................................................................................................................... |
109,436 |
109,670 |
|
Underwriting costs .................................................................................................................................................................... |
17,846 |
18,484 |
|
Technology and communications .......................................................................................................................................... |
139,475 |
137,512 |
|
Occupancy and equipment rental ........................................................................................................................................... |
30,199 |
28,153 |
|
Business development ............................................................................................................................................................. |
72,291 |
57,651 |
|
Professional services ............................................................................................................................................................... |
72,466 |
77,844 |
|
Depreciation and amortization ................................................................................................................................................ |
30,988 |
43,202 |
|
Cost of sales .............................................................................................................................................................................. |
41,568 |
34,671 |
|
Other expenses .......................................................................................................................................................................... |
86,558 |
83,903 |
|
Total non-interest expenses ................................................................................................................................................... |
1,441,954 |
1,517,961 |
|
Earnings from continuing operations before income taxes ................................................................................................ |
151,065 |
220,242 |
|
Income tax expense .................................................................................................................................................................. |
14,216 |
55,959 |
|
Net earnings from continuing operations .............................................................................................................................. |
136,849 |
164,283 |
|
Net losses from discontinued operations, net of income tax benefit of $3,003 .............................................................. |
— |
(7,891) |
|
Net earnings ............................................................................................................................................................................... |
136,849 |
156,392 |
|
Net losses attributable to noncontrolling interests .............................................................................................................. |
(6,983) |
(7,438) |
|
Preferred stock dividends ........................................................................................................................................................ |
16,039 |
14,189 |
|
Net earnings attributable to common shareholders ........................................................................................................... |
$127,793 |
$149,641 |
|
Earnings per common share |
|||
Basic from continuing operations ........................................................................................................................................... |
$0.60 |
$0.71 |
|
Diluted from continuing operations ........................................................................................................................................ |
0.57 |
0.69 |
|
Basic ............................................................................................................................................................................................ |
0.60 |
0.68 |
|
Diluted ......................................................................................................................................................................................... |
0.57 |
0.66 |
|
Weighted-average common shares outstanding ................................................................................................................ |
|||
Basic ............................................................................................................................................................................................ |
214,536 |
220,046 |
|
Diluted ......................................................................................................................................................................................... |
222,448 |
225,291 |
|
4 |
Jefferies Financial Group Inc. |
$ in thousands |
Three Months Ended |
||
February 28,
2025
|
February 29,
2024
|
||
Net earnings .................................................................................................................................................................................. |
$136,849 |
$156,392 |
|
Other comprehensive income (loss), net of tax: |
|||
Currency translation adjustments and other (1) ..................................................................................................................... |
(15,322) |
(99) |
|
Changes in fair value related to instrument-specific credit risk (2) ...................................................................................... |
30,256 |
(2,752) |
|
Unrealized gains on available-for-sale-securities ................................................................................................................... |
125 |
1,958 |
|
Total other comprehensive income (loss), net of tax (3) ...................................................................................................... |
15,059 |
(893) |
|
Comprehensive income ............................................................................................................................................................... |
151,908 |
155,499 |
|
Net losses attributable to noncontrolling interests ................................................................................................................. |
(6,983) |
(7,438) |
|
Preferred stock dividends ............................................................................................................................................................ |
16,039 |
14,189 |
|
Comprehensive income attributable to common shareholders ........................................................................................... |
$142,852 |
$148,748 |
February 2025 Form 10-Q |
5 |
$ in thousands |
Three Months Ended |
||
February 28,
2025
|
February 29,
2024
|
||
Preferred shares $1 par value |
|||
Balance, beginning of period .................................................................................................................................................... |
$55 |
$42 |
|
Balance, end of period .............................................................................................................................................................. |
$55 |
$42 |
|
Common shares $1 par value |
|||
Balance, beginning of period .................................................................................................................................................... |
$205,504 |
$210,627 |
|
Purchase of common shares for treasury .......................................................................................................................... |
(696) |
(1,067) |
|
Other ......................................................................................................................................................................................... |
1,442 |
2,441 |
|
Balance, end of period .............................................................................................................................................................. |
$206,250 |
$212,001 |
|
Additional paid-in capital |
|||
Balance, beginning of period .................................................................................................................................................... |
$2,104,199 |
$2,044,859 |
|
Share-based compensation expense .................................................................................................................................. |
35,637 |
20,215 |
|
Purchase of common shares for treasury .......................................................................................................................... |
(55,622) |
(41,966) |
|
Dividend equivalents .............................................................................................................................................................. |
8,597 |
4,754 |
|
Change in equity interest related to consolidated subsidiaries ....................................................................................... |
853 |
— |
|
Other ......................................................................................................................................................................................... |
474 |
(1,278) |
|
Balance, end of period .............................................................................................................................................................. |
$2,094,138 |
$2,026,584 |
|
Accumulated other comprehensive loss, net of tax |
|||
Balance, beginning of period .................................................................................................................................................... |
$(423,131) |
$(395,545) |
|
Other comprehensive income (loss), net of taxes ............................................................................................................. |
15,059 |
(893) |
|
Balance, end of period .............................................................................................................................................................. |
$(408,072) |
$(396,438) |
|
Retained earnings |
|||
Balance, beginning of period .................................................................................................................................................... |
$8,270,145 |
$7,849,844 |
|
Net earnings attributable to Jefferies Financial Group Inc. .............................................................................................. |
143,832 |
163,830 |
|
Dividends - common shares ($0.40 and $0.30 per share) ................................................................................................ |
(91,095) |
(68,363) |
|
Dividends - preferred shares ................................................................................................................................................. |
(11,025) |
(6,300) |
|
Cumulative effect of change in accounting principle for current expected credit losses, net of tax ......................... |
— |
(644) |
|
Other ......................................................................................................................................................................................... |
— |
(459) |
|
Balance, end of period .............................................................................................................................................................. |
$8,311,857 |
$7,937,908 |
|
Total Jefferies Financial Group Inc. shareholders' equity ................................................................................................. |
$10,204,228 |
$9,780,097 |
|
Noncontrolling interests |
|||
Balance, beginning of period .................................................................................................................................................... |
$68,215 |
$92,308 |
|
Net losses attributable to noncontrolling interests ........................................................................................................... |
(6,983) |
(7,438) |
|
Contributions ........................................................................................................................................................................... |
104 |
9,316 |
|
Distributions ............................................................................................................................................................................ |
(2,795) |
(7,126) |
|
Change in equity interest related to consolidated subsidiaries ....................................................................................... |
(853) |
— |
|
Other ......................................................................................................................................................................................... |
6,523 |
312 |
|
Balance, end of period .............................................................................................................................................................. |
$64,211 |
$87,372 |
|
Total equity ................................................................................................................................................................................. |
$10,268,439 |
$9,867,469 |
6 |
Jefferies Financial Group Inc. |
$ in thousands |
Three Months Ended |
|
February 28,
2025
|
February 29,
2024
|
|
Cash flows from operating activities: |
||
Net earnings ...................................................................................................................................................................................... |
$136,849 |
$156,392 |
Adjustments to reconcile net earnings to net cash used in operating activities: |
||
Depreciation and amortization .................................................................................................................................................... |
32,995 |
44,199 |
Share-based compensation ......................................................................................................................................................... |
35,637 |
20,215 |
Net bad debt expense ................................................................................................................................................................... |
7,493 |
39,712 |
Income on investments in and loans to related parties ........................................................................................................... |
(7,052) |
(8,692) |
Distributions received on investments in related parties ........................................................................................................ |
16,142 |
855 |
Other adjustments ......................................................................................................................................................................... |
(44,419) |
75,411 |
Net change in assets and liabilities: |
||
Receivables: |
||
Brokers, dealers and clearing organizations .......................................................................................................................... |
(877,505) |
(629,142) |
Customers ................................................................................................................................................................................... |
32,699 |
(155,699) |
Fees, interest and other ............................................................................................................................................................. |
(47,567) |
(11,191) |
Securities borrowed ...................................................................................................................................................................... |
(1,198,188) |
401,010 |
Financial instruments owned ....................................................................................................................................................... |
(2,271,617) |
(1,492,492) |
Securities purchased under agreements to resell .................................................................................................................... |
(1,976,348) |
(1,604,900) |
Other assets ................................................................................................................................................................................... |
(236,583) |
(504,938) |
Payables: |
||
Brokers, dealers and clearing organizations .......................................................................................................................... |
546,020 |
212,200 |
Customers ................................................................................................................................................................................... |
48,413 |
241,605 |
Securities loaned ........................................................................................................................................................................... |
(30,136) |
870,714 |
Financial instruments sold, not yet purchased ......................................................................................................................... |
3,027,469 |
801,138 |
Securities sold under agreements to repurchase ..................................................................................................................... |
1,359,656 |
684,917 |
Lease liabilities .............................................................................................................................................................................. |
(21,429) |
(27,895) |
Accrued expenses and other liabilities ...................................................................................................................................... |
(1,197,694) |
(371,040) |
Net cash used in operating activities from continuing operations ......................................................................................... |
(2,665,165) |
(1,257,621) |
Net cash provided by (used in) operating activities from discontinued operations ............................................................ |
— |
(45,282) |
Cash flows from investing activities: |
||
Contributions to investments in and loans to related parties ................................................................................................. |
(21,949) |
(47,751) |
Capital distributions from investments and repayments of loans from related parties ..................................................... |
13,752 |
4,977 |
Originations and purchases of automobile loans, notes and other receivables .................................................................. |
— |
(89,540) |
Principal collections of automobile loans, notes and other receivables ............................................................................... |
— |
83,268 |
Net payments on premises and equipment .............................................................................................................................. |
(49,578) |
(96,241) |
Net cash used in investing activities from continuing operations .......................................................................................... |
(57,775) |
(145,287) |
February 2025 Form 10-Q |
7 |
$ in thousands |
Three Months Ended |
|
February 28,
2025
|
February 29,
2024
|
|
Cash flows from financing activities: |
||
Proceeds from short-term borrowings ....................................................................................................................................... |
$3,253,704 |
$847,000 |
Payments on short-term borrowings .......................................................................................................................................... |
(2,662,000) |
(568,739) |
Proceeds from issuance of long-term debt, net of issuance costs ....................................................................................... |
1,536,928 |
359,380 |
Repayment of long-term debt ...................................................................................................................................................... |
(188,890) |
(317,794) |
Purchase of common shares for treasury ................................................................................................................................. |
(56,318) |
(43,033) |
Dividends paid to common and preferred shareholders ......................................................................................................... |
(92,735) |
(69,909) |
Net proceeds from other secured financings ........................................................................................................................... |
98,941 |
124,715 |
Net change in bank overdrafts .................................................................................................................................................... |
137,305 |
(13,609) |
Proceeds from contributions of noncontrolling interests ....................................................................................................... |
104 |
9,316 |
Payments on distributions to noncontrolling interests ............................................................................................................ |
(2,795) |
(7,126) |
Other ................................................................................................................................................................................................ |
1,916 |
704 |
Net cash provided by financing activities from continuing operations .................................................................................. |
2,026,160 |
320,905 |
Net cash provided by (used in) financing activities from discontinued operations ............................................................. |
— |
(3,297) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash ............................................................... |
(8,062) |
(1,683) |
Change in cash, cash equivalents, and restricted cash reclassified from (to) assets held for sale .................................... |
— |
(13,796) |
Net decrease in cash, cash equivalents, and restricted cash .................................................................................................... |
(704,842) |
(1,132,265) |
Cash, cash equivalents, and restricted cash at beginning of period ........................................................................................ |
13,165,612 |
9,830,758 |
Cash, cash equivalents, and restricted cash at end of period .................................................................................................. |
$12,460,770 |
$8,684,697 |
Supplemental disclosures of cash flow information: |
||
Cash paid during the period for: |
||
Interest ............................................................................................................................................................................................ |
$845,673 |
$839,475 |
Income taxes, net .......................................................................................................................................................................... |
9,089 |
25,927 |
February 28, |
November 30, |
|
$ in thousands |
2025 |
2024 |
Cash and cash equivalents ........................................................................................................................................... |
$11,176,343 |
$12,153,414 |
Cash on deposit for regulatory purposes with clearing and depository organizations ....................................... |
1,284,427 |
1,012,198 |
Total cash, cash equivalents and restricted cash .................................................................................................... |
$12,460,770 |
$13,165,612 |
8 |
Jefferies Financial Group Inc. |
Page |
|
Note 1. Organization and Basis of Presentation ...................................................................................................................................................................... |
|
Note 2. Summary of Significant Accounting Policies ............................................................................................................................................................. |
|
Note 3. Accounting Developments ............................................................................................................................................................................................ |
|
Note 4. Business Acquisitions .................................................................................................................................................................................................... |
|
Note 5. Assets Held for Sale and Discontinued Operations ................................................................................................................................................... |
|
Note 6. Fair Value Disclosures .................................................................................................................................................................................................... |
|
Note 7. Derivative Financial Instruments .................................................................................................................................................................................. |
|
Note 8. Collateralized Transactions ........................................................................................................................................................................................... |
|
Note 9. Securitization Activities ................................................................................................................................................................................................. |
|
Note 10. Variable Interest Entities .............................................................................................................................................................................................. |
|
Note 11. Investments ................................................................................................................................................................................................................... |
|
Note 12. Credit Losses on Financial Assets Measured at Amortized Cost ......................................................................................................................... |
|
Note 13. Goodwill and Intangible Assets .................................................................................................................................................................................. |
|
Note 14. Revenues from Contracts with Customers ............................................................................................................................................................... |
|
Note 15. Compensation Plans .................................................................................................................................................................................................... |
|
Note 16. Borrowings ..................................................................................................................................................................................................................... |
|
Note 17. Total Equity .................................................................................................................................................................................................................... |
|
Note 18. Income Taxes ................................................................................................................................................................................................................ |
|
Note 19. Commitments, Contingencies and Guarantees ....................................................................................................................................................... |
|
Note 20. Regulatory Requirements ............................................................................................................................................................................................ |
|
Note 21. Segment Reporting ....................................................................................................................................................................................................... |
|
Note 22. Related Party Transactions ......................................................................................................................................................................................... |
February 2025 Form 10-Q |
9 |
10 |
Jefferies Financial Group Inc. |
February 2025 Form 10-Q |
11 |
12 |
Jefferies Financial Group Inc. |
February 28, 2025 (1) |
|||||
$ in thousands |
Level 1 |
Level 2 |
Level 3 |
Counterparty
and Cash
Collateral
Netting (2)
|
Total |
Assets: |
|||||
Financial instruments owned: |
|||||
Corporate equity securities ................................................................................ |
$6,246,599 |
$213,504 |
$212,409 |
$— |
$6,672,512 |
Corporate debt securities ................................................................................... |
— |
6,641,104 |
25,925 |
— |
6,667,029 |
Collateralized debt obligations and collateralized loan obligations ............ |
— |
1,140,317 |
71,827 |
— |
1,212,144 |
U.S. government and federal agency securities ............................................. |
2,481,241 |
92,098 |
— |
— |
2,573,339 |
Municipal securities ............................................................................................ |
— |
427,829 |
— |
— |
427,829 |
Sovereign obligations ......................................................................................... |
978,901 |
734,661 |
— |
— |
1,713,562 |
Residential mortgage-backed securities ......................................................... |
— |
1,971,845 |
7,526 |
— |
1,979,371 |
Commercial mortgage-backed securities ....................................................... |
— |
84,937 |
471 |
— |
85,408 |
Other asset-backed securities ........................................................................... |
— |
380,601 |
147,319 |
— |
527,920 |
Loans and other receivables .............................................................................. |
— |
1,891,354 |
153,764 |
— |
2,045,118 |
Derivatives ............................................................................................................ |
263 |
4,271,426 |
4,305 |
(3,617,326) |
658,668 |
Investments at fair value .................................................................................... |
— |
8 |
157,881 |
— |
157,889 |
Total financial instruments owned, excluding Investments at fair value
based on NAV .................................................................................................
|
$9,707,004 |
$17,849,684 |
$781,427 |
$(3,617,326) |
$24,720,789 |
Securities segregated and on deposit for regulatory purposes or
deposited with clearing and depository organizations ............................
|
$381,467 |
$— |
$— |
$— |
$381,467 |
Securities received as collateral ....................................................................... |
287,078 |
— |
— |
— |
287,078 |
Liabilities: |
|||||
Financial instruments sold, not yet purchased: |
|||||
Corporate equity securities ................................................................................ |
$4,600,182 |
$124,726 |
$590 |
$— |
$4,725,498 |
Corporate debt securities ................................................................................... |
— |
4,369,662 |
1,113 |
— |
4,370,775 |
U.S. government and federal agency securities ............................................. |
2,433,696 |
— |
— |
— |
2,433,696 |
Sovereign obligations ......................................................................................... |
889,042 |
759,466 |
— |
— |
1,648,508 |
Residential mortgage-backed securities ......................................................... |
— |
— |
15 |
— |
15 |
Commercial mortgage-backed securities ....................................................... |
— |
— |
1,154 |
— |
1,154 |
Loans..................................................................................................................... |
— |
138,269 |
848 |
— |
139,117 |
Derivatives ............................................................................................................ |
— |
4,209,460 |
46,381 |
(3,577,377) |
678,464 |
Total financial instruments sold, not yet purchased .................................... |
$7,922,920 |
$9,601,583 |
$50,101 |
$(3,577,377) |
$13,997,227 |
Other secured financings ................................................................................... |
$— |
$9,526 |
$12,705 |
$— |
$22,231 |
Obligation to return securities received as collateral .................................... |
287,078 |
— |
— |
— |
287,078 |
Long-term debt .................................................................................................... |
— |
2,214,719 |
860,684 |
— |
3,075,403 |
February 2025 Form 10-Q |
13 |
November 30, 2024 (1) |
|||||
$ in thousands |
Level 1 |
Level 2 |
Level 3 |
Counterparty
and Cash
Collateral
Netting (2)
|
Total |
Assets: |
|||||
Financial instruments owned: |
|||||
Corporate equity securities ................................................................................ |
$5,238,058 |
$302,051 |
$239,364 |
$— |
$5,779,473 |
Corporate debt securities ................................................................................... |
— |
5,310,815 |
24,931 |
— |
5,335,746 |
Collateralized debt obligations and collateralized loan obligations ............ |
— |
1,029,662 |
63,976 |
— |
1,093,638 |
U.S. government and federal agency securities ............................................. |
3,583,139 |
160,227 |
— |
— |
3,743,366 |
Municipal securities ............................................................................................ |
— |
320,507 |
— |
— |
320,507 |
Sovereign obligations ......................................................................................... |
749,912 |
630,681 |
172 |
— |
1,380,765 |
Residential mortgage-backed securities ......................................................... |
— |
2,348,862 |
7,714 |
— |
2,356,576 |
Commercial mortgage-backed securities ....................................................... |
— |
146,752 |
477 |
— |
147,229 |
Other asset-backed securities ........................................................................... |
— |
110,687 |
103,214 |
— |
213,901 |
Loans and other receivables .............................................................................. |
— |
1,706,152 |
152,586 |
— |
1,858,738 |
Derivatives ............................................................................................................ |
146 |
3,181,454 |
3,926 |
(2,667,751) |
517,775 |
Investments at fair value .................................................................................... |
— |
6 |
137,865 |
— |
137,871 |
Total financial instruments owned, excluding Investments at fair value
based on NAV .................................................................................................
|
$9,571,255 |
$15,247,856 |
$734,225 |
$(2,667,751) |
$22,885,585 |
Securities segregated and on deposit for regulatory purposes or
deposited with clearing and depository organizations .............................
|
$120,414 |
$— |
$— |
$— |
$120,414 |
Securities received as collateral ....................................................................... |
185,588 |
— |
— |
— |
185,588 |
Liabilities: |
|||||
Financial instruments sold, not yet purchased: |
|||||
Corporate equity securities ................................................................................ |
$3,013,877 |
$73,240 |
$208 |
$— |
$3,087,325 |
Corporate debt securities ................................................................................... |
— |
3,105,010 |
165 |
— |
3,105,175 |
U.S. government and federal agency securities ............................................. |
2,904,379 |
26 |
— |
— |
2,904,405 |
Sovereign obligations ......................................................................................... |
667,647 |
422,124 |
— |
— |
1,089,771 |
Commercial mortgage-backed securities ...................................................... |
— |
— |
1,153 |
— |
1,153 |
Loans..................................................................................................................... |
— |
92,321 |
16,864 |
— |
109,185 |
Derivatives ............................................................................................................ |
13 |
3,477,802 |
26,212 |
(2,793,713) |
710,314 |
Total financial instruments sold, not yet purchased .................................... |
$6,585,916 |
$7,170,523 |
$44,602 |
$(2,793,713) |
$11,007,328 |
Other secured financings ................................................................................... |
$— |
$9,964 |
$14,884 |
$— |
$24,848 |
Obligation to return securities received as collateral ................................... |
185,588 |
— |
— |
— |
185,588 |
Long-term debt .................................................................................................... |
— |
1,529,443 |
821,903 |
— |
2,351,346 |
14 |
Jefferies Financial Group Inc. |
February 28, 2025 |
||||
$ in thousands |
Fair Value
(1)
|
Unfunded
Commitments
|
Redemption
Frequency
|
Redemption
Notice Period
|
Hedge
Funds (2) ..............
|
$672,192 |
$— |
Quarterly (52%)
Monthly (48%)
|
45 - 90 days
45 - 60 days
|
Private Equity
Funds (3) ..............
|
63,573 |
27,172 |
N/R (100%) |
N/R |
Credit
Funds (4) ..............
|
456,714 |
106 |
Quarterly (64%)
Monthly (3%)
N/R (33%)
|
90 days
30 days
N/R
|
Real Estate and
Other Funds (5) ....
|
174,023 |
169,928 |
Quarterly (24%)
N/R (76%)
|
90 days
N/R
|
Total ...................... |
$1,366,502 |
$197,206 |
November 30, 2024 |
||||
$ in thousands |
Fair Value
(1)
|
Unfunded
Commitments
|
Redemption
Frequency
|
Redemption
Notice Period
|
Hedge
Funds (2) ............
|
$660,720 |
$— |
Quarterly (53%)
Monthly (47%)
|
45 - 90 days
45 - 60 days
|
Private Equity
Funds (3) ............
|
60,215 |
30,530 |
N/R (100%) |
N/R |
Credit Funds (4) |
430,429 |
30,554 |
Quarterly (72%)
Monthly (3%)
N/R (25%)
|
90 days
30 days
N/R
|
Real Estate and
Other Funds (5) .
|
101,325 |
232,696 |
N/R (100%) |
N/R |
Total ................... |
$1,252,689 |
$293,780 |
February 2025 Form 10-Q |
15 |
For instruments still held at
February 28, 2025, changes
in unrealized gains/(losses)
included in:
|
||||||||||
$ in thousands |
Balance at
November 30,
2024
|
Total gains/
losses
(realized
and
unrealized)
(1)
|
Purchases |
Sales |
Settlements |
Issuances |
Net
transfers
into/
(out of)
Level 3
|
Balance at
February 28,
2025
|
Earnings (1) |
Other
comprehensive
income (1)
|
Assets: |
||||||||||
Financial instruments
owned:
|
||||||||||
Corporate equity securities ... |
$239,364 |
$2,864 |
$1,703 |
$(1,016) |
$— |
$— |
$(30,506) |
$212,409 |
$5,300 |
$— |
Corporate debt securities ...... |
24,931 |
(1,002) |
6,753 |
(895) |
— |
— |
(3,862) |
25,925 |
(1,248) |
— |
CDOs and CLOs ....................... |
63,976 |
(4,646) |
17,177 |
(9,981) |
— |
— |
5,301 |
71,827 |
(4,664) |
— |
Sovereign obligations ............. |
172 |
2 |
— |
(174) |
— |
— |
— |
— |
(1) |
— |
RMBS ........................................ |
7,714 |
(167) |
— |
— |
(21) |
— |
— |
7,526 |
(59) |
— |
CMBS ........................................ |
477 |
(6) |
— |
— |
— |
— |
— |
471 |
— |
— |
Other ABS ................................. |
103,214 |
(1,889) |
54,165 |
(4,709) |
(2,312) |
— |
(1,150) |
147,319 |
(1,318) |
— |
Loans and other receivables . |
152,586 |
(949) |
78,763 |
(53,590) |
(9,170) |
— |
(13,876) |
153,764 |
(1,545) |
— |
Investments at fair value ....... |
137,865 |
393 |
21,288 |
— |
(1,665) |
— |
— |
157,881 |
393 |
— |
Liabilities: |
||||||||||
Financial instruments sold,
not yet purchased:
|
||||||||||
Corporate equity securities ... |
$208 |
$(72) |
$— |
$454 |
$— |
$— |
$— |
$590 |
$72 |
$— |
Corporate debt securities ...... |
165 |
(40) |
(383) |
1,025 |
— |
— |
346 |
1,113 |
24 |
— |
RMBS ........................................ |
— |
— |
— |
15 |
— |
— |
— |
15 |
— |
— |
CMBS ........................................ |
1,153 |
1 |
— |
35 |
— |
— |
(35) |
1,154 |
(1) |
— |
Loans ........................................ |
16,864 |
301 |
(1,917) |
75 |
— |
— |
(14,475) |
848 |
89 |
— |
Net derivatives (2) ................... |
22,286 |
(16,020) |
— |
22,588 |
(279) |
299 |
13,202 |
42,076 |
14,559 |
— |
Other secured financings ....... |
14,884 |
(1,938) |
— |
— |
(241) |
— |
— |
12,705 |
1,938 |
|
Long-term debt ........................ |
821,903 |
(55,177) |
— |
— |
— |
124,554 |
(30,596) |
860,684 |
29,428 |
25,749 |
16 |
Jefferies Financial Group Inc. |
For instruments still held at
February 29, 2024, changes in
unrealized gains/(losses)
included in:
|
||||||||||
$ in thousands |
Balance at
November 30,
2023
|
Total gains/
losses
(realized
and
unrealized)
(1)
|
Purchases |
Sales |
Settlements |
Issuances |
Net
transfers
into/
(out of)
Level 3
|
Balance at
February 29,
2024
|
Earnings (1) |
Other
comprehensive
income (1)
|
Assets: |
||||||||||
Financial instruments
owned:
|
||||||||||
Corporate equity
securities .......................
|
$181,294 |
$(197) |
$167 |
$(265) |
$— |
$— |
$(7,785) |
$173,214 |
$(158) |
$— |
Corporate debt securities |
26,112 |
846 |
20,437 |
(513) |
(200) |
— |
(11,347) |
35,335 |
801 |
— |
CDOs and CLOs ................. |
64,862 |
11,121 |
16,997 |
(13,836) |
(9,539) |
— |
(238) |
69,367 |
1,355 |
— |
RMBS .................................. |
20,871 |
(202) |
— |
— |
(5,360) |
— |
(14,625) |
684 |
32 |
— |
CMBS .................................. |
508 |
(35) |
— |
— |
— |
— |
— |
473 |
(64) |
— |
Other ABS ........................... |
117,661 |
(3,165) |
11,686 |
(17,650) |
(5,834) |
— |
(442) |
102,256 |
(1,468) |
— |
Loans and other
receivables ....................
|
130,101 |
(15,592) |
5,477 |
(24,382) |
(3,007) |
— |
(13,712) |
78,885 |
(17,991) |
— |
Investments at fair value . |
130,835 |
(10,691) |
1,627 |
— |
— |
— |
(7) |
121,764 |
(10,691) |
— |
Liabilities: |
||||||||||
Financial instruments
sold, not yet
purchased:
|
||||||||||
Corporate equity
securities .......................
|
$676 |
$(7) |
$— |
$6 |
$— |
$— |
$— |
$675 |
$7 |
$— |
Corporate debt securities |
124 |
— |
— |
— |
— |
— |
— |
124 |
— |
— |
CMBS .................................. |
840 |
— |
(245) |
350 |
— |
— |
(1) |
944 |
— |
— |
Loans .................................. |
1,521 |
(54) |
(81) |
— |
— |
— |
80 |
1,466 |
(183) |
— |
Net derivatives (2) ............. |
50,955 |
(4,833) |
— |
245 |
— |
— |
5,722 |
52,089 |
4,340 |
— |
Other secured financings . |
3,898 |
4,482 |
— |
— |
(4,415) |
— |
— |
3,965 |
(4,482) |
— |
Long-term debt .................. |
744,597 |
12,284 |
— |
— |
— |
21,456 |
1,192 |
779,529 |
(14,477) |
2,193 |
February 2025 Form 10-Q |
17 |
February 28, 2025 | |||||||
Financial Instruments Owned |
Fair Value
(in
thousands)
|
Valuation
Technique
|
Significant Unobservable Input(s) |
Input / Range |
Weighted
Average
|
||
Corporate equity securities ..................... |
$212,409 |
||||||
Non-exchange-traded securities |
Market approach |
Price |
$0 |
- |
$486 |
$83 |
|
Scenario Analysis |
EBITDA multiple |
4.6 |
— |
||||
Corporate debt securities ........................ |
$25,925 |
Market approach |
Price |
$49 |
- |
$117 |
$71 |
Discounted cash
flows
|
Discount rate/yield |
22% |
— |
||||
CDOs and CLOs .......................................... |
$57,986 |
Discounted cash
flows
|
Constant prepayment rate |
20% |
— |
||
Constant default rate |
2% |
— |
|||||
Loss severity |
30% |
— |
|||||
Discount rate/yield |
13% |
- |
17% |
17% |
|||
Market approach |
Price |
$70 |
- |
$104 |
$98 |
||
Scenario analysis |
Estimated recovery percentage |
49% |
— |
||||
RMBS ........................................................... |
$7,526 |
Discounted cash
flows
|
Constant prepayment rate |
40% |
— |
||
Loss severity |
90% |
— |
|||||
Discount rate/yield |
15% |
— |
|||||
Other ABS ................................................... |
$146,290 |
Discounted cash
flows
|
Discount rate/yield |
12% |
- |
34% |
22% |
Cumulative loss rate |
18% |
- |
34% |
26% |
|||
Duration (years) |
0.7 |
- |
0.8 |
0.8 |
|||
Market approach |
Price |
$104 |
- |
$126 |
$114 |
||
Scenario analysis |
Estimated recovery percentage |
92% |
— |
||||
Loans and other receivables ................... |
$153,764 |
Market approach |
Price |
$21 |
- |
$104 |
$77 |
Scenario analysis |
Estimated recovery percentage |
18% |
- |
245% |
84% |
||
Derivatives .................................................. |
$2,816 |
||||||
Embedded options |
Market approach |
Basis points upfront |
0.4 |
— |
|||
Investments at fair value .......................... |
$152,786 |
||||||
Private equity securities |
Market approach |
Price |
$0 |
- |
$8,335 |
$1,616 |
|
Discount rate/yield |
28% |
— |
|||||
Revenue |
$29,753,075 |
— |
|||||
Financial Instruments Sold, Not Yet Purchased: |
|||||||
Loans .......................................................... |
$848 |
Market approach |
Price |
$21 |
- |
$100 |
$24 |
Derivatives .................................................. |
$45,281 |
||||||
Equity options |
Volatility
benchmarking
|
Volatility |
34% |
- |
95% |
49% |
|
Options |
Market approach |
Basis points upfront |
7.8 |
- |
22.6 |
15.0 |
|
Other secured financings ......................... |
$12,705 |
Scenario analysis |
Estimated recovery percentage |
76% |
- |
100% |
96% |
Market approach |
Price |
$115 |
— |
||||
Long-term debt .......................................... |
$860,684 |
||||||
Structured notes |
Market approach |
Price |
$59 |
- |
$113 |
$92 |
18 |
Jefferies Financial Group Inc. |
November 30, 2024 | |||||||
Financial Instruments Owned |
Fair Value
(in
thousands)
|
Valuation
Technique
|
Significant Unobservable Input(s) |
Input / Range |
Weighted
Average
|
||
Corporate equity securities ..................... |
$239,364 |
||||||
Non-exchange-traded securities |
Market approach |
Price |
$0 |
- |
$486 |
$68 |
|
Corporate debt securities ........................ |
$24,931 |
Market approach |
Price |
$28 |
- |
$105 |
$74 |
CDOs and CLOs .......................................... |
$53,388 |
Discounted cash
flows
|
Constant prepayment rate |
20% |
— |
||
Constant default rate |
2% |
— |
|||||
Loss severity |
30% |
— |
|||||
Discount rate/yield |
14% |
- |
32% |
26% |
|||
Market approach |
Price |
$70 |
- |
$106 |
$94 |
||
RMBS |
$7,714 |
Discounted cash
flows
|
Constant prepayment rate |
20% |
— |
||
Loss severity |
10% |
— |
|||||
Discount rate/yield |
12% |
— |
|||||
Other ABS ................................................... |
$98,172 |
Discounted cash
flows
|
Discount rate/yield |
19% |
- |
30% |
25% |
Cumulative loss rate |
17% |
- |
34% |
24% |
|||
Duration (years) |
0.9 |
- |
1.0 |
0.9 |
|||
Market approach |
Price |
$106 |
- |
$127 |
$121 |
||
Scenario analysis |
Estimated recovery percentage |
92% |
— |
||||
Loans and other receivables ................... |
$152,586 |
Market approach |
Price |
$17 |
- |
$106 |
$75 |
Scenario analysis |
Estimated recovery percentage |
3% |
- |
252% |
50% |
||
Derivatives .................................................. |
$1,396 |
||||||
Embedded options |
Market approach |
Basis points upfront |
0.3 |
— |
|||
Investments at fair value .......................... |
$132,769 |
||||||
Private equity securities |
Market approach |
Price |
$1 |
- |
$8,506 |
$501 |
|
Discount rate/yield |
28% |
— |
|||||
Revenue |
$29,908,372 |
— |
|||||
Financial Instruments Sold, Not Yet Purchased: |
|||||||
Loans .......................................................... |
$16,864 |
Market approach |
Price |
$17 |
- |
$100 |
$75 |
Scenario analysis |
Estimated recovery percentage |
0% |
- |
205% |
50% |
||
Derivatives .................................................. |
$25,045 |
||||||
Equity options |
Volatility
benchmarking
|
Volatility |
28% |
- |
102% |
49% |
|
Options |
Market approach |
Basis points upfront |
8.0 |
- |
22.3 |
14.9 |
|
Other secured financings ......................... |
$14,884 |
Scenario analysis |
Estimated recovery percentage |
60% |
- |
100% |
93% |
Market approach |
Price |
$117 |
— |
||||
Long-term debt .......................................... |
$821,903 |
||||||
Structured notes |
Market approach |
Price |
$61 |
- |
$122 |
$96 |
February 2025 Form 10-Q |
19 |
Three Months Ended |
||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
Financial instruments owned: |
||
Loans and other receivables ................................ |
$13,283 |
$(7,410) |
Other secured financings: |
||
Other changes in fair value (2) ............................. |
$1,938 |
$(4,482) |
Long-term debt: |
||
Changes in instrument-specific credit risk (1) .. |
$37,898 |
$(3,980) |
Other changes in fair value (2) ............................. |
16,994 |
(43,817) |
$ in thousands |
February 28,
2025
|
November 30,
2024
|
Financial instruments owned: |
||
Loans and other receivables (1) ........................... |
$1,317,633 |
$1,603,512 |
Loans and other receivables on nonaccrual
status and/or 90 days or greater past
due (1) (2) ...........................................................
|
188,801 |
132,838 |
Long-term debt ....................................................... |
198,249 |
131,107 |
Other secured financings ...................................... |
2,397 |
459 |
20 |
Jefferies Financial Group Inc. |
February 28, 2025 (1) |
||||
Assets |
Liabilities |
|||
$ in thousands |
Fair Value |
Number of
Contracts (2)
|
Fair Value |
Number of
Contracts (2)
|
Derivatives designated as
accounting hedges:
|
||||
Interest rate contracts: |
||||
Cleared OTC ........................................ |
$4,897 |
3 |
$— |
— |
Foreign exchange contracts: |
||||
Bilateral OTC ....................................... |
58,815 |
3 |
— |
— |
Total derivatives designated as
accounting hedges ............................
|
63,712 |
— |
||
Derivatives not designated as
accounting hedges:
|
||||
Interest rate contracts: |
||||
Exchange-traded ................................ |
263 |
45,486 |
— |
22,552 |
Cleared OTC ........................................ |
1,790,994 |
7,264 |
1,823,494 |
7,679 |
Bilateral OTC ....................................... |
350,898 |
1,518 |
667,793 |
991 |
Foreign exchange contracts: |
||||
Bilateral OTC ....................................... |
101,760 |
42,295 |
119,188 |
12,740 |
Equity contracts: |
||||
Exchange-traded ................................ |
842,797 |
2,002,426 |
731,454 |
1,764,359 |
Bilateral OTC ....................................... |
1,025,374 |
29,093 |
838,819 |
23,043 |
Commodity contracts: |
||||
Exchange-traded ................................ |
10 |
602 |
115 |
568 |
Bilateral OTC ....................................... |
4,519 |
11,289 |
1,509 |
5,148 |
Credit contracts: |
||||
Cleared OTC ........................................ |
43,080 |
106 |
42,589 |
72 |
Bilateral OTC ....................................... |
52,587 |
17 |
30,880 |
24 |
Total derivatives not designated
as accounting hedges .......................
|
4,212,282 |
4,255,841 |
||
Total gross derivative assets/
liabilities:
|
||||
Exchange-traded ................................ |
843,070 |
731,569 |
||
Cleared OTC ........................................ |
1,838,971 |
1,866,083 |
||
Bilateral OTC ....................................... |
1,593,953 |
1,658,189 |
||
Amounts offset in our
Consolidated Statements of
Financial Condition (3):
|
||||
Exchange-traded ................................ |
(617,442) |
(617,442) |
||
Cleared OTC ........................................ |
(1,836,758) |
(1,848,671) |
||
Bilateral OTC ....................................... |
(1,163,126) |
(1,111,264) |
||
Net amounts per Consolidated
Statements of Financial
Condition (4) .................................
|
$658,668 |
$678,464 |
February 2025 Form 10-Q |
21 |
November 30, 2024 (1) |
||||
Assets |
Liabilities |
|||
$ in thousands |
Fair Value |
Number of
Contracts (2)
|
Fair Value |
Number of
Contracts (2)
|
Derivatives designated as
accounting hedges:
|
||||
Interest rate contracts: |
||||
Cleared OTC ......................................... |
$3,396 |
3 |
$— |
— |
Foreign exchange contracts: |
||||
Bilateral OTC ........................................ |
41,903 |
3 |
— |
— |
Total derivatives designated as
accounting hedges .............................
|
45,299 |
— |
||
Derivatives not designated as
accounting hedges:
|
||||
Interest rate contracts: |
||||
Exchange-traded ................................. |
273 |
16,548 |
13 |
32,984 |
Cleared OTC ......................................... |
1,030,842 |
6,663 |
1,030,671 |
6,891 |
Bilateral OTC ........................................ |
365,678 |
1,096 |
717,255 |
1,256 |
Foreign exchange contracts: |
||||
Bilateral OTC ........................................ |
132,240 |
57,786 |
138,608 |
35,545 |
Equity contracts: |
||||
Exchange-traded ................................. |
682,327 |
1,777,822 |
521,889 |
1,574,498 |
Bilateral OTC ........................................ |
855,169 |
33,516 |
1,024,129 |
20,587 |
Commodity contracts: |
||||
Exchange-traded ................................. |
22 |
806 |
17 |
697 |
Bilateral OTC ....................................... |
4,570 |
11,691 |
1,381 |
5,180 |
Credit contracts: |
||||
Cleared OTC ......................................... |
31,488 |
66 |
38,711 |
32 |
Bilateral OTC ........................................ |
37,618 |
16 |
31,353 |
32 |
Total derivatives not designated as
accounting hedges .............................
|
3,140,227 |
3,504,027 |
||
Total gross derivative assets/
liabilities:
|
||||
Exchange-traded ................................. |
682,622 |
521,919 |
||
Cleared OTC ......................................... |
1,065,726 |
1,069,382 |
||
Bilateral OTC ........................................ |
1,437,178 |
1,912,726 |
||
Amounts offset in our
Consolidated Statements of
Financial Condition (3):
|
||||
Exchange-traded ................................. |
(476,364) |
(476,364) |
||
Cleared OTC ......................................... |
(1,058,995) |
(1,066,232) |
||
Bilateral OTC ........................................ |
(1,132,392) |
(1,251,117) |
||
Net amounts per Consolidated
Statements of Financial
Condition (4) ..................................
|
$517,775 |
$710,314 |
$ in thousands |
Three Months Ended |
|
Gains (Losses) |
February 28,
2025
|
February 29,
2024
|
Interest rate swaps (1) ................................................ |
$(5,628) |
$(4,558) |
Long-term debt ............................................................. |
(6,691) |
(11,267) |
Total ............................................................................... |
$(12,319) |
$(15,825) |
$ in thousands |
Three Months Ended |
|
Gains (Losses) |
February 28,
2025
|
February 29,
2024
|
Foreign exchange contracts ....................................... |
$16,854 |
$2,117 |
Total ............................................................................... |
$16,854 |
$2,117 |
$ in thousands |
Three Months Ended |
|
Gains (Losses) |
February 28,
2025
|
February 29,
2024
|
Interest rate contracts ................................................. |
$(22,502) |
$21,722 |
Foreign exchange contracts ....................................... |
(4,875) |
(9,834) |
Equity contracts ........................................................... |
494,216 |
(309,656) |
Commodity contracts .................................................. |
5,734 |
4,100 |
Credit contracts ............................................................ |
1,051 |
(4,573) |
Total ............................................................................... |
$473,624 |
$(298,241) |
22 |
Jefferies Financial Group Inc. |
OTC Derivative Assets (1) (2) (3) |
|||||
$ in thousands |
0 – 12
Months
|
1 – 5
Years
|
Greater
Than 5
Years
|
Cross-
Maturity
Netting
(4)
|
Total |
Commodity swaps, options and
forwards ......................................
|
$4,514 |
$— |
$— |
$— |
$4,514 |
Equity options and forwards .......... |
237,386 |
216,424 |
— |
— |
453,810 |
Credit default swaps ....................... |
— |
27,055 |
— |
— |
27,055 |
Total return swaps ........................... |
150,024 |
54,555 |
231 |
(3,816) |
200,994 |
Foreign currency forwards, swaps
and options .................................
|
119,656 |
2,013 |
— |
— |
121,669 |
Fixed income forwards ................... |
25,679 |
— |
— |
— |
25,679 |
Interest rate swaps, options and
forwards ......................................
|
68,054 |
157,692 |
32,137 |
(30,958) |
226,925 |
Total ................................................... |
$605,313 |
$457,739 |
$32,368 |
$(34,774) |
1,060,646 |
Cross-product counterparty
netting ..........................................
|
(36,026) |
||||
Total OTC derivative assets
included in Financial
instruments owned ....................
|
$1,024,620 |
OTC Derivative Liabilities (1) (2) (3) |
|||||
$ in thousands |
0 – 12
Months
|
1 – 5
Years
|
Greater
Than 5
Years
|
Cross-
Maturity
Netting
(4)
|
Total |
Commodity swaps, options and
forwards ......................................
|
$1,504 |
$— |
$— |
$— |
$1,504 |
Equity options and forwards .......... |
123,339 |
85,742 |
13,442 |
— |
222,523 |
Credit default swaps ........................ |
1,049 |
3,748 |
— |
— |
4,797 |
Total return swaps ........................... |
181,051 |
93,519 |
— |
(3,816) |
270,754 |
Foreign currency forwards, swaps
and options .................................
|
78,859 |
1,425 |
— |
— |
80,284 |
Fixed income forwards ................... |
718 |
— |
— |
— |
718 |
Interest rate swaps, options and
forwards ......................................
|
57,420 |
104,297 |
440,665 |
(30,958) |
571,424 |
Total ................................................... |
$443,940 |
$288,731 |
$454,107 |
$(34,774) |
1,152,004 |
Cross-product counterparty
netting ..........................................
|
(36,026) |
||||
Total OTC derivative liabilities
included in Financial
instruments sold, not yet
purchased ...................................
|
$1,115,978 |
Counterparty credit quality (1): |
$ in thousands |
A- or higher ............................................................................................... |
$170,331 |
BBB- to BBB+ ........................................................................................... |
42,612 |
BB+ or lower ............................................................................................. |
487,458 |
Unrated ..................................................................................................... |
324,219 |
Total .......................................................................................................... |
$1,024,620 |
February 28, 2025 |
|||
External Credit Rating |
|||
$ in millions |
Investment
Grade
|
Non-
investment
Grade
|
Total
Notional
|
Credit protection sold: |
|||
Index credit default swaps ..................... |
$1,746.9 |
$605.2 |
$2,352.1 |
November 30, 2024 |
|||
External Credit Rating |
|||
$ in millions |
Investment
Grade
|
Non-
investment
Grade
|
Total
Notional
|
Credit protection sold: |
|||
Index credit default swaps ..................... |
$395.2 |
$553.4 |
$948.6 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Derivative instrument liabilities with credit-risk-
related contingent features ...................................
|
$135.5 |
$102.3 |
Collateral posted .......................................................... |
(99.5) |
(50.6) |
Collateral received ....................................................... |
295.4 |
296.1 |
Return of and additional collateral required in the
event of a credit rating downgrade below
investment grade (1) ..............................................
|
331.4 |
347.8 |
February 2025 Form 10-Q |
23 |
February 28, 2025 |
||||
$ in millions |
Securities
Lending
Arrangements
|
Repurchase
Agreements
|
Obligation to
Return
Securities
Received as
Collateral, at
Fair Value
|
Total |
Collateral Pledged: |
||||
Corporate equity
securities .....................
|
$1,979.7 |
$2,190.7 |
$257.7 |
$4,428.1 |
Corporate debt
securities .....................
|
474.9 |
5,146.5 |
— |
5,621.4 |
Mortgage-backed and
asset-backed
securities .....................
|
— |
2,187.7 |
— |
2,187.7 |
U.S. government and
federal agency
securities .....................
|
30.3 |
8,665.9 |
— |
8,696.2 |
Municipal securities ........ |
— |
228.3 |
— |
228.3 |
Sovereign obligations ..... |
16.8 |
1,889.9 |
29.4 |
1,936.0 |
Loans and other
receivables ..................
|
— |
376.4 |
— |
376.4 |
Total .................................. |
$2,501.6 |
$20,685.4 |
$287.1 |
$23,474.1 |
November 30, 2024 |
||||
$ in millions |
Securities
Lending
Arrangements
|
Repurchase
Agreements
|
Obligation to
Return
Securities
Received as
Collateral, at
Fair Value
|
Total |
Collateral Pledged: |
||||
Corporate equity
securities .....................
|
$2,059.8 |
$1,394.2 |
$3.9 |
$3,457.8 |
Corporate debt
securities .....................
|
416.4 |
4,522.5 |
— |
4,938.9 |
Mortgage-backed and
asset-backed
securities .....................
|
— |
2,384.8 |
— |
2,384.8 |
U.S. government and
federal agency
securities .....................
|
30.9 |
6,837.1 |
— |
6,868.0 |
Municipal securities ........ |
— |
212.1 |
— |
212.1 |
Sovereign obligations ..... |
33.7 |
1,981.0 |
181.7 |
2,196.4 |
Loans and other
receivables ..................
|
— |
757.4 |
— |
757.4 |
Total .................................. |
$2,540.9 |
$18,088.9 |
$185.6 |
$20,815.4 |
February 28, 2025 |
|||||
$ in millions |
Overnight
and
Continuous
|
Up to 30
Days
|
31-90
Days
|
Greater
than 90
Days
|
Total |
Securities lending
arrangements ..............
|
$1,552.0 |
$138.4 |
$383.8 |
$427.4 |
$2,501.6 |
Repurchase agreements . |
2,601.6 |
8,388.2 |
5,671.7 |
4,023.9 |
20,685.4 |
Obligation to return
securities received as
collateral, at fair
value .............................
|
287.1 |
— |
— |
— |
287.1 |
Total ................................... |
$4,440.7 |
$8,526.6 |
$6,055.5 |
$4,451.3 |
$23,474.1 |
November 30, 2024 |
|||||
$ in millions |
Overnight
and
Continuous
|
Up to 30
Days
|
31-90
Days
|
Greater
than 90
Days
|
Total |
Securities lending
arrangements ..............
|
$1,617.8 |
$154.3 |
$250.4 |
$518.4 |
$2,540.9 |
Repurchase agreements . |
2,258.1 |
7,055.1 |
4,182.8 |
4,592.9 |
18,088.9 |
Obligation to return
securities received as
collateral, at fair
value .............................
|
185.6 |
— |
— |
— |
185.6 |
Total ................................... |
$4,061.5 |
$7,209.4 |
$4,433.2 |
$5,111.2 |
$20,815.4 |
24 |
Jefferies Financial Group Inc. |
February 28, 2025 |
||||||
$ in millions |
Gross
Amounts
|
Netting in
Consolidated
Statements
of Financial
Condition
|
Net Amounts in
Consolidated
Statements of
Financial
Condition
|
Additional
Amounts
Available for
Setoff (1)
|
Available
Collateral (2)
|
Net
Amount (3)
|
Assets: |
||||||
Securities borrowing arrangements ................................... |
$8,402.2 |
$— |
$8,402.2 |
$(435.3) |
$(1,804.9) |
$6,162.0 |
Reverse repurchase agreements ......................................... |
15,146.3 |
(7,021.1) |
8,125.2 |
(1,607.0) |
(6,418.1) |
100.1 |
Securities received as collateral, at fair value ................... |
287.1 |
— |
287.1 |
— |
(287.1) |
— |
Liabilities: |
||||||
Securities lending arrangements ........................................ |
$2,501.6 |
$— |
$2,501.6 |
$(435.3) |
$(1,999.0) |
$67.3 |
Repurchase agreements ....................................................... |
20,685.4 |
(7,021.1) |
13,664.3 |
(1,607.0) |
(11,182.2) |
875.1 |
Obligation to return securities received as collateral, at
fair value .............................................................................
|
287.1 |
— |
287.1 |
— |
(287.1) |
— |
November 30, 2024 |
||||||
$ in millions |
Gross
Amounts
|
Netting in
Consolidated
Statements
of Financial
Condition
|
Net Amounts in
Consolidated
Statements of
Financial
Condition
|
Additional
Amounts
Available for
Setoff (1)
|
Available
Collateral (2)
|
Net
Amount (4)
|
Assets: |
||||||
Securities borrowing arrangements ................................... |
$7,213.4 |
$— |
$7,213.4 |
$(325.4) |
$(1,537.3) |
$5,350.7 |
Reverse repurchase agreements ......................................... |
11,930.7 |
(5,751.0) |
6,179.7 |
(1,475.9) |
(4,574.0) |
129.8 |
Securities received as collateral, at fair value ................... |
185.6 |
— |
185.6 |
— |
(185.6) |
— |
Liabilities: |
||||||
Securities lending arrangements ........................................ |
$2,540.9 |
$— |
$2,540.9 |
$(325.4) |
$(2,091.4) |
$124.1 |
Repurchase agreements ....................................................... |
18,088.9 |
(5,751.0) |
12,337.9 |
(1,475.9) |
(10,274.6) |
587.4 |
Obligation to return securities received as collateral, at
fair value .............................................................................
|
185.6 |
— |
185.6 |
— |
(185.6) |
— |
February 2025 Form 10-Q |
25 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Cash and securities segregated and
on deposit for regulatory purposes
or deposited with clearing and
depository organizations ...................
|
$1,665.9 |
$1,132.6 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Transferred assets ..................................................... |
$42.0 |
$1,502.0 |
Proceeds on new securitizations ............................. |
42.0 |
1,502.0 |
Cash flows received on retained interests .............. |
6.4 |
11.0 |
$ in millions |
February 28, 2025 |
November 30, 2024 |
||
Securitization Type |
Total
Assets
|
Retained
Interests
|
Total
Assets
|
Retained
Interests
|
U.S. government agency RMBS ... |
$3,125.7 |
$29.7 |
$3,956.8 |
$105.7 |
U.S. government agency CMBS ... |
1,348.6 |
55.6 |
1,817.1 |
91.8 |
CLOs ................................................. |
9,083.5 |
31.3 |
9,001.9 |
37.2 |
Consumer and other loans ........... |
1,204.0 |
36.1 |
1,424.4 |
52.1 |
26 |
Jefferies Financial Group Inc. |
February 28, 2025 (1) |
||
$ in millions |
Secured
Funding
Vehicles
|
Other |
Cash ................................................................................... |
$— |
$2.0 |
Financial instruments owned ........................................ |
— |
43.4 |
Securities purchased under agreements to resell (2) |
2,964.0 |
— |
Receivables from brokers (3) ......................................... |
— |
18.9 |
Other receivables ............................................................. |
— |
3.0 |
Other assets (4) ............................................................... |
— |
89.3 |
Total assets ...................................................................... |
$2,964.0 |
$156.6 |
Financial instruments sold, not yet purchased ........... |
$— |
$9.0 |
Other secured financings (5) ......................................... |
2,958.8 |
22.8 |
Other liabilities (6) ........................................................... |
5.2 |
23.4 |
Long-term debt ................................................................ |
— |
70.1 |
Total liabilities ................................................................. |
$2,964.0 |
$125.3 |
November 30, 2024 (1) |
||
$ in millions |
Secured
Funding
Vehicles
|
Other |
Cash ................................................................................... |
$— |
$1.6 |
Financial instruments owned ......................................... |
— |
40.0 |
Securities purchased under agreements to resell (2) |
2,829.7 |
— |
Receivables from brokers (3) ......................................... |
— |
23.5 |
Other receivables ............................................................. |
— |
3.0 |
Other assets (4) ............................................................... |
— |
90.3 |
Total assets ...................................................................... |
$2,829.7 |
$158.4 |
Financial instruments sold, not yet purchased ........... |
$— |
$7.6 |
Other secured financings (5) ......................................... |
2,823.0 |
26.1 |
Other liabilities (6) ........................................................... |
6.7 |
23.1 |
Long-term debt ................................................................ |
— |
70.1 |
Total liabilities ................................................................. |
$2,829.7 |
$126.9 |
February 2025 Form 10-Q |
27 |
February 28, 2025 |
||||
Carrying Amount |
Maximum
Exposure to
Loss
|
VIE Assets |
||
$ in millions |
Assets |
Liabilities |
||
CLOs ...................................... |
$1,356.6 |
$26.3 |
$6,109.4 |
$15,549.0 |
Asset-backed vehicles ........ |
853.6 |
— |
989.5 |
4,354.2 |
Related party private equity
vehicles ............................
|
3.3 |
— |
13.6 |
33.9 |
Other investment vehicles .. |
1,238.7 |
— |
1,394.5 |
19,586.5 |
Total ....................................... |
$3,452.2 |
$26.3 |
$8,507.0 |
$39,523.6 |
November 30, 2024 |
||||
Carrying Amount |
Maximum
Exposure to
Loss
|
VIE Assets |
||
$ in millions |
Assets |
Liabilities |
||
CLOs ...................................... |
951.8 |
$26.5 |
$6,511.1 |
$14,872.4 |
Asset-backed vehicles ........ |
827.4 |
— |
946.3 |
4,266.7 |
Related party private equity
vehicles ............................
|
3.7 |
— |
14.0 |
34.4 |
Other investment vehicles .. |
1,107.8 |
— |
1,365.8 |
19,064.1 |
Total ....................................... |
$2,890.7 |
$26.5 |
$8,837.2 |
$38,237.6 |
28 |
Jefferies Financial Group Inc. |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Total Investments in and loans to related
parties ........................................................
|
$1,383.3 |
$1,385.7 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Total equity method pickup earnings recognized
in Other revenues ....................................................
|
$7.1 |
$8.7 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Unfunded commitment fees ....................................... |
$0.3 |
$0.3 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Total assets .................................................... |
$6,007.1 |
$5,762.6 |
Total liabilities ................................................ |
4,669.9 |
4,415.6 |
Total mezzanine equity ................................. |
13.8 |
14.4 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Our total investment balance ....................... |
$661.7 |
$666.3 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Net earnings (losses) attributable to members ........ |
$(1.7) |
$6.9 |
February 2025 Form 10-Q |
29 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Origination and syndication fee revenues (1) .......... |
$60.2 |
$52.4 |
Origination fee expenses (1) ...................................... |
18.5 |
14.9 |
CLO placement and structuring fee revenues (2) .. |
0.2 |
— |
Investment fund placement fee revenues (3) ........... |
0.6 |
0.5 |
Service fees (4) ............................................................. |
54.4 |
44.9 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Total assets ................................................... |
$4,183.1 |
$4,963.2 |
Total liabilities ............................................... |
2,840.6 |
3,515.6 |
Total noncontrolling interest ....................... |
397.0 |
502.1 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Our total investment balance ....................... |
$428.5 |
$427.7 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Net earnings attributable to members ...................... |
$37.8 |
$29.3 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Distributions .................................................................. |
$16.1 |
$3.8 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Transaction referral fee revenue (1) .......................... |
$0.1 |
$— |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Total assets .................................................... |
$329.2 |
$326.0 |
Total liabilities ................................................ |
484.2 |
484.7 |
February 28,
2025
|
November 30,
2024
|
|
Our total investment balance ....................... |
$99.1 |
$97.8 |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Net earnings .................................................................. |
$4.6 |
$2.5 |
30 |
Jefferies Financial Group Inc. |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Net losses from our investments in JCP Fund V ...... |
$(0.2) |
$(0.3) |
Three Months Ended December 31, |
||
$ in millions |
2024 |
2023 |
Net decrease in net assets resulting from
operations (1) ..........................................................
|
$(0.6) |
$(0.9) |
$ in millions |
December 31,
2024 (1)
|
September 30,
2024 (1)
|
Total assets .................................................... |
$359.1 |
$304.2 |
Total liabilities ................................................ |
31.8 |
0.2 |
Total members’ equity .................................. |
327.3 |
304.0 |
$ in millions |
Three Months
Ended
December 31,
2024 (1)
|
Net increase in members’ equity resulting from operations ....... |
$8.4 |
February 2025 Form 10-Q |
31 |
Three Months Ended |
||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
Beginning balance ............................................. |
$5,277 |
$6,306 |
Bad debt expense .............................................. |
1,347 |
1,011 |
Charge-offs ......................................................... |
(3,076) |
(2,500) |
Recoveries collected ......................................... |
(1,502) |
(1,854) |
Ending balance (1) ............................................. |
$2,046 |
$2,963 |
Three Months Ended February 28, 2025 |
|||
$ in thousands |
Investment
Banking and
Capital
Markets
|
Asset
Management
|
Total |
Balance, at beginning of period ................... |
$1,533,013 |
$294,925 |
$1,827,938 |
Currency translation and other
adjustments ..............................................
|
(1,151) |
(2,140) |
(3,291) |
Balance, at end of period ............................. |
$1,531,862 |
$292,785 |
$1,824,647 |
Three Months Ended February 29, 2024 |
|||
$ in thousands |
Investment
Banking and
Capital
Markets
|
Asset
Management
|
Total |
Balance, at beginning of period ................... |
$1,532,172 |
$315,684 |
$1,847,856 |
Currency translation and other
adjustments ..............................................
|
(231) |
— |
(231) |
Measurement period adjustments (1) ........ |
— |
(26,954) |
(26,954) |
Goodwill relating to acquisitions by
Tessellis .....................................................
|
— |
3,366 |
3,366 |
Balance, at end of period ............................. |
$1,531,941 |
$292,096 |
$1,824,037 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Investment banking ............................................................. |
$700.1 |
$700.7 |
Equities and wealth management ..................................... |
255.2 |
255.4 |
Fixed income ........................................................................ |
576.5 |
576.9 |
Asset management ............................................................. |
143.0 |
143.0 |
Other investments ............................................................... |
149.8 |
151.9 |
Total ...................................................................................... |
$1,824.6 |
$1,827.9 |
February 28, 2025 |
Weighted
Average
Remaining
Lives
(Years)
|
||||
$ in thousands |
Gross
Cost
|
Assets
Acquired
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|
Customer relationships ....................... |
$161,576 |
$622 |
$(107,035) |
$55,163 |
5.3 |
Trademarks and trade names ............ |
156,418 |
— |
(49,634) |
106,784 |
21.2 |
Exchange and clearing organization
membership interests and
registrations ..........................................
|
8,678 |
— |
— |
8,678 |
N/A |
Other ...................................................... |
76,049 |
41 |
(33,456) |
42,634 |
3.6 |
Total ....................................................... |
$402,721 |
$663 |
$(190,125) |
$213,259 |
November 30, 2024 |
Weighted
Average
Remaining
Lives
(Years)
|
|||||
$ in thousands |
Gross
Cost
|
Assets
Acquired
(1)
|
Impairment
Losses
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
|
Customer relationships |
$136,049 |
$26,450 |
$— |
$(104,539) |
$57,960 |
5.6 |
Trademarks and trade
names ..............................
|
146,032 |
8,533 |
— |
(45,412) |
109,153 |
21.4 |
Exchange and clearing
organization
membership interests
and registrations ............
|
8,715 |
— |
(10) |
— |
8,705 |
N/A |
Other ................................ |
50,930 |
26,316 |
— |
(26,693) |
50,553 |
3.9 |
Total ................................ |
$341,726 |
$61,299 |
$(10) |
$(176,644) |
$226,371 |
32 |
Jefferies Financial Group Inc. |
Remainder of fiscal year 2025 ................................................................ |
$22,496 |
Year ending November 30, 2026 ............................................................ |
29,880 |
Year ending November 30, 2027 ............................................................ |
27,563 |
Year ending November 30, 2028 ............................................................ |
26,383 |
Year ending November 30, 2029 ............................................................ |
15,382 |
Three Months Ended |
||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
Revenues from contracts with customers: |
||
Investment banking ..................................................... |
$725,661 |
$679,065 |
Commissions and other fees .................................... |
287,965 |
245,543 |
Asset management fees ............................................. |
45,808 |
29,361 |
Real estate revenues ................................................... |
11,081 |
3,149 |
Internet connection and broadband revenues (1) ... |
57,804 |
63,616 |
Other contracts with customers ................................ |
16,107 |
14,099 |
Total revenue from contracts with customers ....... |
1,144,426 |
1,034,833 |
Other sources of revenue: |
||
Principal transactions .................................................. |
407,230 |
640,736 |
Revenues from strategic affiliates ............................ |
43,449 |
21,011 |
Interest ........................................................................... |
845,171 |
819,489 |
Other (1) ......................................................................... |
32,588 |
35,873 |
Total revenues ............................................................. |
$2,472,864 |
$2,551,942 |
Three Months Ended February 28, 2025 |
|||
$ in thousands |
Investment
Banking and
Capital Markets
|
Asset
Management
|
Total |
Major business activity: |
|||
Investment banking - Advisory ................ |
$397,780 |
$— |
$397,780 |
Investment banking - Underwriting ......... |
327,881 |
— |
327,881 |
Equities (1) ................................................. |
286,050 |
— |
286,050 |
Fixed income (1) ........................................ |
1,915 |
— |
1,915 |
Asset management ................................... |
— |
45,808 |
45,808 |
Other investments ..................................... |
— |
84,992 |
84,992 |
Total ............................................................ |
$1,013,626 |
$130,800 |
$1,144,426 |
Primary geographic region: |
|||
Americas ..................................................... |
$748,675 |
$71,070 |
$819,745 |
Europe and the Middle East ..................... |
173,121 |
58,794 |
231,915 |
Asia-Pacific ................................................ |
91,830 |
936 |
92,766 |
Total ............................................................ |
$1,013,626 |
$130,800 |
$1,144,426 |
Three Months Ended February 29, 2024 |
|||
$ in thousands |
Investment
Banking and
Capital Markets
|
Asset
Management
|
Total |
Major business activity: |
|||
Investment banking - Advisory ................ |
$338,568 |
$— |
$338,568 |
Investment banking - Underwriting ......... |
340,497 |
— |
340,497 |
Equities (1) ................................................. |
242,576 |
— |
242,576 |
Fixed income (1) ........................................ |
2,430 |
— |
2,430 |
Asset management ................................... |
— |
29,361 |
29,361 |
Other investments (2) ............................... |
— |
81,401 |
81,401 |
Total ............................................................ |
$924,071 |
$110,762 |
$1,034,833 |
Primary geographic region: |
|||
Americas ..................................................... |
$730,377 |
$45,199 |
$775,576 |
Europe and the Middle East (2) ............... |
126,002 |
64,722 |
190,724 |
Asia-Pacific ................................................ |
67,692 |
841 |
68,533 |
Total ............................................................ |
$924,071 |
$110,762 |
$1,034,833 |
February 2025 Form 10-Q |
33 |
$ in millions |
Grant Terms |
RSUs |
|
Aggregate grant date fair value ...................................... |
$18.0 |
Vesting period ................................................................... |
3-year cliff |
PSUs |
|
Aggregate target fair value .............................................. |
$18.0 |
Service period .................................................................... |
3 years |
Performance period .......................................................... |
Fiscal 2024 to Fiscal 2026 |
Performance target (1) .................................................... |
10% ROTE |
Performance range (2) ..................................................... |
7.5% - 15% ROTE |
Three Months Ended |
||
$ in millions |
February 28,
2025
|
February 29,
2024
|
Restricted cash awards ................................................. |
$115.1 |
$107.9 |
Restricted stock and RSUs (1) ....................................... |
35.6 |
20.2 |
Profit sharing plan ........................................................... |
7.4 |
6.9 |
Total compensation cost ............................................... |
$158.1 |
$135.0 |
$ in millions |
Remaining
Unamortized
Amounts
|
Weighted Average
Vesting Period
(in Years)
|
Non-vested share-based awards .............. |
$139.5 |
2.9 |
Restricted cash awards (1) ........................ |
1,166.9 |
3.0 |
Total .............................................................. |
$1,306.4 |
$ in thousands |
February 28,
2025
|
November 30,
2024
|
Bank loans ..................................................................... |
$474,756 |
$443,160 |
Fixed rate callable note ............................................... |
698,050 |
— |
Total short-term borrowings (1) ............................... |
$1,172,806 |
$443,160 |
34 |
Jefferies Financial Group Inc. |
$ in thousands |
Maturity (Fiscal Years) |
February 28, 2025 |
November 30, 2024 |
Parent Co. unsecured borrowings |
|||
Fixed rate |
2025 |
505,972 |
519,738 |
2026 |
798,366 |
818,819 |
|
2027 |
586,928 |
587,631 |
|
2028 |
1,056,475 |
1,031,076 |
|
2029 |
673,735 |
742,427 |
|
2030 and Later |
4,748,818 |
4,561,814 |
|
Variable rate |
2025 |
350,000 |
— |
2026 |
40,405 |
41,230 |
|
2027 |
574,959 |
570,432 |
|
2029 |
1,311 |
1,311 |
|
2030 and Later |
852,851 |
850,273 |
|
Structured notes (1) |
2025 |
152,123 |
157,638 |
2026 |
121,951 |
114,308 |
|
2027 |
97,529 |
97,758 |
|
2028 |
97,399 |
77,781 |
|
2029 |
329,635 |
316,139 |
|
2030 and Later |
1,756,860 |
1,587,721 |
|
Total Parent Co. unsecured borrowings (2) .......................................................................................................................................... |
12,745,317 |
12,076,096 |
|
Subsidiaries secured borrowings |
|||
Fixed rate |
2025 |
148,934 |
160,384 |
2026 |
42,429 |
42,643 |
|
2027 |
19,147 |
13,077 |
|
2028 |
54,284 |
35,135 |
|
2029 |
112,518 |
104,912 |
|
Variable rate |
2026 |
836,010 |
792,400 |
2027 |
274,152 |
274,026 |
|
Structured note (1) ....................................................................................................................................... |
2028 |
519,906 |
— |
Total Subsidiaries secured borrowings ................................................................................................................................................. |
2,007,380 |
1,422,577 |
|
Subsidiaries unsecured borrowings |
|||
Fixed rate |
2025 |
1,026 |
— |
2027 |
352 |
— |
|
2029 |
3,752 |
4,310 |
|
2030 and Later |
1,264 |
1,347 |
|
Variable rate |
2026 |
26,462 |
26,235 |
Total Subsidiaries unsecured borrowings ............................................................................................................................................. |
32,856 |
31,892 |
|
Total long-term debt (3) .......................................................................................................................................................................... |
$14,785,553 |
$13,530,565 |
|
Fair value .................................................................................................................................................................................................... |
$14,933,050 |
$13,734,421 |
|
Weighted-average interest rate (4) ....................................................................................................................................................... |
5.52% |
5.30% |
|
Interest rate range (4) .............................................................................................................................................................................. |
0.00% - 7.52% |
0.00% - 7.66% |
February 2025 Form 10-Q |
35 |
36 |
Jefferies Financial Group Inc. |
Three Months Ended |
||
In thousands, except per share amounts |
February 28,
2025
|
February 29,
2024
|
Numerator for earnings per common share from continuing operations: |
||
Net earnings from continuing operations ................................................................................................................................ |
$136,849 |
$164,283 |
Less: Net losses attributable to noncontrolling interests ..................................................................................................... |
(6,983) |
(6,452) |
Allocation of earnings to participating securities (1) ............................................................................................................. |
(16,039) |
(14,189) |
Net earnings from continuing operations attributable to common shareholders for basic earnings per share ........ |
$127,793 |
$156,546 |
Net earnings from continuing operations attributable to common shareholders for diluted earnings per share ..... |
$127,793 |
$156,546 |
Numerator for earnings per common share from discontinued operations: |
||
Net losses from discontinued operations, net of taxes......................................................................................................... |
— |
(7,891) |
Less: Net losses attributable to noncontrolling interests ..................................................................................................... |
— |
(986) |
Net losses from discontinued operations attributable to common shareholders for basic and diluted earnings
per share ..................................................................................................................................................................................
|
$— |
$(6,905) |
Net earnings attributable to common shareholders for basic earnings per share ......................................................... |
$127,793 |
$149,641 |
Net earnings attributable to common shareholders for diluted earnings per share ....................................................... |
$127,793 |
$149,641 |
Denominator for earnings per common share: |
||
Weighted average common shares outstanding .................................................................................................................... |
206,046 |
211,535 |
Weighted average shares of restricted stock outstanding with future service required .................................................. |
(2,200) |
(2,402) |
Weighted average RSUs outstanding with no future service required ................................................................................ |
10,690 |
10,913 |
Weighted average basic common shares ............................................................................................................................... |
214,536 |
220,046 |
Stock options and other share-based awards ....................................................................................................................... |
5,287 |
2,894 |
Senior executive compensation plan RSU awards ................................................................................................................. |
2,625 |
2,351 |
Weighted average diluted common shares (2) ...................................................................................................................... |
222,448 |
225,291 |
Earnings (losses) per common share: |
||
Basic from continuing operations ............................................................................................................................................ |
$0.60 |
$0.71 |
Basic from discontinued operations ........................................................................................................................................ |
— |
(0.03) |
Basic ............................................................................................................................................................................................. |
$0.60 |
$0.68 |
Diluted from continuing operations ........................................................................................................................................... |
$0.57 |
$0.69 |
Diluted from discontinued operations ...................................................................................................................................... |
— |
(0.03) |
Diluted ........................................................................................................................................................................................... |
$0.57 |
$0.66 |
February 2025 Form 10-Q |
37 |
Three Months Ended February 28, 2025 | |||
Declaration Date |
Record Date |
Payment Date |
Per Common
Share Amount
|
January 8, 2025 |
February 14, 2025 |
February 27, 2025 |
$0.40 |
Three Months Ended February 29, 2024 | |||
Declaration Date |
Record Date |
Payment Date |
Per Common
Share Amount
|
January 8, 2024 |
February 16, 2024 |
February 27, 2024 |
$0.30 |
$ in thousands |
February 28,
2025
|
November 30,
2024
|
Net unrealized losses on available-for-sale
securities .......................................................................
|
$(2,281) |
$(2,406) |
Net currency translation adjustments and other ..... |
(189,876) |
(173,841) |
Net unrealized losses related to instrument-
specific credit risk .......................................................
|
(176,408) |
(206,664) |
Net minimum pension liability .................................... |
(39,507) |
(40,220) |
Total accumulated other comprehensive loss, net
of tax ..............................................................................
|
$(408,072) |
$(423,131) |
Three Months Ended |
||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
Net unrealized gains (losses) on instrument-
specific credit risk at fair value (1) .............................
|
$2,538 |
$2,119 |
Amortization of defined benefit pension plan
actuarial losses (2) .......................................................
|
(759) |
(121) |
Total reclassifications for the period, net of tax ..... |
$1,779 |
$1,998 |
Jurisdiction |
Tax Year |
United States ........................................................................................... |
2021 |
New York State ........................................................................................ |
2001 |
New York City .......................................................................................... |
2006 |
United Kingdom ....................................................................................... |
2022 |
Germany ................................................................................................... |
2019 |
Hong Kong ............................................................................................... |
2018 |
India ........................................................................................................... |
2010 |
Three Months Ended |
||
$ in millions |
February 28, 2025 |
February 29, 2024 |
Income tax expense ........................... |
$14.2 |
$56.0 |
Effective tax rate ................................. |
9.4% |
25.4% |
Expected Maturity Date (Fiscal Years) |
||||||
$ in millions |
2025 |
2026 |
2027
and
2028
|
2029
and
2030
|
2031
and
Later
|
Maximum
Payout
|
Equity commitments (1) ..... |
$28.2 |
$18.0 |
$2.0 |
$0.1 |
$172.6 |
$220.9 |
Loan commitments (1) ....... |
— |
332.2 |
4.9 |
— |
— |
337.1 |
Loan purchase
commitments (2) .................
|
3,632.2 |
— |
— |
— |
— |
3,632.2 |
Forward starting reverse
repos (3) ...............................
|
3,767.4 |
— |
— |
— |
— |
3,767.4 |
Forward starting repos (3) . |
2,309.6 |
— |
— |
— |
— |
2,309.6 |
Other unfunded
commitments (1) .................
|
340.8 |
502.0 |
274.8 |
14.2 |
— |
1,131.8 |
Total commitments ............ |
$10,078.2 |
$852.2 |
$281.7 |
$14.3 |
$172.6 |
$11,399.0 |
38 |
Jefferies Financial Group Inc. |
Expected Maturity Date (Fiscal Years) |
|||||
$ in millions |
2025 |
2026 |
2027 and
2028
|
2029 and
2030
|
Notional/
Maximum
Payout
|
Guarantee Type: |
|||||
Derivative contracts—
non-credit related .........
|
$14,504.5 |
$17,288.4 |
$9,920.9 |
$50.0 |
$41,763.8 |
Total derivative contracts ....... |
$14,504.5 |
$17,288.4 |
$9,920.9 |
$50.0 |
$41,763.8 |
February 2025 Form 10-Q |
39 |
$ in thousands |
Net
Capital
|
Excess Net
Capital
|
Jefferies LLC ................................................................. |
$1,112,504 |
$984,377 |
JFSI - SEC ...................................................................... |
426,334 |
406,334 |
JFSI - CFTC ................................................................... |
426,334 |
400,338 |
40 |
Jefferies Financial Group Inc. |
Three Months Ended |
||
$ in millions |
February 28, 2025 |
February 29, 2024 |
Investment Banking and Capital
Markets:
|
||
Net revenues |
$1,399.0 |
$1,451.3 |
Non-interest expenses |
1,232.0 |
1,296.3 |
Earnings from continuing operations
before income taxes
|
167.0 |
155.0 |
Asset Management: |
||
Net revenues |
191.7 |
273.4 |
Non-interest expenses |
209.9 |
221.7 |
Earnings from continuing operations
before income taxes
|
(18.2) |
51.7 |
Total of Reportable Business
Segments:
|
||
Net revenues |
1,590.7 |
1,724.7 |
Non-interest expenses |
1,441.9 |
1,518.0 |
Earnings from continuing operations
before income taxes
|
148.8 |
206.7 |
Reconciliation to consolidated
amounts:
|
||
Net revenues |
2.3 |
13.5 |
Non-interest expenses |
— |
— |
Earnings from continuing operations
before income taxes (1)
|
2.3 |
13.5 |
Total: |
||
Net revenues |
1,593.0 |
1,738.2 |
Non-interest expenses |
1,441.9 |
1,518.0 |
Earnings from continuing operations
before income taxes
|
$151.1 |
$220.2 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Investment Banking and Capital Markets ................. |
$64,896.6 |
$59,142.9 |
Asset Management ...................................................... |
5,322.3 |
5,217.4 |
Total assets .................................................................. |
$70,218.9 |
$64,360.3 |
Three Months Ended |
||
$ in millions |
February 28, 2025 |
February 29, 2024 |
Americas (1) .................................... |
$1,084.3 |
$1,307.8 |
Europe and the Middle East (2) .... |
370.6 |
331.8 |
Asia-Pacific ...................................... |
138.1 |
98.6 |
Net revenues ................................... |
$1,593.0 |
$1,738.2 |
February 2025 Form 10-Q |
41 |
$ in thousands |
February 28, 2025 |
November 30, 2024 |
Assets |
||
Cash and cash equivalents ............ |
$400,011 |
$542,212 |
Cash and securities segregated
and on deposit for regulatory
purposes or deposited with
clearing and depository
organizations ...............................
|
28,588 |
— |
Financial instruments owned, at
fair value .......................................
|
27,747 |
1,539 |
Securities borrowed ......................... |
7,265 |
20,403 |
Securities purchased under
agreements to resell ..................
|
355,718 |
381,568 |
Receivables: |
||
Brokers, dealers and clearing
organizations ................................
|
1,776 |
3,012 |
Fees, interest and other ............... |
5,740 |
7,851 |
Other assets ..................................... |
131 |
175 |
Total assets ...................................... |
$826,976 |
$956,760 |
Liabilities |
||
Financial instruments sold, not
yet purchased, at fair value .......
|
$11,927 |
$1,830 |
Securities loaned ............................. |
797 |
187 |
Securities sold under agreements
to repurchase ..............................
|
562,411 |
631,390 |
Payables: |
||
Brokers, dealers and clearing
organizations ..........................
|
7,403 |
18,701 |
Accrued expenses and other
liabilities .......................................
|
8,029 |
6,767 |
Long-term debt (1) ........................... |
350,000 |
— |
Total liabilities ................................. |
$940,567 |
$658,875 |
$ in thousands |
Three Months Ended
February 28, 2025
|
Revenues |
|
Investment banking ................................................................ |
$3,849 |
Principal transactions (1) ...................................................... |
(4,192) |
Commissions and other fees ................................................ |
649 |
Interest ..................................................................................... |
7,617 |
Total revenues ........................................................................ |
7,923 |
Interest expense ...................................................................... |
10,871 |
Net revenues ........................................................................... |
$(2,948) |
Non-interest expenses |
|
Business development ........................................................... |
$4,688 |
Other expenses ....................................................................... |
4 |
Total non-interest expenses ................................................ |
$4,692 |
42 |
Jefferies Financial Group Inc. |
Three Months Ended |
|||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
% Change |
Net revenues .................................................... |
$1,593,019 |
$1,738,203 |
(8.4)% |
Non-interest expenses .................................... |
1,441,954 |
1,517,961 |
(5.0)% |
Earnings from continuing operations
before income taxes ........................................
|
151,065 |
220,242 |
(31.4)% |
Income tax expense from continuing
operations ..........................................................
|
14,216 |
55,959 |
(74.6)% |
Net earnings from continuing operations ..... |
136,849 |
164,283 |
(16.7)% |
Net losses from discontinued operations,
net of income taxes .........................................
|
— |
(7,891) |
(100.0)% |
Net losses attributable to noncontrolling
interests .............................................................
|
(6,983) |
(7,438) |
(6.1)% |
Preferred stock dividends ............................... |
16,039 |
14,189 |
13.0% |
Net earnings attributable to common
shareholders .....................................................
|
127,793 |
149,641 |
(14.6)% |
Effective tax rate from continuing
operations ........................................................
|
9.4% |
25.4% |
February 2025 Form 10-Q |
43 |
Three Months Ended |
|||||
February 28, 2025 |
February 29, 2024 |
||||
$ in thousands |
Amount |
% of Net
Revenues
|
Amount |
% of Net
Revenues
|
% Change |
Advisory ............................ |
$397,780 |
25.0% |
$338,567 |
19.5% |
17.5% |
Equity underwriting .......... |
128,520 |
8.1 |
209,303 |
12.0 |
(38.6) |
Debt underwriting ............. |
199,362 |
12.5 |
129,194 |
7.4 |
54.3 |
Other investment
banking ........................
|
(24,970) |
(1.6) |
49,946 |
2.9 |
N/M |
Total Investment
Banking ........................
|
700,692 |
44.0 |
727,010 |
41.8 |
(3.6) |
Equities .............................. |
409,058 |
25.7 |
371,800 |
21.4 |
10.0 |
Fixed income ..................... |
289,226 |
18.2 |
352,478 |
20.3 |
(17.9) |
Total Capital Markets ...... |
698,284 |
43.9 |
724,278 |
41.7 |
(3.6) |
Total Investment
Banking and Capital
Markets (1) ..................
|
1,398,976 |
87.9 |
1,451,288 |
83.5 |
(3.6) |
Asset management fees
and revenues ..............
|
88,630 |
5.6 |
59,657 |
3.4 |
48.6 |
Investment return ............. |
(5,634) |
(0.4) |
117,640 |
6.8 |
N/M |
Allocated net interest (2) . |
(17,221) |
(1.1) |
(15,012) |
(0.9) |
14.7 |
Other investments,
inclusive of net
interest .........................
|
125,940 |
7.9 |
111,098 |
6.4 |
13.4 |
Total Asset
Management ...............
|
191,715 |
12.0 |
273,383 |
15.7 |
(29.9) |
Other ................................... |
2,328 |
0.1 |
13,532 |
0.8 |
(82.8) |
Net revenues ..................... |
$1,593,019 |
100.0% |
$1,738,203 |
100.0% |
(8.4)% |
44 |
Jefferies Financial Group Inc. |
Deals Completed |
||
Three Months Ended |
||
February 28,
2025
|
February 29,
2024
|
|
Advisory transactions ................................................. |
92 |
78 |
Public and private equity and convertible offerings |
35 |
58 |
Public and private debt financings ............................ |
213 |
182 |
Aggregate Value |
||
Three Months Ended |
||
$ in billions |
February 28,
2025
|
February 29,
2024
|
Advisory transactions ................................................. |
$111.8 |
$54.9 |
Public and private equity and convertible offerings |
22.4 |
12.8 |
Public and private debt financings ............................ |
147.2 |
107.3 |
February 2025 Form 10-Q |
45 |
Three Months Ended |
|||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
% Change |
Asset management fees: |
|||
Equities ................................................. |
$8,394 |
$2,498 |
236.0% |
Multi-asset ............................................ |
37,414 |
26,863 |
39.3% |
Total asset management fees .......... |
45,808 |
29,361 |
56.0% |
Revenue from strategic affiliates (1) |
42,822 |
30,296 |
41.3% |
Total asset management fees and
revenues ..........................................
|
88,630 |
59,657 |
48.6% |
Investment return ................................ |
(5,634) |
117,640 |
N/M |
Allocated net interest .......................... |
(17,221) |
(15,012) |
14.7% |
Other investments ............................... |
126,128 |
111,098 |
13.5% |
Total Asset Management .................. |
$191,903 |
$273,383 |
(29.8)% |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Net asset values of seed investments ................. |
$1,876 |
$1,761 |
Net asset values of financed investments .......... |
1,031 |
1,174 |
Net asset values of investments (1) ..................... |
2,907 |
2,935 |
Assets under management by affiliated asset
managers with revenue sharing
arrangements (2) ................................................
|
24,855 |
22,515 |
Third-party and other investments actively
managed by our wholly-owned managers (3)
|
2,694 |
2,596 |
Total aggregate net asset values or net asset
value equivalent assets under management .
|
$30,456 |
$28,046 |
$ in thousands |
February 28,
2025
|
November 30,
2024
|
Jefferies Financial Group Inc.; as manager: |
||
Fund investments (1) ................................................... |
$203,663 |
$199,248 |
Separately managed accounts (2) ............................ |
216,999 |
177,998 |
Total ............................................................................... |
$420,662 |
$377,246 |
Strategic affiliates; as manager: |
||
Fund investments (1) ................................................... |
$1,048,253 |
$944,940 |
Separately managed accounts (2) ............................ |
407,142 |
439,043 |
Investments in asset managers ................................. |
88,549 |
81,403 |
Total ............................................................................... |
$1,543,944 |
$1,465,386 |
Total asset management investments ................... |
$1,964,606 |
$1,842,632 |
46 |
Jefferies Financial Group Inc. |
Three Months Ended |
|||
$ in thousands |
February 28,
2025
|
February 29,
2024
|
% Change |
Compensation and benefits ........... |
$841,127 |
$926,871 |
(9.3)% |
Brokerage and clearing fees .......... |
109,436 |
109,670 |
(0.2) |
Underwriting costs .......................... |
17,846 |
18,484 |
(3.5) |
Technology and communications |
139,475 |
137,512 |
1.4 |
Occupancy and equipment rental . |
30,199 |
28,153 |
7.3 |
Business development ................... |
72,291 |
57,651 |
25.4 |
Professional services ..................... |
72,466 |
77,844 |
(6.9) |
Depreciation and amortization ...... |
30,988 |
43,202 |
(28.3) |
Cost of sales .................................... |
41,568 |
34,671 |
19.9 |
Other .................................................. |
86,558 |
83,903 |
3.2 |
Total non-interest expenses ......... |
$1,441,954 |
$1,517,961 |
(5.0)% |
February 2025 Form 10-Q |
47 |
48 |
Jefferies Financial Group Inc. |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Investment banking .......................................................... |
$700.1 |
$700.7 |
Equities and wealth management .................................. |
255.2 |
255.4 |
Fixed income ..................................................................... |
576.5 |
576.9 |
Asset management .......................................................... |
143.0 |
143.0 |
Other investments ............................................................ |
149.8 |
151.9 |
Total .................................................................................... |
$1,824.6 |
$1,827.9 |
February 2025 Form 10-Q |
49 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
% Change |
Total assets ..................................... |
$70,218.9 |
$64,360.3 |
9.1% |
Cash and cash equivalents ............ |
11,176.3 |
12,153.4 |
(8.0) |
Cash and securities segregated
and on deposit for regulatory
purposes or deposited with
clearing and depository
organizations ..............................
|
1,665.9 |
1,132.6 |
47.1 |
Financial instruments owned ........ |
26,087.3 |
24,138.3 |
8.1 |
Financial instruments sold, not
yet purchased .............................
|
13,997.2 |
11,007.3 |
27.2 |
Total Level 3 assets ........................ |
781.4 |
734.2 |
6.4 |
Securities borrowed ........................ |
$8,402.2 |
$7,213.4 |
16.5% |
Securities purchased under
agreements to resell ..................
|
8,125.2 |
6,179.7 |
31.5 |
Total securities borrowed and
securities purchased under
agreements to resell .................
|
$16,527.4 |
$13,393.1 |
23.4% |
Securities loaned ............................. |
$2,501.6 |
$2,540.9 |
(1.5)% |
Securities sold under agreements
to repurchase .............................
|
13,664.3 |
12,337.9 |
10.8 |
Total securities loaned and
securities sold under
agreements to
repurchase ..................................
|
$16,165.9 |
$14,878.8 |
8.7% |
$ in millions |
February 28,
2025
|
Percent |
November 30,
2024
|
Percent |
Investment Banking ............ |
$150.3 |
19.2% |
$146.7 |
20.0% |
Equities and Fixed Income . |
380.6 |
48.7 |
312.2 |
42.5 |
Asset Management (1) ....... |
231.2 |
29.6 |
256.2 |
34.9 |
Other ...................................... |
19.3 |
2.5 |
19.1 |
2.6 |
Total ...................................... |
$781.4 |
100.0% |
$734.2 |
100.0% |
$ in millions |
Three Months
Ended
February 28,
2025
|
Year Ended
November 30,
2024
|
Securities Purchased Under Agreements
to Resell:
|
||
Period end ....................................................... |
$8,125 |
$6,180 |
Month end average ........................................ |
9,217 |
8,910 |
Maximum month end ..................................... |
10,681 |
10,978 |
Securities Sold Under Agreements to
Repurchase:
|
||
Period end ....................................................... |
$13,664 |
$12,338 |
Month end average ........................................ |
17,632 |
15,197 |
Maximum month end ..................................... |
19,785 |
20,971 |
$ in millions |
February 28,
2025
|
November 30,
2024
|
Total assets .................................................................. |
$70,219 |
$64,360 |
Total equity ................................................................... |
$10,268 |
$10,225 |
Total shareholders’ equity .......................................... |
$10,204 |
$10,157 |
Deduct: Goodwill and intangible assets .................... |
(2,038) |
(2,054) |
Tangible shareholders’ equity ................................... |
$8,166 |
$8,103 |
Leverage ratio (1) ......................................................... |
6.8 |
6.3 |
Tangible gross leverage ratio (2) ............................... |
8.3 |
7.7 |
50 |
Jefferies Financial Group Inc. |
February 2025 Form 10-Q |
51 |
$ in thousands |
February 28,
2025
|
Average
Balance
Quarter Ended
February 28,
2025 (1)
|
November 30,
2024
|
Cash and cash equivalents: |
|||
Cash in banks ............................................. |
$3,659,139 |
$4,874,599 |
$3,925,535 |
Money market investments (2) ............... |
7,517,204 |
5,443,156 |
8,227,879 |
Total cash and cash equivalents ............ |
11,176,343 |
10,317,755 |
12,153,414 |
Other sources of liquidity: |
|||
Debt securities owned and securities
purchased under agreements to
resell (3) ................................................
|
1,564,664 |
1,659,926 |
1,287,564 |
Other (4) ...................................................... |
793,674 |
822,024 |
573,042 |
Total other sources ................................... |
2,358,338 |
2,481,950 |
1,860,606 |
Total cash and cash equivalents and
other liquidity sources .......................
|
$13,534,681 |
$12,799,705 |
$14,014,020 |
Total cash and cash equivalents and
other liquidity sources as % of Total
assets ....................................................
|
19.3% |
21.8% |
|
Total cash and cash equivalents and
other liquidity sources as % of Total
assets less goodwill and intangible
assets ....................................................
|
19.9% |
22.5% |
February 28, 2025 |
November 30, 2024 |
|||
$ in thousands |
Liquid Financial
Instruments
|
Unencumbered
Liquid Financial
Instruments (2)
|
Liquid Financial
Instruments
|
Unencumbered
Liquid Financial
Instruments (2)
|
Corporate equity
securities .............
|
$6,329,853 |
$833,930 |
$5,280,920 |
$781,490 |
Corporate debt
securities .............
|
6,447,986 |
230,073 |
5,179,229 |
339,500 |
U.S. government,
agency and
municipal
securities .............
|
2,982,898 |
133,238 |
4,061,773 |
75,911 |
Other sovereign
obligations ..........
|
1,609,154 |
1,244,200 |
1,361,762 |
1,044,630 |
Agency mortgage-
backed
securities (1) .......
|
2,376,649 |
— |
2,695,282 |
— |
Loans and other
receivables ..........
|
165,896 |
— |
978 |
— |
Total ........................... |
$19,912,436 |
$2,441,441 |
$18,579,944 |
$2,241,531 |
52 |
Jefferies Financial Group Inc. |
$ in thousands |
February 28,
2025
|
November 30,
2024
|
Unsecured Long-Term Debt (1) .................................. |
$11,725,988 |
$11,430,610 |
Total Mezzanine Equity ............................................... |
406 |
406 |
Total Equity ................................................................... |
10,268,439 |
10,224,987 |
Total Long-Term Capital ............................................ |
$21,994,833 |
$21,656,003 |
February 2025 Form 10-Q |
53 |
Rating |
Outlook |
|
Moody’s Investors Service ......................................... |
Baa2 |
Stable |
Standard & Poor’s ........................................................ |
BBB |
Stable |
Fitch Ratings ................................................................. |
BBB+ |
Stable |
Jefferies LLC |
Jefferies
International
Limited
|
Jefferies GmbH |
||||
Rating |
Outlook |
Rating |
Outlook |
Rating |
Outlook |
|
Moody’s
Investors
Service ..........
|
Baa1 |
Stable |
Baa1 |
Stable |
Baa1 |
Stable |
Standard &
Poor’s ............
|
BBB+ |
Stable |
BBB+ |
Stable |
BBB+ |
Stable |
Three Months Ended February 28, 2025 | |||
Declaration Date |
Record Date |
Payment Date |
Per Common
Share Amount
|
January 8, 2025 |
February 14, 2025 |
February 27, 2025 |
$0.40 |
54 |
Jefferies Financial Group Inc. |
$ in thousands |
Net
Capital
|
Excess Net
Capital
|
Jefferies LLC ................................................................. |
$1,112,504 |
$984,377 |
JFSI - SEC ...................................................................... |
426,334 |
406,334 |
JFSI - CFTC ................................................................... |
426,334 |
400,338 |
February 2025 Form 10-Q |
55 |
56 |
Jefferies Financial Group Inc. |
February 2025 Form 10-Q |
57 |
VaR at
February 28,
2025
|
Daily Firmwide VaR |
|||
$ in millions |
Daily VaR for the Three Months
Ended February 28, 2025
|
|||
Risk Categories |
Average |
High |
Low |
|
Interest Rates and Credit
Spreads .............................
|
$2.95 |
$5.43 |
$8.70 |
$2.50 |
Equity Prices ........................ |
11.76 |
10.37 |
12.14 |
7.67 |
Currency Rates .................... |
1.36 |
1.00 |
1.72 |
0.54 |
Commodity Prices .............. |
0.32 |
0.29 |
0.62 |
0.12 |
Diversification Effect (1) .... |
(4.46) |
(3.96) |
N/A |
N/A |
Firmwide VaR (2) ................ |
$11.93 |
$13.13 |
$16.03 |
$8.79 |
VaR at
November 30,
2024
|
Daily Firmwide VaR |
|||
$ in millions |
Daily VaR for the Three Months
Ended November 30, 2024
|
|||
Risk Categories |
Average |
High |
Low |
|
Interest Rates and Credit
Spreads .............................
|
$4.30 |
$5.25 |
$7.09 |
$2.58 |
Equity Prices ........................ |
8.31 |
11.14 |
13.56 |
8.16 |
Currency Rates .................... |
0.84 |
0.61 |
1.01 |
0.32 |
Commodity Prices .............. |
0.41 |
0.41 |
0.72 |
0.15 |
Diversification Effect (1) .... |
(2.19) |
(4.66) |
N/A |
N/A |
Firmwide VaR (2) ................ |
$11.67 |
$12.75 |
$15.10 |
$10.13 |
VaR at
February 28,
2025
|
Daily Capital Markets VaR |
|||
$ in millions |
Daily VaR for the Three Months
Ended February 28, 2025
|
|||
Risk Categories |
Average |
High |
Low |
|
Interest Rates and Credit
Spreads .............................
|
$2.69 |
$5.19 |
$8.50 |
$2.39 |
Equity Prices ........................ |
4.09 |
4.67 |
6.95 |
3.41 |
Currency Rates .................... |
0.75 |
0.72 |
1.08 |
0.51 |
Diversification Effect (1) .... |
(1.77) |
(1.76) |
N/A |
N/A |
Capital Markets VaR (2) .... |
$5.76 |
$8.82 |
$14.01 |
$5.76 |
VaR at
November 30,
2024
|
Daily Capital Markets VaR |
|||
$ in millions |
Daily VaR for the Three Months
Ended November 30, 2024
|
|||
Risk Categories |
Average |
High |
Low |
|
Interest Rates and Credit
Spreads .............................
|
$4.33 |
$5.39 |
$11.88 |
$0.98 |
Equity Prices ........................ |
7.27 |
6.74 |
8.64 |
5.13 |
Currency Rates .................... |
0.52 |
0.42 |
0.84 |
0.21 |
Commodity Prices .............. |
— |
0.01 |
0.01 |
0.01 |
Diversification Effect (1) .... |
(5.69) |
(4.63) |
N/A |
N/A |
Capital Markets VaR (2) .... |
$6.43 |
$7.93 |
$10.58 |
$5.52 |
58 |
Jefferies Financial Group Inc. |
February 2025 Form 10-Q |
59 |
$ in thousands |
10% Sensitivity |
Investment in funds (1) ............................................................................................................................................................................................ |
$135,111 |
Private investments .................................................................................................................................................................................................. |
61,109 |
Corporate debt securities in default ....................................................................................................................................................................... |
20,318 |
Trade claims .............................................................................................................................................................................................................. |
2,883 |
Expected Maturity Date (Fiscal Years) |
||||||||
$ in thousands |
2025 |
2026 |
2027 |
2028 |
2029 |
Thereafter |
Total |
Fair Value |
Rate Sensitive Liabilities: |
||||||||
Fixed Interest Rate Borrowings ....................................... |
$679,786 |
$77,814 |
$608,471 |
$1,167,588 |
$307,290 |
$5,424,391 |
$8,265,340 |
$8,214,603 |
Weighted-Average Interest Rate ..................................... |
4.33% |
5.49% |
5.18% |
5.72% |
5.54% |
5.58% |
||
Variable Interest Rate Borrowings.................................. |
$442,605 |
$596,562 |
$955,076 |
$49,707 |
$302,044 |
$1,423,269 |
$3,769,263 |
$3,619,728 |
Weighted-Average Interest Rate ..................................... |
6.01% |
6.75% |
6.86% |
6.51% |
6.49% |
6.23% |
||
Borrowings with Foreign Currency Exposure ............... |
$17,672 |
$1,196,217 |
$363 |
$518,350 |
$522,210 |
$918,072 |
$3,172,884 |
$3,098,719 |
Weighted-Average Interest Rate ..................................... |
5.21% |
4.74% |
2.50% |
3.37% |
5.39% |
6.36% |
60 |
Jefferies Financial Group Inc. |
February 2025 Form 10-Q |
61 |
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 |
|||||||
$ in millions |
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
AAA Range |
$— |
$— |
$11.7 |
$12.0 |
$— |
$— |
$11.7 |
$12.0 |
$7,517.2 |
$8,227.9 |
$7,528.9 |
$8,239.9 |
AA Range |
80.2 |
80.0 |
320.6 |
190.3 |
2.8 |
5.6 |
403.6 |
275.9 |
56.9 |
63.8 |
460.5 |
339.7 |
A Range |
0.4 |
0.2 |
1,305.2 |
1,145.1 |
336.8 |
415.0 |
1,642.4 |
1,560.3 |
3,495.3 |
3,691.8 |
5,137.7 |
5,252.1 |
BBB Range |
250.0 |
253.5 |
55.5 |
31.2 |
16.6 |
40.0 |
322.1 |
324.7 |
106.4 |
169.4 |
428.5 |
494.1 |
BB or Lower |
40.7 |
37.2 |
42.5 |
31.2 |
112.8 |
78.7 |
196.0 |
147.1 |
0.5 |
0.5 |
196.5 |
147.6 |
Unrated |
273.2 |
322.6 |
— |
— |
5.0 |
5.3 |
278.2 |
327.9 |
— |
— |
278.2 |
327.9 |
Total |
$644.5 |
$693.5 |
$1,735.5 |
$1,409.8 |
$474.0 |
$544.6 |
$2,854.0 |
$2,647.9 |
$11,176.3 |
$12,153.4 |
$14,030.3 |
$14,801.3 |
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 |
|||||||
$ in millions |
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
Asia-Pacific/Latin
America/Other
|
$15.8 |
$15.8 |
$157.5 |
$130.4 |
$1.3 |
$0.2 |
$174.6 |
$146.4 |
$409.6 |
$520.3 |
$584.2 |
$666.7 |
Europe and the Middle
East
|
0.3 |
0.2 |
612.6 |
523.2 |
57.3 |
88.7 |
670.2 |
612.1 |
74.1 |
70.8 |
744.3 |
682.9 |
North America |
628.4 |
677.5 |
965.4 |
756.2 |
415.4 |
455.7 |
2,009.2 |
1,889.4 |
10,692.6 |
11,562.3 |
12,701.8 |
13,451.7 |
Total |
$644.5 |
$693.5 |
$1,735.5 |
$1,409.8 |
$474.0 |
$544.6 |
$2,854.0 |
$2,647.9 |
$11,176.3 |
$12,153.4 |
$14,030.3 |
$14,801.3 |
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 |
|||||||
$ in millions |
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
February
28,
2025
|
November
30,
2024
|
Asset Managers |
$10.0 |
$6.4 |
$0.8 |
$0.8 |
$— |
$— |
$10.8 |
$7.2 |
$7,517.2 |
$8,227.9 |
$7,528.0 |
$8,235.1 |
Banks, Broker-Dealers |
250.5 |
253.7 |
1,031.4 |
849.0 |
366.4 |
466.6 |
1,648.3 |
1,569.3 |
3,659.1 |
3,925.5 |
5,307.4 |
5,494.8 |
Corporates |
171.5 |
187.1 |
— |
— |
101.6 |
69.5 |
273.1 |
256.6 |
— |
— |
273.1 |
256.6 |
As Agent Banks |
— |
— |
584.5 |
474.8 |
— |
— |
584.5 |
474.8 |
— |
— |
584.5 |
474.8 |
Other |
212.5 |
246.3 |
118.8 |
85.2 |
6.0 |
8.5 |
337.3 |
340.0 |
— |
— |
337.3 |
340.0 |
Total |
$644.5 |
$693.5 |
$1,735.5 |
$1,409.8 |
$474.0 |
$544.6 |
$2,854.0 |
$2,647.9 |
$11,176.3 |
$12,153.4 |
$14,030.3 |
$14,801.3 |
62 |
Jefferies Financial Group Inc. |
February 28, 2025 |
|||||||||
Issuer Risk |
Counterparty Risk |
Issuer and Counterparty Risk |
|||||||
$ in millions |
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
|
United Kingdom |
$1,799.1 |
$(905.7) |
$(499.7) |
$0.3 |
$100.3 |
$50.6 |
$45.4 |
$544.9 |
$590.3 |
Canada |
333.3 |
(267.7) |
48.7 |
0.1 |
55.9 |
293.8 |
52.4 |
464.1 |
516.5 |
Germany |
971.4 |
(1,466.8) |
726.6 |
— |
106.2 |
1.4 |
22.6 |
338.8 |
361.4 |
France |
794.5 |
(683.5) |
(19.3) |
— |
226.3 |
0.1 |
— |
318.1 |
318.1 |
Hong Kong |
87.0 |
(49.9) |
(3.0) |
— |
4.7 |
0.2 |
188.8 |
39.0 |
227.8 |
Japan |
1,917.5 |
(1,823.4) |
(14.2) |
— |
86.7 |
— |
25.3 |
166.6 |
191.9 |
Spain |
623.5 |
(428.7) |
(118.0) |
— |
60.5 |
0.5 |
0.5 |
137.8 |
138.3 |
Italy |
882.9 |
(926.4) |
172.3 |
— |
5.2 |
1.7 |
0.2 |
135.7 |
135.9 |
India |
26.0 |
(29.7) |
(0.9) |
— |
— |
— |
137.8 |
(4.6) |
133.2 |
Netherlands |
632.7 |
(596.1) |
81.3 |
— |
9.5 |
0.1 |
0.8 |
127.5 |
128.3 |
Total |
$8,067.9 |
$(7,177.9) |
$373.8 |
$0.4 |
$655.3 |
$348.4 |
$473.8 |
$2,267.9 |
$2,741.7 |
November 30, 2024 |
|||||||||
Issuer Risk |
Counterparty Risk |
Issuer and Counterparty Risk |
|||||||
$ in millions |
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
|
Canada |
$259.2 |
$(280.1) |
$109.7 |
$— |
$46.6 |
$360.1 |
$59.3 |
$495.5 |
$554.8 |
United Kingdom |
1,332.5 |
(680.8) |
(364.3) |
0.1 |
95.8 |
76.5 |
37.9 |
459.8 |
497.7 |
France |
592.2 |
(495.0) |
7.7 |
0.1 |
184.9 |
1.6 |
— |
291.5 |
291.5 |
Hong Kong |
73.5 |
(36.5) |
(6.0) |
— |
2.4 |
— |
250.0 |
33.4 |
283.4 |
Spain |
403.1 |
(263.6) |
(6.0) |
— |
63.1 |
1.2 |
0.5 |
197.8 |
198.3 |
Netherlands |
484.1 |
(450.4) |
125.4 |
— |
5.7 |
1.7 |
0.1 |
166.5 |
166.6 |
Japan |
2,146.0 |
(2,093.5) |
0.4 |
— |
63.2 |
— |
37.4 |
116.1 |
153.5 |
Australia |
523.8 |
(426.8) |
(16.8) |
— |
26.5 |
— |
44.6 |
106.7 |
151.3 |
India |
27.4 |
(29.7) |
— |
— |
— |
— |
142.9 |
(2.3) |
140.6 |
Italy |
1,070.9 |
(569.3) |
(402.9) |
— |
0.4 |
— |
1.1 |
99.1 |
100.2 |
Total |
$6,912.7 |
$(5,325.7) |
$(552.8) |
$0.2 |
$488.6 |
$441.1 |
$573.8 |
$1,964.1 |
$2,537.9 |
February 2025 Form 10-Q |
63 |
64 |
Jefferies Financial Group Inc. |
$ in thousands, except share
and per share amounts
|
(a) Total
Number of
Shares
Purchased
(1)
|
(b) Average
Price Paid
per Share
|
(c) Total
Number of
Shares
Purchased as
Part of
Publicly
Announced
Plans
or Programs
|
(d)
Approximate
Dollar Value
of Shares
that May Yet
Be
Purchased
Under the
Plans or
Programs
|
December 1, 2024 to
December 31, 2024 .................
|
646,764 |
$81.22 |
— |
$250,000 |
January 1, 2025 to
January 31, 2025 .....................
|
7,645 |
$74.60 |
— |
$250,000 |
February 1, 2025 to
February 28, 2025 ....................
|
41,798 |
$76.98 |
— |
$250,000 |
Total........................................... |
696,207 |
$80.89 |
— |
Exhibit
No.
|
Description |
31.1 |
|
31.2 |
|
32.1 |
|
32.2 |
|
101 |
Interactive Data Files pursuant to Rule 405 of Regulation S-T,
formatted in Inline Extensible Business Reporting Language
(iXBRL).
|
104 |
Cover page interactive data file pursuant to Rule 406 of
Regulation S-T, formatted in iXBRL (included in exhibit 101)
|
+ |
Management/Employment Contract or Compensatory Plan
or Arrangement.
|
* |
Incorporated by reference. |
** |
Furnished herewith pursuant to item 601(b) (32) of
Regulation S-K.
|
February 2025 Form 10-Q |
65 |
Jefferies Financial Group Inc. |
/s/ MATT LARSON |
Matt Larson |
Executive Vice President and Chief Financial Officer |
Date: | April 9, 2025 | By: | /s/ Richard B. Handler | |||||||||||
Name: Title: |
Richard B. Handler Chief Executive Officer |
Date: | April 9, 2025 | By: | /s/ Matt Larson | |||||||||||
Name: Title: |
Matt Larson Chief Financial Officer |
Date: | April 9, 2025 | By: | /s/ Richard B. Handler | |||||||||||
Name: Title: |
Richard B. Handler Chief Executive Officer |
Date: | April 9, 2025 | By: | /s/ Matt Larson | |||||||||||
Name: Title: |
Matt Larson Chief Financial Officer |