Jefferies Financial Group Files 10-Q, Details Senior Notes

TL;DR

Jefferies 10-Q out: shows debt details, common stock info. All good.

AI Summary

Jefferies Financial Group Inc. filed its 10-Q for the period ending May 31, 2024. The company reported on its financial performance, including details on its various senior notes, such as the 4.85% Senior Notes due 2027 and 5.875% Senior Notes due 2028. The filing also includes information on its common stock and other financial instruments.

Why It Matters

This filing provides investors with a detailed look at Jefferies' financial health and debt obligations, crucial for understanding the company's stability and future prospects.

Risk Assessment

Risk Level: medium — The filing details various debt instruments, which inherently carry financial risk for the company and its investors.

Key Numbers

• 2024-05-31 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-07-09 — Filing Date (Shows when the 10-Q was officially submitted to the SEC.)
• 2023-11-30 — Fiscal Year End (Defines the company's annual financial reporting cycle.)

Key Players & Entities

• Jefferies Financial Group Inc. (company) — Filer of the 10-Q
• 4.85% Senior Notes Due 2027 (dollar_amount) — Debt instrument mentioned
• 5.875% Senior Notes Due 2028 (dollar_amount) — Debt instrument mentioned
• 2.75% Senior Notes Due 2032 (dollar_amount) — Debt instrument mentioned
• 6.200% Senior Notes Due 2034 (dollar_amount) — Debt instrument mentioned

FAQ

Key Financial Figures

• $1 — ch registered Common Shares, par value $1 per share JEF New York Stock Exchange

Filing Documents

• jef-20240531.htm (10-Q) — 4215KB
• exhibit3115312024.htm (EX-31.1) — 10KB
• exhibit3125312024.htm (EX-31.2) — 10KB
• exhibit3215312024.htm (EX-32.1) — 6KB
• exhibit3225312024.htm (EX-32.2) — 6KB
• jef-20240531_g1.jpg (GRAPHIC) — 87KB
• jef-20240531_g2.jpg (GRAPHIC) — 87KB
• 0000096223-24-000024.txt ( ) — 23730KB
• jef-20240531.xsd (EX-101.SCH) — 148KB
• jef-20240531_cal.xml (EX-101.CAL) — 166KB
• jef-20240531_def.xml (EX-101.DEF) — 916KB
• jef-20240531_lab.xml (EX-101.LAB) — 1447KB
• jef-20240531_pre.xml (EX-101.PRE) — 1132KB
• jef-20240531_htm.xml (XML) — 4968KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements 2 Consolidated Statements of Financial Condition (Unaudited) 2 Consolidated Statements of Earnings (Unaudited) 3 Consolidated Statements of Comprehensive Income (Unaudited) 4 Consolidated Statements of Changes in Equity (Unaudited) 5 Consolidated Statements of Cash Flows (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 45

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 69

Controls and Procedures

Item 4. Controls and Procedures 69

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 70

Risk Factors

Item 1A. Risk Factors 70

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 70

Other Information

Item 5. Other Information 70

Exhibits

Item 6. Exhibits 70

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Consolidated Statements of Financial Condition (Unaudited) $ in thousands except share and per share amounts May 31, 2024 November 30, 2023 Assets Cash and cash equivalents $ 10,841,622 $ 8,526,363 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (includes $ 110,198 at fair value at November 30, 2023) 1,097,400 1,414,593 Financial instruments owned, at fair value (includes securities pledged of $ 19,087,188 and $ 17,158,747 ) 22,786,676 21,747,473 Investments in and loans to related parties 1,307,387 1,239,345 Securities borrowed 7,141,857 7,192,091 Securities purchased under agreements to resell 6,744,567 5,950,549 Securities received as collateral, at fair value 106,229 8,800 Receivables: Brokers, dealers and clearing organizations 3,101,851 2,380,732 Customers 2,298,491 1,705,425 Fees, interest and other 714,025 630,142 Premises and equipment 1,206,489 1,065,680 Assets held for sale (includes pledged assets of $ 181,900 at fair value at November 30, 2023) 617,971 1,545,472 Goodwill 1,822,809 1,847,856 Other assets (includes assets pledged of $ 339,039 and $ 244,604 ) 3,213,156 2,650,640 Total assets $ 63,000,530 $ 57,905,161 Liabilities and Equity Short-term borrowings $ 1,625,310 $ 989,715 Financial instruments sold, not yet purchased, at fair value 11,926,366 11,251,154 Securities loaned 2,244,127 1,840,518 Securities sold under agreements to repurchase 11,037,113 10,920,606 Other secured financings (includes $ 3,965 and $ 3,898 at fair value) 1,545,936 1,430,199 Obligation to return securities received as collateral, at fair value 106,229 8,800 Payables: Brokers, dealers and clearing organizations 4,337,336 3,737,810 Customers 3,841,052 3,960,557 Lease liabilities 634,786 544,650 Liabilities held for sale 256,808 1,173,648 Accrued expenses and other liabilities 2,826,275 2,546,211 Long-term debt (includes $ 1,87

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Index Page Note 1. Organization and Basis of Presentation 9 Note 2. Summary of Significant Accounting Policies 10 Note 3. Accounting Developments 10 Note 4. Business Acquisitions 10 Note 5. Assets Held for Sale and Discontinued Operations 12 Note 6. Fair Value Disclosures 13 Note 7. Derivative Financial Instruments 22 Note 8. Collateralized Transactions 25 Note 9. Securitization Activities 27 Note 10. Variable Interest Entities 28 Note 11. Investments 30 Note 12. Credit Losses on Financial Assets Measured at Amortized Cost 34 Note 13. Goodwill and Intangible Assets 35 Note 14. Revenues from Contracts with Customers 36 Note 15. Compensation Plans 37 Note 16. Borrowings 38 Note 17. Total Equity 39 Note 18. Income Taxes 41 Note 19. Commitments, Contingencies and Guarantees 41 Note 20. Regulatory Requirements 43 Note 21. Segment Reporting 43 Note 22. Related Party Transactions 44 8 Jefferies Financial Group Inc.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Organization and Basis of Presentation Organization Jefferies Financial Group Inc. is a U.S.-headquartered global full service, integrated investment banking and capital markets firm. The accompanying Consolidated Financial Statements represent the accounts of Jefferies Financial Group Inc. and subsidiaries (together, the "Company," "we" or "us"). We, collectively with our consolidated subsidiaries and through our affiliates, deliver a broad range of financial services across investment banking, capital markets and asset management. We operate in two reportable business segments: (1) Investment Banking and Capital Markets and (2) Asset Management. The Investment Banking and Capital Markets reportable business segment includes our capital markets activities and our investment banking business, which provides underwriting and financial advisory services to our clients. We operate in the Americas; Europe and the Middle East; and Asia-Pacific. Investment Banking and Capital Markets also includes our corporate lending joint venture ("JFIN Parent LLC" or "Jefferies Finance"), our commercial real estate joint venture ("Berkadia Commercial Holding LLC" or "Berkadia") and our automobile lending and servicing activities. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by us or our affiliated asset managers, and includes certain remaining businesses and assets of our legacy merchant banking portfolio. On January 13, 2023, our consolidated subsidiary, Vitesse Energy, Inc. ("Vitesse Energy"), issued shares measured at a total consideration of $ 30.6 million in exchange for acquiring all of the outstanding capital interests of Vitesse Oil, LLC ("Vitesse Oil"). Prior to the acquisition, Vitesse Oil was controlled by Jefferies Capital Partners V L.P. and J

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 2. Summary of Significant Accounting Policies For a detailed discussion about the Company's significant accounting policies, refer to Note 2, Summary of Significant Accounting Policies in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2023. During the six months ended May 31, 2024, there were no significant changes made to the Company's significant accounting policies. Note 3. Accounting Developments Accounting Standards to be Adopted in Future Periods Segment Reporting . In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07 ("ASU 2023-07"), Improvements to Reportable Segment Disclosures. The guidance primarily will require enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our segment reporting disclosures. Income Taxes . In December 2023, the FASB issued ASU No. 2023-09 ("ASU 2023-09"), Improvements to Income Tax Disclosures. The guidance is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and are required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures. Adopted Accounting Standards Reference

View Full Filing

View this 10-Q filing on SEC EDGAR