Jefferies Financial Group Files Q3 2024 10-Q

TL;DR

Jefferies 10-Q is in: shows debt, fiscal year ends Nov 30. Check it out.

AI Summary

Jefferies Financial Group Inc. filed its 10-Q for the period ending August 31, 2024. The filing details the company's financial performance and position, including various senior notes such as the 4.85% Senior Notes due 2027 and 5.875% Senior Notes due 2028. The company is incorporated in New York and its fiscal year ends on November 30.

Why It Matters

This filing provides investors with an updated view of Jefferies' financial health and debt obligations, crucial for assessing its stability and future prospects.

Risk Assessment

Risk Level: medium — The filing details various debt instruments, indicating financial leverage which can increase risk.

Key Numbers

• 11/30 — Fiscal Year End (Indicates when the company's financial year concludes.)
• 2024-08-31 — Reporting Period End Date (Marks the end of the period covered by this 10-Q filing.)

Key Players & Entities

• Jefferies Financial Group Inc. (company) — Filer of the 10-Q
• 2024-08-31 (date) — End of the reporting period
• 2024-11-30 (date) — Fiscal year end
• 4.85% Senior Notes due 2027 (dollar_amount) — Debt instrument mentioned
• 5.875% Senior Notes due 2028 (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-20240831.htm (10-Q) — 4203KB
• exhibit3118312024.htm (EX-31.1) — 10KB
• exhibit3128312024.htm (EX-31.2) — 10KB
• exhibit3218312024.htm (EX-32.1) — 6KB
• exhibit3228312024.htm (EX-32.2) — 6KB
• jef-20240831_g1.jpg (GRAPHIC) — 85KB
• jef-20240831_g2.jpg (GRAPHIC) — 87KB
• 0001628280-24-042612.txt ( ) — 23997KB
• jef-20240831.xsd (EX-101.SCH) — 148KB
• jef-20240831_cal.xml (EX-101.CAL) — 166KB
• jef-20240831_def.xml (EX-101.DEF) — 962KB
• jef-20240831_lab.xml (EX-101.LAB) — 1452KB
• jef-20240831_pre.xml (EX-101.PRE) — 1180KB
• jef-20240831_htm.xml (XML) — 4977KB

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 46

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 70

Controls and Procedures

Item 4. Controls and Procedures 70

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 71

Risk Factors

Item 1A. Risk Factors 71

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71

Other Information

Item 5. Other Information 71

Exhibits

Item 6. Exhibits 71

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 August 31, 2024 November 30, 2023 Assets Cash and cash equivalents $ 10,573,471 $ 8,526,363 Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations (includes $ 68,966 and $ 110,198 of securities at fair value) 1,360,324 1,414,593 Financial instruments owned, at fair value (includes securities pledged of $ 17,691,280 and $ 17,158,747 ) 24,038,659 21,747,473 Investments in and loans to related parties 1,349,629 1,239,345 Securities borrowed 7,056,550 7,192,091 Securities purchased under agreements to resell 6,993,024 5,950,549 Securities received as collateral, at fair value 272,619 8,800 Receivables: Brokers, dealers and clearing organizations 2,583,719 2,380,732 Customers 2,060,450 1,705,425 Fees, interest and other 661,038 630,142 Premises and equipment 1,229,028 1,065,680 Assets held for sale (includes pledged assets of $ 181,900 at fair value at November 30, 2023) — 1,545,472 Goodwill 1,832,958 1,847,856 Other assets (includes assets pledged of $ 365,942 and $ 244,604 ) 3,263,629 2,650,640 Total assets $ 63,275,098 $ 57,905,161 Liabilities and Equity Short-term borrowings $ 1,725,864 $ 989,715 Financial instruments sold, not yet purchased, at fair value 12,307,086 11,251,154 Securities loaned 2,550,101 1,840,518 Securities sold under agreements to repurchase 9,603,530 10,920,606 Other secured financings (includes $ 3,965 and $ 3,898 at fair value) 1,739,323 1,430,199 Obligation to return securities received as collateral, at fair value 272,619 8,800 Payables: Brokers, dealers and clearing organizations 4,421,053 3,737,810 Customers 3,898,469 3,960,557 Lease liabilities 642,527 544,650 Liabilities held for sale — 1,173,648 Accrued expenses and other liabilities 3,076,747 2,546,211 Long-term debt (includes $ 2,122,89

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 45 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 ("Jefferies Finance 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.

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 nine months ended August 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 Refere

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View this 10-Q filing on SEC EDGAR