Current Report Filing (8-k)
September 16 2014 - 8:04AM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
report (Date of earliest event reported): September 16, 2014
LEUCADIA NATIONAL CORPORATION
|
(Exact
name of registrant as specified in its charter)
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New York
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1-5721
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13-2615557
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
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520 Madison Avenue, New York, New York
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10022
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s telephone number, including
area code: 212-460-1900
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(Former name or former address, if changed since last report)
|
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2.
below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On September 16, 2014, our wholly-owned subsidiary Jefferies Group LLC
issued a press release announcing financial results for the fiscal
quarter ended August 31, 2014. A copy of the press release is attached
hereto as Exhibit 99 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
The following exhibit is furnished with this report:
Number Exhibit
99
Press Release issued by Jefferies Group LLC on September 16, 2014
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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LEUCADIA NATIONAL CORPORATION
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|
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Date:
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September 16, 2014
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/s/ Roland T. Kelly
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Assistant Secretary and
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Associate General Counsel
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EXHIBIT INDEX
Exhibit No.
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Exhibit
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99
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Press Release issued by Jefferies Group LLC on September 16, 2014
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Exhibit 99
Jefferies
Reports Third Quarter 2014 Financial Results
NEW YORK--(BUSINESS WIRE)--September 16, 2014--Jefferies Group LLC today
announced financial results for its fiscal third quarter 2014.
Highlights for the three months ended August 31, 2014:
-
Total Net revenues of $843 million
-
Pre-tax earnings of $136 million
-
Net earnings of $84 million
-
Record Investment Banking net revenues of $468 million
-
Equities net revenues of $172 million
-
Fixed Income net revenues of $195 million
-
Total Sales and Trading net revenues of $367 million
Highlights for the nine months ended August 31, 2014:
-
Record Total Net revenues of $2,465 million
-
Record Pre-tax earnings of $417 million
-
Record Net earnings of $257 million
-
Record Investment Banking net revenues of $1,213 million
-
Equities net revenues of $538 million
-
Fixed Income net revenues of $699 million
-
Total Sales and Trading net revenues of $1,237 million
Richard B. Handler, Chairman and Chief Executive Officer, and Brian P.
Friedman, Chairman of the Executive Committee, commented: “These results
represent the best third quarter and the best first nine-months
Jefferies has achieved in our over 50-year history. Our third quarter
performance was driven by $468 million in Investment Banking net
revenues. These record investment banking results reflect solid
contributions from equity and debt capital markets, strong performance
in our merger and acquisition advisory business, and broad participation
across our industry groups and geographies. Our sales and trading
business results were also solid for the quarter and are $367 million.
We continue to expand our client reach and believe we are gaining market
share across the board as we leverage our unique position as the largest
non-bank, full-service global investment banking firm based in the U.S.
The overall environment is reasonable, and our competitive position has
never been stronger.”
The attached financial tables should be read in connection with our
Quarterly Report on Form 10-Q for the quarter ended May 31, 2014 and our
Annual Report on Form 10-K for the year ended November 30, 2013. On
September 2, 2014, we issued a press release announcing preliminary
financial results for the fiscal third quarter of 2014, which were also
filed with a Current Report on Form 8-K. Actual results as reported
herein differ from those preliminary results as a result of our routine
financial reporting close process, which has now been finalized.
Differences in the actual results for the fiscal third quarter of 2014
reported herein from the preliminary results are attributed to revenue
allocations to business divisions, conclusions on revenue arrangements,
fair value estimates and adjustments to expense accruals.
Jefferies, the global investment banking firm focused on serving clients
for over 50 years, is a leader in providing insight, expertise and
execution to investors, companies and governments. The firm provides a
full range of investment banking, sales, trading, research and strategy
across the spectrum of equities, fixed income, foreign exchange, futures
and commodities, as well as wealth management, in the Americas, Europe
and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Leucadia
National Corporation (NYSE:LUK), a diversified holding company.
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JEFFERIES GROUP LLC AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF EARNINGS
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(Amounts in Thousands)
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(Unaudited)
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|
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Successor
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Predecessor
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Quarter Ended
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Quarter Ended
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Nine Months Ended
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Six Months Ended
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Quarter Ended
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August 31, 2014
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August 31, 2013
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August 31, 2014
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August 31, 2013
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February 28, 2013
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Revenues:
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Commissions
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$
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159,085
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$
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153,402
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$
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488,526
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$
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316,161
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$
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146,240
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Principal transactions
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144,354
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(24,910)
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566,133
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109,661
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300,278
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Investment banking
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|
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467,793
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309,339
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1,213,262
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586,473
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288,278
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Asset management fees and investment
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income from managed funds
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8,463
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13,549
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15,319
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24,076
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10,883
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Interest income
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|
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249,251
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230,672
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782,059
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489,337
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249,277
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Other revenues
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26,489
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28,630
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57,962
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54,875
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27,004
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Total revenues
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|
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1,055,435
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710,682
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3,123,261
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1,580,583
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1,021,960
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Interest expense
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212,126
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178,987
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657,932
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390,450
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203,416
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Net revenues
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|
|
|
843,309
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|
|
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531,695
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|
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2,465,329
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1,190,133
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|
818,544
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Interest on mandatorily redeemable preferred interests of
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|
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consolidated subsidiaries
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-
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-
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-
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3,368
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10,961
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Net revenues, less interest on mandatorily redeemable preferred
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interests of consolidated subsidiaries
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843,309
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531,695
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2,465,329
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1,186,765
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807,583
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Non-interest expenses:
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|
|
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Compensation and benefits
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477,268
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293,771
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1,390,043
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667,651
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474,217
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Non-compensation expenses:
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Floor brokerage and clearing fees
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55,967
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49,166
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159,500
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98,068
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46,155
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Technology and communications
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67,286
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62,266
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201,849
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|
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126,105
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|
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59,878
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Occupancy and equipment rental
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28,477
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|
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26,205
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81,652
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|
|
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58,430
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|
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24,309
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Business development
|
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|
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27,800
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|
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17,624
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|
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79,193
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|
|
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40,356
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|
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24,927
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Professional services
|
|
|
|
31,231
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|
|
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25,269
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|
|
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81,395
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|
|
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54,788
|
|
|
24,135
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Other
|
|
|
|
19,645
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|
|
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34,012
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|
|
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54,656
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|
|
|
52,732
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|
|
14,475
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Total non-compensation expenses
|
|
|
|
230,406
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|
|
|
214,542
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|
|
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658,245
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|
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430,479
|
|
|
193,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total non-interest expenses
|
|
|
|
707,674
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|
|
|
508,313
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|
|
|
2,048,288
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|
|
|
1,098,130
|
|
|
668,096
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Earnings before income taxes
|
|
|
|
135,635
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|
|
|
23,382
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|
|
|
417,041
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|
|
|
88,635
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|
|
139,487
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Income tax expense
|
|
|
|
51,762
|
|
|
|
8,493
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|
|
|
155,962
|
|
|
|
33,500
|
|
|
48,645
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Net earnings
|
|
|
|
83,873
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|
|
|
14,889
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|
|
|
261,079
|
|
|
|
55,135
|
|
|
90,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interests
|
|
|
|
312
|
|
|
|
3,149
|
|
|
|
3,760
|
|
|
|
3,887
|
|
|
10,704
|
Net earnings attributable to Jefferies Group LLC/common stockholders
|
|
|
$
|
83,561
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|
|
$
|
11,740
|
|
|
$
|
257,319
|
|
|
$
|
51,248
|
|
$
|
80,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax operating margin
|
|
|
|
16.1%
|
|
|
|
4.4%
|
|
|
|
16.9%
|
|
|
|
7.5%
|
|
|
17.3%
|
Effective tax rate
|
|
|
|
38.2%
|
|
|
|
36.3%
|
|
|
|
37.4%
|
|
|
|
37.8%
|
|
|
34.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
SELECTED STATISTICAL INFORMATION
|
(Amounts in Thousands, Except Other Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Nine Months Ended
|
|
|
Six Months Ended
|
|
|
Quarter Ended
|
|
|
|
|
August 31, 2014
|
|
|
August 31, 2013
|
|
|
August 31, 2014
|
|
|
August 31, 2013
|
|
|
February 28, 2013
|
|
|
Revenues by Source
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
$
|
171,708
|
|
|
$
|
151,038
|
|
|
$
|
537,769
|
|
|
|
|
$
|
292,628
|
|
|
$
|
167,354
|
|
|
Fixed income
|
|
|
195,345
|
|
|
|
47,769
|
|
|
|
698,979
|
|
|
|
|
|
276,956
|
|
|
|
352,029
|
|
|
Total
|
|
|
367,053
|
|
|
|
198,807
|
|
|
|
1,236,748
|
|
|
|
|
|
569,584
|
|
|
|
519,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
93,309
|
|
|
|
56,482
|
|
|
|
271,773
|
|
|
|
|
|
110,046
|
|
|
|
61,380
|
|
|
Debt
|
|
|
175,597
|
|
|
|
120,187
|
|
|
|
495,635
|
|
|
|
|
|
253,901
|
|
|
|
140,672
|
|
|
Capital markets
|
|
|
268,906
|
|
|
|
176,669
|
|
|
|
767,408
|
|
|
|
|
|
363,947
|
|
|
|
202,052
|
|
|
Advisory
|
|
|
198,887
|
|
|
|
142,670
|
|
|
|
445,854
|
|
|
|
|
|
232,526
|
|
|
|
86,226
|
|
|
Investment banking
|
|
|
467,793
|
|
|
|
319,339
|
|
|
|
1,213,262
|
|
|
|
|
|
596,473
|
|
|
|
288,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management fees and investment income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from managed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management fees
|
|
|
7,379
|
|
|
|
9,578
|
|
|
|
21,752
|
|
|
|
|
|
20,910
|
|
|
|
11,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income (loss) from managed funds
|
|
|
1,084
|
|
|
|
3,971
|
|
|
|
(6,433
|
)
|
|
|
|
|
3,166
|
|
|
|
(200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
8,463
|
|
|
|
13,549
|
|
|
|
15,319
|
|
|
|
|
|
24,076
|
|
|
|
10,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
843,309
|
|
|
|
531,695
|
|
|
|
2,465,329
|
|
|
|
|
|
1,190,133
|
|
|
|
818,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on mandatorily redeemable preferred interests of
consolidated subsidiaries
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
3,368
|
|
|
|
10,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues, less mandatorily redeemable preferred interests
of consolidated subsidiaries
|
|
$
|
843,309
|
|
|
$
|
531,695
|
|
|
$
|
2,465,329
|
|
|
|
|
$
|
1,186,765
|
|
|
$
|
807,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of trading days
|
|
|
64
|
|
|
|
64
|
|
|
|
188
|
|
|
|
|
|
128
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average firmwide VaR (in millions) (A)
|
|
$
|
13.50
|
|
|
$
|
11.02
|
|
|
$
|
14.88
|
|
|
|
|
$
|
9.89
|
|
|
$
|
9.27
|
|
|
Average firmwide VaR excluding Knight Capital (in millions) (A)
|
|
$
|
8.25
|
|
|
$
|
7.24
|
|
|
$
|
9.80
|
|
|
|
|
$
|
6.51
|
|
|
$
|
5.99
|
|
|
Average firmwide VaR excluding Knight Capital and Harbinger Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inc. (in millions) (A)
|
|
$
|
8.25
|
|
|
$
|
7.24
|
|
|
$
|
8.48
|
|
|
|
|
$
|
6.51
|
|
|
$
|
5.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
|
VaR estimates the potential loss in value of our trading positions
due to adverse market movements over a one-day time horizon with a
95% confidence level. For a further discussion of the calculation of
VaR, see "Value at risk" in Part II, Item 7 "Management's Discussion
and Analysis" in our Annual Report on Form 10-K for the year ended
November 30, 2013.
|
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
|
FINANCIAL HIGHLIGHTS
|
|
(Amounts in Millions, Except Where Noted)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
Quarter Ended
|
|
Quarter Ended
|
|
Quarter Ended
|
|
|
|
August 31, 2014
|
|
|
May 31, 2014
|
|
|
August 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Financial position:
|
|
|
|
|
|
|
|
|
|
Total assets (1)
|
|
$
|
44,764
|
|
|
|
$
|
43,610
|
|
|
|
$
|
38,830
|
|
|
Average total assets for the period (1)
|
|
$
|
51,369
|
|
|
|
$
|
50,379
|
|
|
|
$
|
45,824
|
|
|
Average total assets less goodwill and intangible assets for the
period (1)
|
|
$
|
49,387
|
|
|
|
$
|
48,394
|
|
|
|
$
|
43,840
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (1)
|
|
$
|
4,035
|
|
|
|
$
|
3,958
|
|
|
|
$
|
4,119
|
|
|
Cash and cash equivalents and other sources of liquidity (1) (2)
|
|
$
|
5,913
|
|
|
|
$
|
5,824
|
|
|
|
$
|
5,574
|
|
|
Cash and cash equivalents and other sources of liquidity - % total
assets (1) (2)
|
|
|
13.2
|
%
|
|
|
|
13.4
|
%
|
|
|
|
14.4
|
%
|
|
Cash and cash equivalents and other sources of liquidity - % total
assets less goodwill and intangible assets (1)(2)
|
|
13.8
|
%
|
|
|
|
14.0
|
%
|
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments owned (1)
|
|
$
|
18,420
|
|
|
|
$
|
17,144
|
|
|
|
$
|
13,698
|
|
|
Goodwill and intangible assets (1)
|
|
$
|
1,978
|
|
|
|
$
|
1,984
|
|
|
|
$
|
1,988
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity (including noncontrolling interests)
|
|
$
|
5,602
|
|
|
|
$
|
5,527
|
|
|
|
$
|
5,241
|
|
|
Total member's / common stockholders' equity
|
|
$
|
5,571
|
|
|
|
$
|
5,496
|
|
|
|
$
|
5,164
|
|
|
Tangible member's / common stockholders' equity (3)
|
|
$
|
3,593
|
|
|
|
$
|
3,512
|
|
|
|
$
|
3,176
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 financial instruments:
|
|
|
|
|
|
|
|
|
|
Level 3 financial instruments owned (1) (4)
|
|
$
|
499
|
|
|
|
$
|
490
|
|
|
|
$
|
444
|
|
|
Level 3 financial instruments owned with economic exposure (1) (5)
|
|
$
|
480
|
|
|
|
$
|
490
|
|
|
|
$
|
441
|
|
|
Level 3 financial instruments owned - % total assets (1)
|
|
|
1.1
|
%
|
|
|
|
1.1
|
%
|
|
|
|
1.1
|
%
|
|
Level 3 financial instruments owned - % total financial instruments
owned (1)
|
|
|
2.7
|
%
|
|
|
|
2.9
|
%
|
|
|
|
3.2
|
%
|
|
Level 3 financial instruments owned with economic exposure - % total
financial instruments owned (1)
|
|
2.6
|
%
|
|
|
|
2.9
|
%
|
|
|
|
3.2
|
%
|
|
Level 3 financial instruments owned with economic exposure - %
tangible member's / common stockholders' equity (1)
|
|
13.4
|
%
|
|
|
|
14.0
|
%
|
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other data and financial ratios:
|
|
|
|
|
|
|
|
|
|
Total capital (1) (6)
|
|
$
|
11,970
|
|
|
|
$
|
11,941
|
|
|
|
$
|
11,034
|
|
|
Leverage ratio (1) (7)
|
|
|
8.0
|
|
|
|
|
7.9
|
|
|
|
|
7.4
|
|
|
Adjusted leverage ratio (1) (8)
|
|
|
10.5
|
|
|
|
|
10.0
|
|
|
|
|
9.3
|
|
|
Tangible gross leverage ratio (1) (9)
|
|
|
11.9
|
|
|
|
|
11.9
|
|
|
|
|
11.6
|
|
|
Leverage ratio - excluding impacts of the Leucadia transaction (1)
(10)
|
|
|
10.1
|
|
|
|
|
10.0
|
|
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of trading days
|
|
|
64
|
|
|
|
|
63
|
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
Average firmwide VaR (11)
|
|
$
|
13.50
|
|
|
|
$
|
14.94
|
|
|
|
$
|
11.02
|
|
|
Average firmwide VaR excluding Knight Capital (11)
|
|
$
|
8.25
|
|
|
|
$
|
8.63
|
|
|
|
$
|
7.24
|
|
|
Average firmwide VaR excluding Knight Capital and Harbinger Group
Inc. (11)
|
|
$
|
8.25
|
|
|
|
$
|
7.97
|
|
|
|
$
|
7.24
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees, at period end
|
|
|
3,885
|
|
|
|
|
3,785
|
|
|
|
|
3,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
FINANCIAL HIGHLIGHTS - FOOTNOTES
|
|
|
|
|
|
|
(1)
|
|
Amounts pertaining to August 31, 2014 represent a preliminary
estimate as of the date of this earnings release and may be revised
in our Quarterly Report on Form 10-Q for the three months ended
August 31, 2014.
|
|
|
|
(2)
|
|
As of August 31, 2014, other sources of liquidity include high
quality sovereign government securities and reverse repurchase
agreements collateralized by U.S. government securities and other
high quality sovereign government securities of $1,530 million, in
aggregate, and $348 million, being the total of the estimated amount
of additional secured financing that could be reasonably expected to
be obtained from our financial instruments that are currently not
pledged at reasonable financing haircuts and additional funds
available under the committed senior secured revolving credit
facility available for working capital needs of Jefferies Bache. The
corresponding amounts included in other sources of liquidity as of
May 31, 2014 were $1,202 million and $664 million, and as of August
31, 2013, were $1,145 million and $310 million, respectively.
|
|
|
|
(3)
|
|
Tangible member's / common stockholders' equity (a non-GAAP
financial measure) represents total member's / common stockholders'
equity less goodwill and identifiable intangible assets. We believe
that tangible member's / common stockholders' equity is meaningful
for valuation purposes, as financial companies are often measured as
a multiple of tangible member's / common stockholders' equity,
making these ratios meaningful for investors.
|
|
|
|
(4)
|
|
Level 3 financial instruments represent those financial instruments
classified as such under Accounting Standards Codification 820,
accounted for at fair value and included within Financial
instruments owned.
|
|
|
|
(5)
|
|
Level 3 financial instruments owned with economic exposure
represent Level 3 financial instruments owned adjusted for Level 3
financial instruments that are financed by nonrecourse secured
financing or attributable to third party or employee
noncontrolling interests in certain consolidated entities.
|
|
|
|
(6)
|
|
As of August 31, 2014, May 31, 2014 and August 31, 2013, total
capital includes our long-term debt of $6,368 million, $6,414
million and $5,793 million, respectively, and total equity.
Long-term debt included in total capital is reduced by amounts
outstanding under the revolving credit facility and the amount of
debt maturing in less than one year, where applicable.
|
|
|
|
(7)
|
|
Leverage ratio equals total assets divided by total equity.
|
|
|
|
(8)
|
|
Adjusted leverage ratio (a non-GAAP financial measure) equals
adjusted assets divided by tangible total equity, being total equity
less goodwill and identifiable intangible assets. Adjusted assets (a
non-GAAP financial measure) equals total assets less securities
borrowed, securities purchased under agreements to resell, cash and
securities segregated, goodwill and identifiable intangibles plus
financial instruments sold, not yet purchased (net of derivative
liabilities). As of August 31, 2014, May 31, 2014 and August 31,
2013 adjusted assets were $38,100 million, $35,577 million and
$30,112 million, respectively. We believe that adjusted assets is a
meaningful measure as it excludes certain assets that are considered
of lower risk as they are generally self-financed by customer
liabilities through our securities lending activities.
|
|
|
|
(9)
|
|
Tangible gross leverage ratio (a non-GAAP financial measure) equals
total assets less goodwill and identifiable intangible assets
divided by tangible member's / common stockholders' equity. The
tangible gross leverage ratio is used by Rating Agencies in
assessing our leverage ratio.
|
|
|
|
(10)
|
|
Leverage ratio - excluding impacts of the Leucadia transaction (a
non-GAAP financial measure) is calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31,
|
|
|
May 31,
|
|
|
August 31,
|
|
|
|
|
$ millions
|
|
|
|
|
2014
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
Total assets
|
|
|
|
|
$
|
44,764
|
|
|
|
$
|
43,610
|
|
|
|
$
|
38,830
|
|
|
|
|
|
Goodwill and acquisition accounting fair value adjustments on the
transaction with Leucadia
|
|
|
|
(1,957
|
)
|
|
|
|
(1,957
|
)
|
|
|
|
(1,957
|
)
|
|
|
|
|
Net amortization to date on asset related purchase accounting
adjustments
|
|
|
|
42
|
|
|
|
|
37
|
|
|
|
|
18
|
|
|
|
|
|
Total assets excluding transaction impacts
|
|
|
$
|
42,849
|
|
|
|
$
|
41,690
|
|
|
|
$
|
36,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
$
|
5,602
|
|
|
|
$
|
5,527
|
|
|
|
$
|
5,241
|
|
|
|
|
|
Equity arising from transaction consideration
|
|
|
|
(1,426
|
)
|
|
|
|
(1,426
|
)
|
|
|
|
(1,426
|
)
|
|
|
|
|
Preferred stock assumed by Leucadia
|
|
|
|
|
125
|
|
|
|
|
125
|
|
|
|
|
125
|
|
|
|
|
|
Net amortization to date of purchase accounting adjustments, net of
tax
|
|
|
|
(58
|
)
|
|
|
|
(48
|
)
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity excluding transaction impacts
|
|
|
$
|
4,243
|
|
|
|
$
|
4,178
|
|
|
|
$
|
3,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio - excluding impacts of the Leucadia transaction
|
|
|
|
10.1
|
|
|
|
|
10.0
|
|
|
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11)
|
|
VaR estimates the potential loss in value of our trading positions
due to adverse market movements over a one-day time horizon with a
95% confidence level. For a further discussion of the calculation of
VaR, see "Value at risk" in Part II, Item 7 "Management's Discussion
and Analysis" in our Annual Report on Form 10-K for the year ended
November 30, 2013.
|
|
|
|
CONTACT:
For further information:
Jefferies Group LLC
Peregrine
C. Broadbent, 212-284-2338
Chief Financial Officer
Leucadia (NYSE:LUK)
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