Current Report Filing (8-k)
March 17 2015 - 09:21AM
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): March 17, 2015
LEUCADIA NATIONAL CORPORATION
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(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
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(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)
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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 March 17, 2015, our wholly-owned subsidiary Jefferies Group LLC
issued a press release announcing financial results for its fiscal
quarter ended February 28, 2015. 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
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The following exhibit is furnished with this report:
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Number
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Exhibit
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99
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Press Release issued by Jefferies Group LLC on March 17, 2015
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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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Date:
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March 17, 2015
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/s/ Roland T. Kelly
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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 March 17, 2015
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Exhibit 99
Jefferies
Reports Fiscal First Quarter 2015 Financial Results
NEW YORK--(BUSINESS WIRE)--March 17, 2015--Jefferies Group LLC today
announced financial results for its fiscal first quarter 2015.
Highlights for the three months ended February 28, 2015, with adjusted
amounts excluding the operating results of our Bache business:
-
Total Net revenues of $592 million
-
Total Adjusted Net Revenues (excluding Bache) of $536 million1
-
Net earnings of $13 million
-
Adjusted Net earnings (excluding Bache) of $20 million1
Richard B. Handler, Chairman and Chief Executive Officer, and Brian P.
Friedman, Chairman of the Executive Committee, commented: “We
experienced a slow first quarter due to a tepid fixed income trading
market and fewer new issues in leveraged finance capital markets.
Despite these results, and in view of an improving environment, we
believe Jefferies’ prospects for the remainder of 2015 are good. Our
Investment Banking backlog is currently solid, and fixed income trading
markets appear to have stabilized.”
The attached financial tables should be read in connection with our
Annual Report on Form 10-K for the year ended November 30, 2014.
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.
1 Adjusted financial measures are non-GAAP financial
measures. Management believes such measures provide meaningful
information to investors as they enable investors to evaluate the
Company's results in the context of our pursuing various strategic
alternatives for the Bache business. Refer to the Supplemental Schedules
on pages 3-4 for a reconciliation of Adjusted measures to the respective
direct U.S. GAAP financial measures.
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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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Quarter Ended
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Quarter Ended
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Quarter Ended
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February 28, 2015
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November 30, 2014
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February 28, 2014
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Revenues:
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|
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Commissions
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$
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166,922
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$
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180,275
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$
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162,063
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Principal transactions
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105,477
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(33,841)
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238,363
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Investment banking
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271,995
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316,012
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414,320
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Asset management fees and investment income (loss) from managed
funds
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(9,837)
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1,728
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9,957
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Interest income
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228,870
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237,911
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249,268
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Other revenues
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19,905
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20,919
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23,069
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Total revenues
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783,332
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723,004
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1,097,040
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Interest expense
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191,660
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198,195
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198,012
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Net revenues
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591,672
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524,809
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899,028
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Non-interest expenses:
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|
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|
|
|
|
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|
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Compensation and benefits
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365,215
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308,487
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507,899
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Non-compensation expenses:
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Floor brokerage and clearing fees
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55,080
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55,829
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49,513
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Technology and communications
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72,387
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66,363
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64,306
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Occupancy and equipment rental
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24,184
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26,115
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26,502
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Business development
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21,937
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27,791
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26,476
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Professional services
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24,256
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28,206
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24,819
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Bad debt provision
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(1,018)
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50,772
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2,614
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Goodwill impairment
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-
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54,000
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-
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Other
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16,747
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21,266
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14,630
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Total non-compensation expenses
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213,573
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330,342
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208,860
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Total non-interest expenses
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578,788
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638,829
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716,759
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Earnings (loss) before income taxes
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12,884
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(114,020)
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182,269
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Income tax expense (benefit)
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331
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(13,901)
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66,877
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Net earnings (loss)
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12,553
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(100,119)
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115,392
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Net earnings (loss) attributable to noncontrolling interests
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871
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(360)
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2,960
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Net earnings (loss) attributable to Jefferies Group LLC
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$
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11,682
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$
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(99,759)
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$
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112,432
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Pretax operating margin
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2.2%
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-21.7%
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20.3%
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Effective tax rate
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2.6%
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12.2%
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36.7%
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JEFFERIES GROUP LLC AND SUBSIDIARIES
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CONSOLIDATED ADJUSTED SELECTED FINANCIAL DATA
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(Amounts in Thousands)
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(Unaudited)
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Quarter Ended February 28, 2015
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GAAP
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Adjustments
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Adjusted
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Net revenues
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$
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591,672
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$
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55,906
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(1)
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$
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535,766
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|
|
|
|
|
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Non-interest expenses:
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|
|
|
|
|
|
|
|
|
|
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Compensation and benefits
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365,215
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27,067
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(2)
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338,148
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Non-compensation expenses
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213,573
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41,785
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(3)
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171,788
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Total non-interest expenses
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578,788
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|
|
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68,852
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509,936
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|
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Operating income (loss)
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$
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12,884
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$
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(12,946)
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|
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$
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25,830
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|
|
|
|
|
|
|
|
|
|
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Net earnings (loss)
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|
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$
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12,553
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|
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$
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(7,724)
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|
|
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$
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20,277
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation ratio (a)
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|
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61.7%
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|
|
|
|
|
|
|
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63.1%
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
|
Quarter Ended November 30, 2014
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|
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GAAP
|
|
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Adjustments
|
|
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|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net revenues
|
|
|
$
|
524,809
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|
|
$
|
43,627
|
|
(1)
|
|
$
|
481,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
308,487
|
|
|
|
27,163
|
|
(2)
|
|
|
281,324
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Non-compensation expenses
|
|
|
|
330,342
|
|
|
|
148,287
|
|
(4)
|
|
|
182,055
|
Total non-interest expenses
|
|
|
|
638,829
|
|
|
|
175,450
|
|
|
|
|
463,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
(114,020)
|
|
|
$
|
(131,823)
|
|
|
|
$
|
17,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
$
|
(100,119)
|
|
|
$
|
(111,899)
|
|
|
|
$
|
11,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation ratio (a)
|
|
|
|
58.8%
|
|
|
|
|
|
|
|
|
58.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended February 28, 2014
|
|
|
|
GAAP
|
|
|
Adjustments
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
|
$
|
899,028
|
|
|
$
|
47,172
|
|
(1)
|
|
$
|
851,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
|
507,899
|
|
|
|
28,617
|
|
(2)
|
|
|
479,282
|
Non-compensation expenses
|
|
|
|
208,860
|
|
|
|
32,840
|
|
(3)
|
|
|
176,020
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Total non-interest expenses
|
|
|
|
716,759
|
|
|
|
61,457
|
|
|
|
|
655,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
182,269
|
|
|
$
|
(14,285)
|
|
|
|
$
|
196,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
$
|
115,392
|
|
|
$
|
(8,969)
|
|
|
|
$
|
124,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation ratio (a)
|
|
|
|
56.5%
|
|
|
|
|
|
|
|
|
56.3%
|
(a) Reconciliation of the compensation ratio for U.S. GAAP to Adjusted
is a derivation of the reconciliation of the components above.
This presentation of Adjusted financial information is an unaudited
non-GAAP financial measure. Adjusted financial information begins with
information prepared in accordance with U.S. GAAP and then those results
are adjusted to exclude the operations of the Company's Bache business.
The Company believes that the disclosed Adjusted measures and any
adjustments thereto, when presented in conjunction with comparable U.S.
GAAP measures are useful to investors as they enable investors to
evaluate the Company's results in the context of pursuing various
strategic alternatives for the Bache business. These measures should not
be considered a substitute for, or superior to, measures of financial
performance prepared in accordance with U.S. GAAP.
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
CONSOLIDATED ADJUSTED SELECTED FINANCIAL DATA
|
FOOTNOTES
|
|
|
(1)
|
|
Revenues generated by the Bache business, including commissions,
principal transaction revenues and net interest revenue, for the
presented period have been classified as a reduction of revenue in
the presentation of Adjusted financial measures.
|
|
|
|
(2)
|
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Compensation expense and benefits recognized during the presented
period for employees whose sole responsibilities pertain to the
activities of the Bache business, including front office personnel
and dedicated support personnel, have been classified as a reduction
of Compensation and benefits expense in the presentation of Adjusted
financial measures.
|
|
|
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(3)
|
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Expenses directly related to the operations of the Bache business
for the presented periods have been excluded from Adjusted
non-compensation expenses. These expenses include Floor brokerage
and clearing fees, amortization of capitalized software used
directly by the Bache business in conducting its business
activities, technology expenses directly related to conducting
Bache business operations and business development and
professional services expenses incurred by the Bache business as
part of its client sales and trading activities, including
estimates of certain support costs dedicated to the Bache business.
|
|
|
|
(4)
|
|
The following expenses incurred as part of the Bache business during
the period presented are excluded from Adjusted non-compensation
expenses:
|
|
|
$ thousands
|
|
|
|
Quarter Ended November 30, 2014
|
Floor brokerage, technology and communications, business
|
|
|
|
|
|
development, professional services and other estimated
|
|
|
|
|
|
expenses directly incurred by the Bache business in
|
|
|
|
|
|
conducting operations
|
|
|
|
$
|
36,553
|
Bad debt expense incurred on customer default and close-out
|
|
|
|
|
52,300
|
Impairment of goodwill attributed to the Bache reporting unit
|
|
|
|
|
51,900
|
Impairment of certain intangible assets attributed to the Bache
|
|
|
|
|
|
reporting unit
|
|
|
|
|
7,534
|
|
|
|
|
$
|
148,287
|
|
|
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
SELECTED STATISTICAL INFORMATION
|
(Amounts in Thousands, Except Other Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
|
|
February 28, 2015
|
|
|
November 30, 2014
|
|
|
February 28, 2014
|
Revenues by Source
|
|
|
|
|
|
|
|
|
|
|
Equities
|
|
|
|
$
|
203,479
|
|
|
|
$
|
158,452
|
|
|
|
$
|
188,823
|
Fixed income
|
|
|
|
|
126,035
|
|
|
|
|
48,617
|
|
|
|
|
285,928
|
Total
|
|
|
|
|
329,514
|
|
|
|
|
207,069
|
|
|
|
|
474,751
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
79,071
|
|
|
|
|
67,910
|
|
|
|
|
94,738
|
Debt
|
|
|
|
|
60,876
|
|
|
|
|
131,901
|
|
|
|
|
173,038
|
Capital markets
|
|
|
|
|
139,947
|
|
|
|
|
199,811
|
|
|
|
|
267,776
|
Advisory
|
|
|
|
|
132,048
|
|
|
|
|
116,201
|
|
|
|
|
146,544
|
Investment banking
|
|
|
|
|
271,995
|
|
|
|
|
316,012
|
|
|
|
|
414,320
|
|
|
|
|
|
|
|
|
|
|
|
Asset management fees and investment income (loss)
from managed funds:
|
|
|
|
|
|
|
|
|
|
|
Asset management fees
|
|
|
|
|
13,985
|
|
|
|
|
4,930
|
|
|
|
|
9,446
|
Investment (loss) income from managed funds
|
|
|
|
|
(23,822
|
)
|
|
|
|
(3,202
|
)
|
|
|
|
511
|
Total
|
|
|
|
|
(9,837
|
)
|
|
|
|
1,728
|
|
|
|
|
9,957
|
Net revenues
|
|
|
|
$
|
591,672
|
|
|
|
$
|
524,809
|
|
|
|
$
|
899,028
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
Number of trading days
|
|
|
|
|
61
|
|
|
|
|
63
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
Average firmwide VaR (in millions) (A)
|
|
|
|
$
|
13.27
|
|
|
|
$
|
12.75
|
|
|
|
$
|
16.27
|
Average firmwide VaR excluding Knight Capital (in millions) (A)
|
|
|
|
$
|
9.29
|
|
|
|
$
|
8.77
|
|
|
|
$
|
12.64
|
Average firmwide VaR excluding Knight Capital and Harbinger Group
Inc. (in millions) (A)
|
|
|
|
$
|
9.29
|
|
|
|
$
|
8.77
|
|
|
|
$
|
9.23
|
(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, 2014.
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
FINANCIAL HIGHLIGHTS
|
(Amounts in Millions, Except Where Noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
Quarter Ended
|
|
|
|
|
February 28, 2015
|
|
|
November 30, 2014
|
|
|
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Financial position:
|
|
|
|
|
|
|
|
|
|
|
Total assets (1)
|
|
|
|
$
|
43,787
|
|
|
|
$
|
44,518
|
|
|
|
$
|
43,440
|
|
Average total assets for the period (1)
|
|
|
|
$
|
49,862
|
|
|
|
$
|
51,030
|
|
|
|
$
|
49,075
|
|
Average total assets less goodwill and intangible assets for the
period (1)
|
|
|
|
$
|
47,961
|
|
|
|
$
|
49,077
|
|
|
|
$
|
47,089
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (1)
|
|
|
|
$
|
3,340
|
|
|
|
$
|
4,080
|
|
|
|
$
|
2,865
|
|
Cash and cash equivalents and other sources of liquidity (1) (2)
|
|
|
|
$
|
4,647
|
|
|
|
$
|
5,500
|
|
|
|
$
|
4,467
|
|
Cash and cash equivalents and other sources of liquidity - % total
assets (1) (2)
|
|
|
|
|
10.6
|
%
|
|
|
|
12.4
|
%
|
|
|
|
10.3
|
%
|
Cash and cash equivalents and other sources of liquidity - % total
assets less goodwill and intangible assets (1) (2)
|
|
|
|
|
11.1
|
%
|
|
|
|
12.9
|
%
|
|
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Financial instruments owned (1)
|
|
|
|
$
|
19,099
|
|
|
|
$
|
18,637
|
|
|
|
$
|
18,126
|
|
Goodwill and intangible assets (1)
|
|
|
|
$
|
1,900
|
|
|
|
$
|
1,904
|
|
|
|
$
|
1,987
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity (including noncontrolling interests)
|
|
|
|
$
|
5,466
|
|
|
|
$
|
5,463
|
|
|
|
$
|
5,462
|
|
Total member's equity
|
|
|
|
$
|
5,427
|
|
|
|
$
|
5,425
|
|
|
|
$
|
5,432
|
|
Tangible member's equity (3)
|
|
|
|
$
|
3,527
|
|
|
|
$
|
3,520
|
|
|
|
$
|
3,445
|
|
|
|
|
|
|
|
|
|
|
|
|
Bache assets (4)
|
|
|
|
$
|
3,926
|
|
|
|
$
|
4,202
|
|
|
|
$
|
3,839
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 financial instruments:
|
|
|
|
|
|
|
|
|
|
|
Level 3 financial instruments owned (1) (5)
|
|
|
|
$
|
579
|
|
|
|
$
|
527
|
|
|
|
$
|
495
|
|
Level 3 financial instruments owned - % total assets (1)
|
|
|
|
|
1.3
|
%
|
|
|
|
1.2
|
%
|
|
|
|
1.1
|
%
|
Level 3 financial instruments owned - % total financial instruments
owned (1)
|
|
|
|
|
3.0
|
%
|
|
|
|
2.8
|
%
|
|
|
|
2.7
|
%
|
Level 3 financial instruments owned - % tangible member's equity (1)
|
|
|
|
|
16.4
|
%
|
|
|
|
15.0
|
%
|
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Other data and financial ratios:
|
|
|
|
|
|
|
|
|
|
|
Total capital (1) (6)
|
|
|
|
$
|
11,193
|
|
|
|
$
|
11,269
|
|
|
|
$
|
11,219
|
|
Leverage ratio (1) (7)
|
|
|
|
|
8.0
|
|
|
|
|
8.1
|
|
|
|
|
8.0
|
|
Adjusted leverage ratio (1) (8)
|
|
|
|
|
10.1
|
|
|
|
|
10.4
|
|
|
|
|
10.4
|
|
Tangible gross leverage ratio (1) (9)
|
|
|
|
|
11.9
|
|
|
|
|
12.1
|
|
|
|
|
12.0
|
|
Leverage ratio - excluding impacts of the Leucadia transaction (1)
(10)
|
|
|
|
|
10.1
|
|
|
|
|
10.3
|
|
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of trading days
|
|
|
|
|
61
|
|
|
|
|
63
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
Average firmwide VaR (11)
|
|
|
|
$
|
13.27
|
|
|
|
$
|
12.75
|
|
|
|
$
|
16.27
|
|
Average firmwide VaR excluding Knight Capital (11)
|
|
|
|
$
|
9.29
|
|
|
|
$
|
8.77
|
|
|
|
$
|
12.64
|
|
Average firmwide VaR excluding Knight Capital and Harbinger Group
Inc. (11)
|
|
|
|
$
|
9.29
|
|
|
|
$
|
8.77
|
|
|
|
$
|
9.23
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees, at period end
|
|
|
|
|
3,936
|
|
|
|
|
3,915
|
|
|
|
|
3,838
|
|
|
|
JEFFERIES GROUP LLC AND SUBSIDIARIES
|
FINANCIAL HIGHLIGHTS - FOOTNOTES
|
|
(1)
|
|
Amounts pertaining to February 28, 2015 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 quarterly period ended
February 28, 2015.
|
|
|
|
(2)
|
|
At February 28, 2015, 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 $911 million, in
aggregate, and $396 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 at
November 30, 2014 were $1,057 million and $364 million, and at
February 28, 2014, were $1,130 million and $472 million,
respectively.
|
|
|
|
(3)
|
|
Tangible member's equity (a non-GAAP financial measure) represents
total member's equity less goodwill and identifiable intangible
assets. We believe that tangible member's' equity is meaningful for
valuation purposes, as financial companies are often measured as a
multiple of tangible member's equity, making these ratios meaningful
for investors.
|
|
|
|
(4)
|
|
Bache assets (a non-GAAP financial measure) includes Cash and cash
equivalents, Cash and securities segregated, Financial instruments
owned, Securities purchased under agreements to resell and
Receivables attributable to our Bache business.
|
|
|
|
(5)
|
|
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.
|
|
|
|
(6)
|
|
At February 28, 2015, November 30, 2014 and February 28, 2014, total
capital includes our long-term debt of $5,726 million, $5,806
million and $5,757 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). At February 28, 2015, November 30, 2014 and February
28, 2014, adjusted assets were $35,977 million, $36,906 million and
$36,273 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 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:
|
|
|
|
|
|
|
February 28,
|
|
|
November 30,
|
|
|
February 28,
|
$ millions
|
|
|
|
2015
|
|
|
2014
|
|
|
2014
|
Total assets
|
|
|
|
$
|
43,787
|
|
|
|
$
|
44,518
|
|
|
|
$
|
43,440
|
|
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
|
|
|
|
|
112
|
|
|
|
|
108
|
|
|
|
|
32
|
|
Total assets excluding transaction impacts
|
|
|
|
$
|
41,942
|
|
|
|
$
|
42,669
|
|
|
|
$
|
41,515
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
$
|
5,466
|
|
|
|
$
|
5,463
|
|
|
|
$
|
5,462
|
|
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
|
|
|
|
|
(20
|
)
|
|
|
|
(9
|
)
|
|
|
|
(36
|
)
|
Total equity excluding transaction impacts
|
|
|
|
$
|
4,145
|
|
|
|
$
|
4,153
|
|
|
|
$
|
4,125
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio - excluding impacts of the Leucadia transaction
|
|
|
|
|
10.1
|
|
|
|
|
10.3
|
|
|
|
|
10.0
|
|
|
(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, 2014.
|
|
CONTACT:
Jefferies Group LLC
Peregrine C. Broadbent, 212-284-2338
Chief
Financial Officer
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