Exit Costs

Jefferies Bache. On April 9, 2015, we entered into an agreement with Société Générale S.A. (the “Agreement”) to transfer certain client exchange and over-the-counter transactions associated with our Futures business for the net book value of the over-the-counter transactions, calculated in accordance with certain principles set forth in the agreement, plus the repayment of certain margin loans in respect of certain exchange transactions. The transfer is subject to customary closing conditions for a transaction of this nature. In addition, we initiated a plan to substantially exit the remaining aspects of our futures business. During the three months ended May 31, 2015, we have transferred about 50% of client accounts to Société Générale S.A. and other brokers. We expect to substantially complete the exit of the Bache business during the third quarter of fiscal 2015.

In addition, we expect to terminate our $750.0 million Credit Facility during the third quarter of fiscal 2015. At May 31, 2015, the remaining unamortized deferred origination costs were $2.2 million, which will be fully expensed during the third quarter of fiscal 2015.

During the three months ended May 31, 2015, we recorded restructuring and impairment costs as follows (in thousands):



	Three Months Ended May 31, 2015
Severance costs	$	15,559
Accelerated amortization of restricted stock and restricted cash awards	4,460
Accelerated amortization of capitalized software	6,260
Other expenses	2,291
Total	$	28,570

Of the above costs, $10.8 million are of a non-cash nature.

Restructuring costs are wholly attributed to our Capital Markets segment and were recorded in the following categories on the Consolidated Statement of Earnings for the three months ended May 31, 2015 (in thousands):



	Three Months Ended May 31, 2015
Compensation and benefits	$	20,019
Technology and communications	6,260
Professional services	2,033
Other expenses	258
Total	$	28,570

We expect to incur approximately an additional $48.6 million of restructuring costs through the remainder of fiscal 2015 in connection with our exit activities comprised of (1) severance and related benefits, including additional amortization for restricted stock and restricted cash awards and (2) contract termination costs.

The following summarizes our restructuring reserve activity (in thousands):



	Severance costs			Other costs			Total restructuring costs			Accelerated amortization of restricted stock and restricted cash awards		Accelerated amortization of capitalized software		Total
Balance at February 28, 2015	$	—		$	—		$	—
Expenses	15,559			2,291			17,850			$	4,460	$	6,260	$	28,570
Payments	(2,523		)	(1,518		)	(4,041		)
Liability at May 31, 2015	$	13,036		$	773		$	13,809